(1) The Government of Nepal shall establish a term life insurance fund for teachers' insurance (2) Two hundred rupees will be deducted from the monthly salary of each teacher and will be 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.
(3) Out of the amount accumulated in the insurance fund as per sub-rule (2), the insurance amount and bonus payment will be given to the teacher when he retires.
(4) In case of death of a teacher before the twenty years from the commencement of deducting the amount in accordance with sub-rule (2), his family will receive one lakh rupees and in case of mandatory retirement of a teacher from service, the following amount will be provided:-
(a) Ten thousand rupees if the amount is fixed 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 is fixed for five years to ten years,
(d) Seventy-five thousand rupees if the amount is fixed for ten to fifteen years,
(e) One lakh rupees if the amount is fixed 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 that fund.
(5) If a teacher leaves the service in any way other than in the case of compulsory retirement before twenty years of starting to collect the amount in accordance with sub-rule (2), such teacher will be provided with an amount equal to the surrender value.
(6) Notwithstanding anything written in sub-rules (3) and (4), a teacher who retires from service may continue to continue the amount deposited for term life insurance to mature in a period of twenty years or less. But Nepal government will not bear any amount for that.