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KARNATAKAGOVERNMENTINSURANCEDEPARTMENT

BRIEFNOTEON

KarnatakaStateEmployeesGroupInsuranceScheme

Schemewasintroducedw.e.f.01.01.1982asperOfficialmemorandum
No.FD/80/SRP(CSC)81,Banagaloredated21stDecember1981.

Schemeiswhollycontributoryandselffinancing

SubscriptionisSTATUTORY,hencewillbedeductedinregularsalarybills.

SchemeisapplicabletoStateGovernmentEmployeesonly(Employees
ofAidedInstitutions,Localbodies,BoardsandCorporationarenot
eligible)Noindividualaccountingsystem.

Subscriptionisalwaysinadvance.

TherearetwofundsundertheScheme;InsuranceFund&SavingsFund.

OutofeveryRs.10subsdcriptionRs.3.125willbecreditedtoInsurance
fundandRs.6.875toSavingsfund.
IncaseofmemberretiringfromGovernmentservice,onlybalanceoutstanding
inthesavingsfundalongwiththeinterestwillbepaid.Nopaymentwillbe
madefromtheInsurancefund.
Apersonwhoisappointedonanydayotherthan1stofJanuarywillsubscribe
onlytotheinsurancefundandwillbecomearegularmember(contributingfor
bothinsuranceandsavingsfund)fromtheIstJanuaryofthenextyear.(i.ede
ductionfromthesalaryforthemonthofDecember)

NOprovisionforloansandadvances.

Employeesundertheschemeareclassifiedinto4groups.A,B,C&D.

Subscriptiontotheschemedependsongrouptowhichthememberbelongsto,
detailsareasunder.
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Groups(inRupees)
Slno. From To
D(unit1) C(unit2) B(unit3) A(unit4)
1 01.01.1982 31.12.1986 10 20 30 40
2 01.01.1987 31.12.1999 20 40 60 80
3 01.01.2000Onwards 60 120 180 240

On promotion to a higher Groups, subscription will be raised from the date of


next anniversary of the scheme. (i.e. deduction of higher rate of subscribtion
from the salary for the month of December, will be the subscription for the
monthofJanuaryofthenextyearinadvance).

Rateofinterest:Compoundingquarterly.

InsuranceFund Savings
Sl.no From To
Fund
1 01.01.1982 31.12.1984 5.5% 10%
2 01.01.1985 31.12.1987 5.5% 11%
3 01.01.1988 31.12.1998 5.5% 12%
4 01.01.1999 28.02.2001 4.5% 12%
5 01.03.2001 31.12.2003 3.5% 12%
6 01.01.2004 31.12.2006 3.5% 9%
7 01.01.2007Onwards 3.5% 8%

Headofaccount.
801100107001Insurancefund(payments&Reciepts)
801100107002Savingsfund(payments&Reciepts)
2049031080300240Debtservice(ForbudgetprovisionofInterest)

Fundbalanceason30062012

InsuranceFund :8,178.52Lakhs
SavingsFund :1,445,59.08Lakhs
ClosingBalancewithIntereastTotal:1,52,737.60Lakh

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PreparationofTables

1.FD/SRP/CSC/81dated21.12.19811.1.1982onwards10%
2.FD/18/SRP/(CSC)84dated1.1.19851.1.1985,,11%
3.FD/3/SRP/8)87dated28.12.19871.1.1988,,12%
4.FD/2/SAVIYO/92dated22.3.931.1.1993,, 12%
5. DE/5/Ai/97 AP 24.1.98 1.1.1998 -,,- 12%
6. DE/3/Ai/99 AP 19.5.2000 1.1.2000 -,,- 12%
7. DE/4/Ai/2004 AP 28.1.2005 1.1.2004 -,,- 9%
8. DE/01/Ai/2007 AP 20.9.2007 1.1.2007 -,,- 8%
9. DE/11/Ai/2011/AP 22.12.2011 1.1.2012 -- 8%