(1) The Government
of Nepal shall establish a fixed term (Sabadhik) life insurance fund
for the civil employee insurance.
(2) A sum of Two Hundred Rupees shall be deducted from the
monthly salary of each civil employee and deposited in the fund
pursuant to Sub-section (1), and the Government of Nepal shall add
the amount equal thereto and make the Twenty year term life
insurance for the insured sum of One Hundred Thousand Rupees.
From the amounts deposited in that insurance fund, the insured sum
and bonus shall be paid to the employee at the time of his/her
retirement.
(3) If any civil employee who has made deduction pursuant to
Sub-section (2) dies before the completion of Twenty years of
service period, an amount of One Hundred Thousand Rupees shall
be provided to his/her family. The following amount shall be
provided to the compulsory retired civil employee.
(a) Ten Thousand Rupees for deducting the amount
of less than One year.
(b) Twenty Five Thousand Rupees for deducting the
amount of more than One year and less than Five
years.
(c) Fifty Thousand Rupees for deducting the amount
of more than Five year and less than Ten years.
(d) Seventy Five Thousand Rupees for deducting the
amount of more than Ten year and less than
Fifteen years.
(e) One Hundred Thousand Rupees for deducting
the amount of more than Twenty years.
Provided that, if the deposited amount,
interest and dividend be higher than the above
mentioned amount, the higher amount shall be
provided from the fund.
(4) If any civil employee who has made deduction pursuant to
Sub-section (2) retires from the service for any reason whatsoever,
prior to the twenty years deduction of amount, an amount equal to
the surrender (Samarpan) value shall be provided to such employee.
(5) Notwithstanding anything contained in sub-sections (2)
and (3), the retired employee shall provide continuity as maturity to
the fixed term life insurance amount in twenty or less than Twenty
years.
Provided that, Government of Nepal shall not provide any
amount for the same.
(6) Other provisions relating to the fixed term life insurance
fund shall be as prescribed.