The government has given its nod to increase the Army Group Insurance Fund (AGIF) cover for personnel serving in the Army. The decision was pending with the Ministry Officials and concerned departments for some time now.
Earlier, the insurance cover for Personnel Below Officer Ranks (PBOR) was Rs 15 lakh and those with higher ranks were covered for Rs 30 lakh. In an effort to provide a superior life insurance cover, this amount has been increased by Rs 5 lakh and Rs 10 lakh respectively.
Under the new scheme, Army jawans will get an enhanced coverage of Rs 20 lakh and officers will be covered for Rs 40 lakh. Simultaneously the premium amount will also go up to Rs 2000 for PBORs and Rs 4000 for officers.
Defense Ministry Officials said, “The soldiers posted in difficult terrain and elsewhere must believe that the organization is taking care of the basic needs of his family. Besides, there are issues of rising prices and meeting the requirements of good education and health for the old parents. It takes out a lot of stress and even motivates him to perform better.”
The decision will be effective April 1, 2011.
