Kerala State Life Insurance Scheme

Introduction to Kerala State Life Insurance Scheme

Kerala State Life Insurance (KSLI) Scheme is a vital financial security tool designed exclusively for state government employees in Kerala. This insurance scheme ensures that government employees can enjoy a secure financial future, providing peace of mind for both the employees and their families.

Eligibility Criteria for Enrolling in KSLI

Who Can Apply?

The eligibility to apply for the Kerala State Life Insurance Scheme is specific to certain conditions:

  • State Government Employees: The scheme is open to all permanent or officiating state government employees.
  • Age Limit: Applicants must be below the age of 50 years at the time of the first premium payment.

Documentation Required

To enroll, employees need to provide:

  • Age Proof: A certificate from the head of the office/institution, furnished in the proposal form, acts as the proof of age of the proposer.

Premium Payment Details

Payment Structure

The premium rates under the KSLI are determined by the employee’s basic pay scale. Here are the details according to the latest guidelines effective from April 1, 2012:

  • Basic pay up to Rs. 9,189: Rs. 150 per month
  • Basic pay from Rs. 9,190 to Rs. 18,739: Rs. 230 per month
  • Basic pay from Rs. 18,740 to Rs. 29,179: Rs. 380 per month
  • Basic pay of Rs. 29,180 and above: Rs. 450 per month

These rates ensure that the premium payments are affordable and proportional to the employee’s earnings, facilitating broader coverage among the government workforce.

Benefits and Payouts of the Insurance Policy

Sum Assured and Bonus

The sum assured under the policy, along with any government-declared bonuses, is payable under two main conditions:

  • At Maturity: The sum is payable to the insured upon reaching the age of 55 years.
  • Upon Death: If the insured dies before reaching 55 years, the sum assured along with bonuses, if any, are payable to the nominee or nominees.

Options on Cessation of Service

If an insured employee leaves the government service before age 55, they have two options:

  1. Continue Paying Premium: Continue to pay the premium until the policy matures.
  2. Convert to a Paid-up Policy: Opt for a paid-up policy for a reduced sum assured, proportionate to the total premiums paid.

Application Process for KSLI

Steps to Apply

  1. Form Submission: Complete and submit Form No.1. It is preferable that the form be written by hand.
  2. Signature Verification: Sign the form in the presence of the head of the office, who must also certify that the form was explained to the proposer and that all entries are correct.
  3. Payment of Premium: Along with the form, submit the original chalan receipt as proof of premium payment.

Claims Process

Making a Claim

To claim the insurance payout, the following must be provided:

  • Policy Document: The original policy document must be produced.
  • Proof of Claim: Establish the rightful claim to the sum assured.
  • Deductions: Any arrears in premiums or loans against the policy will be deducted from the sum assured.


The Kerala State Life Insurance Scheme is an exemplary initiative that underscores the Government of Kerala’s commitment to the welfare of its employees. It not only provides financial security but also encourages a culture of savings and prudent financial planning among state employees.

By offering comprehensive coverage that is both accessible and affordable, KSLI helps ensure that state employees and their families are well-protected against financial uncertainties.


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