The ‘Group Insurance Scheme, 1980’ which came into existence
w.e.f. 01.01.1982, provides for the Railway Employee on a wholly contributory
and self financing basis, the twin benefits of an Insurance cover to help their
families in the event of death during service and a lump sum payment to augment
their resources on retirement. The subscription is partly credited to an
‘Insurance Fund’ (70%) and partly to ‘Saving Fund’ (30%). From Insurance Fund,
payment is made for insurance cover in case of death while portion of
subscription credited to this fund with interest thereon is paid to the
employee on retirement or to the family, if he dies while in service.
Scale of Insurance Amount
|
Group Of Employee
|
Amount of Insurance payable in the event of death in service (Rs.)
|
Rate of Subscription
(Rs.)
|
|
A
|
120000
|
120
|
|
B
|
60000
|
60
|
|
C
|
30000
|
30
|
|
D
|
15000
|
15
|
Nomination:
Nomination Every Railway Employee, who is a member of this
scheme, shall exercise a nomination in favour of a member of his family. In
case of an employee who has no family, the payment will be made to the person
who had been nominated for this purpose by the Railway Servant. If no
nomination is made by an employee who has no family, the amount will be paid to
the person who produces Succession Certificate.