Central Government Employees Group Insurance Scheme, 1980 – Master Circular on Accounting Procedure by CGA, Ministry of Finance

 

No. 9(3)/2024/TA/45
Government of India
Ministry of Finance
Department of Expenditure
Controller General of Accounts
Mahalekha Niyantrak Bhawan

E-Block, GPO Complex
INA, New Delhi
Dated: 17.02.2026

Subject: Central Government Employees Group Insurance Scheme, 1980 Accounting Procedure.

The accounting procedure for the transactions under the Central Government Employees Group Insurance Scheme, 1980 as introduced by the ministry of Finance, Department of Expenditure vide their O.M. No.F.15(3)/78-WIP dated the 31st October, 1980 was issued vide CGA’s OM No. S.11013/2/81/TA/2907 dated 22.09.1981. Subsequent amendments in this regard were also issued vide CGA’s OMs dated 01.03.1982, 22.09.1982, 27.09.1984 and 26.12.1985. For convenience of the stakeholders, the accounting procedure has been revised incorporating all the amendments issued thereafter.

Head of Account

2. There will be no individual accounting under the Scheme. The transactions under the Scheme will be booked in the Public Account of India under a new minor head “Central Government Employees’ Group Insurance Scheme below the existing major head “8011-Insurance and Pension Funds”).

Deduction from Pay Bills

3. In the portion of the pay bills pertaining to classification, the DDOs should exhibit the total subscription recovered from the employees under the minor head indicated above. They should attach a duly completed schedule to the pay bills for January (2) every year as per Annexures A (2), The Pay & Accounts Office will post the figures appearing in the schedules in a register in the form as per Annexure B (parts I) [2] for the preparation of the Annual Report referred to in para 5 etc.

Payments of dues to beneficiaries

4. Separate bills in a simple receipt form as in Annexure C will be prepared in respect of payments arising under the scheme for drawing the amount towards disbursement to the payees concerned. The D.D.Os. will work out the payments with reference to para 11 of the Annexure to the Ministry of Finance O.M.No.F.15(3) /78-WIP dated the 31st October, 1980 and the Table of benefits from the Savings Fund issued by that Ministry from time to time.

1. Amended vide CGA’s OM dated 17.07.2012
2. Amended vide CGA’s OM dated 27.09.1984

The bills will indicate separately entitlements from (i) Insurance Fund and (ii) Savings Fund. This amount will be classified under the respective sub-heads mentioned below: –

8011 (1)- Insurance and Pension Funds.
-Central Government Employees Group Insurance Scheme (new minor head)
-Insurance Fund (sub-head)
-Savings Fund (sub-head)

The bills will be invariably sent by the D.D.Os. to the Pay & Accounts Officer concerned along with the Service Books which contain service particulars, nominations etc. The Pay & Accounts Offices will pass the bills expeditiously (especially in respect of claims on account of death of a member) after exercising the necessary checks and ensuring that the classification is correct, book the payments finally in the concerned books against the two distinct sub-heads (debit side) and make a note of payment in the service books which will be attested by Pay and Accounts Officer. Each case where payment has been made shall also be noted in the register as per Annexure B (Part II & III-Payments).

Annual Report

5. The Pay and Accounts Officers will send a report to the Controller of Accounts of the Ministry/Department concerned by 20th February following (the completion of each anniversary of the Scheme in the form as per annexure D. The Controllers of Accounts shall consolidate the figures received from various PAOs and send a consolidated report in the same form to the Chief Controller of Accounts, Ministry of Finance [1] by 15th March following (2) the completion of each anniversary of the Scheme. The Chief Controller of Accounts, Ministry of Finance(l) shall consolidate the figures for all Ministries/Departments and send a consolidated report in the same form to the Ministry of Finance within 3 months of the completion of each anniversary of the Scheme.

In the case of PAOs (Audit), a similar report will be sent by them to the PAO (Audit-Director of Audit, Central Revenues) who will consolidate the figures and send a consolidated report to the Chief Controller of Accounts, Ministry of Finance (1) by 15th March following ) the completion of each anniversary of the Scheme. This shall include the recoveries effected from Divisional Accountants and finally accounted for in the Central Section by the PAOs (Audit). In the case of Defence, P&T and Railways, the respective Chief Accounting Authorities will similarly consolidate the reports received from the lower accounting formations and arrange to send the consolidated report to the Chief Controller of Accounts, Ministry of Finance (1) by 15th March following the completion of each anniversary of the scheme.

Transfer of members

6. If an employee is transferred from one Ministry /Department/ Office to another Ministry /Department/ Office, the orders of transfer should clearly indicate the Group to which he belongs and the dates of his continuous membership in this Group and also in the lower groups, if any, for the benefits from the Insurance Fund or both Insurance and the Savings Fund, as the case may be, under the Central Government Employees’ Group Insurance Scheme, 1980.

1. Amended vide CGA’s OM dated 17.07.2012
2. Amended vide CGA’s OM dated 26.12.1985

The Head of Office shall, inter-alia endorse a copy of the orders of transfer to the DDO and the PAO. On receipt of the orders of transfer, the D.D.O. shall incorporate a certificate on the LPC to the effect that the individual concerned has subscribed to the Insurance Fund or both to the Insurance Fund and Savings Fund, as the case may be, upto and including the month of ………………… As soon as the certificate from the D.D.O. of the Department which has transferred the employee has been received by the. D.D.O. of the new Department, he shall commence recovery of the subscription from the individual concerned beyond the month up to which such subscription has been recovered earlier.

In respect of Government servants on deputation to State Governments/ Union Territories (4) or on foreign service, accounting, payment and reporting work arising under the Scheme (E.g. watching of receipt of contribution and crediting to Govt. accounts, passing of bills relating to payments, if any) will be done by the Accounts Officer of his parent Department who is responsible for watching receipt of G.P. Fund etc. recoveries. (In this connection, provisions of para 9.4.1 of the Civil Accounts Manual 2024 may be referred to).

Consolidation of accounts and calculation of interest

7. On the basis of the monthly accounts figures under CGEGIS, 1980 for the Central Government, made available by Controller General of Accounts, Chief Controller of Accounts, Ministry of Finance will work out each month in respect of credits, the position creditable to the Insurance Fund and the portion creditable to the Savings Fund (2). The total amount of subscription initially classified under the minor head “CGEGIS” (Credit side) shall be apportioned between the two sub-heads “Insurance Fund” and “Saving Fund” by adopting the percentage prescribed by the Ministry of Finance (3). After taking into account the payment made during a quarter, the positive balance under each of the two funds shall be credited with interest calculated at the rate of interest notified by the Ministry of Finance, Department of Economic Affairs for the purpose. The amount of interest credited to the two funds taken together shall have the contra-debit to the following head of accounts.

2049 (2) -Interest on Small Savings, Provident Fund etc.
-Interest on Insurance and Pension Funds (minor head)
-Central Government Employees Group Insurance Scheme (New Sub-head).

These figures will be incorporated in the Government of India’s account of the month following the quarter so that the balance of each fund for the month following the quarter includes also the interest credited to the balance of the previous quarter.

8. Deleted (3).

9. Transactions under the Scheme arising under the P.&.T. and Defence Departments, will be booked to the final heads of accounts indicated in paras 2 and 4 above by the respective accounts organisations. However, the transactions pertaining to the employees of the Railways under the Scheme would be adjustable finally in the books of the P.A.O (Ministry of Finance, Department of Expenditure). Monthly cash settlement in respect of these will be effected by the Railway Accounts authority through the head ‘8658 (2)-Suspense accounts-Suspense Account (Railways)-PAO Suspense-Items under Group Insurance Scheme-adjust-able by P.A.O’ (Department of Expenditure) with a break up furnished under the two distinct funds of the Scheme in the case of debits but without any such break up in the case of credits. The relevant schedules of recoveries and payment vouchers need not, however, be sent to the P.A.O, but a certificate should be sent, to the effect that the total amount of credits/debits passed on, agree with the figures in the compiled accounts.

1. Amended vide CGA’s OM dated 01.03.1982
2. Amended vide CGA’s OM dated 17.07.2012
3. Amended vide CGA’s OM dated 27.09.1984

10. DAMA Section of CGA’s Organisation will also provide a summary of the credits and debits under the two distinct funds at the close of every month’s account. Chief Controller of Accounts, Ministry of Finance will intimate Ministry of Finance, the total amount of interest credited to each of these funds during the year as soon as the March Supplementary account of each Financial year is closed.(1) :

Submission of estimates

11. At the appropriate time every year, the estimates of accruals and disbursements under the Scheme, as well as of interest payments (to be paid for in the interest payments appropriations), will be furnished to the Budget Division by the Chief Controller of Accounts, Ministry of Finance (1).

Proforma Account (2)

12. It has been decided to maintain only a Proforma Account of utilisation of Funds accumulated under the Scheme towards House Building Advance to Central Government Employees envisaged in Para 14 of the Scheme. Accordingly, the Proforma Account shall be maintained by the Chief Controller of Accounts, Ministry of Finance (1).

Sr. Accounts Officer(TA)