Rules of Navodaya Vidyalaya Samiti Employees Group (Term) Insurance Scheme 2019



In these Rules, where the context so admits, the masculine shall include the feminine, the singular shall include the plural and the following words and expressions shall, unless repugnant to the context, have the following meanings,

i) `THE EMPLOYER’ shall the Navodaya Vidyalaya Samiti, its Regional Offices, NLIs and its subsidiary units called as Jawahar Navodaya Vidyalayas.

ii) THE CORPORATION’ shall mean the Life Insurance Corporation of India established under Sec.3 of the Life Insurance Corporation Act, 1956. THE SCHEMES’ shall mean Navodaya Vidyalaya Samiti Employees Group (Term) Insurance Scheme -2019.

iii) ‘THE RULES’ shall mean the Rules of the Scheme as set out below and as amended from time to time.

v) `THE MEMBER’ shall mean the regular employee of the Samiti who has been admitted to the benefits under the Scheme.

Also Read : Introduction of NVS, New Group (Term) Insurance Scheme with LIC for Samiti Employees who joined on or after 01.05.2014

vi) `ENTRY DATE’ shall mean (a) in relation to the members admitted to the Scheme on the date of commencement i.e. 01-10-2019 (b) in relation to new members to be admitted to the Scheme after the commencement date, the Annual Renewal Date which is coincident with or which immediately next follows on which they become eligible.

vii) `ANNUAL RENEWAL DATE’ shall mean in relation to the Scheme the 1st day of October-2020, and the 1st day of October in each subsequent year.

viii) `TERMINAL DATE’ shall mean in respect of a Member the date on which he completes the age of 60 years i.e. the date of retirement or superannuation as well as resignation; death; removal; dismissal etc.

ix) `THE ASSURANCE’ shall mean the Assurance to be effected on the life of the member.

x) `THE RUNNING ACCOUNT’ shall mean the Account to be maintained by the Corporation in favour of the Employer to which will credited the premiums remaining in respect of the Members after utilizing such part as is required to provide life assurance benefit.

xi) `THE BENEFICIARY’ shall mean, in relation to a Member, the person or persons who has/have been appointed by him in terms of these Rules to receive the benefits under the Scheme in the event of his/her death whilst being insured.

xii) ‘REGISTER’ shall mean the record of Members kept by the Corporation.

xiii) The Employer will act for and on behalf of the Members in all matters relating to the Scheme and every act done by, agreement made with and notice given to the Corporation shall be binding on the members.

xiv) TAX BENEFIT : Entire yearly contribution paid into the Scheme by the employees will be treated as payment of insurance premium and will be allowed deductions as provided under Income-Tax Act for other Life Insurance Premium. The benefits paid under the policy on death will be treated as policy proceed and will be exempted from Income T.


The Scheme shall commence and the Rules shall take effect from 1s, October of 2019.


a) Regular employees who are aged not less than 18 years and not more than 60 years shall be eligible to join the scheme,

b) Present employees who joined on or after 01.05.2014 may join the Scheme as from the date of commencement of the Scheme.

c) It shall be condition of service that all future employees must join the Scheme on the relevant Entry Dates as soon as they satisfy the conditions of eligibility.

d) No Member shall withdraw from the scheme while he is still an eligible employee satisfying the conditions of eligibility described above.


The Employer shall arrange to obtain satisfactory evidence of age in respect of each Member at the time of his entry into the Scheme.


Evidence of insurability in the form and manner required by the Corporation will have to be submitted in respect of each Member in other words no member should be on leave on the MEDICAL GROUND on the day of admission to the scheme.


i) Category- of posts for the purpose of this Scheme will be as under:

Category ‘A’ Principal, Vice-Principal and all Officers of the Samiti upto the rank of Section Officers
Category ‘B’ PGTs, Office Superintendent and other comparable posts
Category ‘C’ TGTs, Assistant Section Officer, Audit Assistant, Sr. Secretarial Assistant, Catering Assistant, Jr. Secretarial Assistant, Drivers and other Comparable Posts.
Category ‘D’ All MTS employees, Lab Attendant, or comparable post in the Samiti’s Headquarter, Regional Offices and the Vidyalayas.

ii) The sum insured amount for the each category of the employees will be as under:

Sr.No Group of employee Amount of Insurance covered
1 A 10.00 Lacs
2 B 07.00 Lacs
3 C 05.00 Lacs
4 D 03.00 Lacs

iii) The amount of premium as per guidelines of the LIC based upon the employees’ age group and amount of policy, equivalent to one lac of rupees is as under:

Age Group Approx Premium for Insurance of Rs. 1 Lac per year GST @18% Total Premium
20-25 115 21 136
26-30 123 22 145
31-35 145 26 171
36-40 198 36 234
41-45 306 55 361
46-50 515 93 608
51-55 811 146 957
56-60 1179 212 1391

The calculation of premium amount for different category of employees such as A,B,C & D will be multiplying the amount of approximate premium per year as depicted above for different age groups. For example, if we calculate the premium for Group A employee (i.e. Rs. 10.00 lacs) under the category of 20-25 Age Group, the amount of premium will be Rs.1,357/- per year (Rs. 115 X 10 = 1150 + 18% GST = 1,357).

iv) The amount of premium is as present under One Year Renewable Group Term Assurance Plan (OYRGTA). Every year on Annual Renewal Date LIC will charges the premium depending upon the changes in size and age distribution of the age group. Subsequently Premium Rates may be reviewed on the basis of actual experience. It may be less or more than the actual present premium.

v) The premium shall commence on the Entry Date and continue (with the changes as indicated at Sr. iv above under OYRGTA) until the Terminal Date or otherwise as specified in the Rules,

vi) Employees entering the service of the Employer between two Annual Renewal Date in any year will be given the benefit of appropriate insurance cover from the date of joining the service to the date of their becoming Member of the Scheme on payment of premium as demanded by the LIC of India, as per their category.

vii) The Employer shall recover the premium in respect of all the Members from their salaries and remit the same in full to the Corporation through NVS Hqrs., Noida on the due date for providing benefits in accordance with the rules.


On death of the Member before the Terminal Date:

i) The life assurance benefit category wise i.e. A,B,C 8s D of Rs. 10.00 lacs, Rs. 7.00 lacs, Rs. 5.00 lacs & Rs. 3.00 lacs respectively, as on the date of his death shall become payable to the beneficiary.

ii) On earlier cessation of service other than death:

No amount will be payable to the Member on earlier cessation of service other than death


The amount of Life Assurance Benefit, in respect of each member due to change in category, shall be revised only on the `Annual Renewal Date’ immediately next following the change of category.


The membership of the Scheme in respect of a Member shall terminate upon the happening of any of the following events:

a) Member ceasing to be in the service of the employer.
b) Member reaching the Terminal Date.


The benefits under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.


The Corporation will issue a Master Policy to the Employer incorporating the terms and conditions under which the benefits are assured.


Every Member shall at the time of entry into the Scheme appoint one or more of his wife or child/children or dependents to be his Beneficiary or Beneficiaries in the prescribed proforma Annexure-IV, and file it with the Employer. If a member does not have a wife or child/children or dependents then he shall make such nomination in the prescribed proforma Annexure-V appointing his legal representative to be the Beneficiary. The nominations will be obtained, accepted and a copy of the same will be kept in his/her Service Book with the proper entries in it. In the event of death of the Member, the benefits in respect of him will be paid to the Beneficiary or Beneficiaries as appointed by him.


The Employer may discontinue the Scheme at any time subject to 3 month’s previous notice being given to the Members and the Corporation and the discontinuance shall be effective from the 1st of the month, coincident with or following the expiry of the notice period.


i. The Scheme will be centrally monitored by the Samiti. The yearly premium to the LIC wi11 be paid by the Hqrs.

ii. The Membership Register will be maintained by the Principals in respect of the employees of the respective Vidyalayas, by the Regional Offices in respect of the employees of the Regional Offices, by the NLIs in respect of the employees of NLIs and by the Administration Section of the Hqrs., in respect of the employees of the Hqrs. Initially for all member and whenever there is a change in the membership subsequently, Drawing & Disbursing Officer shall forward the information of members in Annex VI alongwith one copy of nomination to Hqrs. The Master Membership Register for the Samiti as a whole will be maintained by the Finance & Accounts Wing of the Hqrs.

iii. In case of an employee, already on the rolls of the Samiti, is promoted/appointed to a post making him/her eligible for change in category, he or she will continue to remain in the earlier category till the next annual renewal date and will be placed in the higher category only from the next Annual Renewal Date. Ad-hoc/Officiating promotions will not be taken into account for placing a person in higher category.

iv. The amount of yearly premium shall be recovered by deduction from the salary and be remitted to NVS Hqrs., for onward remittance to LIC of India. The DDO shall recover the premium from the employees in respective of their being on duty, leave or suspension. Any lapses in this regard will attract non payment / settlement of Life Insurance Benefit from the LIC of India in case of Death of any employee and for this the DDO will be wholly responsible.

Since, the Scheme is being implemented w.e.f. 01.10.2019 the yearly premium amount be deducted from the salary for the month of Aug-2019.

v. A copy of the detailed accounting procedure Sheet is required to be followed by each Drawing & Disbursing Officer for the proper implementation of the Scheme is appended as appendix enclosing therewith Annexure A&B.

Appendix Alongwith Annex.- A & B

Sub :- Navodaya Vidyalaya Samiti Employees Group (Term) Insurance Scheme 2019 – Accounting Procedure – Instruction – Reg.

The following procedure is prescribed for the accounting in respect of the deductions made under the Navodaya Vidyalaya Samiti Employees Group (Term) Insurance Scheme 2019:

2. The Group (Term) Insurance Scheme 2019 is to commence from 01.10.2019 and will cover all the regular employees of the Samiti who joined Samiti on or after 01.05.2014. The quantum of subscription on account of this scheme will be deducted as indicated in Para 7 of the Scheme. The subscription from the salary of the employees wi11 be deducted from the salary of the month of Aug-2019 and subsequent month of August of each following year.

3. In the case of the employee, joining the Samiti on regular basis during the midst of a month or between two Annual Renewal Date in any year, the amount of premium will be deducted from the date of their joining to the service of Samiti or as demanded by LIC of India, as per their category. The pa no. 7 (vi) of the scheme will hold, good in this regard.


The DDO wi11 furnish a certificate with Pay Bill that the deduction for premium on account of Group (Term) Insurance Scheme has been deducted in respect of all the regular employees for whom the Salary is being drawn in that bill.

5. The following records in the matter of deduction of subscription will have to be maintained:


A separate column “NVS Group (Term) Insurance Scheme 2019” may be opened and operated under deductions of the pay bill register and pay bill.


The total amount deducted as per the pay bill will be accounted for on “Receipt” side of the Cash Book as Remittances and a separate Ledger folio is to be maintained.


The amount of total deduction as per Pay Bill has to be remitted to HQs. Office by operating a similar Head Remittances on Payments side of the Cash Book as well as a separate ledger folio is to be maintained. The amount of deduction (yearly premium) be sent through RTGS/NEFT to NVS Hqrs, alongwith the prescribed schedule – Annexure `A’.


In the monthly statement of accounts of the Unit, a separate Head of Account named “NVS Group (Term) Insurance Scheme” has to be opened on both sides of the accounts viz. Receipt and Payment below the Head “Remittances” and operated upon. It should be ensured that necessary amount as shown under this sub-head on payment side is furnished to Samiti, before the prescribed due date.


A statement for each Financial Year has to be prepared in the prescribed proforma in the Annexure-B and wi11 be furnished to HQs. office alongwith the Annual Accounts.


A unit wise, category wise, ledger will be maintained on receipt of monthly schedules alongwith the Details of RTGS/NEFT from the field formations the subscription so received will be posted against each individuals.

The HQs will be responsible to ensure that the amount of yearly premium received from the field formations and paid to LIC are accounted for and reconciled regularly.

9. A separate account will be kept by the HQs making the transactions under this Scheme and will form part of the Account of the Samiti.

Download PDF Copy here & Application Forms

Leave a Comment