45 Lakhs Group Insurance cover for class-ii Now because of NFIFWI

Dear Comrades,

The Development Officers, who were members of NFIFWI, were covered for insurance of Rs.5 Lakhs against outstanding vehicle loan with premium of Rs.200 deducted from the salary every month. The Scheme was withdrawn with effect from 1.4.2019 due to some complaints and problems. The Corporation vide its letter Ref: CO/PGS/Mktg Desk 1 Dated 29.1.2019 (13.2.2019) addressed to the NFIFWI S.G, has informed that the Group Insurance Scheme against outstanding vehicle for the members of NFIFWI is not in consistency with the existing provisions of the group insurance schemes. The master policyholder to administer the scheme under Employer-Employee category with premium being deducted from salary is not in tune with the regulations as LIC is not the master policy holder. The master policy holder in the scheme was NFIFWI, hence the premium should be remitted physically to P&GS unit along with GST. 
NFIFWI pursued for group insurance scheme of Rs.50 Lakhs for members of NFIFWI.

The P&GS Department approved the proposal for GI cover to members of NFIFWI with graded cover ranging from Rs.25 Lakhs to Rs.50 Lakhs depending on the length of service rendered in LIC. Less than 5 years service – Rs.25 Lakhs cover, 5 years to less than 15 years service – Rs.35 Lakhs cover and above 15 years of service – Rs.50 Lakhs cover. The premium rate quoted was Rs.4.00 per thousand sum assured plus GST. Mumbai P&GS unit will service the policy on a centralized system. The proposal was subject to the following conditions.

1.)  In-between entrants not allowed. New member will join scheme at next ARD.

2.)  Scheme is viable only if more than 80% members out of total eligible members join the scheme.

3.)  Membership is compulsory for all the future NFIFWI members.

4.)  Premium will have to be financed by NFIFWI ( the master policy holder)

5.)  Scheme will be reviewed each year and premium for each year will be decided based on the scheme experience.

6.)  Premium together with GST will be payable annually (yearly mode of payment).

The National Executive Committee meeting of National Federation of Insurance Field Workers of India held at Hyderabad on 10th & 11th June 2019 decided to drop the proposal of Group Insurance for the members of the NFIFWI from the LIC P&GS department due to the high premium, and also felt that it is not viable to implement the conditions of the scheme.

After the NEC decision *we requested the C.O for increase in the Group Insurance Scheme, in which LIC is the master policy holder. The request was accepted and  as reported in the NEC held at Lucknow on 12th & 13th October 2019 C.O has issued circular today (Circular No.:CO/PER/ER-A/238/2019 Dated 25.10.2019) enhancing additional Rs.5 Lakhs group insurance for Development Officers in lieu of the Outstanding Vehicle Insurance Loan which was withdrawn. Insurance cover has been increased for in-service Class II employees (Development Officers) from Rs.40 Lakhs to Rs.45 lakhs under the existing Group Insurance Scheme 2004. However, the retired Class II employees shall be covered for Sum Assured of Rs.40 Lakhs only. The premium for the additional coverage of Rs.5 Lakhs will be Rs.128 more (from Rs.1020 to Rs.1148), which is cheaper than the Rs.200 which was being deducted from the salary for the same Rs.5 Lakhs Outstanding Vehicle Insurance Coverage. The revised premium w.e.f next renewal date i.e 01.12.2019 shall be deducted from the salary of all the Development Officers.*

Regards,
Vivek Singh
SG-NFIFWI