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.