case review

1. CASE REVIEW
Presented by:
Name - Monika Jain
Roll No. - 174
ASODR 261

2. CASE
Shri Tarek Firdousi that deduction from his pay towards
Central Government Group Insurance Scheme may be
stopped and deductions made during the last few months
may be paid back to him. His grounds are that he never
asked for this deduction and he is not at all interested in it
so the government cannot forcibly deduct this amount
from his monthly emoluments.

3. Issues Involved
 The question is that an employer want
to opt out of CGEIS (Central
Government employees insurance
scheme).
 He want payment return which is
deducted under this scheme.
 Whether scheme is optional or
mandatory?

4. Rule
• "Central Government Employees Group Insurance
Scheme, 1980" means the Group Insurance
Scheme detailed in the Annexure to the Ministry of
Finance (Department of Expenditure) O.M. No.
F.15(3)/78-WIP, dated the 31st October, 1980 and
as set out in the Schedule.
• This scheme is for all government employee
including canteen employee excluding armed forces.
• It came into force from 1st January,1982. This
scheme provides for the Central Govt. employees
the two fold benefit viz. (1) insurance cover to help
their families and (2) lump sum payment to augment
their resources on retirement.

5. Amount deducted under this scheme
 30% of the subscription will go to insurance Fund
and 70% will go to saving Fund.
Group of
employee
Subscription per month (Rs) Amount of
Insurance cover
(RS)
From date of joining to
succeeding 1st
January
From succeeding
1st January
A 40 120 1,20,000
B 20 60 60,000
C 10 30 30,000
D 5 15 15,000

6. Interpretation of Rule
 All those `employees' entering Central
Government service after 1st Nov., 1980 will be
compulsorily covered under the `scheme'.
 Those who are joining on 1st January they are
eligible for both insurance and saving fund.
 Those who are joining after 1st January they are
eligible for insurance fund upto 1st January of next
year and after that they eligible for both.
 Amount deduction under this scheme is not
refundable until on death or on retirement.

7. Reference
 THE ALL INDIA SERVICES (GROUP
INSURANCE) RULES, 1981, by sub-section
(1) of section 3 of the All India Services Act,
1951 (61 of 1951)
 Group Insurance Scheme detailed in the
Annexure to the Ministry of Finance
(Department of Expenditure) O.M. No.
F.15(3)/78-WIP, dated the 31st October,
1980

8. Conclusion
 According to rule given in the Annexure
to the Ministry of Finance (Department of
Expenditure) O.M. No. F.15(3)/78-WIP,
dated 31st October, 1980, it is
mandatory for all central government
employee.
 So can not skip this scheme.
 And the deducted amount will not be
returned.
 The beneficial amount only given at the
time of death or retirement.

9. Thank you