No.11024/1/99-AIS(II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

New Delhi, the May,2003

To
The Chief Secretaries of all the
State Governments/UTs
Subject:- Simplification of procedure for payment of insurance/saving fund to the members of the All India Services on their retirement/death under the All India Services(Group Insurance) Rules, 1981
Sir,
I am directed to refer to this Department’s letter of even number dated 10^{th } October, 2001 on the subject mentioned above and to state that the All India Services(Group Insurance) Rules, 1981 were framed under the All India Services Act in which provisions of the Central Government Employees Group Insurance Scheme, 1980 were made applicable mutatis mutandis to the members of the All India Services. Accounting procedure relating to Central Government Employees Group Insurance Scheme, 1980 as extended to All India Services was issued under the Government of India’s instructions issued in the aforesaid rule. The matter of simplification of the aforesaid procedure for payment of insurance/saving fund to the members of the All India Services on their retirement/death has been under consideration of this Department.

2. After consultations with the Governments of States/UTs it has been decided that payment of the insurance/saving fund to the members of the All India Services on their retirement/death while serving in the State Government may be made by the concerned State Government and the amount so paid will be reimbursed from the concerned Central Ministries/Departments controlling the respective All India Services. Payment of the insurance/saving fund to the members of the All India Services under the aforesaid rule, while serving under the Central Government may be made by the respective Ministry/Department controlling the service on receipt of receipted bill from the Central Government office where they were serving at the time of retirement/death. Accordingly the following changes have been made in the existing accounting procedure under the aforesaid rule:-
   (i) In case of All India Services Officers serving in the State Governments the following accounting entries will be made by the State Governments:-

On payment of dues, the following head of account will be debited:
8658-Suspense Accounts:
123 – All India Service (Group Insurance Scheme) Payment of dues to beneficiaries. (new sub-head to be opened)

After payment, the Accountant General/Accounts Officer of the State Government, as the case may be, should raise claims against the concerned PAO of the DOPT/Ministry of Home Affairs/Ministry of E&F. On receipt of cheque thereof, the same should be classified as “minus debit” under the above head of account.

On receipt of claim on account of payments of dues made to the beneficiaries as above, the PAO concerned, [PAO(DOPT), PAO(MHA), PAO(E&F)] will exercise necessary checks with reference to the records maintained by him ( and if required, in consultation with the administrative Ministry/Department concerned) and send a cheque in settlement of the claim to the concerned Accountant General/Accounts Officer of the State Government by debiting the relevant sub-heads under the major head of account “8011-Insurance and Pension Funds” as the case may be.
(ii) In the case of members belonging to Union Territory Cadres, the payments can be made by the respective Union Territories as in the case of State Governments. As they are allowed to operate the heads of account under Public Account of India, the payments can be booked to the final heads of account i.e. “MH-8011-Insurance and Pension Fund” by UT Administration themselves. However, a statement of payments made by them with details thereof as in Annexure 1(copy enclosed) to the Accounting Procedure notified in this Office Memorandum dated 26.12.1981 should be sent on half yearly basis to PAOs of DOPT, Ministry of Home Affairs and Ministry of Environment and Forests so as to enable them to maintain details in the prescribed proforma. Even if no payment is made a ‘Nil’ statement should be sent to the above mentioned PAOs, who should watch receipt thereof.
(iii) In the case of AIS officers on deputation to Centre, claims for payment would be processed in terms of Note below para 6 of Accounting Procedure notified in this Office Memorandum dated 26.12.1981 by the DDO of the Ministry/Department in which he was serving through DOPT/MHA/Min. of E&F and their PAOs (who shall exercise necessary pre-checks), as the case may be, under intimation to designated officers of the States/Uts concerned in terms of Note below para 6 of Accounting Procedure notified in this Office Memorandum dated 26.12.1981. Suitable entry shall be made in Col. 6 of Annexure-I-Part II and III.
(iv) In case of AIS officers of UT/State cadre on foreign service or deputation(other than Central Government) or working in another State Government the claim will be processed by designated officer/DDO of the parent cadre as per (i) above.
(v) In case of members of AIS officers borne on State/Joint UT Cadre working in Academy, etc. and the AIS probationers on training, the claim will be processed by concerned Institute and settled as per procedure in (ii) above.

All the State Governments are requested to take further necessary action in this regard.

Yours faithfully
(Sangeeta Singh)
Director(S)
Copy to:-

1. Ministry of Home Affairs, Joint Secretary(Police), North Block, New Delhi.
2. Ministry of Environment and Forests, (Shri R. Chandramohan, Joint Secretary), Paryavaran Bhavan, CGO Complex, New Delhi.
   (Sangeeta Singh)
   Director(S)