Monthly Group Insurance Scheme
The 7th Pay Commission suggested a Monthly Group Insurance Scheme with coverage of Rs. 50 lakh, 25 lakh, and 15 lakh for group A, B, and C employees respectively. However, the Union Cabinet rejected the significant increase in monthly contribution proposed by the 7th CPC, thus avoiding a financial burden on the government. The recommendations have not been implemented.
Ministry of Finance
Department of Expenditure
LOK SABHA
UNSTARRED QUESTION NO.634
TO BE ANSWERED ON FEBRUARY 6, 2023/ MAGHA 17, 1944 (SAKA)
Monthly Group Insurance Scheme
QUESTION
634: Shri Hazi Fazlur Rehman:
Will the Minister of Finance be pleased to state:
a) whether the Seventh Pay Commission inter-alia recommended to provide Rs.50 lakh, 25 lakh and 15 lakh to group ‘A’, ‘B’ and ‘C’ employees respectively under Monthly Group Insurance Scheme and if so, the details thereof;
b) whether any financial burden has increased on the Government after adoption of the said recommendations;
c) if so, the details thereof;
d) if not, whether these recommendations have been adopted by the Government;
e) if so, the details thereof; and
f) if not, by when it is likely to be adopted?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHOUDHARY)
(a) Yes Sir. The 7th CPC recommended for following rates of CGEGIS:
| Level of Employee | Monthly Deduction (₹) | Insurance Amount (₹) |
|---|---|---|
| 10 तथा अधिक | 5000 | 50,00,000 |
| 6 से 9 | 2500 | 25,00,000 |
| 1 से 5 | 1500 | 15,00,000 |
(b) to (f) The Union Cabinet decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS), as recommended by the 7th Central Pay Commission. Since, the above recommendations were not accepted by the Cabinet, the financial burden on the Government does not arise.