Kathmandu. The proposed Federal Civil Service Act presented by Minister for Land Management, Cooperatives, Federal Affairs and General Administration Pratibha Rawal in the House of Representatives proposes facilities like health, accident, term and children’s educational insurance for civil servants.
The Government of Nepal has established health insurance for the medical treatment of civil servants and family members of civil servants in accordance with the prevailing law
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An arrangement has been made to implement contribution-based health insurance scheme by linking it to the bodies specified by the Government of Nepal.
The bill continues the provision of the existing term life insurance based on the contribution of civil servants. It has been proposed to establish a term life insurance fund to manage the term life insurance. At present, the Citizen Investment Fund is managing the insurance fund through the ‘Term Life Insurance Fund Management Procedure of the Civil Service Employees, 2076’.
Along with the proposal of the Life Insurance Fund, the government has also proposed a provision that the term life insurance can be managed through any other fund established under the prevailing law to provide more facilities including dividends. The government can manage it through any other fund as it is managed by the Citizen Investment Fund. The Citizen Investment Fund has been investing the remaining amount by paying the insurance premium in the National Life Insurance Company from the amount collected in the fund.
There is a big discrepancy in the accounts of the Citizen Investment Fund and the National Life Insurance Company in the calculation of the life insurance premium of civil servants. Although the Office of the Auditor General has repeatedly expressed flaws in its annual report, the accounts have not been reconciled.
Through the “Term Life Insurance Operation Procedure, 2075”, a provision has been made for a term life insurance of Rs 2 lakh for a period of 20 years with the contribution of the employees. For this facility, the employees pay Rs 4800 annually as insurance premium, while the remaining Rs 4800 is borne by the government.
Apart from this, it has also been proposed to continue the provision of accident insurance for civil servants. The Labor Act 2074 has a provision that the employer should provide accident insurance of at least Rs 7 lakh to all types of employees and workers. The government has been providing Rs. 10 lakh to the civil servants through the Group Accident Insurance Program Operation Procedure 2079 for civil servants. The government has been providing group accident insurance of 10 lakh insured.
Educational insurance will also be provided to the children of civil servants. The bill states that after the commencement of the Act, an educational insurance scheme can be implemented for the expenses required for a maximum of two children of civil servants to study up to graduation. Apart from this, a provision has been made to provide a lump sum special financial facility to the family of a civil servant in case of death while in service.
