The initiative, aimed at improving staff welfare, started on Thursday.

For a monthly premium of $12.80, all Mindef employees, regular servicemen under the age of 45 and full-time National Servicemen will be insured for up to $100,000.

Previously, employees were given the option of signing up for policies under the existing SAF Group Term Life insurance scheme, which Mindef has made available to its employees since 1983.

Under the scheme, employees enjoy good rates which continue even after they leave service, provided they continue to pay their premuims.

However, this is the first time that automatic coverage has been provided, unless the opt-out option is exercised.

A Mindef spokesman said that the initiative was launched as a means of encouraging their employees to have a minimum level of insurance protection against personal accidents.

Full-time National Servicemen will also see a $20 increase in their monthly allowance, which also kicked in yesterday, to offset the added costs of the monthly premium.

Even if they choose to opt out of the scheme, they will still be given the additional $20 to put it toward paying for another insurance policy.