IHC dismisses govt employees insurance plea

Says 1969 Act does not state salary deductions would be paid to civil servants on their retirement

ISLAMABAD: The Islamabad High Court (IHC) has dismissed a petition seeking payment of group insurance amount deducted from the salaries of retired employees of federal government and expressed hope that the government would formulate law on the pattern of Khyber-Pakhtunkhwa (K-P) and Balochistan government for providing relief to them.

According to court orders, the government should review the matter on humanitarian grounds.

The single bench headed by acting chief justice Amir Farooq issued an eleven-page order which said that the Central Employees Benevolent Fund and Group Insurance Act 1969 does not state that salary deductions made on account of group insurance would be paid to civil servants on their retirement.



The amount would only be given in case of death of an employee to his family member or to the member nominated by him.

Those covered under the Act include employees of federal government, Supreme Court, Parliament House, election commission and other autonomous bodies.

Earlier, retired government officials from various organisations had challenged the provisions of Central Employees Benevolent Fund and Group Insurance Act, 1969.

The counsel for petitioners GM Chaudhry maintained that the ex-servicemen had been allowing salary deduction on account of benevolent fund, which they were entitled to receive after their retirement.

“Payment from the fund is only discharged in case of death of an employee during or after their service and not as their vested right,” the petition maintained.



The provincial governments of Balochistan and K-P had amended their laws and were paying such funds to their employees on retirement.

Deputy Attorney General Raja Khalid Mehmood had maintained that only deceased employees who had retired from the federal government could be compensated under section 19 of Employees Benevolent Fund and Group Insurance Act, 1969.

“The petition had not stated violation of any of the provisions of the Act,” he said, adding that “retired employees could only be given such funds if the law was amended”.

According to the court, the fund is being regulated through a board of trustees.

The families of the deceased employees are paid between Rs4,000 and Rs10,100 from the fund every month.

The employees who contribute to the fund are also entitled to seven other benefits under the Act.