Accidental Insurance Policy for J&K Govt employees renewed for 3rd year

Deduction of premium of Rs 346 from salaries to begin from Dec
Accidental Insurance Policy for J&K Govt employees renewed for 3rd year
As per the terms and conditions stipulated, the policy will cover an aggregate of more than 3.50 lakh employees of the J&K government.File/ GK

Jammu: Finance Department on Monday accorded sanction to the renewal of the Group Personal Accidental Insurance Policy with the Messrs Oriental Insurance Company Limited for J&K government employees for the third year.

In this connection, all the Drawing and Disbursing Officers (DDOs) of the government have been instructed to deduct Rs 346 as premium from all categories of employees from the salaries of December, 2021 on compulsory basis.

The beneficiaries of the policy will comprise both the gazetted and the non-gazetted government employees, including the employees of Public Sector Undertakings (PSUs), autonomous bodies, Local Bodies, universities, daily rated workers, consolidated, contractual, contingent paid workers, ad hoc employees and SPOs.

According to Financial Commissioner (Additional Chief Secretary) Finance Department Atal Dulloo, the policy will commence from midnight December 2, 2021 to December 1, 2022, as per the agreement already executed between the Government of Jammu and Kashmir and Messrs Oriental Insurance Company Limited on the same terms and conditions.

As per the terms and conditions stipulated, the policy will cover an aggregate of more than 3.50 lakh employees of the J&K government.

“The sum assured under this policy will be Rs 10 lakh per employee against payment of a yearly premium of Rs 345.74 rounded off to Rs 346 inclusive of GST at the rate of 18 percent i.e., Rs 52.74. The amount so deducted from the salaries or wages etc., of the employees shall be credited to the major head 8235 - General and other Reserve Funds and minor head 105- General Insurance Fund (Janta Insurance),” Dulloo stated.

Similarly, the DDOs of PSUs, autonomous bodies, Local Bodies and universities will remit the amount of Rs 346 inclusive of GST at the rate of 18 percent i.e., Rs 52.74 through challan against major head in government treasuries in respect of their employees for being covered under the scheme on or before January 15, 2022 positively.

The DDOs have also been instructed to furnish the copy of challan along with the list of the employees to the Nodal Officer Group Personal Accidental Insurance Policy Finance Department civil secretariat at Jammu and Srinagar immediately.

“However, wherever due to any administrative or financial problem, the DDO could not deduct the premium of his employee(s) from the salary of the month of December 2021, he shall immediately deposit or remit the prescribed premium against the proper Head of Account in the concerned treasury through challan after collecting the premium from the left out employees to bring them under the Insurance coverage. It shall be the primary responsibility of the concerned DDO not to leave out any employee without deduction of prescribed premium for coverage of the Accidental Insurance policy,” Dulloo further instructed.

It was, however, specified that the inclusion under this policy would “not confer any rights other than accidental insurance whatsoever as per terms and conditions laid down.”

The Finance Department, through same order, also sanctioned the advance drawal of an amount of Rs 12,10,09,000 at the rate of Rs 345.74 per employee under major head 2235 - Social Security & Welfare; minor head 105- Government Employees Insurance Scheme; group head 0099 – General; sub head 0323 -State Contribution for Group Insurance and detailed head 009 - RRT by the Director Resources, Finance Department.

The amount will be meant for subsequent release to Messrs Oriental Insurance Company Ltd as a premium for policy for 3.50 lakh employees of the government of Jammu & Kashmir for a period of one year from the date of payment of premium.

However, the excess or shortage of the premium paid to the Insurance company will be adjusted in the month of July 2022, after receiving the consolidated details of total number of employees who have contributed the premium towards the instant policy from the Director General Accounts & Treasuries, J&K, Dulloo directed.

Greater Kashmir
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