The Blossoming of SLI - greaterkashmir

“In the short run, the investment is a voting machine. In the long run, it is a weighing machine”, perhaps this was the intent of the policy framers when they rolled-out the Jammu and Kashmir State Life Insurance (SLI) for employees as a compulsory insurance scheme. The ripple effect of SLI as a small savings investment cannot be overlooked. Extra saved money provided the employees with some cushion for whatever life sends its way. We all look for ways to improve our financial stability, safety, and well-being.

One of the best ways to improve one’s financial situation is saving more money and SLI as consistent supplement can prove to transformative, provided the scheme is groomed further by way of a review to match it with market trends. Managed by the J&K Funds, presently under this scheme employees can also opt to insure for amounts higher than the mandatory minimum, up to a maximum of Rs. 2 lakhs, which is viewed inconspicuous.

Although over the years, the scheme has undergone amendments and vide SRO-339 dated 20-10-2016, the maximum age for opting the insurance cover was enhanced to 50 years. Thereafter, pursuant to the Government Order No. 56-F of 2018 Dated 21-02-2018, the decentralization of State Life Insurance wing from provincial level to District Level was done with a further direction that the provincial State Life Insurance Fund offices, Srinagar/Jammu shall transfer the relevant records and accounts to the concerned District Fund Offices for further maintenance thereof.

The Last enhancement in insurance amount of the scheme upto a maximum of Rs 2 lakh was ordered in the year 2010 i.e., just after the 6^th Pay Commission was implemented. Meanwhile, the 7^th Pay Commission too was granted to employees w..e.f 01-01-2016 and now 8^th Pay Commission too has ordered by the Central Government, which is likely to submit its recommendation in January 2026.

Woefully, the SLI saw no enhancement in the insurance cover limit since 2010 with a result the Insurance Scheme has lost its sheen and is perceived as redundant. The enforceability of scheme too suffered as neither the DDOs nor the controlling authorities ever reviewed the lack of implementation of the SLI as a compulsory obligation The same could well be testified and gauged from number of fresh recruits opting for the Insurance cover post 2010. The DDOs do not impress upon the employees/fresh recruits for subscribing to the compulsory scheme. The enthusiasm for subscribing to the scheme is missing and what is more worrisome is that many are unaware about it. In such a scenario that there are two options which could be exercised.. Firstly, the scheme should be discontinued, which shall be easier and convenient option; and secondly, to revitalize the scheme and make it align with existing market options, as appositely written by Faiz Ahmed Faiz, - dil na umeed to nahin nakam hi to hai; lambi hai ġham ki shaam magar shaam hi to hai

From my personal experience, and as a subscriber to SLI, the best part of the scheme is its non-pinching deduction from the salary, which earlier contributed to availing the Income Tax benefit under section 80 C also. Fresh recruits subscribing to NPS are more interested in stock and share market. They are more structured in their investments and most of them are focussed towards systematic investment planning (SIP), where the returns are much higher and more lucrative. Nevertheless, the SLI as a small savings scheme needs to be properly structured with enhanced insurance cover so that it becomes an essential contributor to the systematic investment planning.

Some key takeaways which shall reinforce the interest of employees in subscribing to SLI are enumerated hereunder:-

Enhancing the maximum subscription limit to 10-15 lakhs
Advancing the option of subscription to the enhanced limit to all employees below the age of 55 years
Making the scheme fully computerized with real-time data updation.
Launching of an SLI app just on the analogy of NPS wherein the subscriber can view their contributions
Agreement for operationalization of scheme through LIC India Limited could also be considered or else through tie-up with J&K Bank Limited (which is operating MetLife scheme)
The Payment of Maturity-Value of the Scheme needs to be co-terminus with the superannuation of the employees or one-month prior to the superannuation, with credit affording directly to the Bank Account of the employee of the last date of superannuation, which would generate financial boosting at the time of retirement.

Lastly, the compulsory subscription to the scheme and enhanced premium deductions from the salary of the employees shall help in enriching the stocks in Public Fund Account.

It is hoped that these random thoughts shall see fructification and blossoming of SLI, as famous poet Nida Fazli remarked:

Koshish bhi kar, umeed bhi rakh, rasta bhi chun

Phir is ke baad thoda muqaddar talash kar

The writer is District Treasury Officer, Udhampur and views expressed are personal.