G.I., Department of Posts, No. 23-5/87-LI, dated the 24th March, 1992 Date of effect- Extra-Departmental Agents’ Group Insurance Scheme, 1992, hereinafter referred to as the ‘scheme’ as notified will come into force with effect from 1-4-1992( 1st of April, 1992).

  1. Objective – The scheme is intended to provide for the ED Agents of the Department of Posts, at a low cost and on a wholly contributory and self-financing basis, the twin benefits of an Insurance Cover to help their families in the event of death while in service and a lumpsum payment to augment their resources on completion of service in the Department.
  2. Application -The ‘Scheme’ shall apply to all Extra-Departmental Agents (EDAs) of the Department of Posts.
  3. Membership
    1. The ‘Scheme’ will be compulsory for all those EDAs employed after the date of introduction of the ‘Scheme’.
    2. The ‘Scheme’ will be optional for those EDAs already in service on the date of introduction of the ‘Scheme’. The proforma for option is given in Annexure-I.
    3. The option once ‘exercised’ ( or ‘not exercised’) will be treated as final and no further choice will be available. The last date for exercising ‘option to join’/ ‘ option out of the scheme’ by the EDAs employed on or before 31-3-1992 is 30-6-1992.
    4. The minimum age of entry to the ‘Scheme’ will be 19 years and maximum will be 50 years of age as on 1-4-1992.
  4. Recovery of monthly subion
    1. In order to provide an Insurance Cover of ₹. 10,000 (Rupees Ten thousand), a monthly subion of ₹. 10 (Rupees ten) will be deducted from the salary bills of EDAs.
    2. The subion shall be recovered every month including the month in which an EDA ceases to be in employment on account of retirement, death, resignation, removal, etc., from service.
    3. For the periods when the EDA is not on duty, he will be personally responsible to credit his premia in cash. In case of default, the arrear subion with interest at the rate of ₹ 1 per month of default will be recovered from the salary of the EDA as and when he joins duty and draws salary.
    4. If an EDA dies when not on duty before recovery of premium, the arrears of subion due from him will be recovered with interest as indicated at (iii) above from the amount of benefits payable to his legal heir/ nominee.
  5. Financing of Scheme – The Scheme would be self-financing, i.e., the entire amount of administration expenses, if any, will be borne out of the insurance fund.
  6. Loan or withdrawal from Fund – There will be no provision for loan/ withdrawal from this ‘Scheme’ fund. No bonus will be given to member of this ‘Scheme’.
  7. . Management of Fund – The fund will be called Extra-Departmental Agents’ Group Insurance Fund. This will be maintained separately and will have no connection with the Post Insurance Fund.
    The fund will be maintained by Department of Posts, with the advice and guidance of an Actuary on retainer basis as applicable to the Post Office Insurance Fund.
  8. Payment from Insurance Fund/ Savings Fund – The ‘Scheme’ has got two funds, namely, Insurance Fund and Savings Fund, vide apportionment of Para.13 below. The mode of payment from respective funds are as under –
    1. The amount of Insurance Cover will be ₹. 10,000 (Rupees Ten thousand) for each unit of subion of ₹. 10 (Rupees Ten) p.m. It will be paid to the families of those EDAs who unfortunately die, due to any cause, including suicide, while in service.
    2. The total accumulation of savings together with interest, to be decided from time to time, will be payable to the member on his retirement after attaining the age of superannuation or cessation of his employment with the Department or to his family after his death while in service.
    3. In the case of death of a member while in service, the payment of amount of insurance will be in addition to the payment from savings fund.
  9. Nomination – The Head Office will obtain a nomination in the prescribed form (Annexure-II) from the EDAs who join the ‘Scheme’ nominating one or more persons who will be beneficiary of the amount due from the ‘Scheme’ in the event of death of the insured person. If nomination is in favour of more than one person, then the insurant should specify the share payable to each nominee.
  10. Accounting procedure -
    1. The transaction relating to the ‘Scheme’ shall be accounted in accordance with the procedure laid down separately.
    2. The Government dues recoverable from a member of the ‘Scheme’ shall not be adjusted from the amounts payable under the ‘Scheme’.
  11. Sanction of claims – The sanction of claims will be issued by the respective Division Superintendents/ Gazetted Postmasters on the basis of credits certificate furnished by the Head Postmasters concerned.
    The claims will be processed by the Head Post Offices concerned.
  12. Other feature of the Scheme
    1. No medical examination will be necessary to join the ‘Scheme’.
    2. Every EDA will be insured on ‘as is where is’ basis subject to age restriction.
    3. On the absorption/ Promotion in the Department, the savings component will be paid to the EDA concerned and he will cease to be a member of the ‘Scheme’ from the date of the absorption/ Promotion.
  13. Savings and Insurance proportion – Out of the monthly contribution of ₹. 10 (Rupees Ten), ₹. 3.50 and ₹. 6.50 will go to the Insurance Fund and Saving Fund respectively on the ‘Scheme’.
    The amount of ₹. 10(Rupee Ten) is subject to revision after the ‘Scheme’ work for 18 months and the ‘Actuary’ is able to carry out a valuation. The break-up of saving and insurance portions will also finally be decided in accordance with the results of the proposed actuarial valuation.
  14. Interpretation and clarification – In the actual implementation of the ‘Scheme’, if any doubt arises in regard to interpretation of any of the provisions of this ‘Scheme’ or if any point requires clarification, the matter may be referred to the PLI Branch of the Directorate, Department of Posts, Dak Bhawan, New Delhi-110001.
  15. Review of the ‘Scheme’ - The working of the ‘Scheme’ will be reviewed every three years to ensure that the ‘Scheme’ remains self-financing and self-supporting.



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