REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II -Section 3—Sub-section (ii)
PUBLISHED BY AUTHORITY
No. 372] NEW DELHI, WEDNESDAY, SEPTEMBER 17, 1975 BHADRA 21,1897
Separate paging is given to this Part in order that it may be filed at a separate compilation
MINISTRY OF FINANCE
(Department of Revenue and Insurance)
NOTIFICATION
INSURANCE
New Delhi, the 17th September 1975
S.O. 521(E).—Whereas the Central Government is of opinion that for the more efficient carrying on of general insurance business it is necessary so to do;
Now, therefore, in exercise of the powers conferred by clause (g) of subsection (1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the Central Government hereby frames the following Scheme to provide for the ration- alisation of pay scales and other terms and conditions of service of officers serving under insurers, namely:—
1. Short title and commencement.—(1 ) This Scheme may be called the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Scheme, 1975.
(2083)
20"4
I Hb tiA/j:. I IE UJi- INDIA EAJKAOKJJUNrtA.* IV^'i il—
(2) It shall come into force on the 1st day of October, 1975.
2. Application.—The provisions herein uontaineU shall apply to all Officers—
(i) who were confirmed whole-lime Officers as on the. 31st day of December, 1972, of any oi the- Indian insurance Companies or any existing insurer;
(ii) who were temporary whole-time Officers as on the 31st day of December, 1972, of any of the Indian Insurance Companies or any ejusunjj insurer uua connrmeu before ilie commencement or tms ;>chernt;;
(iii) who have been absorbed in or whose services have btasn transferred to, an> of the Indian Insurance Companies or the Corporation before Ihe com- mencement of this Scheme;
(iv) who joined the service of any of the Indian Insurance Companies or the Corporation on or after the 1st day of January, 1973, and were coniirmcd as Gffictrs before the commencement of this Scheme;
(v) who are temporary whole-time officers or probationery Officers of the Cor- poration or of the Company aL the commencement of this Scheme, but shall not apply to persons—
(a) on deputation to any or the Indian Insurance Companies or tho Corporation and who, before the commencement of this Scheme, had opted for rever- sion, or had been reverted, to their parent office;
(b) who are employed under specific contracts of employment;
(c) who hold part-time employment;
(d) who had retired, or resigned, or whose services had been terminated, before
the commencement of this Scheme.
3. Definitions.—In this Scheme, unless the context otherwise requires—
(a) "Act" means the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);
(b) "basic pay" means the basic pay referred to in the First Schedule, or the Second Schedule, or the Third Schedule, as the case may be;
(c) "Hoard" means the Board of Directors of the Corporation;
(d) "Chairman" means—
(i) in relation to the Corporation, the Chairman or the Managing Director;
(ii) in relation to the Company, the Chairman-cum-Managing Director;
(c) "Company" mean* the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Fire and General Insurance Company Limited, or the United India Fire and General Insurance Com- pany Limited;
(f) "Corporation'" means the General Insurance Corporation of India formed under section 9 of the Act;
(g) "existing insurer" means an insurer other than an Indian Insurance Company whose Officers have become Officers of an Indian Insurance Company in which the undertaking of that insurer or that part of the undertaking to which the Officers relate has vested under sub-section (1) of section 7 of the Act;
(h) "existing scale" means the scale in which, pay was drawn by an Officer before the fixation of his pay in the new scale;
(i) "gross emoluments" mean.* the aggregate of basic pay, dearneas allowance, house rent allowance, and city compensatory allowances.
SEC. 3(if)] THE GAZETTE OF INDIA EXTRAORDINARY 2085(j) "new scale" means the scale of pay given in the First, Second and Third Schedule;
(k) "new terms" means—
(i) tho scale of pay and other allowances as set out in the First Schedule, in respect of an officer appointed by the Central Government as Chairman or Managing Director or ChairmpTVeum-Managing Director;
(ii) the scale of pay, clearness allowance and other allowances as set out—•
fa) in tho Second Schedule, in respect of Officers categorised as General Managers or Assistant General Managers or Managers or Deputy Managers or Assistant Managers or Administrative Officers or AssiMani Administrative Officers;
(b) in the Third Schedule, in respect of Officers categorised as Junior Officers;
(I) '"Officer" means an employee appointed in India, before the commencement of this Scheme and serving whether in India or outside India, in a position other than supervisory, clerical or subordinate position, and categorised as holding any of the posts referred to in the Schedules but does not include an employee declared as a member of the development staff by the Com- mittee appointed by the Board;
(m) "present gross emoluments" means the grow emoluments drawn by an Ollicet in the existing scale, on (he date opted by him trader sub-paragraph (1) of paragraph 4, comprising of the present gross salary, house rent allowance, city compensatory allowance, qualification pay, hill station allowance, lunch allowance paid in cash and development allowance and includes other fixed cash allowances payable ?s on the 1st day of January, 1973, and any other nllowancc which the Board may, wilh the previous approval of the Central Government, determine;
(") ''present gross salary" means the gross salary drawn by an Offlcxsr in the exist- ing scale, on the date opted by him under sub-paragraph (1) of paragraph 4, comprising of the basic pay, ad hoc special pay, personal pay, deputa- tion allowance, dearness allowance or any other allowance which is in the nature of dearness allowance, and interim relief allowance;
(o) "Schedule" means a Schedule appended to this Scheme;
(p) "Special pay" means an addition of the nature of piy to the emoluments of " post or of an employee in consideration of—
(i) the specially arduous nature of duties; or
(ii) a specific addition to the work or responsibility.
4. Pay and allowances of Officers.—(1) Thf, scales of pay and other allowances shall bo as given in the first, second or the third schedule.
(2) Every Chairman and every Officer other than the Chairman shall, within ninety days from the date of commencement of this Scheme, by notice in writing addressed to the Central Government, or, as the case may be, the Chairman, through the head of ms office, specify the date from w'oich the new terms shall be made applicable to mm:
Provided that—
(a) in the case of an Officer referred to in clause (0 of paragraph 2, the date shall be either from the 1st diy of January, 1973, or any later date being a datt not later than the dale of the commencement of this Scheme;
(b) in the case of any officer referred to in clauses (ii) to (.v) of t'hat paragraph, the date shall be either the date of confirmation, or the date of 'absorption, of such Officer.
(3) (a) Where tho date specified by an Officer under sub-paiiigwph U) is a date earlier than the date or commencement of This Scheme, such Officer shall be paid for the period commencing from such date and ending with the day preceding the date of com- mencement of this Scheme, the difference between the new terms and the present gross emoluments.
2086 THE GAZETTE Of INDIA EXTRAORDINARY [PART I I-__—„_
-m • (b) Where any portion of leave had been encashed by such Officer during the perioJ referred to in clause (a), such Officer shall not be required to refund any amount realised by him by way of such encashment,
(c) Where during the period referred to in clause- (a), Mich Officer was holding ;i post other than the one on which he was normally employed or was in receipt of any allowance of a transient nature, 'thj present gross emoluments', which he would have drawn in the post on which he was normally employed shall alone be taken into account for the purpose of this paragraph and paragraph 6.
5, Categorisation of certain Ollicers—(1) If any officers have not been categorised so far, the Committee appointed by the Board s'nall, within two months from the d'titt of commencement of this Scheme complete assessment of the suitability of such officers, being categorised as Assistant Administrative Officers within the authorised entire strength, and categorise and such Officers as Assislam Administrative Ofticeis.
(2) Where an Officer is not categorised as Assistant Administrative Olticer under sub- paragraph (1), he sball be categorised :>•; lirnior Officer.
6. Method of fixation.—(1) The pay of every Officer relating lo the category in which h© is initially placed shall be fixed in the new scjle at a stage at which the total of the basic pay and dearness allowance admissible at that pay is equivalent to the total of the present gross salary drawn by such Officer on the date of fixation plus an amount of Rs. 50/- and if the amount so determined is not equivalent to the stage in the relevant scale, at the stago nest 'above in the said relevant scale,
(2) If in determining the basic pay of an Officer under sub-paragraph (1), i\w amount exceeds the maximum of the scale of pay, the pny shall be fixed at the maximum, or if the amount h less than the minimum of the scale of p'ay, the pay shall be fixed at the minimum.
(3) (a) Where in respect of an Officer the gross emoluments determined as on the dat" of fixation are less than the present gross emoluments, he shall be paid as personal pay the lowest of the three alternatives specified below, namely :—
(i) the amount by which his present gross emoluments exceed tho gross emolu- ments so determined; OT
(ii) the amount by which the sum of Us. 4.000 exceeds the gross emoluments so determined; or
(iii) the amount of maximum personal pay for the appropriate category as specified in Item IV of the First Schedule or Item V of the Second Schedule or Item V of the Third Schedule.
(b) The personal pay shall not be reduced as and when increases in basic pay art granted after the date of fixation, but shall he subject to the condition that the total of basic pay, dearness allowance, house rent allowance, cily compensatory allowance and personal pay of such an Officer shall, at no stage, exceed Rs. 4,000 per monih, The personal pay shall be appropriately reduced. wh"re necessary, to keep such total emolu ments not to exceed Rs. 4.000 per month
7. Fixation ot pny on promotion.—Where an Officer whose pay has been fixed undci this Scheme hnd been promoted before, or is promoted after, iVi- commencement of thi' Scheme to a higher post and hi* basic pay in the promoted post is the same as the basi< pay in the post held by him before promotion, then, the basic pay in the promoted pos shall be fixed at the next higher stage in the new scale.
8 Increments.—(1) Increments in the new scale shall be due every calendar year oi the first day of rtie month in which the last increment prior to the dnts of fixation o pay was granted in t'ne existing scale or where no increment hm been drawn on the firs day of rtie month in which he completes twelve months of continuous service in the pos held—whichever is earlier.
N0 TE —"Twelve months of continuous service" means H period of dutv equal to twelv months excluding periods of leave during which no salary is admissible.
(2) Where the increment falls due on the date of fixation of pay, the new scale shnil b made applicable on the basis of the salary of mi Officer after the annual increment, if am drawn by such Officer in his existing scale.
SEC. 3(ii)J THE GAZETTE OF INDIA EXTRAORDINARY 20879. Provident Fund.—Every Officer shall contribute to the Provident Fund at 8-1/3 per cent, of his basic pay, including personal pay, and special pay, if any, with an equal contri- bution by the Corporation or the Company, as the case may be.
10, Payment of gratuity.—(1) (ii) Gratuity shall be payable to un Officer on the termini- lion of his employment after he has rendered to the Corporation or the Company, or to both, continuous service (including continuous service with the insurer or the previous employer in whose service the Officer was working on the 31&t day of December, 1972) for not less than five years—
(i) on his superannuation; or (ii) on his retirement or resignation; or
(hi) on his de'flth or disablement due lo accident or disease; or (iv) on termination of his service by the Corporation, or lhe Company; or (v) on his services being dispensed with owing to reduction of staff or re-organisation
of establishment:
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any Officers is due to death or disablement.
Explanation.—For the purposes of this 'paragraph "disablement" means such disable- ment as incapacitates an employee for the work which he was c'apable of performing before the accMent or disease resulting in such disablement.
(b) For every completed year of service or part thereof in excess of six months, the Officer shall be paid gratuity at the rales specified below, namely:—
Number of completed Rate of gratuity for each completed
years of service
year of service
From 5 years to 11 years 50% of the basic pay last drawn 60% of the basic pay last drawn 12 years 13 years 70% of the basic pay last dfawn 14 years 8 0^ of the basic pay last drawn 15 years or more 100% of the basic pay last drawn.
Provided th.it where an employee to whom the General Insurance (Rationalisation and Revisions of Pay Scales and other Conditions of Service of Supervisory, Clerical and Subordinate Staff) Scheme, 1974, applies is promoted as an Officer on or after the 1st day of January, 1973, he shall not be paid gratuity at a sum less than th-at admissible to him under the said Scheme.
(2) Where the basic pay last drawn exceeds Rs. 2,500, the gratuity shall be determined on the basis of Rs. 2,500.
(3) The amount of gratuity payable to 'an Officer shall not exceed twenty months' basic salary last drawn or Rs. 30,000 whichever is less.
(4) Notwithstanding anything stated above the amount of gratuity payable under this paragraph shall in no case be less than that to which the Officer had become entitled as on the 31st December, under the conditions of service applicable to him and in force imme- diately before the 1st day of January, 1973.
(5) Subject to any lien the Corporation or the Company may have on the amount of gratuity admissible to an Officer, the Corporation or the Company, as tha case may b<\ shall pay the Officer or his nominee or nominees or if no nomination is made or is subsisting, his heirs, the amount of gratuity admissible under this paragraph,
(6) Notwithstanding anything contained in the foregoing sub-paragraphs-—
(a) where the penalty of dismissal is imposed on un Officer—
fi) who has b'en convicted of an offence, committed in the course of his employ- ment and which offence, in the opinion of the Corporation or the Company, M the case may be involves moi'.il turpitude, or
2088 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—(ii) for any act involving violence against the management or other Officers or employees, or any riotous or disorderly behaviour in or near the place of employment,
fae gratuity payable to him shall stjnd wholly forfeited; and
11. Protection of accrued pension.—(1) Nothing contained in this Scheme shall affect the payment of any pension including family pension or superannuation benefits accrued to any Officer in 'accordance with the pension or superannuation Scheme as in force before the 1st day of January, 1973.
(2) (a) The amount payable under sub-paragraph (1) shall be determined on the salary drawn on 1st December, 1972 in the existing scale and on rtie b'tisis of number of years of continuous service rendered, as if he had retired before the 1st day of January, 1973.
(b) The amount determined under clause (a) shall be payable to the Officer on his retire- ment or on his ceasing to be in service, pension to commence with effect from the date from which it would 'have ordin'arily commenced in accordance with the relevant pension oi superannuation scheme.
12. Transfers.—The Ch;iirman-cwrt-Manai;.;ng Director of a company may at any timt transfer any Officer from one Department of the Company to another Department of thai Company or from one Office of the Company to another Office of that Company in the same place or any other place.
13. Power to vary Deamess Allowance.—If the Central Government considers it neces- sary or expedient so to do, it may, by order, vary the amount of Dearness Allowance speci fled in column (7) of the Table below Jtem II in the Second Schedule or in column (7) ol the Table below Item IT in the Third Schedule and every such order shall be deemed to bt a Scheme amending this Scheme.
14. Interpretation.—Where any doubt or difficulty arises as to the interpretation of anj of (he provisions of this Scheme, ft shall be ref:rred to the Central Government for decisiot and th,e decision of the Central Government thereon shall be binding on the person: concerned.
15. Power to relax.—Where the Board is satisfied that the operation of any of the pro visions of this Scheme will cause undue hardship in any particular case, it may, by ordei and for reasons to be recorded in writing, dispense with or relax the requirements of tha provision to such extent and subject to such exceptions and conditions as it may conside: necessary for dealing with the case in a just and equitable manner,
16. Other benefits.—No Officer shall be entitled to any benefit not arising out of thi Scheme, or any Scheme which may be framed by the Cprporation or a Company.
17. Overriding effect.—The provisions of this Scheme shall have effect notwithstandini anything to the contrary contained in any terms of appointment, agreement, award or othe instrument for the time being in force.
FIRST SCHEDULE
(See paragraph 3 and 6)
I—pay Scales (Basic Pay)—
(1) Chairman
RS. 3500—125—4000
(2) Managing Director or Chairman-cum-Managing Director
Rs, 3000—125—3500
II—House Rent Allowance—
Rs. 300 per month
III—Cltv Compensatory Allowance—
Rs. 75 per month
IV—Maximum personal pay— Rs. 700 per month.
SEC. 3(ii)j THE GAZETTE OF INDIA EXTRAORDINARY 2089SECOND ScmiDt'u-;
(Sec paragraphs 3, 6 and )3)
I—Pay Scales {Bane Pay)—
(1) General Manager
Rs. 2500—125—3000 (2) Assistant General Manager Rs. 3000—125—2300
(3) Manager
Rs. 1600—100—2000—125—2250
(4; Deputy Manager
Rs. 1250—50—1300—75—1600—100—2000
(5) Assistant Manager
Rs, 1000—50—1300—75—1675
(6) Administrative Officer
Rs. 770—40—IOJO—50—1300
(7) Assistant Administrative Officer
Rs. 530—40—1050.
II—Dtamess Allowance—•
The clearness allowance pnyable to an officer under tliis Schedule shall be as trtven in the Table below.
THE TABLK
Di'amess Allowance Payable During the Period From
1-2-74
1-2-73 1
1-5-74 i-S-74
Basic Salary
to
-8-73 to
to 30-4-74
31-7-73 3i-io-73
1-11-73 to 3I-I-74
onwards
to 31-7-74
CO (2) (3) (4) (5) (6) (7)
530 • 370 430 490 550 580 670
570 . 3S0 440 560 590 680
610 43o 510 590 670 710 830
650 430 510 590 670 7ro 830
690 440 5?n 6O0 680 720 840
73° . 460 540 620 700 740 860
77O . 450 53° 610 690 730 850
810 . 450 490 610 690 73° 850
850 450 490 610 690 730 850
890 450 490 610 690 730 850
930 - 435 475 595 675 715
835
97O • 435 475 595 675 7IS 835
1000 435 475 595 675 715 "3S
IOIO 420 460 5E0 660 700 820
1050 420 460 580 660 70O 820
1100 420 460 580 (56o 700 820
1150 405 445 56S 645 6Xs 80s
1200 405 445 565 645 685 805
1250 390 430 550 6^0 670 790
1300 34° 430 550 580 670 790
1375 • 285 403 5=5 525 645 7"5
1450 - 275 395 515 515 <535 755
1525 • 275 395 515 515 635 755
1600 275 395 515 515 635 755
1675 • 230 350 470 470 590 710
1700 190 2S5 405 405 5*5 525
1800 190 190 305 305 425 425
1900 150 150 165 165 285 285
2000 150 150 150 150 185 185
2I2S 100 TOO 100 100 100 IOO
2250 TOO IOO 100 100 100 Tnft
OVER 2250 NIL
2090 THE GAZETTE OP INDIA EXTRAORDINARY IPART )I
III—House Rent Allowance—
The House Rent Allowance shall he payable at the following rates per month:
(a) For basic pay upto Rs. 750/- . . .. 15% of basic pay (b) For basic pay in excess of Rs, 750/-,,.^10% of such excess;
Provided, however, that the maximum house rent allowance payable to any officer shall not exceed Rs. 300 per month, and the minimum shall not be less than Rs, 75 per month.
IV—City Compmiatovy Allowance—
The City Compensatory Allowance shall be payable at the following rates:
For all Officers posted to Offices
Kate of City Compensatory
Stationed at
Allowance
(a) Bombay, Calcutta, Hyderabad, Madras
Effective from 1-1-77, pnd New Delhi
S % of basic pay subject to a maximum of Rs. 75 per month.
(b) (i) Ahmedabad, Bangalore
6% of basic pay subject to a maximum of Rs. 50 per month.
Effective during the period from 1-1-73 to 31-10-73.
(ii) Ahmedabad, Bangalore and
Effective from 1-11-73.
Kalyani (Calcutta)
K% of basic pay subject to a maximum of Rs. 75 per month.
(c) Kunpur, Lucknovv, Nagpur and
Effective from T-1-73.
Poona.
6% of basic pay subject to a maximum of Rs. 50 per month.
Rs. ro upto ;i basic pay of
(d) Agra, Allahabad, Amritaar, Baroda,
Effective from 1-1-73.
Rs. 74°.
Cochin, Coimbatore, Indore, Jabal- pur, Jaipur, Mftdurai, Patria, Shola- pur, Srlnagar, Surat, Tirvandrum, Varanasi.
Rs. 10 uplo a basic pay of Effective from 1-11-73.
Rs. 740.
(e) Dhandad, Gwalior, Jamshedpur, Ludhiana, Salem, Sindri, Tiruchi- rapalli.
V—Mawmunt Personal Pay—
The personal pay referred to in sub-clause (iii) of clause (a) of sub-paragraph (3) of para-
graph 6 shall be limited to a maximum amount as under:
Maximtnn Personal Pay
Category cf officers
(b) Assistant General Manager ' (c) Manager (d) Deputy Manager. . . .. (e) Assistant Manager m Administrative Officer (g) Assistant Administrative Officer
. Rs. 700 per month . Rs. 700 per month . Rs. 500 per month . Rs. 500 per month . Rs, 500 per month . Rs. 300 per month . Rs. 300 per month.
THIRD SCHEDUI-E
(See paragraphs 3, G and 13;
I_Pav Scales {Basic Pay)—
Junior Officer
Rs. 460—35—53^—40—890
,^EC. 3(ii)] THE GAZETTE OF INDIA BXTRAORblNAftY iot)iII— Dtanux Allowance—
The dearnese allowance payable under this Schedule shall be as given in the Table below.
TUB TABIA
Dearntss Allowance payable during th* p*riod from
Basic
Salary
1-2-73 1-8-73 l-H-73 1-2-74 i'S-74 1-8-74 i"d
to to to to to onwards
31-7-73 3I-IO-73 3I-I-74 30-4-74 Sl'7-74
CO 00 (3) (4) (3) (6) C7)
460 321 373 425 477 503 58a
495 346 402 458 5i4 542 626
530 370 430 490 550 580 670
570 380 440 500 560 590 680
610 43° 510 590 670 7 10 830
650 430 510 590 670 7 10 830
690 440 520 600 680 720 840
73° 460 540 620 700 740 8 45° 490 6 10 690 730
S50 450 490 610 690 730 850,
S90 450 490 610 6 90 730 850
III—House Rent Allowance—
The House Rent Allowance shall be payable at the following rates per month:
(a) For basic pay upto Rs. 730 15% of basic pay
(b) For basic pay In excess of R8.750 10% of such excess.
Provided, however, that the maximum house rent allowance payable to any Officers shall nut exceed Rs. 300 pet month.
IV—City Compensatory Allowance—
The City Compensatory Allowance shall be payable at the following rates:
For all Officers posted to offices stationed at Rate of City Compen- satory Allowance
Ca) Bombay, Calcutta, Hyderabad, Madras
and New Delhi.
8% of basic pay sul*-") ject to a maximum > Effective from 1-1-71 of Rs. 75 p,rrt. J
i ' b) Ti .\hmedubad, BangaKtre .
6% of basic pay sub-1 Effective during the ject to a maximum V period from 1-1-73 of Rs, 50 p.m. J to 31-10-73.
• '. i i >
-Vi-iie Uibid, Bmgaloiv und Kulyani 8% of basic pay sub- ~)
(Calcutta:.
Cci Kinp'ir, X-ucknow, Nanpiir and POOUH.
iect to a maximum Of V Effective from 1-11-71 Rs. 75 P.™. J 6% of basic pay suh- "]
ject to a maximum of J- Effective- from 1 -1 -7-5 R^. 50 p.m. J
Rs. 10 upto a basic 1
'si'
pay of Rs, 7^0. /Effective from 1-7-7-).
A'in, Alhhibid, A'nritS'ir, Banidu, Co- chin, Ci)imbatiirc, Indore, Jabalpnr, Jai- pur, Midurai, Par.na, Sholarrir, Srinagar, Siirfitj Triviindtum, Vararesi,
DVmbad, GwUior,|amshedp ir, Ludhiafa, Rs. 1.0 upto H b'isic "1
Salem, Sindri, Trichirapalli.
pay of Rs. 7.0. /RrViivcfrorr i-77-7 ?.
2092 THE GAZETTE OF INDIA E^TRA6RDINARY [PART II—Sj2C. 3vUJ]V—Maximum Personal Pay—
Thepsrsonalpay referred to in sub-clause (iii) of clause (a) of sub-paragraph 3 of paragraph 6 shall be limited to a maximum amount asunder:—
Category qf Officers Ma$iinum personal pay.
Junior Officer Rs. 300 per month .
TNo. F. 65(5)—Ins.III/7/75]
G.H. DAMLE,
Controller of Insurance & Bx-Officio Jt. Secy.
PRINTED BY THE GENERAL MANAGED, GOVERNMENT OF INDIA PRES9, MINTO ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 1 9 75