1

GROUP SAVINGS-LINKED-INSURANCE SCHEME

INTRODUCED BY

THE ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED

SALIENT FEATURES

AND

GUIDELINES OF THE SCHEME FORMING PART OF THE MASTER POLICY AND MEMORANDUM OF UNDERSTANDING

INSURER

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED

1

2

ARTICLE 1-OBJECTIVE

The Scheme is applicable to all Private employees. It is a low cost and wholly contributory and self- financing scheme giving twin benefits; (i) an insurance cover to help their families in the event of death or permanent total disablement while in service and (ii) a lump sum payment of the accumulated savings with interest to the employee or to their families on cessation of employment on account of retirement, resignation, death or permanent total disablement.

ARTICLE II- DATE OF EFFECT

The Royal Insurance Corporation of Bhutan Limited Employees Group Savings –Linked-Insurance Scheme hereafter referred as the “Scheme” has come into effect from 1st January 1991.

ARTICLE III-APPLICATION

The Scheme shall be compulsorily apply to all regular and contract employees of all Private bodies between the age 18 to 70 years, but shall not apply to the following categories of personnel;

a. Personnel recruited after completing age 65 years. b. Employees on deputation from other Government or Agencies c Experts, Consultants and Volunteers from UN and other international Organizations d Work charged and employees on temporary basis e Employees on special contract basis

f Pre-service trainees on receipt of stipends g The risk will be limited to the employees aged between 18 to 70 h Pre-existing conditions, in case of physically challenged employees.

ARTICLE IV-MEMBERSHIP

The Scheme shall be compulsory to all those employees who are already in the service and to those who will join the service after the Scheme has been introduced.

Clause A: The Scheme shall be compulsory for all those employees who are already in the service and to those who will join the service after the Scheme has been introduced.

2

3

Clause B: The employer shall submit the service data (Form 1) of the new member along with his/her subscription to Royal Insurance Corporation of Bhutan Limited.

Clause C: Grouping of members shall be as reflected below.

GSLI rate table where the Grades not compatible with Civil Servant

Groups Salary Scale Insurance Amount

(Sum Assured Nu.)

Insurance

Premium (Nu.)

Savings

(Nu.)

Monthly

Subscription (Nu.)

A

60,000 & above

5,00,000

150

350

500

B

30,000 to 59,999

4,00,000

120

280

400

C

16,000 to 29,999

3,00,000

90

210

300

D

15,999 and below

2,00,000

60

140

200

ARTICLE V-RECOVERY OF THE SUBSCRIPTION

Clause: A: The Subscription of a member shall be deducted from his/her salary and remitted to RICBL within the fifteenth of the following month.

Clause B: The subscription shall be recovered every month including the month in which the employee ceases to be in employment on account of death or total permanent disability, retirement, resignation or termination from service if he/she has worked for part of the month.

Clause C: No part payment (on pro rata basis) of the monthly from a member will be recovered and remitted. Though a member may have joined the Scheme in the middle of a month, for administrative convenience, the subscription shall be remitted for the full month.

Clause D : Before expiry of the three months continuous discontinuance of the subscription, if the live member so wishes to continue the membership, he/she/Disbursing Officer shall remit the subscription in arrears.

3

4

ARTICLE VI- REMITTANCE OF SUBSCRIPTION Clause A: The disbursing officer shall remit the monthly subscriptions supported by recovery schedule as per Form 1 to the Royal Insurance Corporation of Bhutan Limited by the fifteenth of the following month.

The drawing and disbursing officer and the finance personnel concerned will be held fully responsible and accountable for recovery of GSLI subscription and timely remittance of the recovery with the RICBL. These officials shall scrutinize and make recovery and shall ensure the recovery is remitted to RICBL within the stipulated time, In the event of non-remittance and/ or late remittance of the recovery, the drawing and disbursing officers and finance personnel shall be held responsible besides also being liable to make good the losses incurred by the civil servants concerned.

Clause B: While an employee is on long leave without pay (study, medical, extraordinary leave etc) the employee has to make his or her/own arrangements to remit the subscriptions. This could enable the continuity of the membership.

ARTICLE VII- COMMENCEMENT OF RISK Clause A: The risk on the life of the fresh employee shall commence from the date the first subscription is actually received by Royal Insurance Corporation of Bhutan Limited.

Clause B: The Scheme shall automatically cease to cover the risk from the day the employee(s) is/are relieved from employment or the insurance cover is deemed invalid if there is a break of three subsequent months in payment of subscription.

ARTICLE VIII-PROMOTION

In the event of promotion and change in the grouping, the subscription shall be of the new group from the date of promotion. However, the risk on the promoted member shall commence from the date of receipt of the subscription at the rate applicable to the next higher group.

4

5

ARTICLE IX- TRANSFER

In case of transfer, it is mandatory that the disabusing office shall provide a copy of the last pay certificate/transfer order to Royal Insurance Corporation of Bhutan Limited. When a member’s subscription is added for the first time in the schedule due to transfer, the disbursing office shall indicate the GSLI account number and his /her previous department in the remarks column.

ARTICLE X- INSURANCE FUND

In order to provide an insurance cover to each member of the Scheme a portion of the subscription shall be credited to the insurance fund subject to revision by RGOB and RICBL from time to time. The present premium portion of the subscription is Nu.5.00 per month for each unit of Nu.10.00.

ARTICLE XI- SAVINGS FUND

The balance Nu.5.00 per unit of Nu.10 of the subscription shall be credited to a savings fund. The RICBL shall maintain this savings fund in individual member account. The savings fund is subject to revision from time to time by RGOB and RICBL on mutual consent.

ARTICLE XII- INTEREST ON SAVINGS

On the Savings Fund, the Royal Insurance Corporation of Bhutan Limited shall maintain an individual account for each member and pay interest subject to revision from time to time. The present rate of interest is 7.5% per annum.

5

6

ARTICLE XIII-NOMINATION

a. The employer shall obtain nomination (Form 2) from each member and forward it to the Royal Insurance Corporation of Bhutan Limited for registration.

b. In the case of a minor nominee the member must appoint one guardian in Nomination Form 2 to received payment in case of the member’s premature death while in service. The signature of the guardian should be attested by the member duly countersigned by the employer and forward it to RICBL for registration.

c. The member shall have the right to change/cancel the nominee/guardian notice in writing to the RICBL and affect nominee(s)/guardian.

d. If the nomination is in favour of more than one person, the member shall specify the percentage of share for each nominee.

e. All nomination and guardianship documents shall be countersigned by the Head of department before submitting to the RICBL for record.

f. If nomination had not been effected during the life time of the member and should a claim be lodged, the claimants will have to produce a legal heirship certificate from the Head of department/Ministry or from the Royal Court of Justice confirming the legal recipient of the compensation.

ARTICLE XIV-PAYMENT FROM SAVINGS FUND

If a member retires on attaining the age of superannuation or otherwise ceases to be in service (an employee of the Royal Government of Bhutan or autonomous and corporation), the Head of the Department/Organization shall issue as per Form no. 4 along with the Last Pay Certificate and the sanction for payment of the member’s accumulation in the savings with interest. The member shall submit Discharge Voucher (Form 6) duly signed by him/her over revenue stamp and witnessed by someone know to the member.

If an employee attains the age of 70 years as per the records submitted to RICBL, but the employee continues to be in service, the membership shall stand terminated without insurance coverage and the savings fund with interest will be refunded.

6

7

ARTICLE XV-PAYMENT OF DEATH CLAIM

If a member dies while in service the Head of the Agency or the Employer shall inform the RICBL in writing within one month of the incidence .RICBL in turn will process the claim for payment to the nominee(s)/legal heir(s): The claim amount payable is:

(a) The appropriate amount of insurance coverage to which he/she was entitled at the

time of his service. Plus

(b) An amount due to him out of the accumulated savings fund for the entire period of his membership with interest.

Plus

( c ) The excess amount received out of the actual subscription from the disbursing office after having verified from Last Pay Certificate.

ARTICLE XVI-MISSING EMPLOYEE

If an employee is found/ reported missing during the active service, the concerned Authority shall inform RICBL in writing within one month from the date of occurrence. The RICBL shall observe one year from the date of occurrence as a waiting period and on cessation of the waiting period or earlier as may be decided by the Court of Law, the claims shall be paid to the claimant subject to the execution a bond with RICBL (Form 7) by the claimants duly signed the Disbursing Officer undertaking to refund of the claimed amount with interest at the prevailing rate of interest of the Corporation at the time of refund to RICBL in the event, the employee reappears..

7

8

ARTICLE XVI-PROCEDURES FOR SETTLEMENT OF DEATH CLAIM

For settlement of death claim, the following formalities to be completed.

a. Certificate By Employer (Form 4)

b.

Claimant’s Statement (form 5) duly filled-in and signed by the nominee(s)/legal

heir(s)

and attested thereon by Head of the Department/Ministry.

c.

Death Certificate from the competent Authority.

d.

Legal Heirship Certificate from the Head of Department or Royal Court of Justice

if

the

member had not effected the nomination during his/her lifetime.

e Discharge Voucher (Form 6) duly signed by the nominee/legal heir over revenues stamp in presence of a witness.

f. Execute Bond ( Form 7) if claim is a missing case.

ARTICLE XVII-PERMANENT AND TOTAL DISABILITY

Clause A: The permanent and total disability herein referred to must be total and permanent that there is neither then nor any time thereafter any work, occupation or profession that an employee can do or follow to earn any wages or salaries. The Corporation shall have the right to have the disabled member examined by an independent doctor of its own choice for which the expenses will be borne by the Corporation.

However, the Corporation shall not be liable if the disability be caused by intentional self injury, attempted suicide, insanity or immorality or committing any breach of law.

8

9

9

Clause B: (a) By Accident: The loss of sight of both eyes or amputation of both hands at or above

the wrists, or amputation of both feet at or above the ankles, or amputation of one hand at or above the wrist and one foot at or above the ankle.

(b) By Sickness : The paralysis of complete body or paralysis of either side of the body

with upper and lower limbs, or total blindness of both eyes or total mental disorder, shall be deemed to constitute such disability.

ARTICLE XVIII- PAYMENT OF PERMANENT TOTAL DISABILITY CLAIM

The permanent total disability benefit equal to sum assured to which he is entitled at the time of disablement shall be payable in addition to the accumulated savings with interest and the excess amount received if any, from the Disbursing Office after having verified from Last Pay Certificate. The Corporation shall settle the claim in one lump sum payment.

ARTICLE XIX- PROCEDURES FOR SETTLEMENT OF PERMANENT TOTAL DISABILITY CLAIM

For settlement of permanent total disability claim, the following formalities are required to be completed.

(a) The Employer shall lodge the claim to RICBL either on the happening of permanent total

disablement by accident or during the course of treatment if caused by sickness, but not later the two weeks from the date of accident or disablement.

(b) The claimant shall furnish medical certificates to RICBL proving permanent total disability.

A copy of Police Inquest Report is to be submitted if the disablement is due to accident. If the disablement is due to sickness, Medical Treatment documents must be produced to support the claim

( c ) Certificate By Employer ( Form No. 4)

10

(d) Last Pay Certificate of the disabled employee from the Employer ( e) Claimant’s statement( Form 5) duly signed by the disabled employee or appointed legal

guardian on his /her behalf( as applicable) and attested thereon by the Head of department/Ministry.

(f) Guardianship Certificate issued by the Head of Department or Royal Court of Justice

on behalf of the disabled member (g) Discharge Voucher (Form 6) duly signed by the disabled employee or legal

guardian in presence of a witness.

ARTICLE XX-_ RECOVERY OF SAVINGS OR DEATH/DISABILITY COMPENSATION AGAINST GOVERNMENT LOAN

The Employer shall have the right to realize the savings with interest or death/disability compensation payable to the member for recovery of loans, advances and misappropriation of government fund and property during the service

ARTICLE XXI- WITHDRAWAL FROM INSURANCE/SAVINGS FUND

Withdrawal by the member in part or whole of the savings shall not be permitted while the member is in service.

ARTICLE XXII- LOAN AND ADVANCE

No loans or advances will be permitted under the Scheme.

10

1111

11

Specimen of Forms

Form No. 1(Recovery Schedule)

GSLI Recovery Schedule for the month of…………………………

Name of Office……………………………………………………

Sl. no

A/C No Name Designation Basic Salary

GSLI Group

Premium I/D Card

Service Status

Date of birth

Please note:

Give remarks against the arrears deposit of the individual Enclose Form no 3 if name of any new employee is included Give remarks in case of transfers/fresh members in the schedule Give remarks for promotion case if the rate of subscription is revised

Signature of Disbursing Officer Office Seal

FORM 2(Nomination Form) 12

Royal Insurance Corporation of Bhutan Limited

Nomination for benefits under the Royal Government Employees’ Group

Savings-Linked-Insurance Scheme 1987

1, …………………………………… hereby nominate the person(s) mentioned below, who is/are member(s) of my family and confer on him/them the right to receive to the extent specified below any amount that may be sanctioned by the Group Savings-Linked-Insurance Scheme 1987 in the event of my death while in service or which having become payable on my attaining the age of superannuation may remain unpaid at my death

Name & address of nominee(s)

Relationsip with Government Servant

Age of Nominee(s)

Share of compensation

Citizenship ID/Card number

Name & address of the guardian To whom payment is to be made on behalf of the minor nominee(s)

Date………….. Signature of Govt.Servant Signature of Guardian

Countersignature of Head of the Department with office seal

GIS Account Number………………………………

Department………………………………………….. 12

Form 3(Service Bio-data) 13

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED GROUP SAVINGS LINKED INSURANCE SCHEME SERVICE

BIO-DATA Employee’s Name:…………………………………………………………………...

Sex(tick): Male Female

Designation………………………………………………………………………………

Department……………………………………………………………………………….

Pay Scale……………………………………………………………………………….…

Grade/ GSLI Group…………………………………………………………………..

Cadre & Code…………………………………………………………………………..….

Service Status (Pl. tick) Regular Contract Service

Date of birth………………………………………………………………………….……

Date of joining service……………………………………………………………..…..…..

Date of joining GSLI scheme………………………………………………………...…..

Give the name of office and address of previous employment, if any…………………....……………………………………………………………………

Citizen Identity Card No………………………………

GIS Accounts Number………………………………….

Dated -------------------------------------- to be completed by office-----------------------------------

Physical disability at the time recruitment if any YES NO If yes, please attach medical certificate

Signature of Employer Office Seal

13

Form 4 (Certificate by Employer) 14

Royal Insurance Corporation of Bhutan Limited Group Savings Linked Insurance Scheme

Certificate By Employer

( To be filled-in by the employer for payment of benefits under Employees’ Group Savings-Linked- Insurance Scheme 1991)

Name in full of the Employee……………………………………………….

Last Address………………………………………………………………………………

Account Number…………………………………………………………………………..

Date of birth/Age………………………………………………………………………….

Date of joining service…………………………………………………………………… ---------------------------------------------------------------------------------------------------------- To use for refund by resignation, retirement, termination, permanent total disability claim

Date of relieve from service………………………………………………..

Reason for leaving service………………………………………………………………. ------------------------------------------------------------------------------------------------------------

To use for death claim

Date last attended duties…………………………………………………………………

Date of death/disablement………………………………………………………………

Cause of death……………………………………………………………………………. ------------------------------------------------------------------------------------------------------ ---- For office use: the Disbursing Officer is to advice for the payment Please pay to: 1 Claimant 2. Disbursing Office

Signature of Head of the Department Office Seal Name………………………………

Designation………………………… Office………………………………

Date……………… Place……………………………….. 14

Form No. 5(claimant’s statement) 15

Royal Insurance Corporation of Bhutan Limited Group Savings Linked Insurance Scheme

Claimants’ Statement

Name of nominee(s)/legal heirs(s)………………………………………………………

Age of nominee(s)/legal heir(s)…………………………………………………………

Relationship to the deceased…………………………………………………………….

Full address of the nominee(s)/legal heir(s)…………………………………………….. ---------------------------------------------------------------------------------------------------------

In case of minor nominee(s) Name of the guardian…………………………………………………………………….

Full address of the guardian……………………………………………………………

Relationship of the guardian to the nominee…………………………………………… ----------------------------------------------------------------------------------------------------------- Date of death /disablement of Employee……………………..………………………….

Place of death/disablement of Employee………………………………….…………….

Name of office last served by the deceased……………………………………………...

Cause of death……………………………………………………………………………

I,…………………………………………… do hereby declare that the answers to each and all the above questions are full and true in each and every respect. It is signed……….day of…….....20

Attested by:

Signature………………… Signature or thumb impression of the nominee/

Guardian/legal heir Name…………………………. Full address of the nominee(s)/legal heir/guardian

Designation…………………… ……………………………………………………..

Address with office seal…………………………………………………………………..

(Attestation should be done by the officer above grade VIII) 15

16 Form No. 6(Discharge voucher in case of death/permanent disability)

Royal Insurance Corporation of Bhutan Limited Group Savings Linked Insurance Scheme

Discharge Voucher

I/We……………………………………… ………. Nominee(s) or legal heir(s) of………………………………(name of deceased) holder of GIS account no…..

…………………acknowledge the receipt of Nu………………… in full satisfaction and

Discharge of all my/our payment of savings with interest/death or permanent total

Disability compensation on the life of above deceased/own account.

Nu…………………

Witness:

Affix Revenue Stamp ………………………………………

Signature ……………………….. Signature of employee/nominee or legal heir Name………………………………

Designation…………………………

Office address………………………

………………………………………

16

17 FORM 7(BOND)

ROYAL INSURANCE CORPORATION OF BHUTAN LIMITED PHUENTSHOLING: BHUTAN

BOND TO BE EXECUTED IN MISSING CASE

I,……………………………….…… hereby state that I am the recipient of GSLI claim

Amount of Nu………….(…………………………………………………..) only under

GSLI Account number………………… of late Mr./Mrs/Ms……………………………..

From the Royal Insurance Corporation of Bhutan Limited.

In the event of re-appearance of the missing person hereinafter namely Mr/Mrs/Ms…….. ……………………………………., I do hereby solemnly undertake and assure the Royal Insurance Corporation of Bhutan Limited that I shall refund on the first demand the above claim amount received from RICBL with interest at the prevailing rate of the Corporation on the day of refund

Signed on this……………… day of the……………. Month of the year…………….

Full Name………………………………….

Permanent Address………………………..

…………………………………………… Citizen Card Number…………………….

Affix Legal Stamp

Signature of the Nominee

In witness to the Bond executed by………………………… with RICBL, I hereby sign

Dated: Signature Office Seal of Disbursing Officer

17