(1) The government of Nepal shall establish a term life insurance fund for the insurance of military personnel and for that purpose, by publishing a notice in the Nepal Gazette, any insurance company within the country or an organization established in accordance with prevailing laws, considering the business and financial capacity of that company or organization, shall issue a term life insurance fund. Can be designated for life insurance operations.
(2) Two hundred rupees will be deducted from the monthly salary of each soldier and deposited in the fund as per sub-rule (1) and the same amount will be added by the Government of Nepal and a twenty-year term life insurance of one lakh rupees will be provided. Out of the amount accumulated in the insurance fund, when the soldier retires, the insurance amount and bonus payment will be given to him.
(3) In case of death of a military person before the twenty year period of deducting the amount as per sub-rule (2), his family will get one lakh rupees. In case of mandatory retirement of any military person from service, the following amount will be provided:-
(a) Ten thousand rupees if the amount is deducted for a period of less than one year (b) Twenty five thousand rupees if the amount is deducted from one year to five years (c) Fifty thousand rupees if the amount has been deducted from five years to ten years (d) If the amount is deducted from ten to fifteen years, seventy five thousand rupees,
(e) One lakh rupees if the amount has been deducted for twenty years. But if the amount deposited by him and its interest, dividend amount exceeds the mentioned amount, the same amount will be provided from the said fund.
(4) If a military person separates from the service in any way other than in the case of compulsory retirement before the twenty years of starting to deposit the amount in accordance with sub-rule (2), such military person will be provided with an amount equal to the surrender value.
(5) Notwithstanding anything written in sub-rules (2) and (3), a military person who retires from service may continue the amount deposited for term life insurance to mature in a period of twenty years or less. But the government of Nepal will not bear any amount for that.
(6) Unpaid arrearsIn the case of military leave, only if such military person collects the insurance amount, the Nepal government will add the amount of that period and deposit it in the fund for such military person.
(7) A military person dismissed from service due to his disqualification for government service in the future shall receive the amount accumulated in his fund with interest, apart from the additional amount from the Government of Nepal as per sub-rule (2).
(8) In the event that an amount exceeding the amount accumulated in the name of the respective military person is required to be provided while providing the insurance amount in accordance with this rule, the Government of Nepal shall deposit the excess amount in the company or organization as per sub-rule (1).
(9) The company or organization designated according to sub-rule (1) shall update the record so as to show the separate account of each military person accumulated in the insurance fund and provide the details of each year to the respective military person.
(10) The Government of Nepal may issue and implement necessary guidelines for the operation and management of Term Life Insurance Fund.