Veterans Corner

Benefits After Retirement

1.        Extended Insurance (El) Scheme.

(a)     El Scheme was introduced in 1981 with the aim of providing Life Insurance Cover without any maturity benefit to Army personnel after retirement/ discharge/release upto a specified period and amount by charging one time non refundable subscription.


(b)     The scheme provides the specified amount of cover to the NOK in case of death of the member within the period of cover, as given in the certificate issued to each member.


(c)     The scheme has undergone periodic reviews and with effect from 31 Dec 2004 the scheme provides a cover of Rs four lac and Rs two lac by charging one time non refundable premium upto 26 years after retirement or 75 years of age whichever is earlier.


(d)     The one time premium charged at the time of retirement/release/ discharge from members varies from Rs 31,300/- to Rs 23,820/- in respect of officers and Rs 15,500/- to Rs 12,910/- in respect of JCOs/OR , depending on the age of their retirement. This premium is applicable to those who have retired wef 31 Dec 2004. No survival benefits are payable under this scheme if a member survives the period of El cover. The special features of El Scheme are as under :-

(i)       No Medical Examination required. Even Sub standard Life (Low Medical Category) covered for the same amount at the same premium.


(ii)       High   risk   category  personnel, such as Heart, Cancer, Renal disorder and AIDS patients also covered without discrimination.


(iii)      Simple procedure for payment of El Benefits.


(iv)      Nomination procedure exists.


(v)       All Low Medical Category persons eligible for El provided they have adequate funds available in their maturity amount at the time of their retirement/invalidment/release/discharge.


(vi)      Period of cover is as mentioned on the El certificate.

2.      Social Security Deposit (SSD) Scheme for Widows and Minor Children of the Deceased Members.

(a)     SSD Scheme introduced in Nov 78 with the aim to safeguard the interest of the Widows and minor children and ensure security of their deposits.


(b)     Under the scheme, AGI Insurance benefits of widows or minor children of deceased personnel are invested by the AGIF in Nationalized Banks in cumulative or non-cumulative account to the extent of amount and period stipulated by the member in his nomination.


(c)      Widow can also opt for the scheme at the time of disbursement of benefits if the husband has not specified in the Nomination form.


(d)     Interest accrued on non-cumulative deposits paid quarterly.


(e)     For minor children, amount will be invested till they attain the age of majority with quarterly interest payable to legal guardian, if required, and in case of widows for a period of one to five years, as indicated by the member in the Nomination form or opted by the widow.


(f)     An additional interest of 1.28 per cent per annum is provided over and above the Bank rate on Social Security Deposits provided the investment is done by AGIF for more than two years.


(g)     Bank Fixed Deposit receipts are retained in AGIF for monitoring payment of interest and period of deposit under intimation to the beneficiary.

3.     Sustenance Allowance to Differently Abled Children of Army Personnel who Die in Harness.

With effect from 27 Oct 2007, a fund has been established to give a sustenance allowance of Rs 2000/- per month to a differently abled child whose serving parent dies while in service in the Army. As per the scheme details, the eligible child should be suffering from autistic spectrum disorders, cerebral palsy, mental retardation or a combination of any two or more disabilities like blindness, low vision, leprosy-cured, hearing impairment, locomotor disability or mental illness. The eligibility conditions are as under :-

(a)     The extent of disability must not be less than 40 per cent of any disability as certified by a medical authority.

(b)     The child must be unable to earn a living.

(c)     The disability of the child should manifest itself before the death of the service personnel while in service.

(d)     The parent of the differently abled child should have died while on active service on or after 27 Oct 2007.

(e)     Following cases will not be eligible :-

(i)     Differently abled children of serving members who have died prior to 27 Oct 2007.

(ii)     Retired personnel who have died leaving behind differently abled children.
(iii)     Differently abled children of all serving and retired personnel.

4.     Ex-Gratia Disability Allowance to Severely Handicapped and Disabled Officers and JCOs/OR .


With effect from 13 Oct 2006 a corpus fund equal to 50 per cent of the insurance amount has been established for special category of handicapped soldiers suffering from paraplegia, tetraplegia, total blindness, irreversible comatose conditions, loss of both limbs (Upper or Lower) and who are dependant on others for day to day activities and provided Constant Attendant allowance. To improve their quality of life, this ex-gratia disability allowance has been constituted without charging any additional premium. This amount is in addition to the normal disability benefit. The corpus will be invested by AGIF in a fixed deposit in a nationalised bank and the interest earnings on this amount will be paid to the beneficiary during his life time only. This amount will be in addition to normal one time disability benefit paid by AGIF subject to conditions mentioned above. The corpus allotment will be Rs. 7.50 lac for officers and Rs. 3.75 lac for JCOs/OR . This corpus allotment will revert back to AGIF upon demise of member.