Two decades after department’s lapse, excess allowance to be recovered from ex-servicemen

Vijay Mohan

Tribune News Service

Chandigarh, February 13

Almost two decades after the Defence Accounts Department erroneously began paying fixed medical allowance to ex-servicemen who had retired prior to April 2003, instructions have been issued to recover the excess payment.

After the Ex-servicemen Contributory Health Scheme (ECHS) was launched in April 2003, payment of fixed medical allowance was stopped for those pensioners who subscribed to ECHS.

However, in a number of cases, pension disbursing authorities continued to pay fixed medical allowance even when the pensioners concerned had requested that the allowance be stopped and a non-payment certificate had been issued.

The issue had come to light recently when ECHS authorities refused to hand over new membership cards to the subscribers concerned after observing that even after the issue of non-payment certificates, pension disbursing authorities have continued payment of the fixed medical allowance, which has resulted in overpayment to individuals.

ECHS subscribers are required to make a one-time payment, at rates prescribed by the Ministry of Defence in accordance with rank, at the time of retirement from service. Thereafter they are entitled to free medical treatment at ECHS polyclinics and other empanelled hospitals. Ex-servicemen who resides at places where ECHS facilities are not available can opt for drawing fixed medical allowance.

Ex-servicemen were told to clear their medical allowance overpayment before being issued new smart cards. Consequently, they could not avail ECHS services.

The matter was deliberated by officials from the Department of Ex-Servicemen Welfare, Controller General of Defence Accounts and the ECHS, where it was opined that the lapse for overpayment was on the part of the pension disbursing authorities and the ECHS beneficiaries should not face hardship or be deprived of ECHS facilities.

In a letter issued to all pension disbursing authorities, including commercial banks, a few days ago, the Principal Controller of Defence Accounts (Pensions) has asked them to identify all such cases and issue a fresh non-payment certificate and the overpaid amount on account of fixed medical allowance be recovered in monthly installments.