The Andhra Pradesh Government Life Insurance (APGLI) scheme is a state-run life insurance program designed specifically for government employees in Andhra Pradesh.
Established in 1980, APGLI aims to provide affordable life insurance coverage, offering a range of plans to suit the varying needs of its policyholders.
History and Evolution of APGLI
The origins of APGLI date back to 1907, when the Nizam of Hyderabad launched it as the Family Fund for the welfare of his employees.
Over time, the scheme evolved and was renamed the Hyderabad State Life Insurance Fund in 1913. After the formation of Andhra Pradesh in 1956, it became known as the Andhra Pradesh Government Life Insurance Fund, reflecting its new scope and objectives.
The first Managing Committee meeting under this new identity was held on September 25, 1957, and was led by Sri B. Gopal Reddy, the then Finance Minister of Andhra Pradesh.
Since then, the APGLI scheme has been a mandatory social security measure for all state government and provincialized local body employees.
Key Features and Benefits of APGLI
a) Eligibility and Policy Details:
- Age Eligibility: Government employees aged between 21 and 55 can enroll in the APGLI scheme.
- Policy Type: The scheme offers Endowment Policies that mature one day before the policyholder reaches 58.
- Non-Lapsing Policies: APGLI policies are non-lapsing, ensuring continuous coverage.
- Income Tax Exemption: Premiums paid towards APGLI are exempt from income tax under Section 80C.
b) Financial Benefits:
- Low Premiums: APGLI is known for its low premium rates, making it an attractive option for budget-conscious government employees.
- Bonus Rates: The current bonus rate is Rs. 100 for every Rs. 1,000 sum assured annually.
- Loan Facility: Policyholders can take out loans up to 90% of the surrender value at a simple interest rate of 9% per annum.
- Maturity Benefits: Upon maturity, the total sum assured and accumulated bonuses are paid to the policyholder.
- Death Benefits: If the policyholder dies before maturity, the full sum assured, along with the accrued bonuses, is paid to the legal heirs.
Administrative and Operational Aspects
Role of the APGLI Directorate: The APGLI Directorate supervises District Insurance Offices, consolidates budget estimates, oversees loan and claim management, and implements government orders. It also handles the administration of the A.P. State Employees Group Insurance Scheme and maintains insurance building complexes.
Functions of District Insurance Offices: District Insurance Offices are responsible for issuing policies, posting scheduled premiums, sanctioning loans, and settling claims. They also prepare data for proforma accounts and movement schedules for bonus declarations.
Premium Remittance and Policy Issuance: The APGLI premiums are deducted directly from employees’ salaries under the head of the account: 8011-105-01. Employees who pay premiums through challans must credit them to this account and include their department service head and DDO number.
Duplicate Policy Bond: To obtain a duplicate policy bond, employees must request an additional one-rupee deduction in their salary, submit a declaration of loss or destruction of the original policy, and provide the necessary documentation to their District Insurance Office.
The APGLI scheme is a crucial component of the social security system for government employees in Andhra Pradesh. With affordable premiums, comprehensive benefits, and user-friendly administration, APGLI provides essential life insurance coverage to its policyholders.
Employees are encouraged to maintain up-to-date policies and utilize the various services the APGLI offers to ensure financial security for themselves and their families.