A new demand has come up for Central Government employees regarding the 8th Pay Commission—a massive Rs 1 crore insurance cover. What is this proposal, who will benefit, and what are the details? We break it down in 10 points.<img>Central government employees are putting forward new demands for the 8th Pay Commission. After basic pay, fitment factor, and HRA, they are now asking for a much bigger insurance cover.<img>If the government accepts this demand, Group-C employees could get an insurance cover of up to Rs 1 crore. Employee unions have also demanded higher cover for Group-B and Group-A staff.<img>This insurance falls under the ‘Central Government Employees Group Insurance Scheme’ or CGEGIS. The scheme gives employees both savings benefits and an insurance safety net.<img>Employee unions argue that the insurance amount has not been increased for many years. Meanwhile, the cost of living and everyday expenses have shot up significantly.<img>The unions have stated that the old insurance cover is no longer enough to meet today’s needs. That’s why they are demanding a minimum 10-fold increase in the current cover.<img>The Federation of National Postal Organisation (FNPO) has submitted a specific, group-wise proposal to the 8th Pay Commission regarding the insurance cover for central employees.<img>The proposal suggests a Rs 1 crore cover for Group-C staff with a Rs 1,000 monthly contribution. For Group-B, it’s a Rs 1.5 crore cover for Rs 1,500, and for Group-A, a Rs 3 crore cover for Rs 3,000 per month.<img>The FNPO points out that the insurance cover amount has remained stagnant for decades. For example, a Group-C employee’s insurance cover is still just Rs 1.5 lakh.<img>An alternative system, recommended by the 7th Pay Commission, proposes covers of Rs 15 lakh, Rs 25 lakh, and Rs 50 lakh for Group-C, B, and A staff, respectively. It also suggests changing the current 3:7 insurance-to-savings ratio to 70:30.<img>The organisation also proposes that the insurance cover should be increased by 25% whenever the Dearness Allowance (DA) crosses the 50% mark. These are the key proposals submitted to the 8th Pay Commission to enhance employee insurance protection.
