Fixed Medical Allowance to Railway pensioners

Railway Board Letter No
PC-V/98/1/7/1 dated 18.10.04
Circular Subject
Implementation of Government’s decision on the recommendations of the 5th Central Pay Commission – grant of fixed Medical Allowance @ Rs.100 p.m. to the Railway pensioners/family pensioners.


The undersigned is directed to refer to Railway Board’s letter of even number dated 1.3.2004 (copy enclosed) on the subject of Medical Allowance and to state that proforma of undertaking circulated therewith be replaced with the revised proforma of undertaking enclosed herewith as Annexure ‘I’, to facilitate setting of claims of Medical Allowance.  Henceforth, existing pensioners/family pensioners who opt to claim Medical Allowance will be required to submit their undertaking in duplicate (as per Annexure I) to the Pension Disbursing Authority.


          Consequent to issue of Board’s letter of even number dated 1.3.2004, on Medical Allowance, clarification have been sought by various quarters about certain issues in connection with implementation of orders contained therein.  Doubts have been duly examined and point-wise clarifications are accordingly indicated in the Annexure II to this letter for general guidance and appropriate action in the matter.




                                                                                      ANNEXURE I


(to be submitted in DUPLICATE by pensioners/family pensioners to his/her Pension Disbursing Authority (PDA) one copy to be retained by PDA and other copy to be furnished to Pension Sanctioning Authority by PDA)


          I______________, a retired employee/family pensioner whose_________(specify relation of Family pensioner with deceased Railway employee) was an employee of (Office address)_____________________ declare that I am residing at (residential address indicated in PPO)___________________________________, which is beyond 2.5. KMs from the nearest Railway hospital/health unit________________(Name of the Hospital/Health Unit as contained in Annexure III to Railway Board’s letter No.PC-V/98/I/7/1/1 dated 21.4.99).


2.      Accordingly, I hereby opt to claim fixed medical allowance of Rs.100/- per month.  Necessary endorsement may please be made in my PPO in this regard.  Simultaneously, I undertake that I will not avail of OPD facilities at Railway hospitals/health units from the day I claim Medical Allowance.  I also understand that grant of Medical Allowance is subject to the terms and conditions specified in Board’s letter No.PC-V/98/I/7/1/1 dated 21.4.99 and 1.3.2004.


3.      I also declare that I have not availed of any treatment as Out Door Patient for the period from __________ (indicate here the date of retirement or the date of availing OPD facility on the last occasion or 1.12.1997, whichever is later) to ___________(indicate here the date on which this declaration is signed).  I may accordingly be paid arrear of Medical Allowance @ Rs.100/- per month for the period mentioned above.



                                                                   Name in full…………….

                                                                   PPO No…………………

                                                                   Issued by………………..

                                                                   SB A/c No………………

                                                                   Post Office/Bank……….









Reference: Railway Board’s letter No. PC-V/98/1/7/1/1 dated 1.3.2004

S. No.

Points of Doubt



Whether Medical Allowance would be granted to all those Railway pensioners/.family pensioners who have become entitled to fixed Medical Allowance in terms of modified territorial criterion prescribed vide Board’s letter No. PC-V/98/17/1 dated 1.3.2004 irrespective of whether or not they are members of RELHS

Medical Allowance shall be granted to all those Railway pensioner/family pensioners who are residing beyond 2.5 KMs from the nearest Railway Hospital/health unit subject to other terms and conditions ( apart from the territorial criterion) specified in Bd’/s Lr.NO. PC/V/98/I/7/1/1 dated 21.4.99. In terms of the said letter grant of Medical Allowance is subject to the condition that the concerned pensioners/family pensioners are eligible for Medical facilities after retirement under any of the existing health care schemes in the Railways. Actual enrollment under such a scheme is not a pre requisite.


Whether Railway pensioners/family pensioners who are availing OPD medical treatment and have become entitled to Medical Allowance in terms of modified territorial criterion prescribed vide Rly. Bd’s letter No. PC-V/98/1/7/1 dated 1.3.2004 would be entitled to the Allowance ?

Yes. However, pensioner/family pensioners will have to give an undertaking to the effect that from the day they claim Medical Allowance they will not avail of OPD facility at Railway hospitals/health units.


Whether the orders contained in Board’s letter NO.PC-V/98/1/7/1/1 dated 1.3.2004 shall be effective from 1.12.1997 ?



Whether the allowance would be granted to pensioners /family pensioners on the basis of only the undertaking submitted by them?

Existing Railway pensioners/family pensioners who have become entitled to medical allowance ;in terms of the letter No. PC-V/98/1/7/1/1 dated 1.3.2004 shall, henceforth, be granted medical allowance on the basis of only the revised undertaking from enclosed herewith.


Whether declaration in Annexure-IV of the Bd’s letter dated 21.4.99 is required to be submitted along with the undertaking annexed to the Bd’s letter dated 1.3.2004 by the Railway pensioners/family pensioners ?



Whether the Allowance would be granted to Railway pensioner/family pensioners from the date of submission of the above undertaking or date of issue of letter i.e. 1.12.1997 or actual date of retirement ?

Allowance shall be granted from the date it becomes due as per the undertaking given by the pensioner/family pensioners.