On January 6, 2025, the Government of Karnataka introduced important amendments to the Karnataka State Employees Group Insurance Scheme through the Karnataka State Employees Group Insurance Scheme (Second Amendment) Rules, 2024.
These amendments, which take effect from January 1, 2025, bring significant changes to the subscription rates, insurance coverages, and benefits for employees across different groups within the state government.
Key Changes in Subscription Rates
The amended rules specify new monthly subscription rates for state employees based on their respective groups. The subscription amounts are as follows:
- Group D employees: ₹240/month
- Group C employees: ₹480/month
- Group B employees: ₹540/month
- Group A employees: ₹720/month
These rates reflect the government’s effort to standardize contributions and ensure adequate insurance coverage for employees at various levels.
Insurance Benefits and Promotion Adjustments
A major feature of the amended rules is the adjustment of insurance benefits in the event of an employee’s promotion. The new rules stipulate that if an employee is promoted from one group to another, their subscription will be revised starting from the next anniversary of the Scheme. However, they will continue to pay the same subscription rate until that date, ensuring continued insurance coverage during the transition.
For instance:
- A Group D employee promoted to Group C will continue to pay ₹240/month until December 2025, receiving an insurance cover of ₹2,40,000. From January 2026, the subscription will increase to ₹480/month, with the insurance cover raised to ₹4,80,000.
- Similarly, employees in Group C promoted to Group B, and those in Group B promoted to Group A, will experience similar adjustments in their premiums and insurance coverage starting from the following year.
New Premium Structure for Newly Appointed Employees
The updated rules also outline the insurance premium for new employees joining the service after January 2025. These employees will be required to pay a monthly premium based on their group classification, which will cover their insurance until they officially join the Scheme. Once they become full members, their subscription will be adjusted according to the new rates.
For example:
- A Group D employee entering service in February 2025 will pay ₹60/month as insurance premium for ₹2,40,000 cover until December 2025. From January 2026, their subscription will rise to ₹240/month.
- Employees joining as Group C, Group B, or Group A will follow a similar structure, paying progressively higher premiums in line with their group’s insurance cover.
Insurance Fund and Savings Fund Contributions
The amendments also revise the contribution structure for the Insurance Fund and the Savings Fund. A portion of each employee’s monthly subscription will go toward these funds, which are managed by the State Government.
- Insurance Fund: A fixed portion of each subscription (₹60 for Group D, ₹120 for Group C, ₹135 for Group B, and ₹180 for Group A) will be allocated to the Insurance Fund. This fund will provide the insurance cover of ₹2,40,000 for Group D, ₹4,80,000 for Group C, ₹5,40,000 for Group B, and ₹7,20,000 for Group A, in case of the employee’s death while in service.
- Savings Fund: Contributions to the Savings Fund have also been revised. Each month, employees will contribute a portion of their subscription to the Savings Fund, which will accumulate with interest. The amounts are ₹180 for Group D, ₹360 for Group C, ₹405 for Group B, and ₹540 for Group A. This fund will be payable to employees upon retirement, cessation of service, or to their nominee(s) in the event of death while in service.
