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Retired Personnel AFGIS

Life Insurance Schemes for Retired AF Personnel

Air Veterans Insurance Cover (AVIC) Scheme provides insurance cover to the beneficiary of retired air warriors . The Scheme was introduced for the first time for air warriors retiring on or after 01 Aug 1981. Initially the scheme was optional, the same was made compulsory with effect from 01 Nov 1991.

Further ,in Jan 2013,maximum age for insurance cover has been enhanced from 72 yrs to 75 yrs for all air veteran who retire on or after 01 Jan 11

Salient Features of various AVIC Schemes

Medical Insurance Scheme MIS

Medical Insurance scheme (MIS) of AFGIS was started in Aug 1991. With the introduction of Ex-servicemen Contributory Health Scheme (ECHS) by Govt, MIS run by AFGIS stands closed wef 01 Apr 2003.

AFGIS is refunding the contribution towards the scheme for the members who have retired on or before 31 Mar 2003.

To claim refund of one time contribution made towards the scheme, all members of AFGIS-MIS are requested to forward under mentioned documents to AFGIS.

  • MIS (Medical Insurance Scheme)/ MBS (Medical Benefit Scheme) card in original issued by AFGIS/ IAFBA. In the event of loss of card an indemnity bond duly attested by notary/oath Commissioner as per the speciman copy click here PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site. (8 KB)
  • Bank account No. and Bank address.
  • Your current postal address and contact number.

In the event of demise of the member, only spouse is entitled for refund of contribution as per MIS rules.

IAF Social Security Deposit (IAFSSD) Scheme

Click to download IAFSSD Form PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.(56.1 KB)
click to download Form 15 H PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.(10.7 KB) in case you dont want Tax to be deducted at source, but want to deposit the same yourself with IT deptt.


Families of AF personnel who die in harness and retiring personnel get substantial benefits. Timely and proper advise, on judicious investment of lumpsum money received is not readily available to the families/retiring members. As a result, in a number of cases regular income is not forthcoming which affects the standard of living of the family adversely. Quite often, bereaved, families/retired personnel are duped of this money. In order to assist personnel in investing their funds at good rate of interest combined with safety, the AFGIS has launched an Investment Scheme with effect from 01 Dec 91.


The Scheme is open to air veterans (including SSC officers)/widows and NoK (minor children / major unmarried daughters) of air warriors who are eligible to draw family pension.


The following schemes are available to the depositors for investment.

  • Non-Cumulative Scheme :- For the amount invested under this scheme, payment will be made at the rate as decided by the BoT on monthly/quarterly basis as opted by the member (after deduction of Income Tax, if any). For the Carry Forward Loan cases the interest, if any left, after adjusting Monthly EMI of House Building Loan/ Conveyance Loan is paid on monthly basis. Interest will be directly credited to the members account through NeCS on due date.
  • Cumulative Scheme:- On cumulative deposit extra interest equivalent to difference in rate arrived at by calculating compounding effect of quarterly rate will be paid. The interest will be credited to the depositors account at the end of every year and repaid at the time of maturity along with principal.

Amount of Deposit

The Society will accept deposits in multiples of ₹ 10,000/- the minimum acceptable amount being ₹ 50,000/-.The maximum amount of deposit will be limited to the aggregate of terminal benefits (i.e. Gratuity / Commutation/Leave Encashment / SB of GIS/DSOP/AFPPF) received from all sources. The amount of investment from past retirees/widows will be restricted only to the extent of terminal benefits they have received at the time of their retirement/death of spouse. Proof of terminal benefit receipts are to be attached along with the application for deposit by the members at the time of joining the scheme. Income earned from any other sources other than the interest earned on the deposits made in IAFSSD Scheme will not be accepted for investment under this scheme.

The depositor may either indicate the amount of investment they wish to make out of the amount due to them from AFGIS or send the same separately to the Society by demand draft or multicity cheques of any Bank drawn in favour of "Air Force Group Insurance Society". Amount required to be invested can also be transferred directly through RTGS. Interest will be payable from the date the draft/cheque is credited in the account of AFGIS.

Interest Rates

(Click to see) PDF file that opens in new window. To know how to open PDF file refer Help section located at bottom of the site.(23.2 KB) Interest rates offered by AFGIS are governed by the decisions of the Board of Trustees from time to time. The rate so revised will be implemented prospectively not retrospectively. Thus the existing deposits made prior to the date of revision will earn the existing pre-revised rate of interest till the date of maturity/ pre-mature liquidation

Renewal of Deposit

The deposit will be initially for a period of three years extendable by 1/2/3 year(s) optionally. Members will have to indicate their willingness to renew the deposit at least one month before they are due. Members have the option to renew principal amount only or full amount including interest at the time of renewal of deposit. FDRs duly discharged are to be submitted by the member to the Society for renewal / redemption.

If the deposit(s) is/are not encashed/ renewed on maturity, the same will be automatically renewed for a period of three years under cumulative scheme. In case of premature withdrawal savings bank rate will be paid if deposits are prematurely withdrawn before completion of one year. If the deposit is withdrawn after one year then the deposit will earn 1% less interest as declared for that financial year. Later, on the request of the member the same can be renewed for a full tenure in the type of the scheme as requested by the member. In such cases savings bank rate of interest will be credited on the said deposits from the date of automatic renewal upto the receipt of the letter from the member for further renewal of three years.

Premature withdrawal

Premature withdrawal of deposits is permissible to meet unforeseen financial commitments. The member, however, will lose 1% interest from the date of deposit if withdrawal is made after completion of one year. Interest at the prevalent bank rate for fixed deposits of such duration will be payable if deposits are prematurely withdrawn before completion of one year. In renewal cases, the member will lose only 1% interest from the date of renewal.

Part Premature withdrawal

Part Premature withdrawal of the deposit amount can also be made. In such case loss of interest as mentioned in para above will be applicable only on the withdrawn amount and not the entire Fixed Deposit amount.


The depositor would be required to make nomination in para 4 of application form in favour of a person to receive the deposit in the event of the death of the depositor.

Tax deducted at Source(TDS)

Income Tax and surcharge at the applicable rate as decided by Govt. (CBDT) from time to time would be deducted at source on total interest, if the interest payable exceeds prescribed limits in a year or as decided by Govt. In the case of members holding multiple deposits, total interest payable will be considered for calculating the income tax dues. However, Income Tax will not be deducted at source by AFGIS in case the depositors give a declaration on Form 15 -H under Section 197 (A)(i) of the Income Tax ACT, 1961 before 31st March every year (for the following financial year) and at the time maturity / withdrawal.

Loan Facility

Loan facility up to 75% of the deposits is available against the Fixed Deposit. The rate of interest for the loan under the scheme will be floating. The rate of interest will be charged 1% higher than the rate of interest declared on the Non-Cumulative Scheme for the year. The Loan is to be repaid in equated monthly installment (EMI) up to maximum of 120 installments.

Change Of Scheme

Members can change over from one scheme to another after completion of one year from the date of deposit. This facility is available only once during the tenure of deposit without levying any penalty.

AFGIS Sponsored Free Hospital Bus Service for ECHS Members

  • The scheme provides free bus service for ECHS members through local Air Force Units / AF Hospitals to cater to the following situation.
    • Stations where strength of Ex-servicemen within its proximity is high and where there is huge dependence on Hospital Routine Run service transport.
    • Stations can also consider AFNHB / AWHO Complexes within their vicinity where concentration of ex-servicemen exists for conveying them regularly to the nearest Military Hospital from such locations.
    • Stations under whose control ECHS polyclinics exist can consider introducing this free bus facility to convey ECHS members and their dependants from such polyclinics to Service Hospitals and back.
    • Free bus service to convey ECHS members from AF controlled ECHS polyclinics to Civil Referral Hospitals (one circular trip covering all such hospitals without detention) can be considered by Stations exercising control over such polyclinics.

Loan Retired Personnel

Eligibility : All retired Air Force personnel/ widows are eligible to draw loan against their fixed deposits held with AFGIS under IAFSSD Scheme(formally called RPIS).

Amount of Loan: Loan amount restricted to 75% of FDRs.

Repayment Period: The loan availed under the scheme is required to be repaid in maximum 120 installments (Minimum installments - 12).

Rate of Interest : The rate of interest for loan availed under the scheme will be floating. The rate of interest will be charged 1% higher than the rate of interest declared on Non-Cumulative Scheme of IAFSSD every year on the outstanding principal at the beginning of the Financial Year.

Payment of EMIs :. The retired personnel availing the loan under the scheme is required to ensure that EMI fixed is remitted to AFGIS on the last day of every month. If the EMI is not received regularly for three months, AFGIS will take steps to encash the deposit held against the individual in IAF Social Security Deposit Scheme and to recover the outstanding loan along with interest. The interest on deposit will not be adjusted against EMI. To ensure regular remittance, issue standing instructions to your bankers to electronically remit the EMI to AFGIS or, alternatively, forward post-dated cheques for 12 months. The post-dated cheques issued towards EMI should not be dishonuored. If the post-dated cheque is dishonoured, the FDR can be foreclosed to recover the outstanding loan without any intimation.

Safe Custody of Fixed Deposit Receipt: The Fixed Deposit Receipt against which the loan taken is to be discharged over Rs. 1 Revenue Stamp and submitted to the Society for safe custody till the loan is fully repaid.

Processing Fees: Nil. (Processing Fee has been waived off wef 01 Oct 17)

Death Claim After Retirement Air Veterans Insurance Cover

  • In case of death of a retired member of AFGIS, the nominee is required to forward the following documents :-
    • Death Certificate issued by Registrar of Births and Death (in original/ ink attested).
    • Post Retirement Insurance Memorandum/ Card issued by the Society in original and the approved copy of nomination (AFGIS-224) in Original.
    • A photograph of the beneficiary, duly attested by Magistrate / Stn Cdr of the nearest AF Unit / Secretary, Zila Sainik Board, President / Secretary AFA of resepective branch is to be affixed in the place provided for in the claim form (AFGIS-222). Certificate by bank (AFGIS-229 on the back side of AFGIS-222) is to be attested by the Bank Manager.
  • The beneficiary will be as per the nomination executed by the member at the time of retirement.


  • In case of Post Retirement Insurance Cover, only the sum assured will be payable in the event of death.

New Scheme AVIC-15 has come into effect w.e.f 01 Jul 2015. For those retirees w.e.f 01 Jul 2015 AVIC-15 is only available.