APGLI Fund Rules 2024 | The Andhra Pradesh Government LIfe Insurance Fund Rules 2024

APGLI Fund Rules 2024 | The Andhra Pradesh Government LIfe Insurance Fund Rules 2024. The AP Govt has released the GO 18 Dated 16.2.2024, making amendment in APGLI Scheme. The Finance Department– Andhra Pradesh Government Life Insurance Fund Rules, 2024 – Notified.

FINANCE (ADMN-III.DI & DSA) DEPARTMENT G.O.Ms.No.18 Date: 16-02-2024. The APGLI Rules are called as APGLI Fund Rules 2024.

Read the following:-
e-file.No.FIN04- 13/21/2023-GENERALSEC-DOID (Computer.No.2290877) of Director of Insurance, A.P.

APGLI Fund Rules 2024 GO 18 Dated 16.2.2024

The Government of Andhra Pradesh (GoAP) is implementing a Life Insurance scheme which is in existence since 1907, through the AP Government Life Insurance (APGLI) Department.

The APGLI is a safety net and ensures economic security of Government employees by providing a lump sum amount with applicable bonus in case of demise during service, or on retirement.

The Government has undertaken a comprehensive study of the existing APGLI Fund Rules with an objective of bringing the rules in tune with the changing times and procedures, and enable the Government employees to avail the benefits of the scheme in a seamless manner.

Based on the detailed study of the APGLI Rules, the Government has updated and simplified the Fund Rules, considering the latest technological advancements. Accordingly, the existing fund rules have been suitably revised to meet the aforementioned objectives.

2. The Government, after careful examination, have decided to issue the Andhra Pradesh Government Life Insurance Fund Rules, 2024 annexed to this order. Accordingly, the following Notification will be published in the Andhra Pradesh Gazette.

In exercise of the powers conferred by the proviso to Article 309 of the Constitution of India and of all other powers hereunto enabling, and in supersession of the rules immediately preceding the date of publication of those rules, the Governor of Andhra Pradesh, hereby notify the Andhra Pradesh Government Life Insurance Fund Rules, 2024 annexed to this notification..

Sections in APGLI Fund Rules 2024

APGLI Fund Rules 2024 CHAPTER – I PRELIMINARY

• 1. These Rules may be called as “The Andhra Pradesh Government Life Insurance Fund Rules, 2024.
• 2. These Rules shall come into force with effect from the date of their publication in the Andhra Pradesh Gazette.

1. These orders shall apply to the Government employees recruited and appointed in the regular substantive posts of the Government, whose conditions of service are governed by the Rules framed under the proviso to Article 309 of the Constitution of India.

2. These Rules shall not apply to the persons appointed on full time / part time contingent basis or on nominal muster rolls / daily wages / consolidated pay or on full time / part time contract basis or on outsourcing basis, without regard to the fact whether such appointments are made against the substantive vacancies or not and irrespective of whether their pay and allowances are drawn from the Consolidated Fund of the State or not.

3. Definitions

In the context of these Rules, the following terms shall carry the meanings given to them as below.

• 1. “Age” refers to the completed years of age of an employee at their next birthday, as of the date on which the proposal is submitted;
• 2. “APGLI” stands for the Andhra Pradesh Government Life Insurance, a scheme implemented by the Government for the welfare of Government employees and their families;
• 3. “Bonus” denotes the additional amount to be paid on the sum assured, as declared by the Government from time to time;
• 4. “Claim” refers to a request for settlement of APGLI policy upon maturity, surrender, or in the event of death;
• 5. “Date of Commencement of Risk (DCR)” means the date from which the risk cover commences on the policy issued i.e., 1st day of the month, subsequent to the month in which the premium for the policy is deducted in the pay bill;
• 6. “Drawing and Disbursing Officer (DDO)” means the officer authorized to draw and disburse the pay and allowances of an employee;

• a. Spouse, including judicially separated spouse;
• b. Son(s) including stepson(s) and also adopted son(s) where their personal law permits such adoption;
• c. Unmarried daughter(s) including stepdaughter(s) and also adopted daughter(s) where their personal law permits such adoption;
• d. Widowed or divorced daughter(s) including stepdaughter(s) and also adopted daughter(s) where their personal law permits such adoption;

• e. Father including adoptive parent(s) where their personal law permits such adoption;
• f. Mother including adoptive parent(s) in the case of individuals whose personal law permits adoption;
• g. Brother(s) including stepbrother(s) below the age of 18 years, and in case of those suffering from any disorder or disability of mind or body, without any age limit;
• h. Unmarried, widowed or divorced sister(s) including stepsister(s);
• i. Married daughter(s);
• j. Widow(s) of a pre-deceased son; and
• k. Child(ren) of a pre-deceased son.

9. “Government employee” means an employee of the Government of Andhra Pradesh, recruited and appointed in accordance with the provisions of relevant state service Rules, in a substantive post sanctioned by the Government, whether in a temporary, substantive, or officiating capacity, and whose service conditions are governed by the Rules established by the Government under the proviso to Article 309 of the Constitution of India;

10. “Insurable Age” refers to the age bracket between 20 completed years and five years before the age of superannuation, as prescribed by the Government from time to time.

11. “Last Premium Due (LPD)” indicates the date and month in which the last premium is to be deducted;

12. “Mandatory Premium” denotes the amount of monthly premium to be compulsorily paid by each policy holder, based on the pay slab into which their basic pay falls;

13. “Medical Officer” refers to a physician/surgeon not below the rank of Civil Surgeon having jurisdiction over the area where policyholder is working;

14. “Nominee” represents a person designated by the policy holder as the recipient of the benefits of the claims of the APGLI policies in terms of these rules, in the event of the policyholder's demise; &

15. “Alternative Nominee” means a person designated by policy holder as the recipient of the benefits of the claims of the APGLI policies in terms of these rules, in the event of the nominees’ demise;

16. “Pay” refers to the amount drawn monthly by a Government employee as basic pay within the time scale of pay attached to the post;

17. “Policy” or “Policy Bond” refers to the document that contains an agreement for the payment of the sum assured in consideration of the premium paid by the policyholder under these rules;

18. “Policy Holder” describes the Government employee who is subscribed and insured under APGLI;

19. “Sum Assured” means the amount assured by the Government in case of death while the policy is in force or at the time of maturity of the policy.

20. “Sum Assured Tables” means the tables containing the values of sum assured as specified by the Government from time to time. The sum assured tables are prepared based on the actuarial calculations duly considering the relevant factors;

21. “Superannuation” means the act of discharging a Government employee from service upon reaching the age specified in Andhra Pradesh Public Employment (Regulation of Age of Superannuation) Act, 1984, as amended by the Government from time to time;

22. “Total Premium Due” means the total amount of premium that is supposed to have been paid as on date of Last Premium Due;

23. “Total Premium Paid” means the total amount of premium that is actually paid by the policyholder;
The words and expressions, which are used in these Rules but not defined in this rule, but defined in the Andhra Pradesh Fundamental Rules or Andhra Pradesh State and Subordinate Service Rules, 1996 or Andhra Pradesh Civil Services (Classification, Control and Appeal) Rules, 1991, as amended by the Government from time to time, shall carry the meanings assigned to them in the respective Rules.

CHAPTER – II POLICY BONDS

• 1. Every Government employee in the insurable age shall be mandatorily subscribed and insured under APGLI.
• 2. Every new Government employee, upon joining service with the Government, shall be mandatorily subscribed, and insured under APGLI as part of the employee on-boarding process.

• 1. A Government employee shall, on his appointment into Government service, make a nomination as prescribed by the Government from time to time, conferring on one or more persons the right to receive the claim amount payable to the policyholder upon his/her death while in service.
• 2. The policy holder may also specify alternative nominees for each of the nominees given, who shall have the right to receive the benefits in case the nominees concerned die before receiving the claim amount.
• 3. If a policy holder specifies more than one person in the nomination, he/she shall specify the percentage of share payable to each of the persons in such manner as to cover 100% of the benefit concerned.
• 4. After making the nominations, the policy holder can change them at anytime during his/her service.
• 5. If at the time of making the nomination the policy holder has a family as defined in these rules, the nomination shall generally be in favour of a member or members of his/her family unless opted otherwise by the subscriber.
• 6. If at the time of making the nomination the policy holder has no family, then the nomination may be made in favour of a person or persons, or a body of individuals, whether incorporated or not.
• 7. The policy holder who has made a nomination when he/she has no family, but subsequently acquires a family member then the policy holder shall update the nomination duly including the family member or reaffirming the previous nomination.
• 8. The policy holder who has made a nomination when he/she has only one member in the family who is nominated as defined in these rules, but subsequently acquires a family member in Category A i.e., Spouse; Son(s); Unmarried daughter(s); Widowed or divorced daughter(s); as defined in these rules, then the policy holder shall either reaffirm the initial nomination or modify the nomination to include the newly acquired member.

• a. If the nominated spouse is divorced by a decree of a competent court of law at the time of death of the policy holder.
• b. In the case where the policy holder has made a nomination when he/she has no family, but subsequently acquires a family member, and the policy holder has neither affirmed the previous nomination nor modified the same while in service.
• c. In the case where the policy holder has only one member in the family who is nominated as defined in these rules, but subsequently acquires a family member in Category A i.e., Spouse; Son(s); Unmarried daughter(s); Widowed or divorced daughter(s); as defined in these rules, if the policy holder has not either affirmed the initial nomination nor modified the same while in service.

6. Issue of the First Policy Bond

• 1. The first policy bond shall be generated by the DDO concerned.
• 2. The monthly premium of the policy shall be as per the applicable pay slabs corresponding to the basic pay.
• 3. The premium shall be deducted from the 1st pay bill.
• 4. The policy bond shall be auto generated and issued on the 1st of the succeeding month and the Date of Commencement of Risk (DCR) shall commence from the date of issue of the policy bond.
• 5. The Employee ID shall be the APGLI Policy Number suffixed with alphabet ‘A’ separated by a hyphen for the first policy.

7. Deduction of the Monthly Premiums

1. The applicable premiums on the policy bonds shall be auto deducted in the pay bill of the policyholder every month.

• a. Irrecoverable loss of sight of both eyes; or
• b. Amputation of the feet at or above the ankles; or
• c. Amputation of both hands at or above the wrists, or
• d. A combination of any of the above.

4. If at any time it is noticed by the concerned authority that the benefit of waiver has been wrongfully admitted, orders waiving the payment of premium shall be liable to be cancelled forthwith under intimation to the policyholder and he/she shall have to pay all the instalments of premium fallen due including the premium that was not paid by the policyholder due to its waiver.

8. Automatic Enhancement of the Premium

1. The mandatory premium payable by a policy holder gets auto enhanced based on the employee life cycle events viz. annual increment, promotion, pay revision, etc., which raise the basic pay & also results in a higher mandatory premium pay slab.

2. Based on the mandatory premium applicable on the corresponding pay slabs, a new policy for the enhanced premium shall be generated by the DDO concerned.

3. The policies issued subsequent to the first policy bond shall continue to have the Employee ID as the policy number, suffixed by the next alphabets in sequence, separated by a hyphen.

4. The deduction of the enhanced premium shall be from the next immediate pay bill. The policy bond shall be auto generated and issued on the 1st of the succeeding month and the Date of Commencement of Risk (DCR) commences from the date of issue of the policy bond.

5. The DDO concerned shall ensure regular deductions of the enhanced policy premiums every month from the respective pay bills.

9. Voluntary Enhancement of the Premium

• a. up to 8% of basic pay, on self-declaration and without medical examination, and
• b. above 8% and up to 15% of basic pay, on self- declaration and compulsory medical examination.

3. The cases of voluntary enhancement shall be processed through an online application following the guidelines specified in the orders issued by the Government from time to time.

4. The deduction of the enhanced premium shall be from the next immediate pay bill.

5. The policy bond shall be auto generated and issued on the 1st of the succeeding month and the Date of Commencement of Risk (DCR) commences from the date of issue of the policy bond.

10. Reduction in the Monthly Premium

1. The reduction in the monthly premium shall not be permitted under any circumstances.

2. The monthly premium can only be enhanced and in no case shall it be reduced below the premium being paid on policies already in force, even when the basic pay of the policy holder has decreased due to any reason whatsoever.

11. General Conditions Governing Policy Bonds

1. The policies issued on the mandatory premiums shall not be subjected to the scrutiny of health history.
2. The policies shall become null & void if the policy holder commits suicide and 80% of the total premium paid as on date shall be refunded without any interest.

3. The policies obtained by furnishing false information / evidence shall be liable for cancellation and shall entail disciplinary action as per Andhra Pradesh Civil Services (Classification, Control And Appeal) Rules, 1991.

4. The policy holder as well as his/her designated nominee(s) shall have no right to assign or mortgage any APGLI policies.

5. In case the policy holder is working on foreign service terms, the DDO of the office from which he/she is originally deputed shall assume the responsibility for the issuance of the policies, authorization of loans & settlement of the claims. The deduction of the premium and the loan recoveries shall be made by the DDO of the office to which he/she is deputed and the credit/debit details shall be submitted to the office from which he/she is deputed.

6. The policies shall have immunity from legal attachment by a court of law.

7. No Government dues can be recovered from claim amounts of the policy holder other than the outstanding arrears of APGLI premium payments & loan recoveries, if any.

8. The pay slabs & the corresponding mandatory premiums may be revised by the Government from time to time.

9. The policy holder shall be insured from the Date of Commencement of Risk (DCR).

10. The risk coverage and sum assured shall be calculated based on the age at the time of issue of the policy bond, leftover service period, mortality rates and the prevailing interest rates.

APGLI Fund Rules CHAPTER – III LOANS

12. Eligibility Criteria

1. A policy holder shall become eligible for availing a loan only after remitting a minimum of thirty-six (36) monthly premiums.

2. The variance between the total premium due & the total premium paid, as on the date of application, shall not exceed ten percent (10%) of the total premium due.

• a) Not less than Rs. 10,000/- and
• b) Not more than 90% of the surrender value, including the applicable bonus, of all the policies issued till date to the policy holder.

13. Loan Application Process

The loan applications shall be processed through an online application following the guidelines specified in the orders issued by the Government from time to time.

14. Recovery of Loan

1. The recovery shall be made through 12 to 60 equated monthly instalments as opted by the policyholder.

2. The instalment shall be ascertained by combining the projected interest with the principal amount & subsequently converting it into equated monthly instalments (EMIs).

3. The simple rate of interest chargeable on the loan shall be one per cent higher than the interest rate on fund balances specified in the orders issued by the Government from time to time.

4. The policy holder may pre-close the loan, if he/she desires so, by paying the loan outstanding amount without any pre-closure charges.

5. The loan EMI deduction shall commence from the succeeding month’spay bill upon loan disbursement.

APGLI Fund Rules CHAPTER – IV CLAIMS

15. Claim on Maturity of the Policy
Upon maturity of the policy, the policyholder shall be entitled to receive the sum assured inclusive of the accumulated bonus for the period of completed calendar months up to the date of maturity of the policy.

16. Claim on Surrender of the Policy
1. In the case where the policy holder raises a claim on a policy, before its maturity date, it shall be considered as surrender of the policy. This situation arises for a policy holder, in the event of voluntary retirement, resignation, compulsory retirement, dismissal, removal, and such others.

2. In case of a surrender claim, the policy holder shall receive the surrender value of the policy, along with the bonus calculated on the present value, up to the completed full trienniums (3-year periods), as is considered for bonus declaration under these Rules, prior to the date of retirement from the Government service.

Surrender value (SV) = [(Premium due up to the date of retirement) X Sum Assured X Surrender Value factor] /(premium due up to Last Premium Due),

Where Present value = Sum Assured X Surrender Value factor. (For the purpose of bonus calculation).

3. In case of retirement of a policyholder due to a reason other than attaining the age of superannuation, all the respective policies shall be deemed to have been mandatorily surrendered and settled.

17. Claim on Death of the Policy Holder
In the case of death claims, the nominee or the family member shall receive the sum assured of the policy, along with accrued bonus up to the month of the policyholder's demise.

Policy Bond(s), Death Certificate and Family Member Certificate / Succession Certificate, as required, shall be submitted at the time of death claim.

In case of death of the policy holder, either while in service or after retirement but before receiving the claim amount admissible to him/her, as the case maybe,

a. the claim amount or share of the claim amount shall be payable to the nominees that prevail considering the latest nomination made by the policyholder.

b. If a nominee dies before receiving the claim amount, the right to receive the claim amount or share of the claim amount shall pass on to the alternative nominee(s) that prevail considering the latest nomination made by the policyholder.

c. In the case where both the nominee and the alternative nominee(s) concerned die before receiving the claim amount or share of the claim amount, it shall be payable to the legal heir(s) of the policyholder.

d. In case where no alternative nominee is specified for a nominee that dies before receiving the claim amount or share of the claim amount, the claim amount shall be payable in equal shares to the co-nominees of the deceased nominee, failing which, it shall become payable to the legal heir(s) of the policyholder.

4. In the case where the claim amount or share of the claim amount is to be paid to a minor nominee or alternative nominee, it shall be payable to the natural guardian (as defined in the applicable Laws) of the minor. In the absence of a natural guardian, it shall be payable to the person who furnishes a Guardianship Certificate issued by the competent authorities.

5. If there is no nomination or if the nomination becomes invalid as per Rule 5(7) made by the policy holder or the nomination made does not prevail, the benefit shall be paid to the family members of the policyholder, in the following order of preference.

a. If there is a person surviving in Family Category-A specified above, the claim amount shall be payable to him/her. If more than one person is surviving in that category, the claim amount shall be payable to them in equal shares.

b. If there are no surviving persons in Family Category-A, but there are persons surviving in Family Category-B,

i. if there is one person surviving in Family Category-B specified above, the claim amount shall be payable to him/her.

ii. if more than one person is surviving in that category, the claim amount shall be payable to them in equal shares.

6. The right of a female nominee / member of the family or that of a brother to receive the claim amount or share of the claim amount shall not be affected if the female member marries or re- marries, or the brother attains the age of eighteen years, during the period that spans between the death of the policy holder and the receipt of the claim amount or share of the claim amount.

7. If there are more than one family member eligible to receive a share of the claim amount, they need to submit claims for their respective shares in prescribed form. If a family member has not submitted his/her claim, the claims submitted by the other eligible family members shall be processed independently for their respective shares. The share thus withheld for want of receipt of the claim concerned shall be processed as soon as the claim is received.

8. Where no valid nomination prevails, the claim amount or share of the claim amount of a minor shall be payable to the minor’s natural or legal guardian as the case maybe.

18. Claim in the Case Where the Policy Holder is Declared Missing

In the case where the policy holder’s whereabouts are not known for more than 7 (seven) years, the claim shall be settled subject to the following conditions:

a. The claim by the nominee / family member shall be considered only upon completion of 7 (seven) years from the date of FIR lodged with the police.

b. The nominee / family member shall apply to the DDO concerned, by furnishing all required documents including FIR copy along with certification by the police that the policy holder is untraceable, Succession certificate / Family member certificate if applicable, and an indemnity bond declaring that all payments made shall be recovered if the policy holder appears on the scene and makes any claim.

c. The process thereafter shall be carried out and completed as it is done in case of a death claim.

19. Settlement of Unclaimed Policies

1. The claims in respect of policies, remaining unclaimed by the policy holder / nominee / family member/legal heir for a period of more than 10 years, shall be written off and deemed null and void.

2. No claim shall be entertained in this regard after the specified 10-year period

20. General Conditions Governing Settlement of Claims

1. In case a claim arises on a policy, where the premium payment has been discontinued prior to such claim, the following provisions shall apply-

a. If the total premium paid on the policy is less than or equal to fifty percent of the total premium due, the policy issued shall be deemed null and void. However, the actual premium amount paid by the subscriber shall be refunded without any interest.

b. If the total premium paid on the policy is more than fifty percent of the total premium due, the proceeds of the policy shall be paid after duly recovering the amount of unpaid premiums along with applicable interest.

2. In the case where a Government employee dies either while in

• a. if the Government employee has no family and
• b. he/she has made no nomination, or the nomination made does not subsist.

APGLI Fund Rules CHAPTER –V ADMINISTRATION

21. Key Stakeholders and their Responsibilities

• a. The APGLI Policy Holder
• b. The Drawing & Disbursing Officer (DDO) concerned
• c. The Head of the Office (HoO) concerned
• d. The APGLI Office concerned
• e. The Director, APGLI
• f. APGLI Monitoring and Grievance Redressal Cell
• g. Any other stakeholder as specified by the Government from time to time.

22. APGLI Monitoring and Grievance Redressal Cell

1. A Monitoring and Grievance Redressal Cell shall be constituted by the Director, APGLI in order to effectively address the grievances of the policyholders.
2. The constitution, responsibilities and functioning of the cell shall be as specified by the Government from time to time.

23. Fund Management
1. The APGLI fund shall be managed by the Director, APGLI.
2. The fund shall be maintained in the Public Account of Andhra Pradesh under the MH: 8011-00- 105-01 on which interest shall accrue to the Fund on a half yearly basis at a rate specified by the Government on similar funds like General Provident Fund from time to time.

3. Based on the Interest rates specified by the Government of A.P, the Director, APGLI shall calculate the interest earned on the Fund and furnish necessary proposal for Book Adjustment of the interest to the Accountant General, Andhra Pradesh.

24. Maintenance of Accounts and Audit

1. The Director, APGLI shall generate the movement schedule statement which shows the details of business in force and the details of outgoing claims VYOM (Valuation Year of Maturity) wise, to arrive at the future liability. This shall be completed in the 1st quarter of every financial year for the previous financial year.

2. The Director, APGLI shall generate the Proforma Accounts i.e. Revenue Account and Balance Sheet and submit the same to the Accountant General, Andhra Pradesh for audit of the accounts and Certificate of Audit. This shall be completed in the 2nd quarter of every financial year for the previous financial year.

3. The Certificate of Audit, Revenue Account, Balance Sheet and Movement Schedule data for three years (triennium) shall be submitted to the actuary for evaluation of Assets and Liabilities of the Fund for the said period. The actuary, after analysing the data furnished, shall propose the bonus rates in his report. This shall be completed within one month from the date of completion of audit by the Accountant General, A.P.

4. The Director, APGLI shall submit the actuarial report to the Government and based on the recommendations of the actuary, the Government shall declare bonus rates from time to time. This shall be completed within two weeks from the date of receipt of the report from the actuary.

5. Director, APGLI shall submit the Annual Report of the department to the Government. This shall be completed in the 1st quarter of every financial year for the previous financial year.

APGLI Fund Rules CHAPTER – VI MISCELLANEOUS

25. Deployment of Online Application for Administration of APGLI
1. In order to improve the efficiency and effectiveness of implementation of the APGLI activities, the Director, APGLI may send suitable proposal to the Government to deploy an online application to implement the processes pertaining to all or a few provisions of these Rules. The Government, after examination of the proposal of the Director, APGLI, may issue orders accordingly.

2. The Director, APGLI may, after adoption of the online application, further optimize or revise the processes or workflows pertaining to the provisions of these Rules, as deemed fit, to ensure continual improvement and better administration & send appropriate proposals to Government. The Government, after examination of the proposal of the Director, APGLI, may issue orders accordingly.

26. Interpretation of these Rules
The decision of the Government in the Finance Department shall be final and binding in respect of interpretation of these Rules.

27. Power to Relax these Rules
Based on the merits of the case, the Government in the Finance Department may, by order, for reasons to be recorded in writing, dispense with or relax the requirements of any of these Rules, to such extent and subject to such exceptions and conditions as it may consider necessary for dealing with the case in a just and equitable manner.

28. Power to Provide for Residual Matters
The Government in the Finance Department may issue orders or instructions to regulate any matter for which there is no provision made or deemed to have been made under these Rules and, until such Rules are made, such matters shall be regulated by the Government in the Finance Department through the orders or instructions issued from time to time.

29. Inapplicability of the Consumer Protection Act
The Consumer Protection Act, 2019 (Act 35 of 2019) shall not apply to the benefits provided under the APGLI as the policy holder doesn’t fall under the definition of 'consumer' as defined under sub-section (7) of section 2 of the Consumer Protection Act, 2019 (Act 35 of 2019).

30. Repeal and Saving
The provisions under the existing Andhra Pradesh Government Life Insurance Fund Rules or any other related executive instructions, insofar as such provisions are provided for similarly in these Rules, shall cease to operate upon commencement of these Rules. Any action taken under such provisions of the existing Fund Rules or such executive instructions shall be deemed to have been taken under the corresponding provisions of these Rules.