Orders were issued introducing Group Insurance Scheme to the State Government Employees in place of Family Benefit Scheme with effect from 01.11.1984. Accordingly to Para 9 of the above Order, the Accumulations of Savings Fund Part and Insurance Fund Part shall carry Interest at the Rates prescribed by Government from time to time
Orders were issued for apportioning the Subscription of each unit of Rs. 10/- between Insurance Fund and Savings Fund in the Ratio of Rs. 3.125/-and Rs. 6.875/- respectively.
In terms of the Recommendation of the Committee constituted to Review the working of the Employees Group Insurance Scheme in Government Orders 3rd read above, orders were issued for Revision of Rate of Subscription each unit from Rs. 10/- to Rs. 15/- with effect from 01.11.1994. In Modification of the Para 9 of the Government Orders 1st read above, orders were issued in Government Orders 4th read above, for fixing the Interest on the Accumulations of the Savings Fund of the Member of the Scheme for the State as a whole and shall be paid at the Rate of 12 % per Annum compounded Quarterly with effect from 01.11.1994. Further, in the Government Orders 5th read above, the Apportionment of the Subscription of each unit Rs. 15/- between Insurance Fund and Savings Fund was fixed in the Ratio of 4.50/- and Rs. 10.50/- respectively with effect from 01.11.1994. The Amount of Insurance coverage will be Rs. 15,000/- for each unit of Subscription
Government has issued Orders for reducing the Rate of Interest from 8.8 % to 8.7 % per Annum with effect from 01.04.2014 on the Provident Funds and other similar Funds i.e., Government Life Insurance Funds maintained by the Government of Andhra Pradesh on par with Rates of Government of India until further Orders.
In view of the above circumstances and after careful examination of the matter, Government hereby order that in Supersession of the Orders issued in the reference 16th read above, the Revised Rates of Interest on the Telangana Group Insurance Savings Funds shall be allowed at 8.7 % per Annum from 01.04.2015 onwards and the Tables are revised and issued for the Period covering from 01.04.2015 to 31.03.2016. The Revised Tables of Benefits I, II and III, III (A) to III (U) on Savings Fund of Telangana State Employees Group Insurance Scheme – 1984 on Cessation of Membership during the Period from 01.04.2015 to 31.03.2016 are appended herewith for making Payments under the Scheme.
These Orders and Tables shall come in force with effect from 01.04.2015.