CGEGIS – Central Government Employees Group Insurance Scheme, 1980
v Commencement of CGEGIS - 01.01.1982
v Compulsory for staff who have joined on or after 01.11.1989
v Object: Provides twin benefits to Central Govt employees, at a Low cost. It is wholly contributory and self financing.
1. Insurance cover on account of death of employee
2. Lump sum amount from Savings Fund on the date of Retirement
v Recoveries towards CGEGIS credited to the Public Account of India.
v All employees who enter service on or after 2nd January of any year shall be enrolled as members of Scheme on the next anniversary of the Scheme (i.e., from 01st January of Next year)
v Calendar year i.e., January to December is the criteria for calculation of CGEGIS.
v Authority for Recovery of Rs. 30 (on par with Group C staff) to erstwhile Group D staff with Grade pay 1800. W.e.f from 01.01.2011 : Authority
v Monthly Recovery amount (One unit equals – Rs. 15) - W.e.f 01.01.1991
Example: If an employee joined on or after 2nd January of any year.
ü A Group C employee joined service on 03.01.2019. He will be enrolled for the said scheme with effect from 01.01.2020 only.
The recovery is Rs. 4.50 per cover of Insurance of Rs. 15,000. That means recovery from Group C employee is Rs. 9 from January 2019 to December 2019, because insurance cover of Group C is Rs. 30,000 (Rs. 4.50 x 2 )
ü Rs. 4.50 per every Rs. 15000 insurance cover consists of contribution to Insurance Fund only.( Not Savings Fund)
ü However from 01.01.2020, the recovery is Rs. 30 per month from Group C employees. (contribution to Insurance Fund as well as Savings Fund )
Example: If an employee is promoted on or after 2nd January of any year.
ü If Group C employees are promoted to Group B Post on 5th February 2019.
ü Rate of recovery of CGEGIS is Rs. 30 only, till 31.12.2019. It will enhance from Rs. 30 to Rs.60 from 1st January, 2020 only.
v Ratio of Insurance Fund to Savings Fund is 30% to 70% (so for Group C post, it is Rs. 9 :Rs.21 towards Insurance Fund and Savings Fund respectively.)
v Payments from CGEGIS
1. At the time of Retirement : Contribution to the Savings Fund and Interest accrued
2. At the time of Death : Contribution to the Savings Fund and Interest accrued as well as Insurance cover i.e., Rs. 30,000 , Rs. 60,000 & Rs. 1,20,000 towards Group C, Group B and Group A respectively
Key takeaways for MCQ on CGEGIS
CGEGIS stands for Central Government Employees Group Insurance Scheme
Commenced from 1st January, 1982
Compulsory for those who joined on or after 1st November, 1989
Recoveries are credited to the Public Account of India (not Consolidated Fund of India). Because it belongs to the Public (Employees), not Government of India.
All employees who enter service on or after 2nd January of any year - Members of this scheme from next year only, not the current year.
Calendar year i.e., January to December - Criteria
One Unit equals Rs.15.
Group A - Rs.120 (8 Units)
Group B - Rs. 60 (4 Units)
Group C - Rs. 30 (2 Units)
Insurance Fund - 30 % and Savings Fund - 70 %
At the time of Retirement : Contribution to the Savings Fund and Interest accrued
At the time of Death : Contribution to the Savings Fund and Interest accrued as well as Insurance cover
Insurance coverage is as follows:
Group A - Rs. 120000 (100 times of monthly recovery Rs. 120)
Group B - Rs. 60000 (100 times of monthly recovery Rs. 60)
Group C - Rs. 30000 (100 times of monthly recovery Rs. 30)