Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com ACCOUNTING PROCEDURE RELATING TO CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1980 AS EXTENDED TO ALL INDIA SERVICES CONTENTS 1. 1 2. 2 3. Maintenance of list of members 4. Recovery of Subscriptions 5 . Remittance to Central Govt. of amounts of subscriptions recovered from salary bills of officers of State Cadre serving in State 6. Payment of dues to the beneficiaries 7. 7 8. 8 9. 9 ACCOUNTING PROCEDURE RELATING TO CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1980 AS EXTENDED TO ALL INDIA SERVICES aa. [M. Finance CCA OM No. S. 11013/2/81-TA/3845, dated 26th December, 1981.] ACCOUNTING PROCEDURE RELATING TO CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1980 AS EXTENDED TO ALL INDIA SERVICES 1. 1 :- The All India Services (Group Insurance) Rules, 1981 , framed under the All India Services Act, 1951, were notified in the Gazette on 10th November, 1981 vide Notification No. 11024/l/81-AIS(II), dated 10th November 1981. In view of the provisions contained in rule 3 of these Rules, the Central Government Employees Group Insurance Scheme, 1980, as applicable to officers of Central Civil Services Group 'A' shall mutatis mutandis apply to the members of All India Services w.e.f. 1 January, 1982. 2. 2 :- According to proviso to rule 3 read with Department of Personnel and A.R. Circular No. 11024/3/81-AIS(II), dated 10th November, 1981, a member of the Service is required to submit an option in triplicate to the State Government/U.T. Administration in the prescribed torm. One copy of the option shall be retained by the State Government/U.T. Administration in their custody and the other two copies will be sent to the Ministry of Home Affairs DP and AR), New Delhi. Out of this, one copy shall be sent by the latter to the Pay and Accounts Office, functioning under Controller of Accounts. D.P.A.R. (hereinafter referred to as P.A.O., D.P.A.R.) for record and reference. 3. Maintenance of list of members :- A list of members of the All India Services subscribing to the Insurance Scheme will be drawn up by the Department of Personnel and A.R. (D.P.A.R.) as on 1st January, 1982, to\\vhich will be added list of officers (direct recruits) appointed to the service and those appointed to the service on promotion under sub- rule (1) or (2) of rule 8 of the IAS (Recruitment) Rules, 1954, sub- rule (1) of R.9 of the IPS (Recruitment) Rules, 1954, or sub-rule (1) of R.8 of the IFS (Recruitment) Rules, 1966, on or after 1st January, 1982 and who are subscribing to the Scheme and the casualties etc., arising from time to time shall be deleted. This will be recorded by the D.P.A.R. in a special register service-wise keeping separate folios for the cadre of each State and for the cadre of Union Territories as a whole. This register in respect of members of the Indian Police Service and Indian Forest Service shall be retained by the D.P.A.R. till the work relating to these two services is transferred to the Ministry of Home Affairs (Police Division) and the Ministry of Agriculture (Department of Agriculture). 4. Recovery of Subscriptions :- 4.1 Each State Govt./U.T. Administration shall be responsible for the recovery of subscriptions under the scheme from members of the Service who arc to subscribe in terms of the Scheme envisaged in the A.I.S. (G.I.) Rules, 1981. The monthly deductions to be made from the salary bills of the A.I.S. Officers covered by the scheme on account of the subscriptions, will be classified in the bills, as indicated below. This will be effective from the salary bills f or January 82, payable on 1st February, 1982 or on the last working day of January 82. (a) In respect of officers of a State Cadre serving in the State, the deductions will be classified under the major etc., head of account. 858-Suspense Accounts -A.I.S. officers Group Insurance Scheme - Subscriptions pending its adjustment against advance payment made by the State Government to the Central Government (PAO, D.P.A.R.) in the manner indicated in Para 5.1 below. (b) Recoveries from members of the scheme belonging to a State Cadre effected in the Central books while on deputation with the Central Government, shall be classified as under: 858-Suspense Accounts -PAO Suspense -Items adjustable by the Accountant General on account of Group Insurance Scheme. These recoveries, along with similar recoveries on account of G.P.F subscriptions etc., arising in the central books shall be settled with the State Accountant General concerned by issue of Crossed Government Account cheques by the Central P.A.O. On receipt of the valuable, the Accountant General of the State concerned shall classify the receipt to the head of account indicated at (a) above. (c) In respect of members of the scheme belonging to a State Cadre placed on foreign service in India or abroad, watch over the recovery of the subscriptions, which will be initially made by the foreign employer, shall be kept by the Accounts Officer of the State concerned who is responsible for watching the P.P. subscriptions of the officer. These, on receipt by cheque or bank draft, will be credited to the head of account indicated at (a) above in the State section of accounts. (d) Deductions under this scheme from members belonging to U.T. Cadre, effected while serving under any U.T. Government/Administration or while on deputation with the Central Government, will be classified under the major, head of account etc., indicated below in the Central Section of books of the Accounts Officer concerned. 811-"-Insurance and Pension Funds - Central Government Employees Group Insurance Scheme (e) In respect of U.T. cadre members on foreign service in India or abroad, watch over receipt of subscriptions by way of bank drafts from the foreign employers, shall be kept by the PAO (Sectt.) functioning under the Controller of Accounts, -Delhi Administration who is already responsible for maintaining the GPF accounts of such officers and shall classify the same under the head of account indicated at (if) above. (f) In respect of U.T. cadre members on deputation other than to Central Government, deductions under the scheme appearing in the bills shall be classified under the major etc., head of account. (g) In the case of member of All India Services working in the Academy etc., and the All India Service probationers undergoing training the following procedure may be followed :- (i) Members of All India Services borne on a State/Joint Cadre, other than Union Territories cadre, working in the Academy etc.- The subscriptions recovered from the pay bills of these officers should not be credited to the account of the Central Government. The same will have to be passed on to the State Government/Accountant General concerned in the manner in which provident fund contributions recovered from them arc transferred in terms of para 4.1(b) above. (ii) Members of All India Services borne on the Union Territories Cadre working in the Academy etc.-The subscriptions collected from these officers should be credited to the Central Government account, namely, 811-Insurance and Pension Funds-Central Government Employees Group Insurance Scheme. Every month information should be sent to the Pay and Accounts Officer, DPAR, about the subscriptions recovered from these officers and credited to the Central Government account in terms of para 7.3 et. seq. (iii) Probationers undergoing training.-In the case of All India Service probationers joining the Academy etc. directly for training i.e., before joining their State of allotment, the insurance premium at the rate of Rs. 24 p.m.. or subscription at the composite rate of Rs. 80 p.m., as the case may be, shall be recovered from the payments made to the probationers and shall be credited to the Central Government account, namely, 811-Insurance and Pension Funds-Central Government Employees Group Insurance Scheme. Every month necessary information shall be sent to the P and A.O., DPAR, about the premium/subscription recovered from the probationers. If a probationer joins the Academy etc. for training after first reporting to the State/Joint Cadre of his allotment, the premium or subscription, as the case may be, recovered from him should not be credited to the Central Government account; it should be passed on to the State Government/Accountant General concerned in the manner indicated at (!) above. When a probationer moves from LBSNAA to SVPNA/FRI or vice versa, the former shall issue a certificate to the latter indicating the period during which premium/subscription has been collected from him and whether it was credited to the Central Government account or passed on to the State of allotment. A similar certificate shall also be issued when a probationer moves from any of these institutions to their State of allotment. (h) In respect of a State Cadre member on deputation to another State Government, the deduction under the-Insurance Scheme shall be made along with other recoveries like GPF/Advances etc., through monthly bills. The Accountant General of the borrowing State will classify these recoveries under the suspense head "893- Inter-State Suspense Account' and pass on all credit recoveries to the A.G. of the parent State for adjustment/linking at his end. 858- Suspense Accounts -PAO Suspense -Items adjustable by PAO (Sectt.), Delhi Administration on account of Group Insurance Scheme. These recoveries, alongwith similar recoveries on account of GPF subscriptions etc. shall be settled by the Accounts Officer concerned with the PAO (Sectt.) functioning under the Controller of Accounts, Delhi Administration by issue of a Crossed Government Account Cheque etc. On receipt of the valuable the PAO (Sectt.) of Controller of Accounts, Delhi Administration shall classify the same to the head of account indicated in (d) above. 4.2 In respect of members of the scheme placed on deputation with Central Govt. or on foreign service etc., a suitable indication should be given in the L.P.C. being issued by the appropriate authorities, about the recoveries made till then during the year, and the month from which/rate at which recoveries are to be effected on this account thereafter as well as the date on which he became a member of the Scheme. 5. Remittance to Central Govt. of amounts of subscriptions recovered from salary bills of officers of State Cadre serving in State :- 5.1 It has been decided that against the recoveries to be effected from the salary bills of the A.I.S. etc. officers serving in the State and those of the State Cadre on deputation or on foreign Service, all of which will be credited to the State accounts under the suspense head referred to in para 4.1(a) above. The State Govts. should arrange to remit in one lump sum the amounts on the last working day of every month (commencing from January 82) (except that remittance in respect of March pay bills may be made in the 1st week of April) by cheque/demand draft to the P.A.O. of D.P.A.R. working under the Controller of Accounts, D.P.A.R., Ministry of Home Affairs, by adopting the following method of Computation indicated in (a) and below and arriving at the total amounts. (a) The number of members of the Service covered under the scheme who are serving in the State or on deputation or foreign service and who are to subscribe at the composite rate of Rs. 80 p.m. may be multiplied by 80 to arrive at the total subscription due (covering Insurance portion and savings portion). (b) The number of such members of the Service (serving in the State or on deputation or foreign service) as on the last day of the relevant month (2nd in the case of January), who are required to subscribe only to the premium for insurance cover at Rs. 24 p.m., may be multiplied by 24. The amount required to be remitted in this manner, may be drawn through a bill upon the treasury/State H ead Quarter's P.A.O. by a designated drawing officer in the department of the State Govt. administratively or otherwise dealing with the movement/events etc. relating to the A.I.S. officers of the State such as the Home Deptt., the General Administration Deptt., the Chief Secretariat etc. The designated Drawing Officer, who may be nominated by the State Government for the purpose, may after ascertaining the details required for the amount to be remitted in the manner indicated in (a) and (6) above in respect of all the members of A:I.S. of the State, draw a bill for the amount classifying the same under "858-Suspense Accounts-A.I.S.officers Group Insurance Scheme-Payment to the Central Govt. of the subscriptions in respect of A.I.S. officers Group Insurance Scheme*. The amount of the bill should be obtained in the form of a crossed account payee demand draft in favour of the P.A.O. (D.P.A.R.) New Delhi in the Ministry of Home Affairs, and sent to him by the designated drawing officer with a covering schedules indicating the No. of officers in each cadre (IAS/IPS/IFS) for whom the remittances as computed in (a) and in (ft) above are sent. The remittance should be made on the last working day of each month, commencing from January, 1982 (First week of April in respect of recoveries relating to March). 5.2 The credit on account of the subscriptions recovered from the officers and adjusted intially in the State books of the As. G. with reference to the accountal of the salary vouchers of the A.I.S. officers, and the cash recoveries effected in respect of officers on deputation or on foreign service, which will appear under the suspense minor/sub-head "A.I.S. officers Group Insurance Scheme- Subscriptions", under '858' should periodically and at the close of each financial year be equal to the debits on account of the payments which will be appearing under the minor/sub-head "A.I.S. officers Group Insurance Scheme-Payments to the Central Government of subscriptions in respect of the A.I.S. officers Group Insurance Scheme" under the same major head, with reference to the accountal of the vouchers in respect of the bills referred to para 5.1 above. A reconciliation of these credits/debits to ensure their equality periodically and at the close of the financial year, wilt be ensured by the As. Gin consultation with the concerned administrative department of the State Government under whom the designated Drawing Officer is working, and by keeping a suitable broadsheet. 5.3 The demand drafts received from the designated drawing officers every month by the P.A.O. (D.P.A.R.) will be credited by him in his books under the head "811-Insurance and Pension Funds-Central Government Employees Group Insurance Scheme' under the appropriate sub-heads Savings Fund/Insurance Fund. 6. Payment of dues to the beneficiaries :- 6.1 If a member of the Service retires from service on attaining the age of superannuation or dies while in service (whether actually serving under the State Government or on foreign service but other than on deputation with Central Government) or otherwise ceases to be a member of the Service the designated Drawing Officer of the State Government concerned shall take action to obtain a pre receipted claim from the beneficiary (beneficiaries) in the proforma at Annexure III, fill in necessary details therein (enclose a duly attested copy of the death certificate in the case of claims arising due to death of a member) and forward it to the D.P.A.R. in the Government of India. The latter shall verify the details including entitlement under Savings Fund etc. with reference to the documents available with them vide Para 3 above and submit the bill to the PAO (DPAR) for payment. The P.A.O. shall exercise necessary usual checks and also with reference to the record maintained by him and will draw a crossed cheque/crossed bank draft in favour of the officer concerned or nominee(s) or legal heir(s) as the case may be, and send it to the Drawing Officer in the DPAR who shall arrange to transmit the same to the Designated Officer of the State Government. The latter shall be responsible to hand over the valuable to the Officer/nominec(s) etc. as the case may be, against necessary acknowledgement. In the case of those retiring from service on superannuation, the claim for payment from the Savings fund shall be prepared and submitted three months prior to the actual date of retirement. In all other cases, such claims shall be preferred as soon after the date of quitting service by the member or death as possible. NOTE.-A claim arising in the case of a member of the Scheme while on deputation to the Government of India, shall be processed through D.P.A.R. and its P.A.O. (who shall exercise necessary prechecks), by the P.A.O. of the Central Government Ministry/Department in which the Officer was serving at the time of the relevant event under intimation to the designated officer of the State/U.T. Government concerned. Suitable entry shall be made in Col. 6 of Annexure I-Parts II and III. The Payment would be classified under the respective sub- heads below Major etc. heads indicated below: 811-Insurance and Pension Funds Central Government. Employees Group Insurance Scheme Insurance Fund (Sub-head) Savings Fund (Sub-head) 6.2 Provision of para 6.1 and note thereunder shall be applicable mutatis mutandis to claims pertaining to members of the All India Services borne on the Union Territories Cadre. 6.3 When an occasion arises for making payment under the Scheme in the case of probationers undergoing training or members of the Service working in the L.B.S. National Academy of Administration etc., the calim shall be processed by the concerned institute in consultation with the Department of Personnel and Administrative Reforms and under intimation to the State Government concerned in terms of the note under paragraph 6.1 above. 7. 7 :- 7.1 The Pay and Accounts Officer, Department of Personnel and A.R. shall credit the amounts received in terms of Paragraph 5.1 above to the head of account "811-Insurance and Pension Funds- Central Government Employees Group Insurance Scheme* and keep a note of the amount realised from each State Government etc. service-wise in a register (part I of the Proforma at Annexure) with separate folios for each State. 7.2 During the first week of each year the Department of Personnel and A.R. shall furnish a list (service-wise) indicating the total number of officers who arc members of the Scheme and borne on each State Government Cadre as on 1st January and also indicating how this is worked out with reference to the opening balance as on 1st January of the preceding year. Additions/deletions each month during the year should also be furnished similarly in the first week of the following month. Similarly the number of officers (Cadre and service-wise) who are required to subscribe towards insurance cover only during each month of the year should be furnished by the D.PA.R. to its Pay and Accounts Office, during the first week of every month. The credits realised each month from each State will be verified with this list by the Pay and Accounts Office. D.P.A.R. to ensure that actual credits due each month have been received from the States concerned. Any discrepancy shall be taken up with the State Government/A-G. concerned under intimation to the D.P.A.R. 7.3 The Accounts authority of each Union Territory Administration shall furnish every month necessary information to the P.A.O., D.P.A.R. about the total subscription credited during the month indicating the number of officers service-wise who contributed at the composite rate (Rs. 80) and who contributed at the insurance rate only (Rs. 24) so as to enable him to maintain details in the prescribed proforma. P.A.O., D.P.A. R. shall tally the details received from various accounts authorities with those received in terms of paragraph 7.2 above and cases of discrepancy, if any, shall be settled with D.P.A.R. and accounts authorities concerned. 7.4 PAO, D.P.A.R. shall maintain registers in the proforma at Annexure I for preparing annual reports prescribed for the purpose. The annual report in the form as at Annexure II shall be prepared by him (with the assistance of D.PA.R. wherever necessary) and submitted to the organisation of the Controller General of Accounts so as to reach them by the 10th February every year from 1983 onwards. 8. 8 :- The functions of the Pay and Accounts Officer, Department of Personnel and A.R. as set out above in the case of members of the Indian Police Service and Indian Forest Service shall be performed by the Pay and Accounts Office. (Sectt.) Ministry of Home Affairs (Department of P. and A.R.) and the Pay and Accounts Office (Sectt.) Ministry of Agriculture (Department of Agriculture) after the work pertaining to these two services are transferred to them. 9. 9 :- Organisation of the Controller General of Accounts will perform functions stated in paras 8, 10 and 11 of the Appendix to O.M. No. S. 1113/2/81-C/2907, dated 22nd September, 1981 of Ministry of Finance, (Department of Expenditure) Controller General of Accounts after taking into account the receipts, payments and other information following from the scheme as extended to All Indian Services.