Supreme Court pushes resettlement scheme, higher payouts for military cadets discharged on disability grounds

Referring to the current ex gratia payments, the bench observed that the amounts fixed in 2017 require upward revision

The Supreme Court on Thursday urged the Union government to review and improve the financial and insurance benefits provided to military cadets who are forced to leave service due to training-related disabilities.

The Court also asked the Centre to devise a policy for medical reassessment and resettlement of such cadets, Live Law reported.

Referring to the current ex gratia payments, the bench observed that the amounts fixed in 2017 require upward revision.

“Having regard to the lapse of time since 2017 we find that endeavour could be made to enhance the said figures accordingly, particularly bearing in mind the current inflation and the price rise,” the judges remarked, according to Live Law.

A bench comprising Justice BV Nagarathna and Justice Prashant Kumar Mishra appointed senior advocate and former Delhi High Court judge Rekha Palli as amicus curiae to assist the Court in the suo motu proceedings.

“Having regard to the wide ramifications this matter would have on outboarded cadets, we wish to appoint Shrimati Rekha Palli, learned senior advocate, as amicus to assist this Court. List on 7th October,” the order stated, as cited by Live Law.

During the hearing, Additional Solicitor General Aishwarya Bhati informed the Court that since August 29, all cadets discharged due to training-related disabilities have been included under the Ex-Servicemen Contributory Health Scheme (ECHS).

Their medical treatment, she said, will now be fully covered without caps or restrictions. She also explained that the current policy provides Rs 12.5 lakh as ex gratia in case of death along with Rs 9,000 monthly to the family, and for disabled cadets Rs 9,000, or Rs 16,000 in cases of complete disability, with proportional reductions for lower disability levels. Cadets are additionally covered under subscription-based insurance schemes run by the Army, Navy, and Air Force, Live Law reported.

Bhati further told the Court that the Army Group Insurance Fund—financed by premiums from serving personnel—offers Rs 1 crore for death and Rs 25 lakh for total disability, scaled down for partial disability. For disability below 20%, an ex gratia of Rs 50,000 is provided. On the question of resettlement, she noted that such support is currently limited to commissioned officers, though a proposal submitted in March 2024 is under review by the Directorate General of Resettlement, Live Law noted.

Justice Nagarathna suggested that cadets who are boarded out could be considered for alternative roles. “These are educated people, they have cleared the entrance exam. They are capable of doing… not as ex-servicemen but if some sort of desk job can be given as far as possible where they are located. Don’t consider them a serviceman or ex-serviceman but as a category by themselves,” she remarked, as quoted by Live Law.

While welcoming the Centre’s decision to extend ECHS coverage, the bench stressed that the ex gratia amounts must be updated to reflect present-day costs. It further observed that the existing insurance payouts might not be sufficient in cases where disabled cadets are unable to find alternative employment. The judges urged the government to consider expanding the scope and scale of insurance coverage, possibly through group insurance tied to annual intakes at academies such as NDA and IMA, Live Law reported.

The Court also advised that a scheme for medical reassessment be created so that cadets could be evaluated after treatment for potential resettlement. Justice Nagarathna added that certification of abilities could assist these cadets in finding jobs outside the armed forces. “See you may not be able to give a job, that’s one thing. But the certificate will help them. They may be able to get any other job if the Army has certified that they are capable of a particular job,” she said, according to Live Law.

The matter has been scheduled for further hearing on October 7, Live Law reported.