The State Government Employee’s Insurance Scheme 1982 has come into force with effect from 1st May 1982. The scheme is made applicable to all employees who were in Government Service on 1st May 1982 or entered after that date and is compulsory. The Scheme is intended to provide the State Government Employees twin benefits of insurance cover to help their families in the event of death in Service and lump sum payment to augment their resource on retirement (at a low cost and on wholly contributory and self financing basis).

Previously, contribution under the Scheme was being recovered in multiples of Rs.15/- This contain the quantum of insurance fund of Rs. 4.50/- Presently rates  of Group Insurance Scheme have been revised with effect from 01/01/2010 under Government in Finance Department’s Resolution No. GIS -10.02/प्र. क्रं. 58 Government Guarantee dated 02/08/2010.  Under the new rules, the subscription is recovered in multiples of Rs. 60/-. This account includes contribution of Rs. 9/- to the insurance fund for an insurance cover of Rs. 30,000/- and Rs.21/- towards Saving Fund. Accumulated amount under Saving Fund is paid to the retiring government servant after his retirement along with interest at the rate declared from time to time by the Government. Rates of monthly contribution and amount of insurance cover for Government servants / officers serving in different cadre are as follows.

Government has fixed the rate of interest on saving Fund @9%  w.e.f. 1st Jan., 2003 and 8% from 1st January, 2004. Similarity, interest rate on Insurance Fund has been fixed @3.5%.w.e.f. 1st March 2001.

Number of employees covered under the scheme, amounts realized and paid on account of insurance cover are shown in Table No.3.

The receipts and payments under this scheme are booked under Public Accounts of the state under Major Head of Account ‘8011’ Insurance and Pension Fund, 107 Other Insurance & Pension Fund, (1) Maharashtra State Government Employee’s Group Insurance Scheme. (A)Insurance Fund, (B) Saving Fund.

The interests worked out quarterly on the accumulated balances by dabiting the Head of Account -2049 Interest Payment, 108 Interest on Insurance & Pension Fund (3) State Government Employee’s Group Insurance Scheme (A) Insurance Fund, (B) Saving Fund and is credited to the Fund under the Head of Account ‘8011’ Insurance and Pension Fund, State Government Employees Group Insurance Scheme (A) Insurance Fund (B) Saving Fund’s by book adjustment. The Receipt & Payment Account of this scheme is maintained by the Directorate of Accounts & Treasuries. Interest of Rs. 88,21,48,231/- was credited to the Saving Fund and of Rs. 15,52,543/- was credited to the Insurance Fund in the financial year 2009-2010. The balance in insurance Fund was Rs 4,59,93,965/- and that in Saving Fund was Rs.11,59,57,58,899/- as on 31st March 2010. The estimated expenditure on account of insurance cover payable to the family members of deceased government servants who died while in Service along with amounts payable from Saving Fund and the amounts payable from the Saving Fund to the died employees at the end of their service due to retirement and other for Rs. 124,48,08,000/- Similarly, Directorate has to incur administrative expenses of Rs.1,74,14,000/- for administration of this scheme which is met from the grants sanctioned under Major Head of Account 2054 Treasury & Accounts Administration.