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REGISTERED No. D.(D.)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-Section (i)

PUBLISHED BY AUTHORITY

No. 364] 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.

944 G I / 7 8 -1

(1171)

MINISTRY OF FINANCE

(Department of Economic Affairs)

ORDER

New Delhi, the 19th December, 1978

G S R. 584(E).—Whereas the Central Government is satisfied that in the interests of the Corporation and its poiicyholders a revision of ihe terms and conditions of service applicable to certain class of employees of the Cor- poration, are called for :

Now, therefore, in exercise of the powers conferred by sub-section (2) of section 11 of the Life Insurance Corpora- tion Act, 1956 (31 of 1956) and in supersession of the Life Insurance Corporation Development Officers (Altera- tion of Remuneration and Other Terms and Conditions of Service) Order, 1976, the Central Government hereby makes the following Order, namely ;—

1. Short title and commencement. (1)—This Order may be called the Life Insurance Corporation Development Officers' (Alteration of Remuneration and Other Terms and Conditions of Service) Order, 1978.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. Application.—The provisions herein contained shall apply to the class of employees of the Corpration known as "Transferred employees" under the Staff A"i^flRotia^Mflk ing appointment as Development Officers I S S er ' t U H ^^ Regulations.

3. Definitions.—In this Order—

(a) "Act" means the Life Insurance Con>oiWjdii A ^ fl l & t t t t i i ^l 1956 (31 of 1956);

(b) "Corporation" means the Life Insurant* * Q M H H| tion of India established under the Act; ' ^ H B pP

(c) "Staff Regulations" means the Life TnsuriijfeCTBw⁸ poration of India (Staff) Regulations, t * M n pK amended from time to time, •^fjftjjr'v. ^|

4. Revision of terms and conditions of nervice.—-O) -WMMSJf, effect from the date this Order comes into force, the I " !* H and conditions of service of an employee to whom thW^DiNtMir' "' applies shall include the provisions specified in the AHneXTW*^ hereto annexed. V.- . ' _.*<

(2) The Corporation shall regulate the application o ''•:<' provisions specified in the said Annexure by making appro- priate provisions in the Staff Regulations; so, however, that the terms and conditions of service of the class of employees to whom this order applies shall be on par with the others holding appointment as Development Officers on the date of this Order.

IF. No. 65(22)/Ins. Til/13/781

S. RAMANATHAN Addl. Secy.

ANNEXURE [Paragraph 4(1)1

1, Interpretation : In this Annexure, unless there is any- thing repugnant in the subject or context—

(a) "annual remuneration" means the basic pay, special pay, personal pay, dearncss allowance, and" all other allow- ances and non-profit sharing or cx-gralia bonus due or paid to 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, residen- tial telephone and insurance premium and taxes on motor vehicles, but does not include, incentive bonus and additional conveyance allowance paid to him ;

fb) "appraisal date" in relation to a Development Officer means—

(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 accrued in ac- cordance with Regulation 56(2) of the Staff Regulations; or

(ii) if otherwise, the first day of the month followuia that in which he so completes twelv" months of service; and

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

Note : Unless otherwise specified, the first appraisal date in relation to a Development Officer shall mean the appraisal date ascertained in accordance with (A) above; the second and subsequent appraisal dates shall be construed accordingly.

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

(d) "classification nercent;ge" menns 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 me=ins Ihe annual remuneration in respect of that year as defined in sub-clause (a); reference in that sub- clause to the appraisal year shall be construed as reference to the clasification year.

(e) "classification year", in relation to a Development Officer, means the period of twelve months or service immediately preceding the twelve months of service reckoned for the purpose of arriving at the first apraisal date under this Annexure;

(f) "corripetent authority" means such authority ai may be specified in the Staff Regulations to carry out all or any of the purposes provided for in this Annoxure;

(g), "Development Officer" means an employee to whom the Life Insurance Corporation Development Officers' (Alteration of Remuneration and Other Terms and Conditions of Service) Order, 1978, applies;

(h) "eligible premium" means such proportion as may be specified by the Corporation from time to time of the first year's premiums received by the Cor- poration in respect of business secured by the agents in the organisation of a Development Officer, which is adjusted in the relevant appraisal year;

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

TABLE

Percentage of the eligible prenium

If the Development officer is working in operational area

(2)

0) A B C D

22% 23% 24% 25%

Notes :

(1) The expense limit of a Development Officer for any npprmsal 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 (he ratio which such annual remuneration bears to the eligible premium of that year may also be expressed as percentage of the eligible premium.

(2) The percentage specified in the above Table shall be increased by the appropriate Irnnsitional con- cession, if any, in respect of the appraisal years preceding the first and second apnraisal dates and the expense limit shall be ascertained accordingly for these appraisal years.

(j) "gross yearly salary" means the aggregate of the monthly basic pay, special pay, and all other allow- ances which may be allowed to a Devlopment Officer for any succeeding year if the terms of his appointment are- 'fulfilled' and shall include any non-profit sharing or ex-gratla bonus payable in that year and an estimate of the ex- penses that may be allowed during that year in respect of travelling-, residential telephone and insurance premium and taxes on motor vehicles, but shall not include any incentive bonus or additional conveyance allowance thnt may accrue to him;

(k) "onerational area", with reference to n Development Officer, menns the area in which he is pos'cd to work as such Development Officer and a Development Officer is said (o be working in operational area—

'A' if he is working in a Citv. Urban atrnlomeration or Town wl'h an ascertained population of more than 10 lakhs;

'B' if he is working in n Citv. Urban aefflomerntion or Town with an ascertained nomiinfiri of 4 lakhs or above hut not more than 10 lakhs:

C if he is working in a City, Urban agglomeration or Town (not being a rural area)" With an ascertained population of less than 4 laths ; and

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

Explanations : (lj t or the purpose of this sub-clause "ascertained population" means Ihc population as ascertained Irom the latest Census Report of the Government of India;

C2) A Development Officer is said to be working in a "rural area" if his headquarters is at a place with an asser- tained population of 30,000 or less and his operational area has an ascertained population of not more than 60,000;

(1) "'preceding year" or "relevant appraisal year" means the appraisal year immediately preceding the relevant appraisal date;

(m) "relevant appraisal date" means the appraisal date on which the performance of the Development Officer for the appraisal year immediately preceding that date is asessed for any purpose under this Annexure;

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

(o) "succeeding year'' means the period of twelve months

commencing from the relevant appraisal date;

(p) "transitional concession" means the concession ap- plicable to a Development Officer whose classifica- tion percentage is higher than the expense limit percentage and such concession shall be computed as follows :

(i) in the appraisal year preccdinil the first anprnisul

date •

The difference between 35 per cent and expense limit percentage or two-thirds of the difference between expense limit percentage and classification per- centage, whichever Is less;

(ii) in the appraisal year preceding the second ap-

praisal date :

(A) If the Development Officer is workine in operational 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 working in ope- rational area 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, which- ever Is lent.

Notes :

(1) For aficertaininc the two-thirds, or one-third of the difference between the expense limit percentage and classification percentage, as the case may be, the result obtained shall be rounded off to the nearest integer.

(2) For the purpose of this sub-clause, the expense limit percentage does not include the incrense speci- fied in the Note (2) to sub-clause (i) and the ex- pense limit percentage means the percentage of the eligible premium specified in column (2) of the Tnblc below the said sub-clause (i).

2. Increments.—(I) With effect from the first apnraisal date under this Annexure. Increments shall ordinarily be drawn bv a Development Officer as a matter of course In accordance with Regulation 56 of the Staff Regulations :

Provided thnt hi; 'mnual remuneration in the preceding year

was not in excess of the expense limit :

Provided further, that if his annual remuneration in the preceding year was in excess of the expense limit by not more fhan 2 per cent of the e'Igibie premium of that year, he may be allowed to draw the Increment from the relevant appraisal date if his annual remuneration was not in excess of the rxnense limit in the appraisal yenr previous to fhe preceding year.

Note : This proviso shall uot apply to a Development Officer for the grant of increment, on the fjrit appraisal date :

Provided also, that where Ihe annual remuneration of a Development Officer is in excess of the expense limit in the appraisal year preceding the first appraisal date, he shall be allowed lo draw the increment from Ihc lirst appurisal date, if only such excess is not more than 2 per cent of the eligib c premium of that year and his gross yearly salary for the succeeding year after jjrant of such increment shall not exceed 35 per cent of the eligible premium of the appraisal year preceding the first appraisal date.

Nole : For ihc removal of doubt it iy 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 efficiency bar ope- rates in accordance with the provisions contained in Ihc Staff Regulations.

(2) Notwithstanding anything contained in sub-clause (1), If on a representation received from any Development Officer, the competent authority is satisfied that the Development Officer has exceeded the expense limit on account of reasons beyond his control, it may direct that the increment be snin' ed from the relevant appraisal date.

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

3. Conveyance Allowance.—(I) Every Development Office shall be entitled to such conveyance allowance as may be granted hy the Corporation from time to time, and the payment thereof including conditions of eligibility and other matters, shall be regulated by appropriate instructions issued, by the Chairman of the Corporation, in that behalf under the Staff Regulations :

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 for the succeeding year shall be limited to one-hJPhl 'tie'TEfilDiirt* to which he may be otherwise entitled under tie JMttniMMi.

(2) Notwithstanding anything contained i ' ^ H H S ^ f f l Lt If on a representation received from * vflHpWnNR Officer, the competent authority is satirfld^^Kltt his annual remuneration in any preceding year V ^ ^ ^ t * *c e s⁵ of the expense llmii for reason.* beyond TJ^^Hhitrol, it may allow the conveyance allowanc/T^HM^ tint succeeding year to such extent as it may think ^ t V p l ad of limiting it to one-half.

^ jt

(3) Where the conveyance allowance admissible* t % 5 | MK

lopment Officer is reduced in respect of any apprauflfifce^"' the reduction in that year shall not be made godd^HH succeeding years, but he would only be entitled to fdfffll veyance allowance udmhwible to him under the rules for A succeeding year il' his annual remuneration h not in ex^eji the expense limit in the preceding year. ~^W

4. Tenure : Subject to the provisions of this AnnexuM Development Officer shall hold office by the same tenure j j ^p in the same manner as any other class of employee in UK* Corporation :

Provided 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 an (he ground of poor business production unless, either his annual remunera- tion 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 provision?, hereinafter contained at least at the minimum of lhe grade applicable to him.

5. Opportunity to conform to the expense limit : (1) Where the annual remuneration of any Development Officer in tha preceding year or years is in excess of the expense limit in the manner envisaged in the Table below, his services shall not be terminated merely on that ground but his basic pay for the succeeding year shall be reduced as provided in the said Table from the relevant apprnisnl dr.te thereby afford- ing him opportunity to conform to the expense limit,

TABLE

Annual remuneration in excess of the

>. expense limit

Reduction in basic pay where the annual remuneration is in excess of the expense limit in the appraisal year preceding the relevant appraisal date

Sr. Nc

On the first occasion

; Fourth successive

Third successive occasion

occasion

On the second

successive

occasion

(3) ) (2)

d:

Fifth and subsequent successive occasions

(6)

(4)

{{^{{FOOTNOTE (5)}}}}

(7)

....

i.

—

2,

One stage in the

Three stages in the grade

One stage in

3.

grade Two stages in

Two stages in the grade Three stages in -do-

the grade -do-

-do-

the grade Two stages in the grade

One stage in the grade

4.

the grade Three stages in the grade

-do-

-do-

-do-

Throe stages in

the grade

Two stages in tlw grade By not more than 2 % of the eligible pre- mium. By more than 1% but not more than 4% of the eligible premium. By more 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. By more than 6% of the eligible premium, provided that the annual rcm'incrati^n did not exceed 35 % of the eligible premium of that year.

Explanations :—(i) For the purpose of this Table, the annual remuneration of a Development Officer shall be deemed to be in excess

of the expense limit on a successive occasion, if such remuneration exceeds the expense limit in the two consecutive appraisal years even though the excess percentage over the expense limit may vary; an appraisal year in which the J^evelopmcnt Officer exceeds the expense limit but there is no reduction in basic pay or where there is reduction in basic pay under sub-clause (2) shall also be reckoned for ascer- taining whether the exponse limit is exceeded on successive occasions! the reduction in basic pay on the successive occasion shall corres- pond to the excess of the expense limit in the appraisal year preceding the relevant appraisal t'afr-

Illustration : A Development Officer's annual remuneration in the appraisal year preceding the first appraisal date was in excess of the ex,?;nse limit by not mire than 2 % and consequently there was no reduction in his basic pay for the succeeding year. In such succeed- ing year, the annual remuneration 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 Deve- lopment Officer exceeds the expense limit at a later date. The first occasion and successive occasions shall be ascer- tained afresh in such, a case as from such later date,

(2) Where [he annual remuneration of a Development Officer in any preceding year (hereinafter also referred to as the relevant year in this sub-clause) exceeds 35 per cent of the efigible premium of that year, his services shall be liable to be terminated :

Provided that his services may be continued on com- passionate grounds after reducing his basic pay by three stages in the grade—•

fa) if the annual remuneration in the relevant year docs not exceed 50 per cent of the eligible pre- mium of that year; or

(b) if the annual remuneration in the relevant year exceeds 50 per cent but the aggregate of the annual remuneration in the relevant year and the two appraisal years immediately preceding the relevant year does not exceed 50 per cent of the aggregate of the eligible premium in those three years.

Provided further that, in the case of a Development Officer, if his annual remuneration in the appraisal year preceding the first appraisal date is in excess of the expense limit applicable to him in that year by not more than 4 per cent of the eligible premium, or if his annual remuneration in the appraisal year preceding the second appraisal date is in excess of the expense limit applicable to him in that year by not more than 2 per cent of the eligible preniium, his services shall not be liable to be terminated nor shall his basic pay be reduc- ed on the ground that his annual remuneration has exceeded 35 per cent of the eligible premium in either of those appraisal years.

Notes.—(i) For the purpose of affording relief under the first proviso, a Development Officer shall be entitled to have the classification year and the year immediately previous thereto treated as two appraisal years immediately preceding the preceding year in respect of the first appraisal date; and he shall be entitled to have the classification year included as an appraisal year in respect of second appraisal date. Thereafter the three appraisal years shall consist of the three appraisal yeari immediately preceding the relevant ap- praisal date.

(ii) For the purpose of ascertaining whether the aggregate of the annual remuneration in the relevant year and the two appraisal years immediately preceding the relevant year docs or does not exceed 50 per cent of the aggregate of the eligible premium in those years, the actual eligible premium and the annual remuneration in each of those years shall be taken into account, irrespective of whether appropriate action has been taken in accordance with this Annexure m respect of any such year or the fact that the Development Officer has exceeded the expense limit has been condoned or otherwise not taken into account under this Annexure in any such year.

(3) If, as a consequence of the application of the pro- visions 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 Development Officer.

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

944 GI/78—2.

veyance allowance appropriate to the revised basic pay; and there shall be no protection of total remuneration either by granting a general allowance or otherwise,

(5) The competent authority to implement the provisions of the foregoing sub-clauses shall be not below the appoint- ing authority under the Staff Regulations which shall do so, an soon as may be, after the expiry of the relevant appraisal year :

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

(6) If the representation received under sub-clause (5) discloses 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 acci- dent or sickness to justify relaxation of the expense limit, and he pleads that the reduction in basic pay should not be effected on that ground, the competent authority shall for- ward the representation to such other authority as may be specified by the Staff Regulations for decision.

(7) If the aueh other authority is satisfied that there is

any merit in the representation, it may consider the circum- stances of the case and pass such oidcr as it may think fit.

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

(9) Nothing contained in this clause shall affect the opera-

tion of clause 2 or clause 3,

6. Termination of service in certain cases.—(1) The Competent authority, not below the rank of Zonal Manager of the Corporation, may terminate the services of a Develop- ment Officer on giving him three months' notice or salary in lieu thereof if his annual remuneration in any preceding year is in excess of the expense limit and if no further oppor- tunity can be given to him to conform 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 proposed termination of his service,

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

(3) In the case of an appeal under sub-clause (2) the Managing Director of the Corporation shall consider the records of the case and pass such orders as he thinks fit.

7. Efficiency Bar.—(1) Where in an incremental scale there is an efficiency bar, a Development Officer shall not be certi- fied fit to draw 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 aggregate of the eligible premium in the three ap- praisal years immediately preceding the relevant appraisal date was equal to or more than five times the aggregate of his annual remuneration for thoce three years.

(2) Notwithstanding anything contained in the proviso to sub-regulation (3) of Regulation 5fi of the Staff. Regulations 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 the increment granted on such removal shall have no retrospective 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 fflciency bar which he has been allowed to cross earlier he shall be certified fit to draw increments) above the bar only if be satisfies the conditions stipulated in sub-clause- (1) on the second occasion also.

Note.—For the purpose of this clause, the classification year and the ysar immediately previous thereto shall be treated as two appraisal years immediately preceding the preceding year in respect of the first appraisal date of a Dcvclopmcnl Officer; and, the classification year shall be treated as an appraisal year in respect of the second appraisal date.

8. Incentives,—(1) Incentive bonus under any scheme ap- proved by the Corporation may be allowed to a Development Officer for a preceding year in re&pcct of appraisal clLItes falling due on or after 1st January, 1978 if his annual remune- ration in the relevant appraisal year does not exceed 20 per cent of the eligible premium of that year.

(2) A Development Officer may be allowed additional con- veyance al'owtince in accordance with such scheme as the Corporation may approve from time to time.

9. Promotion of Development Officers.—(1) Any Develop- ment 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 Annexure, may, with his consent, be appointed to do administrative: #vork in OBIS m, qu mfgi terms as may be decided by the Carppratityr. :. 9t

10. Application of the provisions of the ptelous order.— (1) Action for refixation of basic pay or ternghijioji, if pen- ding, shall not be continued in terms of the DA insurance Corporation Development Officers' (Alteration of Remunera- tion and other Terms and Conditions of ServicqljtJiYler, J976, (hereinafter referred to aa the previous Order) rfoY shall fresh action be taken under the previous Order for reflsa i<* qt termination on the basis of the performance for trie pfc^Oifc between the date of Ihc previous Order and the data on whicMJ this Order shall become applicable, • , m

(2) Increments due during the period falling betMHKlnfl date of the previous Order and the date on which 4 H ' ' ^ f fl shall become applicable may be granted or erficfiMfr fiH operating during the said period may be remoked irMKfcOflM! ance with the provisions obtaining prior lo the date of^Jie pflR| vious Order.

[F. No. 65(22)/tns. UI/if/78]

S. RAMANATHAN, Addl. Secy,

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

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DEL HI-110054, 1 9 78