Employees to get Insurance Cover

Govt enters into agreement with Oriental company 4.5 lakh employees to get accidental insurance cover

In an important decision that would benefit over 4.5 lakh employees of the State Government, Public Sector Undertakings (PSUs), autonomous bodies including Local Bodies and Universities and all daily rated workers engaged before January 31, 1994, the Government today entered into a Memorandum of Understanding (MoU) with Oriental Insurance Company Limited for accidental death and disability insurance cover for the employees.

The MoU under ‘Group Janta Personal Accidental Insurance Policy’ for a period of three years was signed between the State Government and Oriental Insurance Company Limited few days back and would come into force from June 14, 2011. The MoU would be renewed at the end of each year.

Official sources said the agreement involved annual premium of Rs 90 only plus States taxes at the rate of Rs 9 per employee.

"The policy is compulsory for all categories of employees mentioned in the MoU and will secure them against accidental death and disabilities, partial or full’’, sources said.

In addition to about 4 lakh State Government and 30,000 PSU employees, the staff of autonomous bodies including Local Bodies and Universities and all daily rated workers, engaged by the Government Departments, PSUs and autonomous bodies on or before January 31, 1994 but who continued to work till date will be benefited out of the new scheme.

The employees would be covered for Rs 2.5 lakh in case of an accident. For disabilities, the insurance cover would vary as per percentage of the disability, sources said. The insurance company would pay the amount to nominees of the employee in case of their accidental death and to the employee himself/herself in case of disabilities.

Deduction of Rs 99 on account of insurance premium would be made by the Drawing and Disbursement Officers (DDOs) from the salaries of employees payable for the month of June 2011 and remitted to the Government treasury.

The Government has asked the DDOs of the Government Departments to furnish details of their employees in respect of whom the premium amount would be deducted and remitted to the Government account.

"It would be personal liability of DDOs/Managing Directors/CEOs/HoDs of concernedDepartment/Organisations to register every employee under this scheme with the Nodal Officer, Finance Department so that no employee is left out.

The Nodal Officer shall not be accepting any intimation of an accidental death or disability of any employee for processing insurance payments under the scheme unless full particulars are not made available in advance to him on or before 31st July, 2011.

"To ensure speedy settlement of insurance claims, intimations of accidental death or partial/permanent disabilities should be promptly sent to the Nodal Officer in the Finance Department directly by the concerned DD not later than 45 days from the date of accident’’, sources said.

They added that in the event of accidental death or permanent total disablement of an employee, as defined in the policy, M/s Oriental Insurance Company will, in addition to insurance cover as per the scheme, also be bearing one time education grant for the dependant children of the insured employee.

One dependent child below age of 25 years would get 10 per cent of capital sum insured subject to maximum of Rs 10,000 while more than one dependant child below age of 25 years would get 10 per cent of capital sum insured subject to maximum of Rs 20,000.

In the event of accidental death of an insured employee, Oriental Insurance Company would also be reimbursing the expenses incurred on transportation of the dead body of the deceased from the place of accident to his/her residence on actual basis or 2 per cent of the Capital Sum Insured (Rs 2.5 lakh), whichever is less.