CGEGIS Insurance Fund
Complete guide to the CGEGIS Insurance Fund (30% share). Learn how the mortality risk pool works, sum assured values, why premiums are non-refundable on retirement, and claims.
CGEGIS Insurance Fund Statement
Understanding CGEGIS Insurance Fund
The Central Government Employees Group Insurance Scheme (CGEGIS) was introduced in 1980 under the authority of the Ministry of Finance to provide central government employees with low-cost life insurance cover and a secure, compound-interest savings fund upon retirement.
Every monthly subscription is apportioned into two distinct funds: 70% is credited to the Savings Fund (which earns compound quarterly interest at the prevailing 7.1% GPF benchmark rate), while 30% enters the Insurance Fund (which guarantees statutory term death compensation to family nominees).
Statutory Slabs & Benefit Schedule (7th CPC vs 8th CPC Demand)
| Group | Pay Levels | Units | Monthly Sub. | Savings (70%) | Insurance (30%) | Current Cover | 8th CPC Proposed |
|---|---|---|---|---|---|---|---|
| Group A | Level 10–18 | 8 | ₹120 | ₹84.00 | ₹36.00 | ₹1,20,000 | ₹15,00,000 |
| Group B | Level 6–9 | 4 | ₹60 | ₹42.00 | ₹18.00 | ₹60,000 | ₹7,50,000 |
| Group C | Level 1–5 | 2 | ₹30 | ₹21.00 | ₹9.00 | ₹30,000 | ₹3,50,000 |
| Group D | Sub-Staff | 1 | ₹15 | ₹10.50 | ₹4.50 | ₹15,000 | ₹1,75,000 |
Frequently Asked Questions (FAQ)
What is the current CGEGIS interest rate?
The CGEGIS Savings Fund interest rate is currently 7.1% per annum compounded quarterly, matching the prevailing GPF interest rate.
Are CGEGIS payouts subject to income tax?
No, all payouts under the Central Government Employees Group Insurance Scheme are 100% exempt from income tax under Section 10(10D) of the Income Tax Act.
How does CGEGIS payout differ between retirement and death?
On retirement, the employee receives solely the accumulated Savings Fund with compound interest. In the event of death in service, the family nominee receives BOTH the full guaranteed insurance cover PLUS the accumulated savings fund.
🛡️ CGEGIS Knowledge Cluster & Calculators
Explore all 19 dedicated guides, official 2026 benefit tables, statutory rulebooks, and calculators: