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REGISTERED No. D. (D.)-72

The Gazette of India

EXTRAORDINARY

PART III-Section 4

PUBLISHED BY AUTHORITY

No. 2] NEW DELHI, TUESDAY, DECEMBER 19, 1978/AGRAHAYANA 28, 1900 Separate paging is given to this Part in order that it may be filed as a separate compilation.

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LIFE INSURANCE CORPORATION OF INDIA NOTIFICATION

Bombay, the 19th December, 1978

LIFE INSURANCE CORPORATION OF INDIA (STAFF) SIXTH AMENDMENT REGULATIONS, 1978

In exercise ofthe powers conferred by Section 49 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Life Insurance Corporation of India, with the previous app- roval of the Central Government, hereby makes the following Regulations further to amend the life Insurance Corporation of India (Staff) Regulations, 1960, namely : —

1. (1) These Regulations may be culled the Life Insurance Corporation of India (Staff) Sixth Amendment Regulations, 1978.

(2) They shall come into force on the date of their publication in the Gazette of India.

2. In the Life Insurance Corporation of India (Staff) Regulations, 1960, for Schedule III, the following Schedule shall be substituted, namely—

SCHEDULE III

Special Provisions relating to Class II—Development Officers (See Regulation 51(1A)

1. Definitions :—In this Schedule, unless there is anything repugnant in the subject or context—

(a) "annual remuneration" means the basic pay, special pay, personal pay, dearness allowance, an other allowances and non-profit sharing ( ex-gratia bonus due or paid to a Development Officer during the appraisal year and includes the expenses payable or reimbursed to him or incurred by the Corporation during that year in respect of travelling, residential telephone and insurance premium and taxes on motor vehicles, but does not include incentive bonus and additional conveyance allowance paid to him;

(b) "appraisal date" means.—

(I) in relation to a Development Officer other than an existing Development Officer :

(A) in the first year of his appointment as Develop- ment Officer, the first day of the month following that in which he completes twelve months of ser- vice from the date of his appointment; and

(B) in every subsequent year of his appointment, the first day of the month following that in which he completes twelve months of service from the last appraisal date;

(II) in relation to an existing Development Officers :

(A) in the first Year of his service from 1st April, 1979—

(i) 1st April, 1979 if he completes twelve months of service as on 31st March, 1979 from the date on which his last annual increment acc- rued in accordance with Regulation 56(2); or

(iii) if otherwise, the first day of the month follow- ing that in which he so completes twelve months of service; and

(B) in every subsequent year of service, the first day of the month following that in which he comp- letes twelve months of service from the last appraisal date;

Note : Unless otherwise specified, the first appraisal date in relation to a Development Officer other than an existing Development Officer shall mean the appraisal date ascertained in accordance with sub-item (A) of item 1; and in relation to an exist- ing Development Officer, it shall mean the appraisal date ascertained in accordance with sub-item (A) of item II. The second and subsequent appraisal dates shall be construed accordingly,

(c) "appraisal year" means the period between two con- secutive appraisal dates; and the period of twelve months of service preceding the first appraisal date shall also be in appraisal year;

(d) "classification percentage" means the ratio which the remuneration paid in the classification year bears to the eligible premium of that year, and expressed in percentage;

Note : Remuneration paid in the classification year means the annual remuneration in respect of that year as denned in sub-clause (a); reference in that sub-clause to the appraisal year shall be construed as reference to the classification year.

(e) "classification year" in relation to an existing De- velopment Officer means the period of twelve months of service immediately preceding the twelve months of service reckoned for the purpose of arriving at the first appraisal date under this Schedule;

ff) "Development Officer" means an employee belonyinp to Class II and includes exiting Development Officer;

(R) "eligible premium" means such proportion us may be specified by the Corporation fiom time to time of the first year's premiums received by the Coipo- ration in respect of the business secured by the agents in the organisation of a Development Offi- cer, which is adjusted in the lelevant appraisal year;

(h) "existing Development Officer" means u Development Officer in the service of the Corporation as on the date of publication of the Life Insurance Corpora- •'• i of,India (Start) Sixth Amendment Regulations. 1978 in ;he Gazette of India;

(i) "expense limit", in respect of an appraisal year in relation to a Development Officer working in an operational area specified in column (1) of the Table below, means the percentage of the eligible premium of that year as specified in the correspon- ding entry in column (2) thereof.—

TABLE

If the Development Officer is working in operational area

Percentage of the eligible premium

(2)

{{^{{FOOTNOTE (1)}}}}

A B C D

22% 23% 24% 25%

Notes : (1) The expense limit of a Development Officer for any apprais.il year is expressed as a percentage of the eligible premium of that year; a Development Officer is said to exceed the expense limit if his annual remuneration in that year is in excess of the expense limit; such excess or the ratio which such annual remuneration bears to the eligible pre- mium of that year may also be expressed as a percentage oF the eligible premium.

(2) In the caw of an existing Development Officer the percentage specified in the above Table shall be increased by the appropriate transitional concession, if any, in respect of the appraisal years preceding the first and second appraisal dates and the expense limit shall be ascertained accordingly for these appraisal years.

()) "gross yearly salary" means the aggregate of the monthly basic pay, special pay, personal pay, dear- ness allowance and all other allowances which may be allowed to a Development Officer for any suc- ceeding year if the terms of his appointment are fulfilled, and shall include any non-profit sharing or ex-gratia bonus payable in that year and an esti- mate of the expenses that may bo allowed during that year in respect of travelling, residential tele- phone and insurance premium and taxes on motor vehicles, but shall not include any incentive bonus or additional conveyance allowance that may accrue to him;

(k) "operational area" with reference to a Development Officer means the area in which he is posted to W⁰Tk ^iBS U ch Dev?'°r>ment Officer and a Develop- ment Officer is said to be working In operational area—

'A¹ if he is working in a City, Urban agglomeration or Town with an ascertained population of more than 10 lakhs;

'B' if he i" working in a City, Urban agglomeration Or Jown with on ascertained r>or>ulation of 4 lakhs or above but not more than 10 lakhs;

'C it= ht; is working in a City, Urban ajwiomf ration or Town (not being a rural area) with an as- certained population of less than 4 lakhs; and

'D' if he is working in a rural area.

"r

Explanations : (1) For the purpose of this sub-clause "ascertained population" means the population as ascertained from the latest Census Report of the Government of India.

(2) A Development Officer is said to be working in a "rural area" if his headquarters is at a place with an as- certained population or 30,000 or less and his operational urea has an ascertained population of not more than 60,000.

(1) "preceding year" or "relevant appraisal year" means the appraisal year immediately preceding Ihe rele- vant appraisal date;

(m) "lelevant appraisal date" means the appraisal date on which the performance of the Development Officer for the appraisal year immediately preceding that date is assessed for any purpose under this Schedule:

(n) "service" means the period spent on duty as a Development Officer and leave, including extraordi- nary leave which has been condoned under Regula- tion 69(4);

(o) "succeeding year" meant; the period of twelve months

commencing from the relevant appraisal date;

(p) "transitional concession" means the concession app- licable to an existing Development Officer whose classification percentage is higher than the expense limit percentage and such concession shall be com- puted as follows ;

(i) in the appraisal year preceding the first appraisal

date : The diffoicnce between 35 per cent and expense limit peicentage or two-thirds of (he difference between expense limit percentage and classification

percentage, whichever is less ;

(ii) in the appraisal yeai preceding the second app-

raisal date :

(A) If the Development Officer is working in opera- tional area A or B, the difference between 29 per cent and expense limit percentage or one- third of the difference between expense limit percentage and classification percentage, which- ever is less; or

(B) If the Development Officer is wolking in opera- tional ..rea C or D, the difference between 30 per cent and expense limit percentage or one-third of the difference between expense limit percentage and classification percentage, whichever is less;

Notes : (1) For ascertaining the two-thirds or one-third of the difference between the expense limit percentage and classification percentage, as the case may be, the result ob- tained shall be rounded off to the nc;,i%t integer.

(2) Vor the purpose of this sub-clause, the expense limit Percentage does not include the increase specified in the Note (2) to sub-clause (i) and the expense limit percentage means the percentage of the eligible premium specified in column (2) of the Table below the said sub-clause (i),

2 Increments : (1) With effect from the first appiaisal date under this Schedule, increments shall ordinaiily be drawn by a Development Officer as a matter of course in accordance with Regulation 56 :

Provided that hi* annual remuneration in the preceding

year was not in excesv of the expense limit :

Provided further that if his annual remuneration in the preceding ye.ir was in excess of the expense limit by not more thnn 2 per cent of the eligible premium of that year he may hr allowed to riuiw the increment from the relevant appraisal dnt? if his annual icrruneration was not in excess of the fxpt-rre limi* in the appraisal year Previous to thr preceding vcar •

Not* • This prnvi't) shall not apply to an existing Deve- lopment Officer for the grant of increment on the first appraisal date.

Provided also that where the annual remuneration of an existing Development Officer is in excess of the expense limit jn the appiaisal year preceding the fust appraisal date, he sh

Note : For the removal of doubt it is clarified that nothing contained in this clause shall apply in. the case of a Development Officer who has reached the maximum of the grade Or in whose case effici- ency bar operates.

(2) Notwithstanding anything contained in sub-clause (1), if on a representation received fiom any Development Officer, the Zonal Manager is satisfied that the Development Officer has exceeded the expense limit on account of reasons beyond his control, he may direct that the increment be granted from the relevant appraisal date.

(3) Where no increment is granted to a Development Officer on any appraisal date, such increment shall not be granted to him in any subsequent year.

3. Conveyance Allowance : (t) Every Development Offi- cer shall be entit'ed to such conveyance allowance as may be granted by the Coiporniion from time to time, and the pay- ment thereof including conditions of cligiblity and other mut- ters, shall be regulated by instructions issued by the Chairman in that behalf :

Provided that if the annual remuneration of any Develop- ment Officer in any preceding year is in excess of the expense limit, the conveyance allowance admissible to him foi the succeeding year shall be limited to one-half of the amount to which he may be otherwise entitled under the instruc- tions.

TABLE (2) Notwithstanding anything contained in sub-clause (1), if on a representation received from a Development Officer, the Zonal Managei is satisfied that his annual remuneration in any preceding yetu was in excess of ihe expense limit for reasons beyond his control, he may allow the conveyance allowance for the succeeding year to such extent as he may think fit instead of limiting it to one-half.

(3) Where the conveyance allowance admissible to a Deve- lopment Officer is reduced in respect of any appraisal year, the reduction in that year shall not be made good in the succeeding years but, he would only be entitled to full con- veyance allowance admissible to him under the rules for any succeeding year if his annual remuneration is not in excess of the expense limit in the preceding year.

4. Tenure : Subject to the provisions of this Schedule, a Development Officer shall hold office by the same tenure and in the same manner ns any other class of employee In the Corporation.

Piovided that his annual remuneration does not exceed the

expense limit applicable to him :

Provided further that the services of a confirmed Develop- ment Officer shall not be terminated merely on the ground of poor business production unless, either his annual remune- ration in any appraisal year exceeds 35% of the eligible pre- mium of that year, or his basic pay cannot be fixed, in accor- dance with the provisions hereinafter contained at least at the minimum of the grade applicable to him.

5, Opportunity to confirm to the expense limit : (1) Where the annual remuneration of any Development Officer in the preceding year or years is in excess of the expense limit in the manner envisaged in the Table below, his services shall not bo terminated merely on that groum¹ but his basic pay for the succeeding year shall be reduced as provided in the said tnble from the relevant appraisal date thereby affording him opportunity to confirm to the expense limit :

-"*• Reduction in" basic'pay where limit in the appraisal

^r. Annual remuneration ID excess of the No. expense limit

the annual remuneration is in excess of the expense year preceding the relevant appraisal date

Third succes- sive occasion

Fourth succes- sive occasion

On the first "•" f""On the second occasion successive

occasion

(I) (2)

0)

1. By not more than 2% of tho eligible pre-

—

mium.

2 By more than 2% by not more than 4%

—

of the eligible premium

Fjfth and subsequent successive occasions

{{^{{FOOTNOTE (4)}}}}

(5)

(6)

(7)

Three stages in —

Two stages in the grade

One stago in the grade

the grade

Three stages in •do- Two stages in the grade

the grade

One stage in the grade

One stage in the grade

-do-

Three stages in

-do-

the grade

Two stages'in the grade

3. By rmre than 4% but not more than 6% of the eligible premium provided that the annual remuneration did not exceed 35% of the eligible premium of that year.

-do- -do-

-do-

Three stages in

the grade

Two stages in the grade 4. By more than 6% of the eligible premium provided that the annual remuneration did not exceed 35% of the eligible premium of that year.

Explanations :—(0 For the purpose of this Table, the annual remuneration of a Development Officer shell be deemed to be in excess M the expense limit on a successive occasion if such remuneration exceeds*the expense limit In two consecutive appraisal years even though the excess percentage over the expense limit may vary; an appraisal year in which the De\elortnent Officer exceeds the expense limit but theie is no reduction*in basic pay or where there is reduction in basic pay under sub-clause (2) shall also be reckoned for ascertaining whether the expense limit is exceeded on successive occasions; the reduction in basic pay on the successive occasion skall correspond to the excess of the expense limit in the appraisal year, preceding the relevant appraisal date.

Illustration : A Development Officer's annual remuneration in the appiaisal year preceding the fust appraisal date was in excess of the expense limit by not more than 2% and conse- quently there was no reduction in his basic pay for the suc- ceeding year. In such succeeding year, the annual remunera- tion was 3% in excess of the expense limit. On the second appraisal date, his basic pay shall be reduced by one stage in the grade,

(ii) The provisions of. this sub-clause shall be repeatedly applied if, after conforming to the expense limit, the Develop- ment Officer exceeds the expense limit at a later date. The first occasion and successive occasions shall be ascertained afresh in such a case as from such later date.

(2) Where the annual remuneration of a Development Officer in any preceding year (hereinafter also refcried to as the relevant year in this sub-clause) exceeds 35% of the eligi- ble premium of that year, his services shall be liable to be terminated :

Provided that his services may be continued on compassio- nate ground after reducing his basic pay by three stages in the grade—

(a) if the annual rerminciation in the relevant year does not exceed 50% of the eligible ptemium of that year; or

(b) if the annual remuneration in the relevant year exce- eds 50% but the aggregate of the annual remunera- tion in the relevant year and the two appraisal years immediately preceding the relevant year does not ex- ceed 50% of the aggregate of the eligible premium in those thiee years.

Provided further that, in the case of an existing Develop- ment Officer, if his annual remuneration in the appraisal yeai preceding the first appraisal date is in excess of the expense limit applicable to him in that year by not more than 4% ol the eligible piemium, oi if his annual I enumeration in the appiiiisal ycji preceding the second appraisal date is in excess of the expense limit applicable to him in that year by not moie than 2% of the eligible premium, his services shall not be liable to be terminated nor shall his basic pay be reduced on the ground that his annual remuneration has exceeded 35% of the eligible picmium in cither ol those appraisal years.

Noles : (i) Foi the puipose of nffoiding relief under ihe fiist proviso, an existing Development Officer shall be entitled to have the classification year and the year immediately ptc- vious thereto treated as two appraisal yeais immediately pre- ceding the preceding ye.i* in respect of the first appraisal date; and he shall be entitled to have the classification yeai included as an appraisal year in respect of second appraisal date. Thereafter the three appraisal years shall consist ol the three appraisal years immediately preceding the relcvanl appraisal date.

(ii) For the pui pose of ascertaining whether the aggregate of the annual rcmuneiation in the relevant year and the two appraisal years immediately preceding the relevant year does or does not exceed 50% of the aggregate of the eligible pre- mium in those years, the actual eligible premium and the annual i enumeration in each of those ycais shall be taken info account, irrespective of whether appropriate action has been taken in accordance with this Schedule in respect of any such year or the fact that the Development Officer has ex- ceeded the expense limit has been condoned or otherwise not taken into account under (his Schedule in any such year.

(3) If, as a consequence of the application of the provisions contained in sub-clause (1) or sub-clause (2), the basic pay arrived at falls below the minimum of the grade applicable to the Development Officer, his basic pay shall be fixed at such minimum :

Provided that the benefit of this sub-clause shall not be allowed more than once during the entire service of a Develop- ment Officer.

(4) Where the basic pay of a Development Officer is re- duced or /ixed under the foregoing sub-clauses, he shall be allowed only such allowances and other benefits as arc appro- priate to that basic pay; and where his conveyance allowance has been reduced to one-half in accordance with clause 3,

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he shall only be entitled to one-half of the conveyance allow- ance appropriate to the revised basic pay ; and there shall be no protection of total I enumeration either by granting a per- sonal allowance or otherwise.

(5) The competent authority to implement the provisions of the foregoing sub-clauses shall be the appointing authority which shall do so, as soon as may be, after the expiry of the relevant appraisal year :

Provided that the Development Officer concerned shall be given an apportunity to make a representation in regard to his case.

(6) If the representation received under sub-clause (5) disclo- ses any factual inaccuracies in the computation of eligible premium or other figures, the competent authority shall revise his decision to the extent it is warranted by the revised figures and pass appropriate orders- disposing of the representation; and if the representation discloses any cause beyond the control of the Development Officer, such as HCCI- dent or sickness, to justify relaxation of the expense limit, and he pleads that the reduction in tjasic pay should not be effected on that ground, the competent authority shall' for- ward the representation to the- Zonal Manager, for decision.

(7) If the Zonal Manager is satisfied that there is any mciit in the representation, he may consider the circumstan- ces of the case and pass such) orders as he may think fit.

(8) A Development Officer whose representation has been rejected by the Zonal Manager may submit a memorial to the Chairman in respect of that matter.

(9) Nothing contained in this clause shall allect the

opciation of clause 2 or clause 3.

6. Termination of service in certain cases

(1) The Zonal Managci may terminate the seivicc of a Development Officer on giving him three months' notice or salaiy in lieu thereof if his annual remuneration in any preceding year is in excess of the expense limit and if no further opportunity can be given to him to confoim to the expense- limit in accordance with the foregoing provisions :

Provided that the Development Officer concerned shall be given "an opportunity to show cause against the pionosed termination of his service.

(2) An appeal against an ordci passed under sub-clause (1) shall lie to the Managing Director and the provisions of Regulations 41. 42, 43, 44 and 45 shall, so far as may be, apply to any such appeal.

(3) In the case of an appeal under suh-clausc (2) the Managing Direcloi shall consider the lecords of the case and pass such orders as he thinks fit

7. Efficiency Bar •

(1) Wheie in an incremental scale thcie is an efficiency bar, a Development Officer shall not be certified fit to diaw increments above that bar on or after 1st April, 1979 unless his eligible premium in the preceding year was equal to or more than five times his annual remuneration and the aggre- gate of the eligible premium in the three appiaisal veais immediately pieceding the relevant appraisal dale was equal to or more than five times the .iggregiitc of his annual lemuneration for those three years.

(2) Notwithstanding anything contained in the proviso to sub-reculation (3) of Regulation 56, on each occasion on which an employee is allowed to cross an efficiency bar which has previously been enforced against him, he shall be allowed only one increment on removal of the bar and further tho increment granted on such lemoval ahall have no retio>j""C- tive effect.

(3) Where, as a result of reduction in basic pay for any reason whatever, the basic pay of a Development Officer has been fixed at a stage below the efficiency bar which he has been allowed to cross earlier, he shall be certified fit to draw increments above the bar only if he satisfies the condi- tions stipulated in sub-clatise (1) on the second occasion also.

Note : For the purpose of this clause, the classification vear and the year immediately previous thereto shall be treated as two appraisal yoars immediately preceding the preceding year in respect of the finl appraisal date of an existing Deve- lopment Officer; and Ihc classification year shall be treated as an appraisal year in respect of the second appraisal dale.

8. Incentives :—-(1) Incentive bonus under any scheme approved by the Corporation may be allowed to a Development Officer for a preceding year in respect of appraisal dates falling due on or after 1st January 1978 if his annual remune- ration in the relevant appraisal year does not exceed 2U per cent of the eligible premium of that year.

(2) A Development Officer may lie allowed additional conveyance allowance in accordance with such .scheme as the Corporation may approve from time lo time.

9. Promotion of Development Officers :—(1) Any Deve- lopment Officer considered suitable may be promoted as Assistant Branch Manager or Assistant Administrative Officer.

(2) Any Development Officer whose services are liable to be terminated under this Schedule, may, with his consent, be appointed to do administrative work in Class III, on such terms' as may be decided by the Corporation.

10. Application of the provisions of the previous Schedule.— (1) Action for le-fixatlon of basic pay or termination, it pending, shall not be continued in terms of Schedule HI incorporated by the Life Insurance Corporation of India (Stall) Amendment Regulations, 1976, (hereinafter icterred to as the previous Schedule) nor shall fresh action be uken under the previous Schedule for re-fixation or termination on the basis of the performance for the period between the date of the pievious Schedule and the date on which this Schedule shall become 'applicable.

(2) Increments due during the period falling between the date of the previous Schedule and the date on whk-h this Schedule shall become applicable, may be granted or effi- ciency bar opetaling during the said period may be removed in accordance with the provisions obtaining prior to the date of the previous Schedule.

11. Saving of other piovisions—Nothing contained in ihis Schedule shall be deemed to affect the right of the compe- tent authority to discharge, retire, or determine the services of a Development Officer in accordance with (he relevant Regulation, or to affect the right of the discplimry authon'ty to impose any penalty -on him under Regulation 39 on ;>ny of (he giound specified theiein."'

J. R. JOSII1, Managing Diieetor

PRINTED BY THE MANAGER, OOVT. OF INDIA PRB6S, RING ROAD, NEW DELHI-110064

AND PUBLISHED BY THE CONTROLLER Or*I>UnI,rCATIONS, DELHI-110054, 1978