Insurance Update 2026
CGEGIS RATES & COVER 2026
New Monthly Deduction & ₹50 Lakh Cover
(Group A, B, C Revised Table)
As of January 2026, the Central Government Employees Group Insurance Scheme (CGEGIS) rates, which have remained stagnant since 1990, are set for a massive revision. The 8th Pay Commission has recommended indexing the insurance cover to 100x the subscription amount to provide meaningful financial security.
📉 Why the Change?
Current Issue: A Group A officer pays ₹120/month for a mere ₹1.2 Lakh cover. This is negligible in 2026.
New Proposal: Subscription to rise to ₹5,000/month for a solid ₹50 Lakh insurance cover.
CGEGIS 2026: Proposed Deduction Matrix
| Group | Current Deduction | 8th CPC Deduction | New Insurance Cover |
|---|---|---|---|
| Group A | ₹ 120 | ₹ 5,000 | ₹ 50.00 Lakh |
| Group B | ₹ 60 | ₹ 2,500 | ₹ 25.00 Lakh |
| Group C | ₹ 30 | ₹ 1,500 | ₹ 15.00 Lakh |
💡 Key Points to Note (Savings Fund):
- Savings vs Insurance: CGEGIS is split into two parts: 70% goes to the “Savings Fund” (returned at retirement with interest) and 30% goes to the “Insurance Fund” (non-refundable premium).
- Tax Benefit: The monthly deduction is eligible for tax rebate under Section 80C.
- Retirement Corpus: With the new rates, the “Savings Fund” corpus at the time of retirement will be significantly higher (approx ₹15-20 Lakhs) compared to the current negligible amount.