Coal India Executives Group Personal Accident Insurance Scheme

1. Introduction

The Coal India Executives Group Personal Accident (CIEGPA) Insurance Scheme is a statutory benefit designed to provide financial protection to the seniorlevel officers of Coal India Limited (CIL) and its subsidiaries in the event of accidental death, permanent total disability, or permanent partial disability. The scheme is governed by the terms laid out in the Coal India (Insurance) Scheme, 2011 and is periodically reviewed by the Ministry of Coal.

2. Who is Covered?

The scheme covers the following categories of personnel:

• Chairman and Managing Director (CMD)
• Executive Directors
• Chairmen and Managing Directors of subsidiaries
• General Managers, Deputy General Managers, and other senior officers in the Executive Group.

Eligibility is based on the officers appointment order and continues as long as the individual remains in the covered post.

3. Key Features of the Scheme

3.1 Sum Insured

The sum insured (SI) is a multiple of the officers basic salary, as defined in the scheme:

• CMD 25 times the basic salary.
• Executive Director 20 times the basic salary.
• General Manager and Deputy General Manager 15 times the basic salary.
• Other senior officers 10 times the basic salary.

3.2 Coverage Types

• Accidental Death: Full SI payable to the nominee.
• Permanent Total Disablement (PTD): Full SI payable to the insured.
• Permanent Partial Disablement (PPD): A proportionate amount based on a schedule of loss of earning capacity.
• Temporary Total Disablement (TTD): Daily cash benefit for a maximum of 180 days per accident, subject to a ceiling of 30% of SI.

3.3 Premium Payment

The premium is wholly borne by Coal India Limited. It is deducted from the officers gross remuneration and remitted to the insurer as per the schedule fixed by the Treasury Department. The premium rates are approved annually and are reflective of the actuarial risk associated with the executive group.

4. Claim Process

In the event of an accident, the following steps are followed:

1. Notification: The employee or nominee must immediately inform the Human Resources (HR) & Benefits Division of CIL.
2. Documentation: Submit a claim form along with medical reports, death certificate (if applicable), and a copy of the employees service record.
3. Assessment: The insurers medical panel evaluates the extent of injury or loss of earning capacity.
4. Approval: Upon satisfactory assessment, the insurer issues a claim settlement letter.
5. Disbursement: The amount is transferred directly to the nominees bank account (for death) or to the insureds account (for disability).

The entire process, if all documents are in order, typically takes 3045 days.

5. Nomination Rules

Every covered executive must nominate at least one beneficiary. The nomination can be changed by submitting a written request to the HR department. In the absence of a valid nomination, the payout follows the succession rules laid down in the Companies Act, 2013.

6. Tax Implications

The premium paid by the employer is taxexempt under Section 80C of the Income Tax Act. The claim benefits, whether for death or disability, are also exempt from tax under Section 10(10D), provided the policy satisfies the conditions of the Act.

7. Comparison with Other Schemes

8. Frequently Asked Questions (FAQ)

Q1: What happens if an executive resigns?

The coverage ceases on the last day of employment. Any pending claims arising from accidents that occurred while the employee was in service will still be honored.

Q2: Can the executive purchase additional personal accident cover?

Yes. The scheme does not restrict a member from buying a personal policy from any insurer. The additional cover will be independent of the CIEGPA benefits.

Q3: Is there any waiting period?

No. Coverage is effective from the date of appointment to the post covered under the scheme.

Q4: Are family members covered?

No. The scheme is exclusively for the executive officers named in the policy. Family members may be covered under separate employee welfare policies.

9. Governance and Oversight

The scheme is administered by the Coal India Human Resources & Benefits Division in conjunction with the Ministry of Coals Insurance Cell. An annual audit is performed by an independent actuary to ensure adequacy of premiums, claim ratios, and compliance with statutory regulations.

10. Recent Amendments (20232024)

• Increase of SI for CMD from 20 to 25 basic salary.
• Introduction of a permanent partial disablement schedule that aligns with the latest Indian Insurance Council guidelines.
• Reduction of the maximum TTD payout period from 240 days to 180 days to harmonise with industry standards.

11. Contact Information

For further enquiries, documentation, or claim assistance, executives may contact:

• HR & Benefits Division, Coal India Limited
• Phone: 18004251941
• Email: benefits@coalindia.in
• Address: Coal India House, 2nd Floor, Ashok Marg, New Delhi 110001