Home » » Group Insurance Scheme - Revised Rate of Interest on Fund-AP GIS Maturity values G.O.MS.No.111,dated.11.07.2017

Group Insurance Scheme - Revised Rate of Interest on Fund-AP GIS Maturity values G.O.MS.No.111,dated.11.07.2017

Employees Welfare Scheme – Andhra Pradesh State Employees Group Insurance Scheme – 1984 – Revised Rate of Interest on accumulated Savings Fund - Communication of Tables of Benefits for Savings Fund for the Period from 01.01.2017 to 31.03.2017-Revised Tables – Orders – Issued.

O R D E R:
In the reference 1st read above, orders were issued introducing Group Insurance Scheme to the State Government Employees in place of Family Benefit Scheme with effect from 01.11.1984. According to Para 9 of the reference 1st read above, the accumulations of Savings Fund part and Insurance Fund part shall carry interest at the rates prescribed by Government from time to time.
2. In the reference 2nd read above, orders were issued for apportioning the subscription of each unit of Rs. 10/- between Insurance Fund and Savings Fund in the ratio of Rs. 3.125 paisa and Rs. 6.875 paisa respectively.
3. In the reference 3rd above, orders were issued for revision of rate of subscription each unit from Rs. 10/- to Rs. 15/-. The apportionment of the subscription of each unit Rs. 15/- between Insurance Fund and Savings Fund was fixed in the ratio of Rs.4.50/- and Rs. 10.50/- respectively with effect from 01.11.1994. The amount of Insurance coverage will be Rs. 15,000/- for each unit of subscription in the reference 5th cited.
4. In the reference 8th read above, the Director of Insurance while enclosing the revised tables of the Group Insurance Scheme for first Quarter of the Calendar year 2017 with an interest rate @ 8% proposed simplified Table and stated that the above table is applicable to those who are retiring/deceased from 01.01.2017 to 31.03.2017 and he has also requested to issue following instructions that has to be followed scrupulously.

• The Sanctioning Authorities/Drawing and Disbursement Officers / Treasury Officers/ District Audit Officers / Pay and Accounts Officers / Director of Works Accounts are requested to keep in view
of the appended Table while sanctioning and making the final payments under Group Insurance Scheme.
• The Head of the Department / Drawing and Disbursement Officer shall be held responsible for sanctioning the Group Insurance Scheme final payments. If any excess payments are found, the
difference amount shall be collected from the sanctioning authority and such Officers are liable for disciplinary action.
• The Drawing and Disbursement Officer shall recover the correct rate of subscription according to the eligible group of the employees. For any excess / less recovery, the Drawing and Disbursement Officer concerned shall be held responsible.
• The Head of the Department concerned shall take action against the erring officials who are responsible for the excess / less recoveries wherever they are detected.
• Any excess payment made, if found during the Audit by the Directorate of Insurance, the same shall be immediately recovered from the concerned and remitted through Challan to the concerned
Head of Account by the Drawing and Disbursement Officer and the fact of remittance shall invariably be communicated to the Directorate of Insurance.
• If an employee’s subscription is not recovered during his/her Service Period, the total subscription along with interest shall be recovered from the payments admissible to them.
• All the Heads of Offices should take prompt action for recording the necessary subscription entries in the Service Registers of the employees under proper attestation every year and a certificate
shall be recorded in the Service Book of each employee that subscription to the Scheme at the appropriate rates have been recovered. The entries shall be attested by the Drawing and Disbursing Officer.
• As per G. O. Ms. No. 910, Finance (Admn.II) Department, dated: 28.10.2002. “Sanctioning authority shall send a copy of sanction orders of the Group Insurance Scheme Payment including calculation slip to the Directorate of Insurance for verification”.
5. In view of the above circumstances stated above and after careful examination of the matter, Government hereby order that, the revised rates of interest on the Andhra Pradesh Group Insurance Savings Funds shall be allowed at 8% per annum and these simplified Tables are applicable to those who are retired/deceased from 01.01.2017 to 31.03.2017. The Table is revised and issued for the periods covering from 01.01.2017 to 31.03.2017 to keep in align with the Government of India. (The revised Table is appended to the GO along with calculation Sheets). Further, it is ordered that instructions prescribed at para 4th read above, should be followed scrupulously
6. The Director of Insurance, Andhra Pradesh, Amaravati, Ibrahimpatnam shall take further necessary action accordingly and conduct a regular Audit of all claims paid under Group Insurance Scheme and send a report to the Head of the Department concerned.