Civil Service Bill proposes health, accident, term life and children's education insurance for employees

Kathmandu. The proposed Federal Civil Service Act, tabled in the House of Representatives by Minister for Land Management, Cooperatives and Poverty Alleviation Pratibha Rawal, proposes facilities ranging from health, accident, term life to education insurance for civil servants' children.

The bill proposes to implement a contributory health insurance scheme by affiliating civil servants and their family members with a government-designated body established under prevailing laws for medical treatment.

Similarly, the existing contributory term life insurance for civil servants has been continued. The bill proposes establishing a Term Life Insurance Fund to manage the insurance. Currently, the Citizens Investment Trust has been managing the insurance fund through the 'Rastriya Sewak Karmachari Term Life Insurance Fund Management Procedure, 2076'.

Along with the proposal for the life insurance fund, the government has also proposed a provision allowing the management of term life insurance through any other fund established under prevailing laws that offers higher benefits including dividends. While the Citizens Investment Trust has been managing it, the government may manage it through another fund. The Citizens Investment Trust has been paying premiums to National Life Insurance Company from the amount collected in the fund and investing the remaining amount.

There are major discrepancies in the accounting of life insurance premiums of civil servants between the Citizens Investment Trust and National Life Insurance Company. Although the Office of the Auditor General has repeatedly pointed this out in its annual reports, the accounts have not been reconciled.

Through the 'Term Life Insurance Operation Procedure, 2075', a 20-year term life insurance of Rs. 200,000 has been arranged with contributions from employees as well. For this facility, employees pay an annual premium of Rs. 4,800, while the government bears the remaining Rs. 4,800.

In addition, the bill proposes continuing the accident insurance for civil servants. The Labour Act 2074 requires employers to insure all employees and workers against accidents for at least Rs. 700,000. The government has been providing group accident insurance with a sum insured of Rs. 1 million for civil servants through the 'Civil Servant Group Accident Insurance Program Operation Procedure 2079'.

Education insurance will also be provided for civil servants' children. The bill states that after the Act comes into force, an education insurance scheme may be implemented to cover the cost of studying up to bachelor's level for a maximum of two children of civil servants.

Moreover, if a civil servant dies while in service, a one-time special financial assistance will be provided to the family.