Telangana State Government Life Insurance Department



The Telangana State Government Life Insurance Department is one of the oldest department in the state. The scheme was originally stated in the year 1907 by the Nizam of Erstwhile state of Hyderabad for the welfare and to bring and ensure financial security to the employees at the time of their retirements during their life and to provide financial support to the survivor in the event of death of the subscriber while in service.

Initially, the government has decided to computerize the Accounts of the department in the year 1997-98 and directed the Andhra Pradesh Technologies Services (APTS) to computerize the department. APTS developed AIMS package. Later, due to non availability of Technical support, the department has obtained permission from the Government to re-engineer the existing AIMS package using Oracle 11g RAC as backend and Microsoft.Net as frontend through APTS. As a part of Re-engineering, the department has also developed and hosted a website for facilitating policyholders to view their Accounts online, download Account slips and other necessary department forms.

The Re-engineered AIMS package covers the entire business workflow of a District Office starting from receipt of current at Inward to dispatch of current through outward. By using the package, Issue of policies, Sanction of loan, settlement of claims, schedule posting, suspense clearance, policy enquiry and other related matters are taken care of.

On receipt of the current from Inward the concerned clerk will first open the current in his Personal Register and saves it. Then manually he calls for the file from Record Section, then he scrutinizes the current and entered the required data in the prescribed screens and process the same. After the process he will take printouts and attached to the physical file along with the received current, and forward the file/current to the superintendent in the electronic PR. The superintendent after verification will forward it to the concerned Officer for approval both physically and electronically. The Officer after verification approves the case and sent it to dispatch/cheque section for online payment. Once current is approved by Officer in the EPR a SMS will be sent to the Policyholder intimating about the status.

Earlier, this department was not in a practice of collecting loan interest simultaneously with loan installment. Government vide Circular Memo No. 707/119/A2/Admn.II/2013, dated 21.06.2013 have instructed and permitted this department to collect the interest on loan sanctioned to the Policyholder soon after the loan in question is liquidated. In compliance of the above memo this department had revised the loan deduction order in which it is being asked the Drawing and Disbursing officers to calculate interest on the loan at mention in at soon after liquidation of loan in question.

However, after going through the records and data it is found that most of the Drawing and Disbursing officers are recovering the principal amount only and no interest is being calculated and recovered from the pay of loanee. As a result the interest due from the policy holders is being recovered from the refundable amount at the time of their claims or it is being adjusted in the subsequent loans. This is causing strain to the Life Insurance Fund and the Accountant Generals Audit party also has raised an objection to this system. Hence, to avoid such strain to the fund and for dropping the Audit Para this department introduced PICS (Principal + Interest Collection System) which calculate the expected amount of interest due at the time of sanction of loan itself and inform the same to the concerned Drawing and Disbursing Officers duly requesting him to recover the same along with principal. Thus the E.M.I will be consisting of both the principal and interest. Any difference if arises it can be adjusted in subsequent loan or at the time of settlement of claim and E.M.I collection of Principle + Interest facilitated to robust the Fund and reduce the burden on Policyholder.

Policy is matured when the policyholder attains the age of (58) years, He has to submit the maturity claim form duly filed and attested by the concerned Drawing and Disbursing officer. Sum Assured along with Bonus declared is refunded to the policyholder.