A Brief History of APGLI department
The APGLI Department is one of the oldest departments in the State. The Scheme was originally started in 1907 by the Nizam of erstwhile State of Hyderabad for the welfare of his employees.
After formation of Andhra Pradesh state in 1956, the scheme was changed as "Andhra Pradesh Government Life Insurance Fund". The first Managing Committee meeting after formation of Andhra Pradesh State
consisting of 4 members, one Secretary and a President was held on 25-9-1957 and Sri B.Gopala Reddy, the then Honorable Finance Minister was President of the meeting. Till 1976, there was only one offsice at
Hyderabad and in 1976, the department was reorganized by opening four Regional Offices, one each at Hyderabad, Warangal, Vijayawada and Kurnool. And later in 1998 and the Department was again reorganized by
the Government, by opening (23) District Insurance Offices in place of the four Regional Offices. In 2014 Andhra Pradesh Reorganisation Act, 2014 for bifurcation of Andhra Pradesh received the President's
assent on 01 March 2014. The ''appointed day'' for the new States' formation is 02 June 2014. And now in the residual State of Andhra Pradesh the APGLI is operating with 13 district insurance offices and the
Head office of the department the Directorate of Insurance is working from Anjaneya Towers, Ibrahimpatnam, Vijayawada W.E.F SEP 2016.
APGLI is a compulsory life insurance scheme apart from other compulsory saving schemes like GPF/EPF, GIS. All the state government employees who are drawing salaries from 010 head of account of
the Government of Andhra Pradesh are mandatorily bound to get insured with APGLI scheme. The minimum compulsory subscription is fixed around 4% of the basic pay however slab rates are introduced w.e.f. 1994
- The pay slabs and corresponding compulsory premium with reference to the PRC-2015
||Pay from 13,000 to 16,400
||Pay from 16,401 to 21,230
||Pay from 21,231 to 28,940
||Pay from 28,941 to 35,120
||Pay from 35,121 to 49,870
||Pay from 49,871 and above
[G.O.Ms.No. 36, Finance (Admn-DI&F) Department, dated 5.3.2016]
A person whether superior grade employee or Office Subordinate employee who desires to pay more may be allowed to contribute upto 20% of his pay subject to medical examination at the discretion of
the Director of Insurance.[G.O.Ms.No.26 Finance & Planning (FW.Admn-II) Dept., dated 22.02.1995.] Subject to some conditions the Good health certificate should be produced by the proponent if he desired to
enhance the premium above compulsory slab rates.
Except as provided in rule 22, the premium for insurance effected shall be payable monthly and shall be recovered by deduction from the pay of the insured every month. .(G.O.Ms.No. 318, Finance (Pen.I) Dept.
dated 20.09.1964 w.e.f. 21.02.1963)
The Drawing & Disbursing Officers concerned are solely responsible for effecting the recovery of revised premium time to time from all the eligible employees i.e., who
are between 22 to 55 years of age, duly forwarding the requisite proposal forms and obtaining the requisite policies from the Insurance Department. G.O.Ms.No. 36, Finance Admin DI&IF) Dept. dated 5.3.2016
Under any circumstances proposal shall not be accepted if the applicant has already attained the age of (55) years on the date of submission of his application, notwithstanding the fact that the amount was
already deducted in the monthly pay hills. Such amounts shall be treated as unauthorized amounts and refunded to the individual following the usual procedure.
Issue of Policies
After deduction of first Premium, the employee has to fill up and submit a proposal form duly signed and attested by his/her DDO/Head of office for obtaining APGLI policy. The proposal form to be filled with details of
Name of the employee, Designation,Name of the Office, Empoyee ID No, Adhar No, Mobile No, Father’s Name, Date of Birth, Nominee details and policy number(in case of enhanced policy), basic pay, amount of premium increased,
and month & year in which it is increased (G.O.Ms.No.124, Fin.(Admn.II) Dept., Dt.24.05.13)
Only premium payment without submission of proposal form will not give any risk coverage or monetary benefit to the subscriber and such payments will be treated as unauthorized amounts which will be refunded on
application, without any interest or bonus.
- The APGLI policies do not lapse.(This means once policy is taken the policy holder has to continue premium until maturity and there is no provision to discontinue). APGLI Premium is exempted from income tax under
Section 80C. In case of maturity of the policy, the total Sum Assured and Bonus till Date of Maturity are paid to the policy holder. If the Policy Holder ceases to be Government servant, and decides to surrender the policy
by discontinuing the payment of Premium, the subscriber will be paid the Surrender Value and the eligible Bonus. In case of Death of policy holder before maturity of the policy, the full Sum Assured along with Bonus till
date of death are paid to the legal heirs
Remittance of Premiums
- The premium is recovered at source in the salary bills of the employees and the details are sent through schedules.
The employees whose salaries are not paid through Treasury/PAO and who have to pay the premium through Challan have to credit the premium to the below head of the account.
Major Head 8011 – Insurance and Pension Funds.
Minor Head 105 – State Government Insurance Fund.
Sub Head 01 – Andhra Pradesh State Government Life Insurance Fund.
(THE ONLINE CHALLAN TO BE MADE THROUGH CFMS PORTAL WHICH SHALL BE ACCESSED FROM ANYWHERE FROM INDIA)
- The department service major head and also DDO code should be quoted in the Challan.
Government have amended the APGLI fund rule 36 vide G.O.Ms.No. 184, Finance (Admn-II) Department dated 30-6-2006
When an Insured is absent from duty on leave with allowances, the premium shall be realised when such leave allowances are drawn. If he obtains leave without allowances or be suspended from service, the premium,
if not otherwise recovered, shall be a debt on his policy, carrying compound interest at 8.8 per cent per annum or interest rate earned by the fund for that period and shall be recovered as arrears from his future pay,
if any, instalments not exceeding (5) instalments from his pay.
Where the premium is not recovered or paid for any reason, the arrears of premium shall be debt on his policy carrying compound interest at the rate earned by the fund balance from time to time.
The arrears of premium with interest shall be collected while making the payment of assured sum on such Insurance Policy are shall be recovered as arrears from his future pay if any, in instalments not exceeding 5
instalments from his pay.
Provided that where the payment of policy amount is found to be less than the arrears of the premium with interest such a policy shall be treated as null and void and the premium paid shall be forfeited to the Fund
Loans from A.P.G.L.I (will be sanctioned by the District Insurance Officer)
Loan may be sanctioned up to 90% of the surrender value and shall be recovered in 12 EMI minimum and maximum 48. In case of house loans the max. EMI is allowed to 60. A Simple interest will be charged
on the loans advanced at the rate of 1% over and above GPF interest rate After Principal only, interest will be recovered in one or more installments not exceeding (10) monthly installments as per the Deduction Orders
(Govt. Circular Memo No.707/119/A2/ Admn.II/ 2013) Calculate the accruable amount of interest due, at the time of sanction of loan itself and total amount arrived thereon (Principal Loan + Interest) should be deducted
in EMI from the subscriber. (G.O.Ms.No. 74 Finance (Admn.II) Dept., dt: 18.6.2015. No loan shall be granted for a sum less than Rs.1000/- vide G.O.Ms.No.160 Fin & Plg (FW Admn-II) Dept dated 15.05.1996.
Required Documents are:-
- Loan form duly filled and attested by DDO (with details of Name of the employee, Designation,Name of the Office, Empoyee ID No, Adhar No, Mobile No, Father’s Name, Date of Birth, policy number, )
First page of Bank pass book Xerox copy