Life insurance premium eligible for reimbursement under LTC cash voucher scheme

The premium paid for insurance policies purchased between October 12, 2020 and March 31, 2021 by central government employees will be eligible for reimbursement under the LTC cash voucher scheme.

On October 12, the government announced the LTC cash voucher scheme under which employees can purchase any goods or services with a GST rate of 12 per cent or above to avail themselves. The payments for such purchases have to be made via digital mode or cheque or demand draft or NEFT/RTGS.

So far, employees had only leave travel concession (LTC) benefits on travels made, or else they had to forgo the amount. The expenditure department said payment of premium for existing insurance policies would not be covered under the LTC cash voucher scheme.

“However, the payment of premium for insurance policies purchased during the period between October 12, 2020, and March 31, 2021, is eligible for reimbursement under the scheme,” it said.

Vouchers/ bills for availing the benefit under the scheme has to be submitted on or before March 31, 2021.

On the submission of bills by employees who would superannuate before March, the expenditure department said, “vouchers/ bills should be submitted and settled before the date of superannuation”.