Personnel Manual Corrected Final

Personnel Manual Part II
United India Insurance Co. Ltd.
INDEX
1
Scales of Pay and Allowances Class I

1. Scales of Pay
2. Dearness Allowances
3. House Rent Allowance
4. City Compensatory Allowance
5. Hill Station Allowance
6. Computer Increment/Fixed Personal Allowance
7. Kit Allowance
8. Conveyance Allowance
9. Functional Allowance
10. Entertainment Allowance
11. Fixation on Promotion
4-11
Scales of Pay and Allowances Class III & IV

1. Scales of Pay
2. Dearness Allowances
3. House Rent Allowance
4. Functional Allowance
5. Allowance for Technical Qualification
6. Graduation Allowance to Assistants and Record Clerks
7. City Compensatory Allowance
8. Hill Station Allowance
9. Conveyance Allowance
10. Kit Allowance
11. Computer Increment/Fixed Personal Allowance
12. Fixation on Promotion
12-24
Special Area Allowance
25-31
Conveyance Allowance for Physically Handicapped employees
32-33
Overtime Allowance
34-37
Officiating Allowance
38-41
Increments
42-45
Ex-Servicemen Salary Fitment
46-52
Leave Rules & Miscellaneous Provisions
53-71
10
Travels Rules & Regulations
72-83
11
Transfer Benefits
84-96
12
Encashment of Leave
97-101
13
Leave Travel Subsidy
102-114
14
Ex-gratia in lieu of Bonus
115-116
15
Festival Advance
117
INDEX
16
Flood/Drought Advance
118-119
17
Housing Loan
120-131
18
Vehicle Loan
132-137
19
Residential Accommodation
138-141
20
Lumpsum Payment for Domiciliary Treatment to Class I Officers 142
21
Medical Benefit for Clerical and Subordinate Staff (Lumpsum 143

Payment for Domiciliary Treatment)
22
Group Mediclaim Policy
144-163
23
Group Mediclaim Policy for Part-Time Employees
164-165
24
Medical Benefit for Retired Employees
166-1168
25
Facility of general medical check-up
169-170
26
Ex-gratia reimbursement of medical expenses to employees for 171-176

high cost/protracted treatment
27
Benefits for employees meeting with accident whilst on duty
177
28
Incentives for Family Planning
178
29
Group Savings Linked Insurance
179-181
30
Group Term Insurance Scheme
181-189
31
Uniforms
190-193
32
Part-Time Employees
194-198
Matters relating to GI(CDA) Rules,1975 (Chapter is included

in Manual I)
33
Guidelines governing Resignation/Retirement of Officers
199-202
34
Honouring of employees on retirement
203
35
General Insurance Executives (Acceptance of Commercial 204-206

Employment after Retirement) Rules, 1994
36
Terminal Benefits
207-218
37
Vigilance Clearance
219
38
No Objection Certificate
220
INDEX
39
221-240
Miscellaneous
A) Hours of Work
B) Group Personal Accident Policy
C) Change of Duty
D) Assistance for Management Studies
E) Payment of Incentives for promotion of Official Language
F) Benefits of Officers serving as Faculties at Company's
Learning Centre
G) Reimbursement for purchase of Brief Cases/Leather Bags
to Officers
H) Foreign Service
I) Employees visiting foreign countries Sanction of leave
J) Display of Company's Banner
K) Facilities for employees and ex-employees for attending
Court cases
L) List of places for payment of CCA
M) List of places for payment of HRA
N) Implementation of Transfer Orders (Officers)
40
Conveyance Facilities
241-274
41
Telephone Facilities
275-276
42
Revision in maximum age of retirement from 58 years to 60 years 277
43
Reimbursement for News Paper
278
44
Unisurge Initiatives
279-288
CHAPTER 1
SCALES OF PAY AND ALLOWANCES - OFFICERS
1. Scales of Pay (Basic Pay):
(1) Scale VII
Rs.522101400(2)55010-1500(1)-56510-1640(1)-58150-1700(1)-59850
(2) Scale VI
Rs.46610-1400(5)-53610
(2) Scale V
Rs. 41660-1200(3)-45260-1350(2)-47960
(3) Scale IV
Rs. 34460-1200(7)-42860
(4) Scale III
Rs.28160-840(1)-29000-910(6)-34460-1200(4)-39260
(5) Scale II
Rs. 23120-840(7)-29000-910(6)-34460
(6) Scale I
Rs. 17240-840(14)-29000-910(4)-32640
2. Dearness Allowance:
The Scale of Dearness Allowance applicable to the Officers shall be determined as under:
Index : All India Consumer Price Index for Industrial Workers.
Base : Index No. 2944 in the Series 1960 = 100
Rate of Dearness Allowance:
For every four points in the quarterly average over 2944 points, the dearness allowance shall
be calculated at the rate of 0.15% of basic pay.
Revision of dearness allowance :(1) Revision of dearness allowance may be made on quarterly basis for every four
points rise or fall.
(2) There shall be an upward revision of the dearness allowance payable for every four
points rise in the quarterly average (hereinafter referred to as the current average
figure) of the All India Consumer Price Index above 2944 points in the sequence
2944-2948-2952-2956 and so on; and there shall be downward revision of the

dearness allowance payable if the current average figure falls by four points below
the index figure in the above sequence with reference to which the dearness
allowance has been paid for the last preceding quarter. On the downward revision,
the dearness allowance payable shall correspond to the current average figure if such
current average figure is a figure in the above sequence; and if such current average
figure is not a figure in the above sequence, the dearness allowance payable shall
correspond to the figure in the above sequence immediately preceding the current
average figure.
(3) For this purpose, quarter shall mean a period of three months ending on the last day
of March, June, September or December.
(4) The final index figures as published in the Indian Labour Journal or
the Gazette
of India whichever publication is available earlier,
shall be the Index figure
which shall be taken for the purpose of
calculation of Dearness Allowance.
(5) The revision in dearness allowance corresponding to the changes in
the current
average figure for any particular quarter shall take effect only from the second
succeeding month following the end of the quarter.
3. House Rent Allowance :
(1)
With effect from 1st day of August, 2007, the House Rent Allowance payable to Officers
shall be as shown in the Table below :
TABLE
Place of posting
(a) Cities of Mumbai, Navi Mumbai, Kolkata,
New Delhi, Faridabad, Ghaziabad, NOIDA,
Gurgaon, Chennai, Ahmedabad, Bengaluru,
Hyderabad and Pune.
(b) Cities with population exceeding 12 lacs
except the cities mentioned at (a),
Gandhinagar and all cities in the State of Goa.
(c ) All other places.
Rate per month

10% of pay subject to maximum of
Rs.3,200/- per month
8% of pay subject
Rs.2700/- per month.
to
maximum
of
7% of pay subject
Rs.2600/- per month.
to
maximum
of
Note : (1) For the purpose of this item, the population figures
Shall be as per the latest Census Report.
(2) Cities shall include their urban agglomeration.
(3) pay means Basic Pay and stagnation increments.
(2)
Officers who are allotted residential accommodation by the Company shall pay for such
accommodation, appropriate license fee as may be decided by the Company from time
to time and shall not be entitled to House Rent Allowance in terms of sub-item (1) of
this item.
Employees who are allotted residential accommodation/staff quarters, shall not be entitled to
any house rent allowance, but they shall pay to the Company, for such accommodation, the
appropriate licence fee as may be decided by the Board of the Company from time to time.
At present, the licence fee is being deducted @ 1.75% of the minimum of the scale. The
5
revised rate of licence fee shall be 1.20% of the minimum of the revised Scale with effect
from 01.11.2010. Upto 31st October, 2010, , the amount of licence fee which is being
deducted at present on the basis of pre-revised basic and pre-revised rate shall continue.
4. City Compensatory Allowance :
With effect from 1st day of August, 2007, the City Compensatory Allowance payable to Officers
shall be as under :
Place of posting
Gurgaon, Chennai, Ahmedabad, Bengaluru,
Hydeabad and Pune
(b) Cities with population exceeding 12 lacs,
except cities mentioned in (a), Gandhinagar,
all cities in the State of Goa.
(c) Cities with population of 5 lacs and above
but not exceeding 12 lacs, State capitals with
population not exceeding 12
lacs,
Chandigarh, Mohali, Panchkula, Pondicherry,
Port Blair.
TABLE
Rate
3% of pay subject
Rs.800/- per month.
to
maximum
of
2.5% of pay subject to

Rs.760/- per month
maximum of
2% of pay subject to
Rs.590/- per month.
maximum of
Note :
(1) For the purpose of this item, the population figure shall be as per the latest Census
Report.
(2) Cities shall include their urban agglomeration
(3) Pay means Basic Pay and stagnation increments.
5. Hill Station Allowance :
With effect from 1.11.2010, Hill Station Allowance payable to Officers shall be as
shown in table below :
TABLE
(i) Posted at places situated at a height 2.5% of Basic Salary subject to maximum
of 1500 metres and over above mean of Rs.460/- per month.
sea level
(ii) Posted at places situated at a height 2% of the Basic Salary subject
of 1000 metres and over but less than maximum of Rs.370/- per month
1500 metres above mean sea level, at
Mercara and at places which are
specifically declared as "Hill Stations" by
Central/State Governments for their
employees
to
(iii) Posted at places situated at a 2% of Basic Salary subject to maximum of

height of not less than 750 metres Rs.370/- per month
above mean sea level which are
surrounded by and accessible only
through hills with a height of 1000
metres and over above mean sea level.

6. Computer Increment/Fixed Personal Allowance :
(1) All Officers who joined after 1.11.1993 and were in confirmed service as on
21.06.2000 shall be paid one increment in the scale applicable to them on
01.07.2000.
(2) Officer who have joined as Class I on the their first appointment in the services of the
Company on or after 22.06.2000 and those promoted to Class I from other cadres on
or after 22.06.2000 are not eligible for computer increment (as promotees would
have already received the same).
(3) An Officer who was on probation on or before 22.06.2000 on first appointment in the
services of the Company such computer increment shall be payable to him/her on
completion of one year of service after the date of his confirmation.
(4) There is no change in the date of normal grade increment on account of sanction of
computer increment.
(5) If an Officer has already reached the maximum of the scale or is in receipt of one or
more stagnation increments as on 01.11.1993, he will be allowed a Fixed Personal
Allowance with effect from 01.11.1993, which will be equivalent to last increment in
the scale of pay applicable to him as on 01.11.1993 plus the Dearness Allowance
thereon at the relevant rate as on 01.11.1993 and the difference in House Rent
Allowance, if any. The FPA payable to an Officer in different scales of pay is shown
below :
FIXED PERSONAL ALLOWANCE PAYABLE TO OFFICERS IN REVISED SCALE OF PAY

w.e.f.01/08/2007
S.NO. Officers in the scale of Fixed Personal

pay as on 01/11/1993
Allowance
1.
2.
Increment
Dearness
Portion of
Allowance on
Fixed Personal
Increment
Allowance
Portion of Fixed
Personal
Allowance as
on 01/11/1993
5.
3.
4.
Rs.
Rs.
Rs.
Scale VII
1700
400
10.08
Scale VI
1400
300
7.56
Scale V
1350
250
6.30
Scale IV
1200
250
6.30
Scale III
1200
250
6.30
Scale II
910
230
5.80
Scale I
910
230
5.80
(6) An Officer who received Computer Increment and reaches the maximum of the scale
subsequently will be granted FPA one year after reaching the maximum of the scale
of pay. If such an Officer is promoted to the higher cadre before the sanction of the
Fixed Personal Allowance in the pre-promoted scale, the FPA corresponding to the
scale of pay in which he was as on 01.11.1993, shall be released one year after he
reaches the maximum of the promoted scale.
(7) If an Officer is on extraordinary leave (LOP), Strike, etc., the release of FPA one year
after reaching the maximum of the scale should be deferred till the Officer completes
365/366 days of continuous service.
(8) A Class II or Class III employee promoted as a Class I Officer after 01.11.1993 and
who was paid Computer Increment in the scale of pay applicable to him as Class
II/Class III employee, shall be paid FPA one year after reaching the maximum of the
promoted scale and the FPA payable shall be corresponding to the scale of pay in
which he was as Class II/Class III employee, as the case may be, as on 01.11.1993.
(9) A Class II or Class III employee promoted as a Class I Officer after 01.11.1993 and
who was in receipt of FPA prior to his promotion as a Class I Officer, shall continue to
draw FPA which was drawn by him prior to his promotion. Similarly, a Class I Officer
who is in receipt of FPA shall continue to draw the same amount of FPA on his
promotion to next higher cadre.
A Senior Assistant was granted FPA of Rs.276.28 per month as on

01.11.1993. On his promotion as a AO, as per the earlier instructions, the FPA was
to be withdrawn. However, now it is advised that he will continue to draw Rs.276.28
per month as FPA on his promotion as AO.
Example :

(10)
The revised FPA as per column(3) of above table shall not qualify for
allowance or service or terminal benefits. However, the increment portion of the FPA
under column 4 will count for the purpose of Provident Fund and pension. Increment
portion of the FPA under Column 4 along with DA thereon as on the 1 st
November,1993 as shown in column (5) of above table shall rank for Gratuity.
(11)
For the purpose of encashment of Earned Leave FPA shall be counted as
follows :
a) Encashment of EL on
retirement/death
Increment portion (col 4) and

component of the FPA (Col 5).
b) Encashment of EL in service
No FPA is payable.
the DA
7. Kit Allowance :
W.e.f 1.11.2010 an Officer on his transfer to any of the hill stations at which hill station
allowance is payable shall be paid a Kit Allowance of Rs.4,000/-. Provided that no kit
allowance shall be payable if such Officer has drawn such allowance at any time earlier.
8. Transport Allowance :
With effect from the 1st day of August, 2007, every Officer, who is not in receipt of any
Conveyance Allowance under any of the Conveyance Schemes shall be paid Transport
Allowance of Rs.800/- (Rupees Eight hundred only) per month.
9. Functional Allowance : (w.e.f. 01.11.2010)
(a) AO/AM/Dy. Manager/Manager in the Internal Audit Deptt.
At HO and IAI cells in the Regions.
Rs.675/- p.m.
(b) Officers in Vigilance Department who are in the main

Handling investigations and field work.
Rs.675/- p.m.
Note :
1. This allowance would not be payable to Officers recruited specifically for investigative
functions or Officers on deputation from Government Department or other Public Sector
Organisations.
2. Officers in the cadres of Deputy Manager and above posted in Vigilance Department at
HO are not eligible to draw this functional allowance.
3. Officers designated as Vigilance Officers and posted in ROs irrespective of the cadre, shall
be eligible to draw this functional allowance.
4. Officers in ROs who are posted to assist the Vigilance Officers on full time basis shall also
be eligible to draw this functional allowance.
(c) Officers who are posted as Full-time 10% of basic pay subject to a maximum of
facility in the Learning Centre, Development Rs.200/- per month
Training Centres and Regional Training
Centres
10. Entertainment Allowance :

With effect from 01.11.2010, the Entertainment Allowance payable to officers-in-charge of
Branch Offices and Divisional Offices is as under :
Category of Officer-in-charge
Entertainment
(Rs. Per month)
Branch Office-in-charge
750/-
Divisional Office-in-charge
900/-
Allowance
It is clarified that the term Branches used in this connection includes Sub-Branches and the
officers in charge of Branches or Sub-Branches (irrespective of size) shall be paid
entertainment allowance.
1. The actual entertainment expenditure incurred by the other officers not below the rank of
Manager within the budget allocated by Chairman-cum-Managing Director will be
permitted to be reimbursed on the strength of vouchers for the expenditure on
entertainment.
2. The allowance specified above will be paid only if the aggregate for the company falls
within the overall limits laid down by the Government. Otherwise the Chairman-cumManaging Director shall reduce them suitably.
3. If an officer eligible to receive Entertainment Allowance proceeds on leave for a
continuous period not exceeding 30 days, no adjustment in payment of entertainment
allowance shall be made. If, however, the continuous period of leave exceeds 30 days,
entertainment allowance shall not be paid for the entire period of leave.
An officer officiating as in-charge of Division/Branch during the period the officer-in-charge of
a Division/Branch is on leave, may also be paid Entertainment Allowance only when he is
entitled to the officiating allowance.
Stages in revised scales of pay : (w.e.f. 01.08.2007)

10

Stage
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
A.O.
Scale I
17240
(11110)
18080
(11650)
18920
(12190)
19760
(12730)
20600
(13270)
21440
(13810)
22280
(14350)
23120
(14890)
23960
(15430)
24800
(15970)
25640
(16510)
26480
(17050)
27320
(17590)
28160
(18130)
29000
(18670)
29910
(19230)
30820
(19790)
31730
(20350)
32640
(20910)
A.M.
Scale II
23120
(14890)
23960
(15430)
24800
(15970)
25640
(16510)
26480
(17050)
27320
(17590)
28160
(18130)
29000
(18670)
29910
(19230)
30820
(19790)
31730
(20350)
32640
(20910)
33550
(21470)
34460
(22030)
FIXATION TABLE
DyMgr
Mgr.
Scale III
Scale IV
28160
34460
(18130)
(22030)
29000
35660
(18670)
(22680)
29910
36860
(19230)
(23330)
30820
38060
(19790)
(23980)
31730
39260
(20350)
(24630)
32640
40460
(20910)
(25280)
33550
41660
(21470)
(25930)
34460
42860
(22030)
(26580)
35660
(22680)
36860
(23330)
38060
(23980)
39260
(24630)
CHAPTER - 2
11
Chief Mgr.
(Scale-V)
DGM
Scale VI
GM
ScaleVII
Scale
41660V
(25930)
42860
(26580)
44060
(27230)
45260
(27880)
46610
(28605)
47960
(29330)
46610
(28605)
48010
(29390)
49410
(30175)
50810
(30960)
52210
(31745)
53610
(32530)
52210
(31745)
53610
(32530)
55010
(33315)
56510
(34165)
58150
(35105)
59850
(36100)

SCALES OF PAY AND ALLOWANCES - CLASS III & IV
1. Scales of pay (Basic Salary)
a. Supervisory and Clerical Staff:
(1) Senior Assistant :
Rs.10670-755(4)-13690-840(15)-26290
(2)
Stenographer :
Rs.10670-755(4)-13690-840(15)-26290
(3) Assistant, Typist, Telephone Operator, Telex Operator,

Receptionist, Punch Card Operator, Unit Record Machine
Operator, Comptist and other equivalent posts :
Rs.7640-440(1)-8080-480(2)-9040-540(5)-11740-625(2)-12990-760(3)-15270-790(2)16850-840(5)-21050
(4) Record Clerk :
Rs.7085-305(2)-7695-325(5)-9320-350(1)-9670-390(2)-10450-430(3)-11740-480(5)14140-530(9)-18910
b. Subordinate Staff :
(1)
Driver :
Rs7085-305(2)-7695-315(14)-12105-350(2)-12805-390(9)-16315
Other Subordinate Staff :
Rs.6180-250(5)-7430-265(8)-9550-315(1)-9865-325(2)-10515-390(9)-14025
Dearness Allowance:
The rate of Dearness Allowance applicable to the employees shall be determined as under:
Index : All India Average Consumer Price Index Number for Industrial Workers.
Base : Index No. 2944 in the Series 1960 = 100
Rate of Dearness Allowance:
For every four points in the quarterly average over 2944 points, the dearness allowance shall
be calculated at the rate of 0.15% of basic pay.
Revision of Dearness Allowance :1.
Revision of dearness allowance may be made on quarterly basis for every four points
rise or fall.
2. There shall be an upward revision of the dearness allowance payable for every four
points
rise in the quarterly average (hereinafter referred to as the current average
figure) of the All India Consumer Price Index above 2944 points in the sequence 29442948-2952-2956 and so on;and there shall be downward revision of the dearness
allowance payable if the current average figure falls by four points below the index figure
12

in the above sequence with reference to which the dearness allowance has been paid for
the last preceding quarter. On the downward revision, the dearness allowance payable
shall correspond to the current average figure if such current average figure is a figure in
the above sequence; and if such current average figure is not a figure in the above
sequence, the dearness allowance payable shall correspond to the figure in the above
sequence immediately preceding the current average figure.
3. The final index figures as published in the Indian Labour Journal or the Gazette of India
whichever publication is available earlier, shall be the Index figure which shall be taken
for the purpose of calculation of Dearness Allowance.
(1)
The revision in dearness allowance corresponding to the changes in the current

average figure for any particular quarter shall take effect only from the second
succeeding month following the end of the quarter.
Explanation : For the purposes of this item, quarter shall mean a period of three months
ending on the last day of the month of March, June, September or December.
3. House Rent Allowance :
(a) With effect from 1st day of August, 2007, the House Rent Allowance payable to class
III & IV employees shall be as shown in the Table below :
TABLE
Place of posting
Gurgaon,Chennai,Ahmedabad,Bengaluru,
Hyderabad and Pune.
(b) Cities with population exceeding 12 lacs
except the cities mentioned at (a),
Gandhinagar and all cities in the State of Goa.
(c ) All other places.
Rate per month

10% of pay, subject to minimum of
Rs.700/- and maximum of Rs.3200/- per
month
8% of pay subject to minimum of Rs. 600/and maximum of Rs.2700/- per month.
7% of pay, subject to minimum of Rs.
570/- and maximum of Rs.2600/- per
month.
Note :
(1) For the purpose of this item, the population figure shall be as per the latest
Census Report.
(2) Cities shall include their urban agglomeration.
(3) Pay means Basic Pay and stagnation increments.
(4) Payment of House Rent Allowance to employees transferred
under the Transfer and Mobility Policy under Paragraph 18
shall be subject to provisions of sub-paragraph (1), clause
of the said paragraph.
(b) Employees who are allotted residential accommodation/staff quarters, shall not be
entitled to any house rent allowance, but they shall pay to the Company, for such
accommodation, appropriate license fee as may be decided by the Company from time to
time. At present, the licence fee is being deducted @ 1.75% of the minimum of the scale.
The revised rate of licence fee shall be 1.20% of the minimum of the revised Scale with
13
effect from 01.11.2010. Upto 31st October, 2010, , the amount of licence fee which is
being deducted at present on the basis of pre-revised basic and pre-revised rate shall
continue.
An employee who has been allotted residential accommodation/staff quarters before the
1st day of April, 1983, and who has been in
receipt of House Rent Allowance as
on date
immediately preceding the date of publication of this scheme in the Official
Gazette in terms of item VI of the Fourth Schedule of the said scheme shall continue to
receive such House Rent Allowance so long as he continues to occupy the same
residential accommodation/staff quarters allotted by the Company.
It is however, clarified that such of the employees allotted staff quarters who are not
paid House Rent Allowances shall be eligible to receive House Rent Allowance from the
date they vacate such accommodation and surrender the same to the Company
and
the Company accepts possession of such quarters from the employee.
4. FUNCTIONAL ALLOWANCES :
Employees engaged in any of the following functions as their regular and main function shall
be paid functional allowance as indicated below w.e.f 1.8.2007 :
(i) Functional Allowance :
(a) Assistant (or Senior Assistant, in the Rs.800/- per month
event of non-availability of Assistant)
engaged in handling cash in an office where
the total amount of cash transactions during
a calendar month is ordinarily Rs.25000/- or
more
(b) Subordinate staff engaged either as Key
holder or for carrying cash to or from Bank,
as if regular and main function, where the
amount of cash carried during a calender
month is ordinarily Rs.25000/- or more
Rs.375/- per month
(c) other
Subordinate staff working as Rs.165/- per month
Liftmen, Machine Operators, Head Peons, AC
Plant Operators, Daftaries, Heavy Vehicle
Drivers, Generator Operators who were
assigned these functions before 1st day
January, 2006
(d)Telex Operators, Punch Card Operators, Rs.60/- p.m.
Unit Record machine Operators and
Comptists who were assigned these functions
before 1st day January, 2006
(e) Stenographer to Chairman-cum-Managing Rs.75/- p.m.
Director, General Managers (Scale-VII),
Deputy General Managers (Scale VI) and
equivalent positions
From 1.11.2010 the employees performing the functions of Audit Assistants shall be paid
Functional Allowance @ Rs. 460/- pm.
14

NOTE 1:
The number and names of persons eligible to draw the Functional Allowance shall be
determined by the Chairman-cum-Managing Director or by an officer authorised by him in this
behalf, depending upon the load of work and administrative requirements.
NOTE 2 :
An employee shall draw only one Functional Allowance at a time.
NOTE 3 :
An employee proceeding on leave shall be paid the Functional Allowance during his leave
period other than periods of extra ordinary leave, provided that he resumes work in the same
position on the expiry of his leave.
NOTE 4 :
No employee shall, as a matter of right, claim to be allotted a particular portfolio of work in
order to avail of the Functional Allowance attaching to that position or post.
NOTE 5 :
No employee shall refuse to work in a position carrying a Functional Allowance or make it a
condition that he be paid such allowance where, because of absence of the incumbent or
temporary pressure of work, the employee is assigned such work by the Head of his Office.
NOTE 6 :
Functional Allowance under any of the above clauses, or any part thereof shall not be treated
as part of basic salary and shall not be counted for the purpose of any allowance or for the
purpose of any other service or terminal benefits.
(ii) Authority to sanction Functional Allowance:

(a)In cases of employees posted in Regional Offices, Divisional Offices and Branch Offices,
Regional Chief of the concerned R.O.
(b)In cases of employees posted in Head Office, Chief-Manager of HRM Department.
iii) Treatment of Benefits when employees are performing functions of Cash
and Key Holding which attract Functional Allowance for a temporary period
when the Permanent incumbent goes on leave.
When a permanent incumbent performing Cash/Key holding functions goes on leave for 3
days or more as the case may be and another employee performs such function for temporary
period, shall be entitled to functional allowance on a pro-rata basis .
15
iv) Guidelines for allotment of Cash handling (Cashiers) functions.

a) Cashier function being a clerical function should be given only to Assistant in the
Office. However, cash handling function can be allotted to a Senior Assistant, provided no
employee in the cadre of Assistant is available in the office.
b) With effect from 1.6.2000, irrespective of the functional designation like Assistant (C),
Assistant (T), Data Entry Operator, Telex Operator, etc., the senior most employee in the
Assistants grade in the office concerned should be considered for cash handling allowance
subject to satisfactory leave record, vigilance record, integrity, physical & mental fitness
(as established by available records) being acceptable.
c) Cash handling is a function and no function shall be refused.
d) The question of seeking reversion from such function shall not arise as a rule.
e) While making a selection for assigning the functions of cashier, if the existing DEO in
that office is the senior most he can be assigned the cashiers functions, after divesting him
of the DEO functions.
f) However, if an employee already performing a function is selected for cashiers
function, he will be eligible for only one functional allowance i.e., cash handling
allowance, as per Scheme provisions.
g) An employee (Assistant) who is in the contingency list for promotion to the cadre of Senior
Assistant cannot be given cashiers functions.
h) .When a permanent incumbent goes on leave for 3 days ormore as the case may be,
and another employee performs such function for temporary period, he shall be entitled to
functional allowance at the same rate.
5. ALLOWANCE FOR TECHNICAL QUALIFICATIONS :
With effect from the 1st day of August, 2007, the Allowance for technical qualifications shall be
paid as under:1. A confirmed employee who qualifies or has qualified in an examination mentioned in
column (1) of the table below shall be paid with effect from the date of publication of the
results of examination, or 01.08.2007 whichever is later, the allowance for technical
qualifications mentioned in column (2) of the table below:Provided that not more than one allowance for technical qualification shall be permissible to
him.
Examination
Allowance for Technical

Qualification per month
2
1.
Insurance Institute of India or Chartered Insurance
Institute : On completion of :
(a) Licentiate
(b) Associateship
(c) Fellowship
Institute of Actuaries :
(d)On passing each subject
16
Rs.180/Rs.490/Rs.820/Rs.180/-

Examination
Allowance for Technical

Qualification per month
2
1.
Institute of Chartered Accountants or
Institute of Cost and Works Accountants :
(e)Intermediate Examination
(f)Final Group A or Group B
(g)Final Group A and Group B
On completion of :
(h)Master of Business Administration of a
Recognised University/Institution
(AICTE approved course)
Rs.350/Rs.600/Rs.820/Rs.820/-
The grant of allowance for technical qualifications shall not affect the seniority of the
employee concerned.
Where the employee has already been given an advance increment or any other recurring
monetary benefit for having qualified in any of the said examinations, the amount of
allowance for technical qualification shall be suitably reduced or may not be admissible
depending on the quantum of benefit already received.
Such employee on completion of service of one year after reaching the maximum of the scale
shall receive the allowance for technical qualification amounting to not less than one-half
of the full rate and after a further service of one year, the said allowance for
technical qualification shall be paid in full.
This allowance for technical qualification, or any part thereof, shall not count for the purpose
of any allowance or for any service or terminal benefit.
Explanation : recognised University/Institution shall mean a University/Institution recognized by the
University Grants Commission.
Guidelines for payment of Qualification pay for MBA Qualification:
1.
The course duration is minimum 2 years and leads to award of post-graduation diploma
in Business Administration/Management from a Recognized University/AICTE approved
Institute affiliated to Recognized University, such as, Jamnalal Bajaj Institute of
Management Studies/XLRI which are recognized Institutes of All India standing.
Note:
Post Graduation Diploma in Business Administration/Management would mean Qualification
obtained in Business Administration/Management (wherein Personnel Management, I.R.,
H.R.M., F.M. etc., forms a part of the syllabus) and not exclusive specialisation in Personnel
Management or I.R. or H.R.M., etc., either through Degree or Diploma of a Recognised
University/Institution affiliated to Recognised University.
2.
Diploma Course could be through part-time, through distance education (correspondence

course)
17

6.
GRADUATION ALLOWANCE :
(1) GRADUATION INCREMENTS OR ALLOWANCE TO EMPLOYEES IN THE SCALE OF

ASSISTANT :
With effect from the 1st day of August, 2007, the Graduation Increments/Allowance to
employees in the scale of Assistant shall be paid as under:a) An employee who is appointed or promoted to any post in the scale of Assistant and
who has qualified as a Graduate of a Recognised University on or after the 1 st day of
January 1973, but before 1st day of Aug 2007 and has not reached the maximum of
the scale shall be granted two increments in the scale with effect from the publication
of results of the examination, or 1st day of the month following the publication of this
scheme, or the date of appointment in the scale of Assistant, whichever is later,
provided that he has not already received graduation increment or qualification pay
for having qualified as such graduate or any advance increment on appointment,
otherwise than by way of protection of emoluments granted to ex-servicemen:
b) Provided that if any employee entitled to increments for graduation is
drawing
Basic Salary of Rs.20210/- only one increment for graduation shall be
granted to him.
c) an employee in the scale of Assistant who is a graduate of a Recognised University
before 1.8.2007, and has reached the maximum of the scale shall be paid revised
graduation allowance with effect from the 1st day of August, 2007, as per column (ii)
of the table below :-
Stage
Revised Graduation Allowance per month

w.e.f. 01.08.2007
(i)
(ii)
One year after reaching

the maximum of the
scale.
Rs.300/-
Two years after reaching

the maximum of the
scale.
Rs.530/-
The revised Graduation Allowance as shown above shall not be counted for the purpose of
any allowance or for any service or terminal benefit.
Provided that no Graduation Allowance shall be paid to any Assistant qualifying as graduate
after 31st July, 2007.
Explanation :
Recognised Universitymeans a University recognised by the University Grants
Commission.
(1) GRADUATION ALLOWANCE TO RECORD CLERKS :
Graduation Allowance to employees in the scale of Record Clerk shall be paid as under :-
18

An employee in the scale of Record Clerk, who has qualified as Graduate of a Recognised
University before 1.8.2007 shall be paid Graduation allowance of Rs.200/- p.m. with effect
from the date of publication of results of the examination or, from the date of promotion as
Record Clerk or, the first day of August, 2007, whichever is later.
Note: The Graduation allowance payable to employees in the scale of Record Clerk shall not
be treated as Special Allowance nor shall it be treated or counted as Basic Salary for any
purpose and it shall be withdrawn on promotion of the employee.
Explanation : For the purpose of this item Recognised University means an University
recognised by the University Grants Commission.
7. City Compensatory Allowance :
With effect from 1st day of August, 2007, the City Compensatory Allowance payable to class
III & IV employees shall be as under :
Place of posting
(a)
Cities of Mumbai, Navi Mumbai,
Kolkata, New Delhi, Faridabad, Ghaziabad,
NOIDA,Gurgaon,Chennai,Ahmedabad,
Bengaluru, Hyderabad and Pune.
(b) Cities with population exceeding 12
lacs, except cities mentioned in (a),
Gandhinagar, all cities in the State of Goa.
Cities with population of 5 lacs and
above but not exceeding 12 lacs, State
capitals with population not exceeding 12
lacs, Chandigarh, Mohali, Panchkula,
Pondicherry, Port Blair.
Rate
3% of pay subject to a minimum of Rs.205/p.m. and maximum of Rs.635/- p.m.
2.5% of pay subject to a minimum of
Rs.170/- p.m. and maximum of Rs.595/- p.m.
2% of pay subject to a minimum of Rs.125/p.m. and maximum of Rs.510/- p.m.
Note :
1) For the purpose of this item, the population figures shall be as per the latest Census
Report
2) Cities shall include their urban agglomeration.
3) Pay means Basic Pay and stagnation increments
4) Payment of City Compensatory Allowance to employees transferred under the
Transfer and Mobility Policy under Paragraph 18 shall be subject to provisions of subparagraph (1), clause of the said paragraph.
8. Hill Station Allowance :

With effect from 1.11.2010, the Hill Station Allowance payable to Class III & IV employees
shall be as follows :
19

Height of Place of posting
(above Mean Sea Level)
(a) Posted at places situated at a height of
1500 meters and over above mean sea level.
(b) Posted at places situated at a height of
1000 metres and over, but less than 1500
metres above mean sea level, at Mercara and
at places which are specifically declared as
Hill Stations by Central/State Governments
for their employees.
(c) Posted at places situated at a height of not
less than 750 metres above mean sea level
which are surrounded by and accessible only
through hills with a height of 1000 metres and
over above mean sea level.
Rate
2.5% of Basic Pay subject to a maximum
of Rs.370/-per month.
2% of the Basic Salary subject

maximum of Rs.290- per month.
to
2% of Basic Salary subject to a maximum

of Rs.290/- per month.
9. TRANSPORT ALLOWANCE :
With effect from the 1st day of August, 2007 or from the date of appointment which ever is
latter, the Conveyance Allowance payable to employees at the rate of Rupees Seventy Five
per month as per item XII of the Seventh Schedule shall stand revised to Rupees Two
Hundred and seventy five per month, and shall be renamed as Transport Allowance.
10. Kit Allowance :
With effect from 1.11. 2010, an Employee on his transfer to any of the hill stations at which
hill station allowance is payable shall be paid a Kit Allowance of Rs.1000/-. The Kit
Allowance shall not be payable on transfer from one hill station to another if the same was
drawn at any time during the preceding three years.
11. FIXED PERSONAL ALLOWANCE (FPA) :
20

With effect from the 1st day of August, 2007, the Fixed Personal Allowance payable to
employees on account of computerisation shall stand revised as shown in column (3) of the
Table given below :
Revised
Employees in the Scale of Fixed
Sl. Pay (as on 01.11.1993)
Personal
No. of
Allowance
(FPA)
Dearness
Allowance
on
Increment
Increment
portion of FPA portion of FPA
as
per
the as
per
the
Altered Terms Altered Terms
(Sixth
as
on
Schedule)
01.11.1993
(1)
(3)
(4)
(5)
Rs.
Rs.
Rs.
(2)
Senior Assistant
840
230
18.68
Stenographer
840
230
18.68
Assistant, etc.
840
230
18.68
Record Clerk
530
130
12.74
Driver
390
100
9.80
Other Subordinate Staff
390
100
9.80
Note : The revised FPA as shown in column (3) of the table above shall not qualify for any
Allowance or for any service/terminal benefits. However, the increment portion of FPA as per
the Altered Terms as shown in column (4) of the table above shall rank for Provident Fund
and Pension, and the said increment portion along with Dearness Allowance thereon as on
the 1st November, 1993, as shown in column (5) of the table above shall rank for Gratuity
and Encashment of Earned Leave.
12. FIXATION ON PROMOTION
21
The basic pay of an employee on promotion to a higher cadre shall be fixed as given below :
(a) Where the basic pay in the lower scale is a stage in the higher scale the basic pay shall be
fixed at the stage in the higher scale which is next above his basic pay in the lower scale.
(b) Where the basic pay in the lower scale is not a stage in the higher scale the basic pay
shall be fixed at one stage above the stage in the higher scale which is next above his
basic pay in the lower scale.
(c) The basic pay shall be fixed at a minimum of the higher scale when such fixation results
in an increase in the basic pay of atleast one grade increment obtaining at the minimum
of the higher scale.
(d) The employee shall have the option to select a date between the date of taking charge in
the higher cadre and the date of next annual increment in the lower cadre.
(e) If the employee opts for date of next annual increment in the lower cadre for his fixation
in the higher cadre, the fixation shall be effected after granting the increment due in the
lower cadre.
(f) Employees who are due to receive stagnation increment within one year after the date of
promotion shall have the option of selecting the date of fixation under this provision. In
case the stagnation increment is due more than one year after the date of promotion this
option is not available.
stages in revised scales of pay (w.e.f. 1.8.2007)
Senior
Asst/Steno
Assistant
Record Clerk
Driver
Other
Subordinate staff
Existing Revised Existing Revised Existing Revised Existing Revised Existing Revised
6885
10670
4995
7640
4665
7085
4665
7085
4105
6180
7370
11425
5280
8080
4855
7390
4855
7390
4270
6430
22
7855
12180
5590
8560
5045
7695
5045
7695
4435
6680
8340
12935
5900
9040
5255
8020
5250
8010
4600
6930
8825
13690
6250
9580
5465
8345
5455
8325
4765
7180
9365
14530
6600
10120
5675
8670
5600
8640
4930
7430
9905
15370
6950
10660
5885
8995
5865
8955
5105
7695
10445
16210
7300
11200
6095
9320
6070
9270
5280
7960
10985
17050
7650
11740
6320
9670
6275
9585
5455
8225
11525
17890
8055
12365
6570
10060
6480
9900
5630
8490
12065
18730
8460
12990
6820
10450
6685
10215
5805
8755
12605
19570
8950
13750
7100
10880
6890
10530
5980
9020
13145
20410
9440
14510
7380
11310
7095
10845
6155
9285
13685
21250
9930
15270
7660
11740
7300
11160
6330
9550
14225
22090
10440
16060
7970
12220
7505
11475
6535
9865
14765
22930
10950
16850
8280
12700
7710
11790
6745
10190
15305
23770
11490
17690
8590
13180
7915
12105
6955
10515
15845
24610
12030
18530
8900
13660
8135
12455
7165
10905
16385
25450
12570
19370
9210
14140
8355
12805
7415
11295
16925
26290
13110
20210
9555
14670
8605
13195
7665
11685
13650
21050
9900
15200
8855
13585
7915*
12075
10245
15730
9105
13975
8165*
12465
10590* 16260
9355*
14365
8415*
12855
10935* 16790
9605*
14755
8665*
13245
11280* 17320
9855*
15145
8915*
13635
11625* 17850
10105* 15535
9165*
14025
11970* 18380
10355* 15925
12315* 18910
10605* 16315
*In the re-modified terms, these stages appeared as stagnation stages.

13. PARADEEP PORT ALLOWANCE :
With effect from 1.11.2010 or date of appointment, whichever is later, every confirmed
employee posted in the office of the Company in Paradeep Port shall be paid an allowance of
Rs.110/- (Rupees One Hundred and Ten) per month so long as he is posted in that office.
This allowance shall not be treated as Basic Salary for any purpose.
23
CHAPTER-3
SPECIAL AREA ALLOWANCE TO EMPLOYEES
The places, where the Special Area Allowance is payable and the rates at which it is payable
for the various basic pay ranges are shown in the Table.
The administrative instructions are as follows:
24

1. The revised rates of Special Area Allowance are in lieu of the existing rates of Special Area
Allowance and also the Hill Station Allowance if payable at specified places. Thus, if any
of the Special Area as indicated in the Table is also treated as Hill Station, the employee
shall be paid the revised Special Area Allowance or the aggregate of existing Special Area
Allowance and Hill Station Allowance whichever is higher.
2. If at any of the specified places only Special Area Allowance is payable and the said
allowance paid on 31st December, 1989 is higher than the Revised Special Area Allowance
as on 1st January, 1990, then the amount of existing Special Area Allowance shall continue
to be paid till such time the amount of the revised Special Area Allowance equals to or is
higher than what had been drawing on 31st December, 1989 due to increase in the basic
salary.
TABLE
_____________________________________________________________________
Name of the Special Area
Rate of Special Area Allowances for Employees
Drawing Basic Pay (Including stagnation increments)
Upto Rs.13700 Above Rs.13700
_____________________________________________________________________
Rs.
Rs.
1. MIZORAM
(a) Chimptuipui District of Mizoram and areas
2000
2600
25
beyond 25 Kms. from Lungali Town in

Lunglei District of Mizoram.
(b) Throughout Lungeli District excluding
areas beyond 25 Kms. from Lungeli town
of Mizoram
1600
2100
(c) Throughout Aizawal District of Mizoram
1200
1500
2. NAGALAND
1600
2100
3. THE ANDAMAN AND NICOBAR ISLANDS

(a) South Andaman
(including Port Blair)
1600
2100
(b) North and Middle Andaman,

Little Andaman, Nicobar and
Narcondum Islands
4. SIKKIM
2000
2600
2000
2600
5. LAKSHADWEEP
2000
2600
6. ASSAM
320
400
7. MEGHALAYA
320
400
8. TRIPURA
(a) Difficult area of Tripura as notified by
State Government from time to time
(b) Throughout Tripura except Difficult Areas
1600
2100
1200
1500
1200
1500
(a) Difficult Areas of Arunachal Pradesh as

notified by the State Government from
time to time.
2000
2600
(b) Throughout Arunachal Pradesh except

difficult areas
1600
2100
9. MANIPUR
10. ARUNACHAL PRADESH
26
11. JAMMU AND KASHMIR

(i) Kathua District
(a) Niabat Bani;
(b) Lohi;
(c) Malhar;
(d) Machodi.
(ii) Udhampur District
(a) Dudu Basantgarh;
(b) Lender Bhamag Illaca;
(c) Thakrakote;
(d) Nagote.
Tehsil Mahone
(i) For areas upto Gool from Kamban
side and areas upto Arnas from
Keasi side;
2000
2600
2000
2600
1600
2100
(ii) For the rest of the areas
2000
2600
(iii) Doda District

(a) Illaquas of Padder in
Kishtwar Tehsil
(b) Niabat Nowgam in Kishtwar Tehsil
2000
2600
2000
2000
2600
2600
2000
2600
1600
2100
(iv) Leh District

(a) Zanskar, Noyama and Nobre
(b) All other places in the District
(v) Barmulla District
(a) Entire Gurez-Niabat, Tangdar
Sub-Division and Keran Illaqua
(b) Matchill
(vi) Poonch and Rajouri District Areas in
Poonch and Rajouri Districts excluding
the towns of Poonch and Rajouri and
Sunderbani and other Urban areas in
the two Districts
(vii) Areas not included in (i) to (vi)
above, but which are within the
distance of 8 Kms. from the line of
Actual Control or at places which may
be declared as qualifying for border
allowance from time to time by the
State Government for their own staff.
27
1200
1500
1200
1500
12. HIMACHAL PRADESH

(1)(a) Pangi Sub-Division of Chamba District
(b) Bharmour Sub-Division of Chamba District
(c) Lahaul and Spiti District
(d) Kinnaur District
(e) Dodratawar Tehsil and Parganas of
Chaibis, Pandrabis Gram Panchayats of
Munish Darkali and Kashapat of Rampur
Tehsil of Simla District
(f) Pargana of Pandrabis of Kulu District
(g) Chhota Bhangal and Bara Bhangal area
of Palampur Sub-Division of Kangra
District
(h) Jhandru Panchayat area of Bhatiyat
Tehsil of Chamba District
(i) Mahog, Sarhan, Gopalpur, Teban, Pokhi,
Nauj, Khanoj, Bagra, Sainj Mahudi and
Balidhar Panchayats of Kersog Tehsil
(j) Simla Town and its Suburbs (Mashobra,
Dhalli, Taradevi, Kasumbpti, Jatog
and Tutu)
(k) Gram Panchayat Deothi (Taklech areas)
and Parganas of Naubis Sarhan and
Barabis of Rampur Tehsil of Simla
District
(l) Chhuhar Valley of Jogindernagar Tehsil,
Panchayats of Gatto, Bagraa, Chhatri,
Thachadhar Garagus Hain, Kalhani,
Thama, Silibagi Chhetdhar, Chanvar,
Tachi, Johar Kholanal, Somachan Loth
Jaryar, Janjheli and Kalwanr of
Thunag Tehsil of Mandi District
(m) Mangal Panchayat area of Solan
District
(n) Outer-Saraj and Malana Panchayat
area of Kulu District
(o) Trans-Giri Tract of Sirmur District
(2)(a) Janjehli Block (excluding area
covered in (1)(l) above Chachoit
Tehsil of Mandi District
(b) Trah Chopal Tehsil of Simla District
(c) Churah Tehsil of Chamba District
(d) Munr Panchayat and Balaj Paryana
of Chamba District
28
2000
2000
2000
2000
2000
2600
2600
2600
2600
2600
2000
2000
2600
2600
2000
2600
2000
2600
2000
2600
2000
2600
2000
2600
2000
2600
2000
2600
2000
2600
1200
1500
1200
1200
1200
1500
1500
1500
(e) Dalhousie Town
1200
1500
(f) Rampur Tehsil
1200
1500
(g) Karsog Tehsil Minus the Panchayat

indicated under (1)(i) above
1200
1500
29
(h) Dharamshala Town of Kangra District

1200
and the following offices located outside its Municipal limits but included in
Dharamshala Town
1. Womens ITI, Dari,
- Mechanical Workshop, Ramnagar,
2. Child Welfare and Town and
Country Planning Offices, Sakoh,
3. CRSF Office at lower Sakoh,
4. Kangra Milk Supply Scheme, Dugiar,
5. HRTC workshop, Sadher,
6. Zonal Malaria Office, Dari,
7. Forest Corporation Office, Shamnagar,
8. Tea Factory, Dari,
9. I.P.H. Sub-Division, Dan,
10. Settlement Office, Shamnagar,
11. Binwa Project, Shamnagar.
1. Palanpur Town of Kangra District
Including HPKVV Campus at
Palanpur and the following offices
Located outside its Municipal limits
But included in Palanpur Town
H.P.Krishi Vishvavidyalay Campus,
Cattle Development Office/Jersey
Farm, Banuri,
Sericulture Office/ Indo-German
Agruculture Workshop/HPPWD
Division, Bundla,
Electrical Sub-Division, Lohna, D.P.O.
Corporation, Bundla,
Electrical HPSEE Division, Ghuggar.
(3) Manali-Ujhi areas, Parvati and Lagg,
Valley and Banjar Block of Kulu District
(4) Remaining areas of Himachal Pradesh
not included in (1) to (3) above
13. UTTARAKHAND:
Areas under Chamoli, Pithoragarh,
Uttarkashi ,Rudraprayag and
Champavat Districts (including area
of Lohaghat)
30
1500
1200
1500
320
400
320
400
2000
2600

CHAPTER -4
CONVEYANCE ALLOWANCE FOR BLIND AND ORTHOPAEDICALLY HANDICAPPED

EMPLOYEES
1. An Orthopaedically handicapped or blind employee (including employee on probation)
shall be entitled to conveyance allowance @ 1.85% of his/her basic pay subject to a
maximum of Rs.200/- p.m. (w.e.f. 1.1.2006)
2. This allowance is not payable to part-time sweepers who are physically handicapped.
3. An employee shall be eligible for conveyance allowance if he/she has a minimum of
40% permanent partial disability of either upper or lower limbs or 50% permanent
partial disability in upper and lower limbs together and visually handicapped persons.
NOTE:
1. For purpose of estimate of disability, the standards as contained in the Manual of
Orthopaedic Surgeon in Evaluating Permanent Physical Impairment brought out by the
Americal Academy of Orthopaedic Surgeons, U.S.A. and published on their behalf by
Artifical Limbs
Manufacturing Corporation of India, G.T. Road, Kanpur, shall apply.
2. It is further clarified that where it is difficult in getting the American
Manual percentage incorporated in the disability certificates for the purpose of deciding
grant of above allowance, the case may be considered in case of deserving employees
on the basis of the medical certificate subject to the condition that the officer-in-charge is
satisfied with regard to the disability mentioned and recommends.
3. An employee shall be deemed to be blind when his/her vision is less than 3/60 or field
vision is less than 10 in both eyes.
4. The Head of the Orthopedics Department or the Ophthalmological Department of Govt.
Civil Hospital should recommend the case of the orthopedically handicapped or blind
employees as the case may be for the purpose of entitlement of the conveyance allowance.
Whenever the handicapped/blind employees are deputed to Govt. Civil Hospitals located at
station outside their headquarters for getting recommendations for grant of Conveyance
Allowance, they should be paid the actual travelling expenses as admissible to them on
official tour but without any daily allowance for the period of journey and for halts. The
fees as may be charged by the Govt. Hospital in this regard shall be borne by the
Company.
5. The Conveyance Allowance shall be payable from the date of recommendation of the
medical authority as mentioned above.
6. The employees concerned should apply to their R.O. through proper Channel for the grant
of conveyance allowance.
7. The Conveyance Allowance shall be payable to all categories of Handicapped or blind
employees who are not otherwise eligible for conveyance facilities under any other rules of
the Company.
31
8. The Conveyance Allowance shall not be payable under following circumstances :

a) During any period of leave (except Casual Leave)
b) While on joining time
c) During suspension.
9. It is clarified that the rules for granting Conveyance Allowance to Blind
And Orthopedically Handicapped employees do not apply to employees suffering from
deafness.
10. The conveyance allowance payable as per the amendment scheme shall
also be payable to physically handicapped employees besides the conveyance allowance
payable to them as above.
32

CHAPTER - 5
OVERTIME ALLOWANCE
An employee may be required to work beyond the normal working hours whenever it is found
necessary in the interest of office work. When an employee is required to work for more than
half-an-hour in excess of his normal working hours on any day, he/she shall be paid an
overtime allowance for the period beyond his/her normal working hours at rates of overtime
allowance calculated as follows :
(A) Supervisory and Clerical Staff:
i.
ii.
(B)
For the period of overtime work during the week which when added to the normal
working hours of that week totals to 42 hours or less the rate of overtime allowance
shall be one and half-times the hourly rate of wages for the month.
For the period of overtime work beyond 42 hours of work during the week the rate of
overtime allowance shall be twice the hourly rate of wages for the month.
Sub-ordinate Staff:
i.
For the period of overtime work during the week which when added to the normal
working hours of that week totals to 45 working hours or less, the rate of overtime
allowance shall be one and half times the hourly rate of wages for the
month.
ii.
(C)
For the period of overtime work beyond 45 hours of work during the week, the
rate of overtime allowance shall be twice the hourly rate of wages for the month.
Drivers and Building Staff:

i.
For the first seven hours of overtime work during the week the rate of overtime
allowance shall be at one and half times the hourly rate of wages for the month.
ii.
For the overtime hours of work in excess of seven hours during the week, the rate of
overtime allowance shall be at twice the hourly rate of wages for the month.
General:
(1)
For overtime work done on Holidays and Sundays, payment shall be made on the same
basis as for other days. However, for a continuous overtime work of four hours or more
work done on Sundays, a compensatory holiday shall be given in addition to the
payment of overtime allowance as above.
(2)
Period of overtime shall be rounded off to the nearest half-hour.
(3)
Ordinarily, no employee other than drivers shall be asked to work Overtime for more
than 90 hours in a calendar year. However, the Chairman-cum-Managing Director may
at his discretion relax this provision in individual case depending on the exigencies of
work and the circumstances.
33

(4)
The week shall be reckoned from Sunday to Saturday.
(5)
The hourly rate of wages shall be the gross salary comprising the Basic Salary, Dearness
allowance, city compensatory allowance, hill station allowance, personal pay, but shall
exclude house rent allowance,qualification pay, graduation allowance
functional
allowance, conveyance allowance to physically handicapped and functional allowance to
Audit Staff for the month divided by the normal working hours in that month.
(6)
The normal working hours during a particular month shall be actual working hours
excluding Saturdays, Sundays and holidays in that month.
(7)
It will be observed that the rates of overtime allowance for an Individual employee
depends on his hourly rate of wages, his category and the number of hours of work put
in during the week. Overtime allowance should be computed separately for each week.
However, the payment will be made monthly along with the salary payments. In the
salary sheets, therefore, the overtime allowance for the period commencing from the
Sunday immediately following the 10th of the previous month to the Saturday
immediately following the 10th of the current month can be included for payment along
with the salary for the current month. The normal working hours for a week are the
total of the hours of work for the working days in the week. The working hours of
various categories of staff are different and the normal working hours for the week
would also vary depending upon the holidays in the week. This has to be calculated to
determine whether the rate of overtime would be one and a half times the hourly rate of
wages of the employee or at double this rate.
(8)
Where the provisions in respect of payment of overtime wages under the Local Shops
and Establishments Act over-ride the provisions of the Scheme and are more favourable
than those under the Scheme, the payment may be made according to the said Act.
(9)
Overtime payments need not be made by separate vouchers but may be made along
with the monthly salary through the salary sheets. It is essential that overtime work
should be supervised by an officer unless the quantum of work turned out can be
evaluated in terms of time.
(10) The computation of overtime payment and the rates of overtime payments are based on
the working days of the week. The week from Sunday to Saturday shall be considered
as a Unit. In a normal week of 5 days, the total working hours will be 39-1/2 hours for
Sub-staff (peons) and 48 hours for Drivers and Building staff. If however, any holiday
occurs during a week and the working days are only 4, the working hours for that week
w hould be calculated for 4 days only.
(11) Overtime allowance is not allowable for work whilst on tour. Overtime is not payable to
an employee working at the place of tour on a day which is a holiday at the
Headquarters. He is also not entitled to any compensatory holiday for work done on
Sunday at the place of tour.
However, it has been decided that if a driver accompanies an Officer on tour and his
actual hours of work beyond the normal hours of this work can be certified by the
Officer concerned, the payment of overtime allowance may be allowed to the Drivers
while on tour. Such overtime allowance in the case of Driver only is payable in addition
to the payment of Halting Allowance as per rules. The Regional Chief shall be the
Competent Authority to sanction such OT to Drivers accompanying the executives.
34

However, steps should be taken to ensure that tours by staff cars are restricted to the
barest minimum.
(12) When employees are called for overtime work on holidays, they are to be paid overtime
allowance only for the actual hours of work put in by them and no overtime allowance is
payable to them for the duration of the lunch recess, that they may avail of on holidays.
(13) For employees (Class III & IV) who attend Lok Adalat on Saturday/Sundays OT
allowance is paid and they are not to be paid any other fixed payment.
Payment of overtime for public Holiday declared under Negotiable Instruments Act
If a local office could not be closed in time due to late receipt of communication about closure
under Negotiable Instruments, Act, the request for overtime in such cases should not be
entertained.
Administrative instruction for control on sanction of OT allowance
For effective control on expenses under the head OT, the following instructions have been
issued.
(1)
With the level of staffing achieved and the scope for grouping /re-organising the work
there should be no need at all for overtime work in respect of routine matters.
(2)
Sanction of overtime for an employee upto 90 hours in a year can be done by the
Regional Chief. When the employee exceeds 90 hours in a year, RO should obtain
approval from the Competent Authority in HO, subject to availability of Budget provision
for the Region. The recommendation to HO for sanction of overtime exceeding 90 hours
in a year should be with convincing reasons in the specified format.
(3)
Budget provisions for Regions for payment of OT does not amount to automatic sanction
for OT payment.
(4)
No request for post-facto ratification by HO shall be entertained.
Overtime allowance to Security Guards and Security Supervisors in Head Office

and Regional Offices
At present, the Security Guards and Security Supervisors appointed for the watch and ward
purposes of the different offices in our Company are working on shift basis on a 6 day week
and 5 day week respectively. One day off to the Security Guards and two days off to
Security Supervisors are given on a rotation basis every week. In addition to this, they are
given a compensatory off for their work on a Negotiable Instruments Act holiday or a National
holiday.
Similarly, the house keeping staff at the Learning Centre which includes Supervisors,
Electricians, Plumbers, Carpenters and Full time sweepers work on shift basis. These persons
are also given one day off on rotation basis as in the case of Security Personnel.
Based on requests and representations received from these employees for payment of
overtime, it has now been decided to implement the following pattern:
35
1. Only skeleton staff shall be deployed on holidays and as far as possible,

the
department/office concerned should manage the situation without engaging additional
man power so that payment of overtime allowance does not normally arise is conformity
with the economic drive.
2. Overtime allowance can be paid to these employees when they are required to work
under the following circumstances only.
(a) On a National Holiday i.e., Independence Day, Republic Day, 1 st May and 2nd October
(Gandhi Jayanthi)
(b) Beyond their normal working hours in excess of half an hour.
(c) On a off day, on the ground that no man power is available or the existing manpower
is inadequate.
a. When the employee is required to work overtime on a National Holiday or on an off day
beyond 4 hours then he/she will be entitled for a compensatory holiday besides the payment
of overtime allowance.
b. As per existing practice, in future also if the Negotiable Instruments Act Holiday falls on a
working day, only a compensatory off will be given in addition to the routine off day given
every week.
c. The employees shall not be permitted to avail leave or permission without prior approval of
the Leave Sanctioning Authority.
d. The employees reporting late shall not be allowed to work in that shift, but will be treated
as having been absent without permission which will call for disciplinary action and loss of pay
under the relevant provisions of the rule.
e. If the reliever does not report within 15 minutes of the appointed time, the employee
already on duty should immediately inform the Officer concerned so that a replacement can
be sent promptly to ensure that the security on duty does not work overtime. If a reliever
cannot be thus sent the Supervisor should specifically advise the existing person to continue
the duty till the end of the next shift.
36

CHAPTER - 6
OFFICIATING ALLOWANCE
1. OFFICERS
Sometimes, when the circumstances so warrant, an Officer holding a substantive post may be
required to hold charge of a post in a higher cadre and is consequently required to shoulder
higher responsibilities. Under such circumstances, the Officer concerned may be paid
officiating allowance for the period he/she officiates in the higher post.
The following rules shall govern the payment of Officiating Allowance to Officers:
1.
2.
3.
4.
5.
6.
The Officer shall be eligible for payment of Officiating Allowance only if he officiates in
a higher post at the instance of the Regional Chief or Head Office and has been issued
a letter to that effect.
The Officer concerned shall be eligible for payment of Officiating Allowance only if
he/she officiates in a higher post for a period of more than 15 days.
The quantum of officiating allowance shall be 10 per cent of the basic pay subject to a
maximum of Rs.150/- per month if the arrangement is for a period of more than 15
days but not exceeding 60 days and 20 per cent of basic pay subject to maximum of
Rs.200/- per month if the officiating arrangement exceeds 60 days.
The officiating allowance is only an allowance and therefore does not rank for Dearness
Allowance, House Rent Allowance, City Compensatory Allowance, contribution towards
PF & Gratuity and leave salary.
Payment of officiating allowance does not confer any right with regard to seniority or
promotion or posting or increment.
Since officiating arrangement is made for leave vacancies for short periods of time, the
question of granting leave to the incumbents of such officiating positions would not
normally arise. However, in exceptional circumstances, where it becomes necessary to
grant leave to the Officer officiating in a higher post, the same may be granted on the
following basis without affecting the officiating arrangement.
(a) Where officiating arrangement is for a period not more 2 days leave
than 30 days
(b) Where the officiating arrangement is for a period more 4 days leave
than 30 days but not more than 60 days
(c) Where the officiating arrangement is for a period more
than 60 days
6 days leave
If the Officer avails leave, for any cause whatsoever, beyond what is stipulated above, the
officiating arrangement shall stand terminated from the date the Officer proceeds on leave.
7. An Officer who is officiating as In-Charge of a Division for a period exceeding 30
days may be allowed reimbursement of actual conveyance expenses not exceeding
Rs.525/- per month or pro-rata for part of the month. If an Officer officiates as
Branch-in-charge for a period exceeding 30 days, he/she may be reimbursed actual
37
conveyance expenses not exceeding Rs.400/- per month or pro-rata for part of the
month.
This facility will be allowed only if the Officer is not already entitled for conveyance
facility under the Scheme available to Officers with development functions.
8. The officiating Divisional Manager or the officiating Branch Manager having
telephone connection at the residence may be reimbursed the actual expenses
incurred during the period of officiating on pro-rata basis subject to the limitations
on the number of calls, provided the officiating period exceeds 30 days. If the
Officer concerned is not having telephone connection, but spare lines are available,
the telephone may be installed at the residence of the Officer for the period of
officiating subject to the above limitation of calls.
9. The officiating Divisional Manager may be paid an Entertainment Allowance of
Rs.150/- per month or pro-rata for part of the month and an Officiating Branch-incharge may be paid Rs.125/- per month or pro-rata as Entertainment Allowance
provided the officiating period is exceeding 30 days. Entertainment Allowance may
be paid irrespective of whether or not officiating allowance is paid.
Administrative instructions with regard to officiating arrangement in the positions
of Officers-in-charge of Divisions and Branches
1. The officiating arrangement may be approved by the Regional Chief only for a period
of 30 days or less.
2. Where the officiating arrangement is required for more than 30 days, approval should
be obtained from Head Office.
3. Officiating arrangement can be resorted to only when the regular incumbent proceeds
on leave or on tour.
4. Officiating arrangement shall not be made when the present incumbent is under the
orders of transfer and the name of the successor has not been finalised for various
reasons.
5. While selecting an Officer for officiating arrangement, it should be ensured that an
Officer of higher cadre is not asked to take charge on officiating basis the position
held by an Officer of the lower cadre.
6. It would be in order to ask an Assistant Manager in a Divisional Office to officiate in
the position of a Divisional Manager (on Division headed by SDM) provided that the
Asst. Manager who officiates shall exercise the powers of Dy.Manager only.
2. SUPERVISORY, CLERICAL & SUBORDINATE STAFF
An employee may be required to hold officiating charge of a post in higher category or
additional charge of an equivalent post wherever considered necessary and where such
officiating charge or additional charge is held for a continuous period of 15 days or more, the
allowance is payable in terms of the provisions in Paragraph 15 of the Rationalisation Scheme.
The reference to the post either for officiating charge or for additional charge pre-supposes
the existence of an Organisation Chart for each Department and for each Office and the term
'Post' refers to the post sanctioned under the Organisation Chart approved by the Appropriate
Authority. If the vacancy is in the supernumerary post, resort shall not be made as to
officiating/additional charge arrangement.
In case an employee is given an additional charge of another equivalent post, he/she will be
required to discharge the duties efficiently and without resorting to overtime. Hence, when
38

an employee for holding additional charge is paid officiating allowance, he/she shall not be
allowed to draw overtime allowance for the work relating to the charges he/she is holding.
Officiating Allowance is payable for doing the work of a more responsible nature than the one
intended to be done normally by the higher category of the employee.
Officiating/Additional Charge arrangement may be resorted to only when it is found that
alternative arrangements are not possible by means of re-distribution of work to the existing
staff available in the Deptt./Office and only in a situation where the absence of
officiating/additional charge arrangement, the working of the Deptt./Office is likely to be
adversely affected. Normally the arrangement for additional Charge by the employee holding
equivalent post shall be preferred to the officiating by an employee belonging to the lower
cadre.
Officiating/Additional charge arrangement may be resorted to in case of :
a) temporary vacancy created by the present incumbent proceeding on leave/deputation
etc. for a period of 15 days or more.
b) permanent vacancy created by the transfer/promotion/retirement/resignation/death
etc. of the present incumbent and is likely to take more than 15 days to fill up the
vacancy so created on a promotional basis.
As far as possible, employees belonging to the same office may be considered for holding
additional charge for officiating in higher positions. Calling an employee from outstation for
such an assignment should be avoided.
In case of an officiating/additional charge arrangement in the cadre of Record Clerk for
vacancies in the Divisional Office or in a Branch Office, the SDM/DM shall be the appropriate
Authority. For all other cases, (other than Head Office) arrangements shall be approved by
the Regional Chief. However, in exceptional circumstances, such arrangement in the cadres
other than RC may be made by the Divisional-in-charge pending approval and ratification by
the Regional Chief. In Head Office, the approval shall be given by the Officer-in-Charge of the
HRM Department.
When the officiating charge or additional charge is held for a continuous period of 15
days or more, the employee shall be paid pro-rata allowance as follows:
(1) 20% of the Basic Salary subject to a maximum of Rs.100/- p.m. for officiating in a
higher category of posts.
(2) 10% of the Basic Salary subject to a maximum of Rs. 50/- p.m. for holding
additional charge of an equivalent post.
Note: Where the post in which the employee officiates or the post which he/she holds
additionally carries a functional allowance, the employee may receive pro-rata functional
allowance for the period he/she officiates or holds charge.
Ordinarily, officiating and additional charge arrangements are made in leave vacancies
for short periods of time and hence the question of leave condoning the absence by the
incumbents in such officiating positions do not arise. However, in exceptional circumstances,
where it becomes necessary to grant leave to an employee who is officiating in a higher post
or is holding additional charge in the same post, the same may be granted on the following
basis without affecting the officiating arrangement.
39
(a) Where officiating arrangement is for a period not

more than 30 days
2 days leave
(b) Where the officiating arrangement is for a period

more than 30 days but not more than 60 days
4 days leave
(c) Where the officiating arrangement is for a period

more than 60 days
6 days leave
If the employee avails leave for any cause whatsoever, beyond the days stipulated above,
the officiating/additional charge arrangement shall stand terminated from the days on which
the employee proceeds on leave.
Officiating arrangement does not in any way confer any right or claim to a higher cadre.
Arrangement to hold additional charge or officiating arrangement may be withdrawn at
any time without assigning any reasons therefor.
CHAPTER - 7
40

INCREMENTS
A)
General Principles (Officers and Supervisory, Clerical & Subordinate Staff)
Increments to an employee in the grade applicable to him/her shall be due every year on the
first day of the month in which the last increments was drawn or on the first day of the month
in which he/she completes 12 months of continuous service. Twelve months of continuous
service means a period of duty equal to twelve months excluding the periods of extraordinary
leave/leave on loss of pay/period of unauthorized absence/period of suspension not protected
as period spent on duty.
Example:
(1)
A whose annual increment normally falls due on 1st. January of every year, remained
absent during the year 2008 for a total number of 30 days and his absence was treated
as Leave on Loss of Pay for the said days. A would still get his/her annual increment
on 1.1.2009.
(2)
B whose annual increment normally falls due on 1st. February every year remained
absent during the year 2008 for a total number of 30 days and his absence was treated
as Leave on Loss of Pay for the said days. B shall get his/her annual increment on
1.3.2009.
EXPLANATION
Under these rules A completed 12 months of continuous service counted from the date of
his previous increment (1.1.2008), on 30the January, 1981. As such his/her increment fell due
on the first day of the month in which he/she completed 12 months of continuous service i.e.,
1.1.2009.
Whereas B under these rules completed 12 months of continuous service counted from the
date of his previous increment (1.2.2008) on 2 nd March, 2009. As such his/her next increment
fell due on the 1st. day of March, 2009.
In case of all employees including officers whose probationary period is extended or
confirmation is delayed either on recruitment or promotion and if such employee is entitled to
increment in terms of the relevant Rationalization Scheme, increment may be released on due
date, notwithstanding extension of probation or delay in confirmation.
Provided, however, that such grant of increment shall not confer on employee any right of
confirmation in service or in the promoted cadre, as the case may be.
It is further clarified that if the employee on promotion is not confirmed and is reverted to a
cadre from which he was promoted, his basic pay/salary will be re-fixed from the date of
reversion, at the stage at which his/her basic pay/salary would have been but for his/her
promotion to the higher cadre. Thus neither his/her promotion nor the grant of increment, if
any, in the promoted cadre before his/her reversion shall have any effect on the basic
pay/salary, he/she would have drawn in the lower scale as on the date of reversion.
STAGNATION INCREMENT :
(i)For Assistant and Senior Assistant:
41
(a) Employees in the scales of pay of Assistants would be eligible for a maximum of Seven
stagnation increments on completion of every two years of service after reaching the
maximum of the scale.
However, the Seventh such increment shall fall due for consideration after expiry of two years
from the date on which the sixth stagnation increment was granted or on 1.11.2010
whichever is later.
b) Employees in the scales of pay of Senior Assistants or Stenographers would be eligible for
a maximum of six such increments on completion of every three years of service after
reaching the maximum of the scale (in place of Five as at present).
However, the sixth stagnation increment shall fall due for consideration after expiry of three
years, from the date on which the fifth stagnation increment was granted or on 1.11.2010
whichever is later.
(c) For Sub-Staff, Driver and Record Clerk there is no stagnation increment as they are
replaced by regular annual grade increments by extending the span of scale of pay
correspondingly.
COMPETENT AUTHORITY :
An Officer not below the rank of Scale-III authorised by the Company, may grant Stagnation
Increment.
At RO level, Regional Chief is competent authority for grant of stagnation increment.
At HO, level Chief Manager (HR) is competent authority for the same.
(ii)For Officers :
(i) An Officer in the scale of pay of Administrative Officer shall be eligible for a maximum
of Three stagnation increments on completion of every three years of service after
reaching the maximum of the scale.
Provided the third stagnation may be granted after completion of three years from the
date of receipt of second stagnation increments or from 1.11.2010 which ever is later.
(ii) An Officer in the scale of pay of Assistant Manager shall be eligible for a maximum
of Five stagnation increments on completion of every three years of service after
Provided the fifth stagnation may be granted after completion of three years from the
date of receipt of fourth stagnation increment or from 1.11.2010 which ever is later.
(iii) An Officer in the scale of pay of Deputy Manager shall be eligible for a maximum
of Two stagnation increments on completion of every three years of service after
(iv)An Officer in the scale of pay of Manager (Scale IV) shall be eligible for One
stagnation increment from the first day of the month following completion of three
years of service after reaching the maximum of the scale of pay applicable to him
on 1.11.2010 whichever is later.
42

(v) CMD or any officer authorised by him is empowers to sanction stagnation increment.
Note:
(a) Sanction of stagnation increment is subject to satisfactory work record of the employee.
(b) If an employee due for stagnation increment has availed leave on loss of pay during the
relevant period, the rule relating to release of normal annual increment may be followed and
the release of stagnation increment will get postponed depending on the number of days of
leave availed by the employee on loss of pay.
(c) If the promotee employee is due to receive stagnation increment within one year from the
date of promotion, he/she will have the option of selecting the date of fixation from the due
date of stagnation increment. In case the stagnation increment is due more than one year
after the date of promotion, this option will not be available.
(d) In case of pendency of any departmental proceedings or prosecution against any
employee who is eligible to get stagnation increment, stagnation increment may not be
allowed until after the conclusion of the departmental proceedings/prosecution. If after the
conclusion of the proceedings, the employee is completely exonerated, he/she may be
granted stagnation increment with effect from the due date retrospectively unless the
Competent Authority decides otherwise. If he/she is not completely exonerated, he/she
cannot be granted stagnation increment retrospectively but only with effect from the date
following the conclusion of the departmental proceedings/prosecution, taking into account the
other aspects for grant of stagnation increment.
B) GRADUATION INCREMENTS TO EMPLOYEES IN THE SCALE OF ASSISTANTS:
(a) An employee who is appointed or promoted to any post in the scale of Assistant and who
has qualified as a Graduate of a Recognised University on or after the 1 st day of January 1973,
but before 1st day of Aug 2007 and has not reached the maximum of the scale shall be
granted two increments in the scale with effect from the publication of results of the
examination, or 1st day of the month following the publication of this scheme, or the date of
appointment in the scale of Assistant, whichever is later, provided that he has not already
received graduation increment or qualification pay for having qualified as such graduate or
any advance increment on appointment, otherwise than by way of protection of emoluments
granted to ex-servicemen:
(b) Provided that if any employee entitled to increments for graduation is
drawing Basic
Salary of Rs.20210/- only one increment for graduation shall be granted to him.
EXPLANATION:
(1) There shall be no change in the date of normal grade increment due to grant of
graduation increments.
43
(2) The six increments payable to Hindi Translators appointed in the scale of Assistants would
be inclusive of Graduation Increments and no additional increments for Graduation would be
allowed to them.
A re-employed Ex-serviceman who has obtained the Indian Army Special Certificate or a
corresponding certificate or Navy/Air Force and has put in 15 years of service in the Armed
Forces cannot be considered for payment of Graduation Increment or Graduation Allowance
on the basis of the above criteria.
CHAPTER - 8
44

ADMINISTRATIVE INSTRUCTIONS ON SALARY FITMENT OF EX-SERVICEMEN
INCLUDING EX-ECOs/SSCOs ETC. RE-EMPLOYED IN THE GENERAL INSURANCE
INDUSTRY
In the matter of fixation of pay etc., for re-employed Ex-servicemen in the Industry the
following administrative instructions of GIC (vide Circular No.332/89; dt.31.3.1989) shall
apply.
1.
Operation of Instructions:
These instructions supersede all existing instructions/advises and shall become operative
immediately hereafter.
2.
Ex-servicemen to include
The word ex-servicemen wherever used in these instructions shall refer to all categories of
ex-servicemen including released Emergency Commissioned Officers unless otherwise
specified.
3.
Pay Fixation on Re-employment
3.1 Fitment Formula:

3.1.1
Basic salary of a re-employed ex-serviceman shall be fitted at the minimum of the

scale in which he is appointed. However, if the gross salary as per Y below at the
minimum of the scale does not produce an amount equal to or more than the last
drawn gross salary as per X below in the defence services, additional increment/(s),
as may be necessary, over minimum of the scale shall be allowed to make up the
difference and thus provide protection to the last drawn gross salary.
If in exceptional cases, fitment even at the ceiling of the entry grade does not provide
full protection, personal allowance shall be granted which may be absorbed against
future increase in emoluments.
3.1.2
3.2
X i.e., last drawn gross salary in the defence services at the time of release shall be
the aggregate of the following components.
i.
ii.
iii.
iv.
v.
vi.
vii.
Pay as defined in sub-para 3(ix) of the Department of Personnel & O.M.No.311/85Estt (P II) dated 31.7.1986. Relevant extracts of he O.M. are given in the Appendix
A.
Dearness Allowance
Additional Dearness Allowance
Interim Relief
City Compensatory Allowance
Compensation in lieu of Quarters/House Rent Allowance and
Ration Allowance
(The X salary component as given above have been finalized on Ministrys advises and after
thorough discussions with Ex-servicemen Association. There would be no addition of fresh
allowance or substitution of an existing allowance by some other allowance such as Bill
Compensatory Allowances, Special Compensatory Allowance or non practising allowance.
1.1
Y i.e., gross salary in our industry shall be the aggregate of the
45

following :
(1)
(2)
(3)
(4)
Basic salary in the scale in which the ex-serviceman is re-employed

Dearness Allowance
House Rent Allowance
City Compensatory Allowance
3.4 Components of defence salary (i.e., X) including such allowances as are indicated in 3.2
above are to be taken into account on the basis of discharge certificate/last pay certificate of
the individual employee. If the last pay certificate does not show details of such allowances
e.g., Ration Allowance or CILQ, the same may be ascertained as per Rankwise entitlement
with proper proof from the appropriate authorities. In case of difficulties in this regard
reference may be made to GIC with full details.
3.5 Pension
The component of pension will not be considered for pay fixation.
3.6 Salaries for Comparison :
1.6.1
If the ex-serviceman was re-employed within a period of not exceeding three

years from the date of discharge from defence services, X salary to be compared
shall be as drawn on the date of release of the ex-serviceman whereas the Y
salary shall be as on the date of re-employment in the industry.
1.6.2
If, however, he was re-employed more than three years after the date of
discharge from defence services, Y salary to be compared shall also be as
obtaining on the date of discharge but in no case before 1.1.1973. If the basic
salary determined on such comparison results in the same or lower than the basic
salary at which the employee was fitted on the date or re-employment, the
existing salary fitment will continue without any change.
1.7
Refitment of Ex-servicemen appointed before 1.1.1988:
If the basic salary determined on such comparison is higher than the basic salary at which the
employee was fitted on the date of reemployment, incremental difference that would emerge
out on such fitment would be added to individuals basic salary as on 1.1.1988 and arrears
released accordingly from 1.1.1988.
Example:
Suppose an Ex-servicemans basic salary as on 1.11.1979 i.e., the date of re-employment was
fitted at Rs.175/- in the Assistants scale. His basic salary determined on the basis of above
formula in para 3.1 comes to Rs. 195/- thus resulting in 2 more incremental stages in the
Assistants scale. He continued in the same i.e. Assistants scale on 1.1.1988 and was
drawing basic salary of Rs.1,210/-. He is due to get benefit of two increments. So his basic
salary as on 1.1.1988 would be stepped up from Rs.1,210/- to Rs.1,360/-. He may be paid
arrears of difference in salary from 1.1.1988. No arrears are to be paid for the period before
1.1.1988. Similar procedure is to be adopted for those who entered in the scale of Officers or
Development Officers and continued in the same scale on 1.1.1988.
46
3.7.2

If, however, due to promotion or conversion, the employee was placed in the scale
higher than the one in which he was appointed on re-employment, the fitment
should be done as follows:
First of all ascertain the basic salary that he would have drawn on 1.1.1988 in the same scale
in which he was appointed without considering promotion/conversion or fitment in 3.1 above.
Add incremental difference arising out of refitment as per 3.1 above to such basic salary on
1.1.988. Thereafter, his salary should be fitted into the promoted/converted grade as per
promotion/conversion fitment formula on the basis of basic salary on 1.1.1988 refitted as per
3.1, and arrears, if any, paid w.e.f. 1.1.1988.
3.8
Fitment of Ex-servicemen appointed on or after 1.1.1988:
Fitment in these cases shall be as per formula given in 3.1 above from 1.1.1988 or the date of
appointment in the industry whichever is later.
1. Option-cum-consent letter:
An option-cum-consent letter in the enclosed format (Appendix-B) should be obtained from
each existing Ex-serviceman employee opting for fitment of salary as per these instructions.
2. Fitment of Salary of New Entrants:
Fitment of salary of all ex-servicemen appointed in the industry henceforth shall be governed
by these instructions.
3. Ex-serviceman appointed as Hindi Translator:
The fitment should be at 6 stages above the minimum of the scale which is required to be the
basic salary of Hindi Translator as per rules. If, however, in a given case, X salary cannot be
protected even with such higher start, requisite number of increments may be granted as
found necessary to provide such protection.
Further Clarifications:
1.
PERSONAL ALLOWANCE:
1.1 Quantum
Clarification is being sought on the calculation of Personal Allowance in case of Ex-servicemen
re-employed before 1.1.1988. In this regard, reference is invited to Para 3.7.1 of Circular No.
332/89 dated 31.3.1989 which provides for refitment of Ex-servicemen appointed before
1.1.1988. As per this paragraph, if any incremental difference emerges out of refitment, the
same is to be added to the basic salary of the concerned employee as on 1.1.1988. Para
3.1.2 of the said circular further provides that if fitment even at the ceiling of the entry grade
does not provide full protection, Personal Allowance shall be granted which may be absorbed
against future increase in emoluments.
It is to be clarified that ordinarily on fitment the employees basic salary was expected to be
within the scale of pay i.e., upto the ceiling of the scale. However, to meet the exceptional
cases where such fitment would cross the ceiling, that the provisions for Personal Allowance
47
has been made and that too, with the clear provision that such excess amount continued by
way of Personal Allowance would eventually be wiped out against future increases in
emoluments.
Accordingly, if on adding the amount equal to notional incremental difference to the basic
salary as on 1.1.1988, the aggregate thereof exceeds the ceiling of the pay scale in which he
was re-employed, the Personal Allowance shall be equal to such aggregate minus the ceiling
of pay scale. For this purpose, the ceiling shall mean the maximum of the scale of pay
without taking into account any stagnation increment e.g., the ceiling of pay scale of Peon is
Rs.1,510/-, that of Assistant is Rs.2,850/- and of Stenographer Rs.3,460/- as in existence on
1.1.1988.
Illustration
(a)
Basic salary of Ex-serviceman Assistant as on 1.1.1988 was say Rs.2,030/-
(b)
Amount equal to Notional Incremental difference to be added is say 9 increments

i.e. (1 x 100) + (8 x 120) = Rs.1,060/Aggregate of (I) basic salary as on 1.1.1988 and (ii) the difference would work out
to Rs. 3,090/Personal Allowance will be /rs.240/- (i.e., Rs. 3,090 Rs. 2,850)
(c)
(d)
1.2
Absorption:
Personal Allowance granted as above is to be absorbed against all future increases in

emoluments on or after 1.1.1988. These increases may be in the form of DA, HRA,
Stagnation Increment, etc. Similarly, the Personal Allowance shall also be absorbed against
any rise on account of refitment on 1.1.1988 on promotion/conversion which is described in
Para 3.7.2. of Circular No.332/89 dated 31.3.1989 and also on such promotions/conversions
after 1.1.1988.
2.
Stagnation Increment:
Those Ex-servicemen who reach the ceiling of the scale on 1.1.1988 due to refitment of salary
i.e., by addition of an amount equal to incremental difference, shall be eligible to be
considered for grant of stagnation increment on completion of two or three years service, as
the case may be, from 1.1.1988 subject to other conditions of grant of stagnation increments
as per respective Rationalisation Schemes.
3.
Rate list of Ration Allowance/CILQ:
This list showing standard rates of ration allowance and CILQ for different services have been
already circulated. The Companies may follow these rates for ascertaining the amount of
these allowances paid to the concerned Ex-serviceman at the time of his discharge provided
the concerned Ex-serviceman was in fact receiving such allowance/CILQ but the actual
amount thereof is not shown in his last pay certificate.
4.
Salary Components:
Components of X salary for comparison shall be as stated in item 3.2 of Circular No.332/89
dated 31st March, 1989and actually drawn by the ex-serviceman at the time of his release.
With this salary, Y salary to be compared shall include all such components as described in
48

item No. 3.3 and payable to ex-serviceman on the date of his confirmation in the Industry.
The procedure to be followed for comparison and fitment as outlined in item No.3.4 of the
said Circular as also clarified from time to time should be followed.
It is further clarified that if certain allowance was drawn by ex-servicemen at the time of
release, say CCA, but the same is not admissible on his appointment in our Industry, yet X
salary shall include such CCA although the same will not be included in Y salary because the
same is not admissible to him. Similarly, if CCA was not payable in Defence Services at the
time of release, obviously, the same will not be payable in X salary but if such ex-serviceman
is entitled to CCA on his appointment in the Industry and posting at CCA centre on the date of
his appointment, the quantum of CCA shall form part of Y salary for comparison.
5.
Comparison of Salaries:
It is clarified that the provision in item No.3.6.2 of Circular No.332/89 of 31 st March, 1989 is
applicable only for the purpose of working out the incremental difference in case of
appointment effected before 1.1.1988. As regards appointment made on/or after 1.1.1988,
the Defence Salary (X Salary) to be compared shall be as on date of release and the Y
salary shall be as applicable on the date of appointment.
6.
Future Appointments:
It should be clarified in all letters of appointment/fitment showing basic pay/salary of exservicemen that the fitment as shown in such letter shall be subject to review and
readjustment in the event of any revision in the pay scales and/or allowances effective from
the date on/or prior to the date of appointment and the paragraph to be added in this regard
shall read as under.
The Basic Pay/Salary shown herein shall be subject to review and readjustment if the Scales
of pay and allowances are revised with effect from the date of your appointment or from a
date prior to your appointment.
In such event, final fitment of your basic pay/salary shall be effected from the date of your
appointment in relation to the relevant components of your gross salary in Defence Services
at the time of your release vis--vis the relevant components of such revised gross salary, as
applicable in terms of Administrative Instructions on salary fitment of ex-servicemen including
Ex-ECOs/SSCOs etc., reemployed in the General Insurance Industry as issued from time to
time.
Appendix A
Sub-para 3 (ix) of the Department of Personnel and Training O.M. No.3/1/85 Estt. (P.11)
dated 31.07.1986 defining PAY (Refer Clause (I) of sub-paragraph 3.2 of the Administrative
Instructions) :
49
3(ix) in the case of retired defence services personnel of the or rank of JCO, NCO or OR in
the Army and corresponding ranks in the Navy or Air Force, the items of emoluments
mentioned below shall constitute pre-retirement pay :
ARMY (JCO, NCO OR OR)
OLD PAY CODE
NEW PAY CODE
Basic Pay
Pay (including deferred pay) and Rank pay
Grade/Trade/Technical and Rank Corps. Pay/ Increments of pay for length of service
Good Service/Good Conduct pay
Proficiency/Special Proficiency Pay
Good Service Pay
War Service Increments
Classification Pay
Deferred Pay, Personal Allowance (Ris/Sub

Major) Extra Duty pay
NAVY
Basic Pay
Pay (including deferred Pay)
Non-Substantiative Pay
Good Conduct Pay
War service Increments
High Pt.II-Qualification Pay
Good conduct pay/ Deferred Pay
Classification Pay
AIR FORCE
Basic Pay, Good Service/Good Conduct Pay
Pay (including deferred pay)
Air Proficiency Pay, Badge Pay. War Service Classification Pay

Increments. Deferred Pay
Appendix-B
LETTER OF OPTION-CUM-CONSENT TO BE EXERCISED BY EX-SERVICEMEN IN INDUSTRY,
IN TERMS OF PARAGRAPH 4 OF the ADMINISTRATIVE INSTRUCTIONS IN CIRCULAR
NO.332/89 DATED 31.03.1989 ON SALARY FITMENT OF EX-SERVICEMEN
50

To :
Sir,
In accordance with paragraph 4 of the Administrative Instructions in Circular No.332/89 dated
31.3.1989 on salary fixation of Ex-servicemen, I hereby exercise my option and confirm my
consent to
*Refix/fix my salary as per pay fixation formula provided in the Circular.
*Not to refix may salary as per pay fixation formula provided in the Circular but continue to
draw as per existing provisions.
I agree that the option as above exercised by me shall be final and binding on me.
Date:_____________Signature_____________________________
Full Name
:__________________________________________
Designation
:___________________________
S.R. No.
:____________
Office
:___________________________
Place
:_______________________
*Strike off whichever is not applicable
CHAPTER 9
LEAVE RULES & MISCELLANEOUS PROVISIONS
ADMINISTRATIVE INSTRUCTIONS ON LEAVE
(For all classes of Staff)
1.
General Principles governing grant of Leave
51
The following general principles shall govern the grant of leave to employees.
(a) Leave cannot be claimed as a matter of right.
(b) Leave shall be availed of only after sanction by the Competent Authority, but one days
casual leave may be availed of without prior sanction in case of unforeseen emergency,
provided the head of the office is promptly advised of the circumstances under which
prior sanction could not be obtained.
(c)
In case of exigencies of work, it will be open for the Competent Authority, to refuse,
revoke or reduce leave of any description.
Explanation: Sanction of leave shall not be presumed and leave asked for shall not be
availed of unless it has been specifically sanctioned by the Competent Authority.
(d) During the period of leave, an employee shall not take up any service or accept any
employment.
(e) During the period of suspension, an employee shall not be granted any leave. However,
during the pendency of disciplinary proceedings, the Competent Authority may grant
leave.
(f)
Sundays and/or holidays may be prefixed and/or suffixed to any kind of leave, but
intervening Sundays and holidays are counted as a part of leave.
(g) No leave shall be granted in continuation of or in conjunction with any other type of
leave except the following.
(1)
Casual Leave in continuation of or in conjunction with Examination Leave,

Quarantine Leave or Leave on Loss of Pay.
(2)
Earned Leave in continuation of or in conjunction with Sick Leave, Maternity Leave,

Examination Leave, Quarantine Leave or Leave on Loss of Pay.
(3)
Sick Leave in continuation of or in conjunction with Earned Leave, Maternity Leave,

(4)
Maternity Leave in continuation of or in conjunction with Earned Leave, Sick Leave,

(5)
Examination Leave in continuation of or in conjunction with Casual Leave, Earned

Leave, Maternity Leave, Quarantine Leave or Leave on Loss of Pay.
(6)
Quarantine Leave in continuation of or in conjunction with Casual Leave, Earned

Leave, Sick Leave, Maternity Leave, Examination Leave or Leave on Loss of Pay.
(7)
Leave on Loss of pay in continuation of or in conjunction with any other type of

leave
52

(h) Before proceeding on leave, every employee shall intimate to the Competent Authority
address while on leave and shall keep him informed about any change in his address
while on leave.
(i)
Before leaving head quarters, every employee will have to obtain from the Competent
Authority permission of leaving headquarters.
(j)
Over-stay beyond the sanctioned leave shall be treated as unauthorised absence unless
the concerned employee has got the extension of his leave sanctioned (by the
Competent Authority) before the expiry of the leave already sanctioned. However,
before treating such unauthorised absence as leave on loss of pay, the Competent
Authority shall satisfy himself that there were no extenuating circumstances which
prevented the employee from obtaining prior sanction for overstayal.
(k)
An employee is expected to avail of leave granted, full, before resuming duty unless
he/she recalled for office exigencies. An employee on leave cannot return to duty before
the expiry of such leave except with the permission of the Competent Authority.
(l)
Except when an employee is on leave on loss pay, the increment falling due during the
period of leave shall be granted from the due date.
1.
Casual Leave
(a) In a calendar year, an employee may be granted casual leave for a maximum of 12 days.
(b) During the calendar year in which an employee joins service, he shall be allowed casual
leave for a maximum number of days obtained by dividing the number of days from the
date of joining to 31st December (both inclusive), by 30
During the calendar year in which an employee retires from service, he shall be allowed
casual leave upto a maximum obtained by dividing the number of days from 1 st January to the
date of retirement (both inclusive) by 30.
In both the above computations, fraction shall be ignored.
In case any day other than those declared as holidays under N.I. Act has been observed as a
holiday, it shall also be counted for the purpose referred above.
(c)
Balance Casual Leave remaining unutilised as on 31 st December each year shall lapse.
(d) Not more than five days of Casual Leave may be granted at a time.
(e) During the initial training period, new recruits on probation may be granted Casual Leave
after accrual i.e., one day Casual Leave after 24 days of service.
(f)
Any leave including Extraordinary Leave (on Loss of Pay) duly sanctioned by the
Competent Authority will not affect the calculation of Casual Leave.
(g) Half-a-day casual leave allowed for a maximum of six occasion (introduced wef 1.1.2011
under Amendment Scheme 2010).
(h) Intervening holidays between 2 Casual leave shall not be counted as leave (wef 1.1.2011)
53

(i) An employee can avail a maximum of 5 days as CL at a time.
Note : Though Casual leave for Half-a-day and Additional Casual Leave have been abolished
as per the amendment in para 9 of the Rationalisation Scheme for Supervisory, Clerical and
Sub-ordinate Staff w.e.f.01/01/2006, it is modified in Amendment Scheme, 2010 as above.
1.
Restricted Holiday
The amendment in para 9 of the Rationalisation Scheme for Supervisory, Clerical and Subordinate Staff has the effect of providing the employees w.e.f.01/01/2006, an option of
availing not more than two Restricted Holidays in a Calendar year as per his choice, out of the
list of Restricted Holidays declared by the Central Government from year to year subject to
such choice being submitted by the employee to the Company before commencement of the
calendar year concerned.
2.
Earned Leave
(a) This leave is earned by duty.

Explanation:
Duty shall mean the period spent in the service of the Company but shall not include the
periods of leave other than Casual Leave, Quarantine Leave, Examination Leave and Trade
Union Leave.
(b) The Earned Leave shall accrue at the rate of one day for every eleven days of duty and
be accumulated upto a period of 240 days.
(c) Subject to a minimum of six (w.e.f 1.1.2011 as per Amendment Scheme 2010) days and a
maximum of 120 days, at a time, the Earned Leave can be granted as and when it
accrues.
(d) It is expected that to meet contingencies of casual absences of short duration, employees
can avail Casual Leave and Earned Leave should be used for absence of longer duration of
six days or more giving prescribed advance notice. Therefore, the Earned Leave for less than
six days is not to be ordinarily granted. However, the Competent Authority who normally
sanctions Earned Leave may in genuine pressing situations consider such requests for shorter
duration, Earned Leave on not more than two occasions in a calendar year. Before granting
such leave, the Competent Authority may take into account merits of individual requests,
grounds on which such requests are made and such other relevant factors. Request for grant
of Earned Leave for shorter duration beyond two occasions in a calendar year may be
considered only by the Officers not below the rank of Regional Manager/Chief Manager if the
overall leave record the employee is satisfactory and the grounds seeking such leave are
found to be genuine and compelling.
54
Explanation : The term shorter duration for this purpose shall mean a period of less than
six days.
It will be observed from Para 10 of the Rationalisation Scheme that leave cannot be claimed
as a matter of right. As per explanation in Para 10(2), sanction of leave may not be
presumed and leave asked for should not be availed of unless it has been specifically
sanctioned. Therefore, if an employee exhausts his entire Casual Leave during the year, it is
necessary that he seeks sanction of Earned Leave for the absence for which no other kind of
leave can be permissible. If an employee cannot be granted Earned Leave requested for a
short duration, such absence will be treated as leave on loss of pay.
(e) If It is noticed that an employee has been applying for earned leave for short duration
after exhausting the casual leave in the early part of the calendar year, his attention should
be drawn to the fact that exhausting of casual leave does not automatically entitle him to
earned leave of short durations and that the Competent Authority may refuse to grant him
such leave.
(f) An employee is required to submit in writing to the Competent Authority, the application
for earned leave atleast 15 days in advance of the date on which he intends to proceed on
earned leave. For sufficient and valid reasons, the Competent Authority may at its discretion
reduce or waive the period of notice.
(g) If an employee requests the conversion of the sanctioned earned leave into sick leave
from the date of his/her sickness duly supported by medical certificate, there should be no
objection to such conversion, provided, however, that the sick leave is otherwise due and
admissible to him/her and that there is no doubt as to the genuineness of his/her sickness.
(h) During the initial training period, employee on probation will not be granted Earned Leave
though it will accrue to his/her credit to be availed after completion of training period.
1.
Sick Leave
(a) Sick leave is earned at the rate of 30 days on half pay basis for each completed calendar
year of service and can be accumulated upto a period of 240 days.
(b) In calculating accrual on any given date, only completed years and not part of a year or
days as in the case of earned leave shall be taken into account. Any leave excluding
leave without pay availed of does not affect the calculation.
(c) Sick leave can be granted to an employee only on production of a medical certificate from
Registered Medical Practitioner, which term would include Homeopathic, Ayurvedic and
Unani Doctors also, provided they are Registered Medical Practitioners.
(d) The certificate should state as clearly as possible the diagnosis and probable duration of
treatment.
(e) An employee on medical leave cannot be allowed to resume duties without producing a
Certificate of fitness from the attending Registered Medical Practitioner.
(f) The Competent Authority may, at his discretion, secure a second medical opinion either
for grant of leave or for satisfying that the employee is fit to resume duty, from a medical
55
examiner of the Company, if considered necessary. The cost of such second medical
examination will be borne by the Company.
(g) During the calendar year in which an employee joins service, his sick-leave account shall
be credited at the end of the year with sick leave equal to number of days obtained by
dividing the number of days from the date of joining to the following 31 st December (both
inclusive) by 12.
During the calendar year in which a employee retires from service, his sick-leave account
shall be credited at the beginning of the year with sick-leave equal to number of days
obtained by dividing number of days from the 1st January to the date of retirement (both
inclusive) by 12.
In both the above computations fraction less than half shall be ignored
(h) An employee on sick leave shall draw leave salary equal to half the aggregate of basic
pay, special pay and personal pay. In addition, such employee shall also draw dearness
allowance , house rent allowance, city compensatory allowance and hill station allowance
(wherever applicable) appropriate to half the aggregate of such basic pay, special pay
and personal pay. The period of sick leave on half pay may be converted into sick leave
on full pay at the option of the employee and in such cases twice the amount of such
leave shall be debited against the half pay leave account of the employee.
1.
Special Sick-leave for 9 Major Diseases
If an employee is suffering from any of the nine major diseases of Cancer, Leprosy, TB,
Paralysis, Brain Tumour, Cardiac Ailment, Kidney disease, AIDS or Mental disease,
he may be allowed special leave on half pay for a period not exceeding 6 months if he has to
his credit no sick leave admissible to him. The following authorities are prescribed for
sanction of Special Sick Leave :
1. Cadres of employees in Class III & IV
DGM(HR)
2. AOs & AMs
DGM (HR
3. Dy. Managers & Managers
GM
4. Chief Managers & above
CMD
Advance Sick Leave:
Though there is no provision for Advance Sick leave in the Scheme, in genuine cases of
sickness/accident where the employee does not have any kind of leave to his credit,
recommendations may be made to CMD of the Company to consider the case under the
hardship provision and if agreed Advance Sick leave may be granted which has to be adjusted
against the future accrual of SL. Unless there are special circumstances, grant of Advance
Sick Leave would be on half pay only.
Before reference is made to CMD of the Company all aspects such as leave records of the
employee, nature of illness/injury, future likely leave accrual during the remaining service
period and the likelihood of the employee recovering from illness/injury shall be taken into
consideration. The representation for grant of Advances Sick Leave shall be forwarded to
CMD of the Company. Further norms governing Advance Sick Leave are as under:
56

(1) Advance Sick Leave may be granted only to confirmed employees of the Company
and that too in exceptional cases of genuine hardship.
(2) Before recommending the case, the employees leave record should be examined to
ensure that the employee was not utilising CL/EL/SL as a matter of habit, in which
event request for advance sick leave should not be considered. However, the
CL/EL/SL utilised for the sickness concerning the current application will not be a bar.
(3) Normally, advance sick leave may be granted on the merits of each case and
restricted to maximum of 180 days half pay basis without conversion to full pay basis.
Employees requiring leave for more than the above period should be on loss of pay.
(4) As a matter of rule, only 50% of the advance sick leave applied may be considered on
half pay basis while the balance be treated as leave on loss of pay. This facility for
advance sick leave is generally available only once in the entire career. However, in
case of major accidents or illness second application during the career may be
considered.
(5) Accident/disease must be serious nature not covered by the major disease provision
contained in provision to Paragraph 10(5) of Class III/IV Rationalisation Scheme. The
disease must not be chronic in nature.
(6) Leave so asked for, must bear relevance to the severity of the disease and the
recommendations of Medical Authority. Each case should be examined and only
when satisfied the cases of genuine hardship be referred to the Chairman cum
Managing Director of the Company, with specific recommendations of Regional Chief,
accompanied by employees representation.
(7) The employee should have sufficient period of service, left to his/her credit so that
the leave so granted can be adjusted against future accrual of sick leave/earned
leave.
(8) The Advance Sick Leave should be adjusted against future accrual of entire sick leave
and 50% of earned leave with consent of the employee. In case of cessation in
service for any reason adjusted advance leave should be set off against balance sick
leave or earned leave on the date of such cessation. If it cannot be adjusted in full,
the salary equivalent for the unadjusted portion of Advance Sick Leave should be
deducted from terminal dues payable to the employees/dependants. The salary
equivalent shall be on the basis of terminal salary.
(9) Before forwarding any request of the employee for grant of advance sick leave, each
such request should be accompanied by the following documents, namely,
a.
b.
c.
d.
Date of Birth of the employee.

Date of appointment.
Past 5 years detailed record of all types of leave.
Certificates issued by Medical Authorities during sickness indicating nature of illness,
required duration of absence form duty etc.
e. Recommendation of Regional Chief.
10. Application for Advance Sick Leave should be sent within 3 months from the date the
employee had resumed duty on recovery.
1.
a.
Maternity Leave
Maternity Leave may be granted to female employees including probationers having
less than three living children.
57

b.
In case of female employee having three or more children, no maternity leave is

available but she can be granted earned leave, and if earned leave is not admissible,
she can be granted sick leave. In case of both earned leave and sick leave not being
admissible, she may be granted leave on loss of pay.
c.
Maternity leave shall be allowed on production of medical certificate from the medical
attendant.
d.
A female employee is entitled to maternity leave not exceeding 180 days in respect of
each confinement. The spread of leave between pre-natal and post-natal periods will
be left to the convenience of the employee.
e.
In case of miscarriage, a female employee shall be entitled to leave with pay, for a
period not exceeding six weeks immediately following the day of miscarriage. The
probationers can be granted the six weeks leave for miscarriage and the probation
period will be extended to that extent.
f.
The miscarriage leave will be given to a female employee only when she is entitled to
get Maternity Leave. If the employee already have three living children, she is not
entitled for miscarriage leave.
g.
The maximum maternity leave that can be granted to a female employee shall not
exceed 12 months including mis-carriage, medical termination of pregnancy during the
entire period of service.
Note: Miscarriage means expulsion of the contents of a pregnant uterus at any period
between twelve weeks to twenty six weeks of pregnancy and shall include abortion performed
during the above period by an authorised gynaecologist.
There is no limit on the number of occasions for female employees to avail leave with pay for
period of six weeks on account of miscarriage. However, in case a doubt arises, employee
may be referred to obtain the medical opinion of empanelled Gynaecologists/General Surgeon.
h.
It would be in order to grant special leave allowed for any operation for family planning
in addition to any normal leave that the employee may avail at the time of operation.
According special leave for family planning operations should be granted to the female
employees in addition to the maternity leave if the operations has been carried out
during the period of Maternity Leave.
Adoption Leave
Adoption leave may be granted with effect from 22.6.2000. The Maternity Leave for adoption
of a child shall be subject to the following conditions.
1. The leave may be granted once during the service to a childless female employee for
legally adopting a child who is below one year of age.
2. The maximum period of leave will be two months or till the child reaches the age of one
year, whichever is earlier.
3. The leave will be granted for adoption of only one child.
58

4. The leave shall be granted subject to the condition that the adoption of a child is through
proper legal process and on submission of a certified true copy of adoption deed to the
Corporation/Company.
8. Examination Leave:
a.
Examination leave shall be granted to employees including those on probation appearing

for insurance examinations conducted by or on behalf of the Insurance Institute of India,
Mumbai, the Chartered Insurance Institute of Actuaries, London and such other bodies
conducting
insurance
examination
and
also
for
Intermediate
and
Associateship/Fellowship examinations conducted by the Institute of Chartered
Accountants of India and the Institute of Costs and Works Accountants of India and MBA
Examinations of recognised Universities.
b.
The examination leave shall be granted to cover the day(s) of the examination and in
case it is necessary to travel to a different place from the place of work to write
examination, it shall also be granted to cover the minimum journey time to the nearest
centre and return.
c.
Casual or Earned Leave may be granted for the day(s) between two examinations. In
case an employee does not have either casual leave or earned leave to his credit, leave
on loss of pay may be granted for such day(s).
d.
Examination Leave can be granted for the day of the examination only irrespective of
whether the examination is in the forenoon or afternoon.
e.
When an employee avails examination leave immediately followed by holidays and/or

Sunday followed by casual leave and then again by examination leave, the holidays and
/or Sunday shall not be included in the casual leave.
9. Quarantine Leave:
a.
Quarantine Leave is leave of absence from duty necessitated by orders not to attend
office in consequence of the presence of infectious disease in the household of an
employee of the Company.
b.
The quarantine leave should not be granted unless the medical officer looking to the
infectious nature of the disease considers it necessary to quarantine the member of the
household suffering from the infectious disease.
Explanation:
The term medical officer mean medical officer-in-charge of any
Government (Civil or Military or Municipal) hospital or dispensary.
c.
The employee must, in the first instance, report the presence of the infectious disease in
household immediately it is detected and submit a medical certificate from the Medical
Officer to the effect that a member of his household has been quarantined.
59

d.
On production of certificate referred to in (c) above, the Competent Authority would pass
orders that the employee should not attend the office for the relevant period
recommended by the medical certificate. Any earned leave sanctioned to the employee
for that period would be cancelled.
e.
If the employee does not promptly intimate the detection of the infectious disease in his
household, he would not be eligible to have the earlier period (i.e the period prior to the
intimation of the disease) to be treated as quarantine leave.
f.
If an employee reports about the presence of an infectious disease after he rejoins duty,
would not be eligible to have his absence for the period treated as quarantine leave.
g.
If an employee himself is suffering from an infectious disease, no quarantine leave shall

be admissible but he may be allowed sick leave, and if sick leave is not admissible, he
may be allowed earned leave and if both sick leave and earned leave are not admissible,
he may be granted leave on loss of pay.
h.
An employee in whose household the presence of an infectious disease is detected should

produce a certificate prior to resuming duty that the concerned patient has been cured
and is no more in infectious stage and the employee himself is fit to resume duties.
i.
Cholera, Small Pox, Plague, Diptheria, Typhus Fever and Cerebrospinal Meningitis are
considered as infectious disease for the purpose of quarantine leave. In addition,
quarantine leave may also be granted for such disease as are declared by the concerned
State Government as infectious diseases in the area. If necessary, the above information
may be obtained from the State Government concerned.
j.
Chicken pox is not itself considered so infectious as to warrant quarantining a patient.

Hence the request for the grant of quarantine leave due to attack of chicken pox cannot
be considered.
10. Employees suffering from TB:

a. Before allowing an employee who was suffering from tuberculosis to resume duty, it is
necessary, with a view to safeguarding the health of other employees to ensure that the
employee concerned is free from infection.
b. For this purpose, the office should arrange to get at the office expenses, an X-ray, an ESR
and a Sputum Report (Culture report is not necessary) and refer these reports to a
physician of repute at the head quarters of Divisional Office for opinion whether the
employee concerned is free from infection.
c.
The employee should be allowed to resume duty if the physicians report states that the
employee is fit to resume duty.
d. If the physician expresses any doubt, the employee should not be allowed to resume duty
and instead be asked to appear for a fresh medical examination after an interval of time
suggested by the physician.
60
e. After the lapse of the prescribed time, the procedure detailed above will be again gone
through and the cost of reports will again be borne by the office.
11. Trade Union Leave:
a. Special leave for bonafide trade union work may be granted up to a maximum of 15 days
per year excluding actual journey time, to each of not more than 15 persons belonging to
a recognised union and nominated by such union.
b. Special leave for similar purpose may also be granted upto a maximum of 10 days per
year excluding actual journey time, to each of not more than 20 other persons belonging
to the recognised Union referred to in clause (a) and nominated by such Union.
12. Authorised absence from duty:
An employee may be allowed to remain absent and still be treated as on duty under the
following circumstance.
a. Upto a maximum of 6 days for undergoing vasectomy or salpingectomy
family planning purpose.
operation for
b. Upto a maximum of 14 days to a female employee for undergoing puerperal and nonpuerperal sterilisation for family planning purposes.
c.
One day to a female employee for I.U.C.D insertion for family planning purposes.
d. Upto a maximum of 15 days in a year for camp duties by employees who have been
permitted to join Home guards Organisation.
As regards absence of employees for the Home Guards emergency duties, it has been decided
that the employees required to attend emergency duties may be treated on duty for the
period of their absence. Though keeping in view, the national importance of such emergency
duties, may not be feasible to put any limit on the period of absence to be treated as on duty,
yet it will be advisable if the employees give proper intimation the Office preferably in
advance or atleast immediately after proceeding on such duties.
The above special leave may be granted only if the concerned employees produce a certificate
from Home Guards Authorities certifying that they attended the said training.
e. Upto a maximum of three days for invigilation work at an insurance examination
conducted by the Insurance Institute of India, Mumbai, Chartered Insurance Institute,
London, Institute of Actuaries, London and any other bodies conducting insurance
examinations, subject to a maximum of seven days in a year.
f.
(i) Upto a maximum of 30 days in a year when the employee participates in a
representative capacity in a National or an International event in sports.
NOTE: Mountaineering expeditions approved by Indian Mountaineering Federation shall
be deemed to be an event in sports, as stated above and
(ii) Upto a maximum of 10 days in a year when the employee participates as a duly
sponsored candidate of the Company in any important local event in sports: the total
under (i) and (ii) being limited to 30 days in a year.
61

NOTE:
(1) A local event is one when a match is played locally between the teams belonging to the
same place.
2.When the tournaments are arranged on an All India basis and the teams belonging to
different States take part in such tournaments, they will be National events, such as 'Ranji
Trophy,. All India Hockey, All India Foot-ball Tournament etc.,
1.
2.
Olympic games and Asian games are examples of International events.

Participants in the game would include referees and time keepers but not Managers
and office bearers of committees or Club arranging such tournaments.
g. On days on which the employee, though willing and fit to attend office, is prevented from
attending the office by the operation of law, e.g. the imposition of curfew either in the area of
his residence or in the area where the office is situated.
For the days of absence of the employees when the Competent Authority is satisfied that the
absence was entirely due to reasons beyond the employees control, e.g. Due to failure of
public transport system or disturbance etc., provided that in the case of failure of public
transport system, absence of employees who have to come from a distance of more than five
kilometres from the place of duty. In order to consider absence as on duty, the failure of
transport system must be total or near total in the city/town and not merely partial. The
Competent Authority for treating such absence as on duty is the Regional Chief/Chief
Manager(HR) at HO. This provision will not be applicable to employees who are already on
sanctioned leave on such a day.
h) As for the treatment of absence of the employees participating in the Republic Day parade
at New Delhi, in a representative capacity, the following guidelines are issued..
Upto a maximum of 25 days in a year for participation in the Republic Day parade at
New Delhi in a representative capacity.
Note: Participation in the Republic Day parade also included the periods of
rehearsal/training connected with the cultural programmes and also participation in a
capacity of a member of the St. John Ambulance Brigade
(i) On days on which the employee attends the conference of the Insurance Institute of India
and for the period of journey which the employee may have necessarily undertaken for the
purpose of attending the conference and for returning to his place of working.
In terms of the above proviso, the employees who attend conference of the Insurance
Institute of India as Council members, delegates of various institutes, Paper readers and
special invitees of the Federation only are to be treated as on duty. Special Leave may be
granted to employees who have been nominated to represent the Associate Institutes of the
Insurance Institute of India as non-corporate members of the Administration Committee and
the Board of Education for the days they attend the Meetings of the Board of
Education/Administration Committee and for the period of journey.
(j)
62

1. The Company may declare the respective polling day(s) in the particular area (S), as are
additional paid holiday if it does not fall on a Sunday, or on a paid holiday, provided the
State Government where the office is situated, has also declared that day as local holiday
in that area.
2. The Company may also permit its staff detailed on election duty to remain away from
their normal duty on the polling days and also on days required for journey in connection
with the polls. (Employees drafted for election duty would not be entitled to any
compensatory off for the election day which is declared as a public holiday under
Negotiable Instrument Act).
3. One days special casual leave may also be granted to a confirmed employee (who resides
at a place where the date of polling is different from that at the place where their office is
situated) on the date of polling at the place of residence where they have to exercise their
franchise.
4. The employee who choose to donate blood as a social cause may be granted a days
special leave on the day on which he donates blood provided he furnishes a certificate
from the Blood Bank or recognised Blood Collection Centers. The maximum number of
days of special leave that can be granted to an employee shall be 10 days in a year.
5. Employees who are ex-servicemen may be granted special leave upto a maximum period
of 15 days including the transit time in both ways whenever they are asked to appear
before the Medical Re-survey Board for assessment of their disabilities.
6. Upto a maximum of 14 days in a year to an employee who has been permitted to join
Territorial Army to attend to the camp training.
Note: An employee may be permitted to join only the urban unit of the Territorial army
where training is carried out on a part-time basis outside the office hours.
7. Upto a maximum of 5 days for attending the General Body Meeting or Prize Distribution
Ceremonies of the Kendriya Sachivalaya Hindi Parishad to cover the days of the meeting
and the actual time taken for the journey.
8. For the day(s) of the hearing and for the day(s) of the journeys connected thereto to
employees who have been summoned by Court of Law on behalf of Government as State
witness in a criminal case.
13. Leave on Loss of Pay
(a) Leave on Loss of Pay may be granted when no other leave is due to an employee.
(b) It will not be in order to grant leave without pay to an employee when casual leave or
earned leave due and admissible except when the question of leave once duty
sanctioned, is reopened on account of the same having been taken under false pretext or
overstayal.
(c) Except in exceptional circumstances, the duration of leave on loss of pay shall not exceed
three months on any one occasion and 6 months during the entire period of an
employees service.
Leave on loss of pay beyond 180 days requires reference to CMD of the Company and it
is required that such a reference is made before expiry of 180 days limit so that CMD of
the Company would have adequate time to consider the merits.
(d) If an employee remains absent beyond the maximum permissible period i.e. 180 days, his
or her absence would be treated as unauthorised which as per C.D.A Rules is a
misconduct and action may have to be taken in such cases as per C.D.A rules.
63
Consideration may, however, be given to the grounds of absence at the time of acting in
accordance with C.D.A rules.
(e) (1) If an employee is on leave on loss of pay for the whole year or where he is continuing
to remain absent from the previous year on loss of pay beyond 180 days, he cannot be
given credit of C.L in the following year as he would be exceeding the ceiling 180 days
leave on loss of pay period and thereby it may be necessary to initiate disciplinary action
against him.
(2) While calculating the sick leave credit in the succeeding year, the period of leave on
loss of pay during the preceding year should be excluded. No salary is admissible during
the period of leave on loss of pay.
(f) The leave on loss of pay, has the effect of postponing the date of normal grade increment
of an employee. The normal grade increment will be granted on the first of the month in
which the employee completes 365 days (366 days in the case of leap year) excluding the
leave on loss of pay, after the date on which the last grade increment was granted or
from the date on which he was placed in time scale.
(g) There is no provision for allowing leave on loss of pay to part-time employees. Any
absence without there being credit of leave as applicable to them will have to be treated
as unauthorised absence.
14. Leave for Probationers:
During the calendar year in which an employee joins service, he shall be allowed casual leave
for a maximum number of days obtained by dividing the number of days from the date of
joining to 31st December (both inclusive), by 30. In the said computation, fraction shall be
ignored.
Earned leave/sick leave are admissible during the probation period of an employee to the
extent of availability. Earned leave will accrue at the rate of 1 day for every 11 days of duty.
In case of sick leave, the employees sick leave account shall be credited at the end of the
year by dividing the number of days from the date of joining to 31 st December of year (both
days inclusive) by 12.
Although the probationer is eligible for leave during the period of probation, the same should
be sanctioned using discretion since the employee should, as far as possible, be on duty
during probation to assess his suitability for confirmation.
15. Advance payment of salary:
Salary not exceeding a months salary may be disbursed three days before the date on which
an employee proceeds on EL when such leave would extend beyond the salary disbursement
day of that month.
16. Effect of leave availed while on official tour:
(a) An employee may be allowed to take casual leave while on official tour. However for the
period he is on casual leave, he shall not be entitled to halting allowance. If Sunday
and/or holiday(s) is/are prefixed or suffixed to such casual leave, he shall not be entitled
64

to halting allowance for those days unless the employee is actually and nor merely
constructively in camp during such Sunday and/or holiday(s).
(b) Whilst on tour, when an employee takes leave other than casual leave, the official tour
should come to an end immediately the employee proceeds on leave and he/she shall not
be entitled to the travelling fare etc for the return journey. He should report back at his
headquarters at his own expense on expiry of the leave. However, when an employee
falls sick while on tour and compelled to take SL or EL or any other leave on grounds of
sickness, he may be permitted fare for the return journey to the headquarters but shall
not be paid halting allowance for the period he is laid up with sickness in the place of
tour.
17. Effect of leave on granting of annual grade increment:
(a) Availing leave of any kind other than on LOP will not have the effect of postponing the
date of normal grade increment.
(b) Leave on LOP has the effect of postponing the date of normal grade increment of an
employee.
18. Effect of leave on confirmation in respect of employees on probation
When an employee is n probation and avails sick leave or earned leave on sickness ground for
a period of three months or more, the probation is extended for that period of leave taken
but not exceeding six months. This provision will be equally applicable to ML availed by an
employee during her probation.
19. Granting of leave during the period the employee officiates and is in receipt of
Officiating Allowance
(a) Normally, no leave can be granted to an officer/employee officiating in a higher post as
the officiating arrangement is made for a limited period of time. However, in exceptional
circumstances leave may be granted on the following basis without affecting the
officiating arrangement and without making any deduction in the officiating allowance for
the period of leave so granted.
(b) Where officiating arrangement is for more than 15 days but not exceeding 30 days 2
days (applicable only to SCS staff)
(c) When the officiating arrangement is for more than 30 days but not exceeding 60 days 4
days
(d) When the officiating arrangement is for a period exceeding 60 days 6 days.
(e) In case the Officer/employee officiating avails leave, beyond the days stipulated above,
the officiating arrangement shall stand terminated from the day on which he/she
proceeds on leave.
20. Study leave to Officers:
CMD may sanction study leave to Officers to enable them to prosecute studies
abroad and within India in any specialised fields like Management and Allied
Discipline. Sanction of study leave shall be subject to the following.
65

(a)
(i)
(ii)
(iii)
(iv)
(v)
(vi)
The period of leave shall not exceed one year.

However under exceptional
circumstances, it may be extended by one year
The officer concerned will have to execute a Bond in favour of the Company
guaranteeing his/her return to the Company.
Leave will be treated as without pay.
Benefits like PF, Gratuity, notional annual grade increment etc, will not accrue to the
Officer during the period of study leave.
The period of study leave will not count for the purposes such as seniority, gratuity
etc.
The Officer concerned will not be entitled to any seniority by virtue of his/her
acquiring more qualification.
The Officer applying for study leave must have completed minimum of 5 years of
service in the Industry. However in deserving cases, CMD relax the conditions of
minimum 5 years of service.
Note: This facility of study leave is not available to Supervisory, Clerical & Subordinate Staff.
Absence of employees without prior sanction and sanction of Extraordinary Leave
(LOP)
Leave cannot be availed by an employee as a matter of right and employee who remains
absent without sanction of leave is not entitled to get salary for the period of absence on the
principle of No Work, No, Pay.
As for Casual Leave, it can normally be availed only with the sanction of the Competent
Authority. However, under exceptional circumstances a days Casual Leave may be availed
without prior sanction in case of emergency provided the Competent Authority is informed of
the circumstances in which prior sanction could not be obtained. In case of Privilege Leave,
specific prior sanction is absolutely necessary before it is availed. In case of Sick Leave, it can
be granted only on production of Medical Certificate. Only in case where all other kinds of
leave have been exhausted, leave on Loss of Pay can be sanctioned subject to prior
intimation/request to Office and the duration of such leave shall not exceed 3 months on any
one occasion and 180 days during his/her entire tenure. Only in cases of medical exigencies
Loss of Pay beyond 180 days can be considered after referring to Chairman Cum Managing
Director of the Company.
The authority for sanctioning leave on Loss of Pay for different cadres and for different
durations are as follows:
Upto 90 days
All employees
90-180 days
Upto the cadre of

Manager
Above the cadre of
Manager
Beyond 6 months (in case of

Medical exigencies)
All classes of employees
Manager of the Department

GM
CMD
CMD
Whenever leave on loss of pay in excess of 180 days is required, the employee has to make
written request well in advance, in any case before expiry of the leave already sanctioned.
Only then a reference can be made to Chairman cum Managing Director of the Company for
consideration on merits. It is therefore suggested that, purely as an act of courtesy, the
66

Officer-in-charge of the Department or the Operational Officer should alert the employee by
putting him on notice in writing in good time, say, after 90 days that he has already been on
loss of pay and that he should be cautious in exhausting the maximum permissible limit of
180 days. A similar caution letter must be issued when he has been on LOP for further 30
days.
The employee concerned may further be advised that if a request for extension of leave is not
submitted in advance, before the expiry of leave sanctioned he will not be allowed to rejoin
duty and the Company reserves the right to take appropriate action for unauthorized absence
as per the General Insurance (C.D.A)Rules 1975.
It is the joint responsibility of the DM/SDM and the Officer in-charge of personnel in the
Divisional Office to put the employee on notice, whenever leave on Loss of Pay is to be
sanctioned. In ROs, it the responsibility of the Regional Chief/RM/Manager/Manager in charge
of HRM at the material time and in HO, it is the responsibility of the Chief Manager in-charge
of the Department in which the employee is working.
Incidentally, if an employee/Officer is on LOP during the period of Probation, such instances
shall be brought to the notice of HRM Department, HO forthwith.
PERMISSION TO THE EMPLOYEES FOR JOINING HOME GUARDS ORGANISATION.

I.
Grant of Permission:
1. Keeping in view of the national importance of the Home Guards Organization, request of
the employees for joining the said organization will have to be considered. Except on
very strong grounds, the permission should not be refused. Appropriate steps should be
taken to ensure that the day-to-day work of the office does not suffer in any way as a
result of the grant of the above permission to any employee/s. The Government has
advised all Commandants, General Home Guards of all States/Union Territories except
Arunachal Pradesh, Kerala and Nagaland that if the exigencies of work in the office do not
permit an employee to remain absent from office for a fairly long period on account of
Home Guards work other than emergency duties, the employer may request the Home
Guards authorities as mentioned above to restrict the duration of such call-up to a limited
period so that their work does not suffer.
2. It has come to our notice that some time the services of the employees joining the above
Organization are not put to proper use. Before granting the permission, therefore, it
should be ensured by enquiring with the appropriate authorities that the services of the
employee will be put to proper use by the Organization.
II. Treatment of absence from Office:
1. Administrative instructions on leave provide for absence from duty up to a maximum of 15
days in a year for camp duties by employees who have been permitted to join Home
Guards Organization.
2. As regards absence of employees for Home Guards emergency duties, it has been decided
that the employees required to attend emergency duties may be treated on duty for the
67
period of their absence. Keeping in view the National importance of such emergency
duties, it may not be possible to put any limit on the period of absence to be treated as
on duty but it will be advisable if the employees give intimation to the Office preferably in
advance or atleast immediately after proceeding on such duties.
III.
Retention of remuneration by the employees:
The employees concerned may be allowed to retain in full the daily allowance that may be
paid by the above Organization to the concerned employees.
IV.
Claims for injuries
As regards the settlement of claims for injury etc, sustained by the employees, when they
attend any camp, during the period they are treated as on duty, no claim will lie against the
Company because at the relevant time the employees were on camp duty of the above
Organization. The employees will be treated on duty for the limited purpose of their
attendance and their eligibility for payment of salary for the period.
V.
Travelling Expenses
Travelling expenses for the journeys undertaken by the employees for attending to the work
connected with the above organization, is to be settled by the employees directly with the
above organization.
SPECIAL LEAVE FOR GENERAL ELECTIONS AND BYE ELECTIONS ETC.
Following instructions have been issued by the Government regulating closure of offices on
polling day(s), granting special leave etc. These, guidelines are extracted hereunder for
guidance and action, whenever necessary.
1. Election to Lok Sabha/State Assemblies:
(a) Local holiday is usually declared by the Government on the day(s) of the polling if held on
day(s) other than Sunday or other closed holiday. When such a holiday is declared, our office
located in such places will also be closed on the polling day(s) in accordance with the practice
adopted by the State Government.
(b) It may happen that an employee may be residing and enrolled as a voter in a particular
place/constituency other than his place of posting. In such cases, the employee concerned
may be granted special casual leave to enable him to exercise his franchise if the office in
which he is posted is not closed on that particular day.
2. Bye-Election Lok Sabha:
State Government normally declares a local holiday in that particular area/constituency on the
polling day(s)is the election is held on day(s) other than Sunday/closed holidays. The States
practice may be followed in such cases.
3. Bye-Elections to State Assemblies:
It would be sufficient if only those employees who may be placed on election duty are
permitted to be absent from the office on the polling day(s). All other employees should be
given facility to exercise their franchise either by way of coming late to office or by being
68

allowed to leave office early or a short absence on that day, subject to the exigencies of the
office.
In both Lok Sabha and State Assembly Bye-Elections, the Special CL may be granted in
situations mentioned in 1(b) above.
4. Elections to Panchayats/Corporations/Municipality or other Local Bodies:
Employees who are bonafide voters and desirous to exercise their franchise should be offered
reasonable facility, subject to the normal exigencies of the service either by way of coming
late to the office or being allowed to leave office early or short absence on that date.
5. Biennial Elections to the State Legislative Councils from Graduates and
Teachers Constituencies:
Employees who are University Graduates and bonafide voters in the elections to the State
Legislative Council from Graduates and Teachers constituencies may be allowed Special
Casual Leave on the Day(s) of the polling to enable them to exercise their franchise in the
said elections.
PERMISSION TO THE EMPLOYEES FOR JOING TERRITORIAL ARMY
1. Grant of permission:
Subject to office exigencies, the employees may be permitted to join only the urban units of
the Territorial Army where the training is carried out on part time basis outside office hours
and where the actual camp training on each occasion will be for a maximum of 14 days.
Permission to join Provincial Unit of Territorial Army shall not be given.
II. Treatment of absence from office:
Subject to the above, the employees permitted to join the Territorial Army camps for
duty/training shall be granted Special Leave for the period of such absence from the Office.
No limit shall apply on the number of days of Special Leave that can be granted for this
purpose to an employee during the year. Similarly, no ceiling shall also apply for such Special
Leave that can be granted during the tenure of the service of an employee. However, the
employees who have already been permitted to join the Territorial Army and when they
request for Special Leave of long duration, such requests have to be referred to Head Office
HRM Department with all relevant details.
III.
Retention of remuneration by the employees:
The employees concerned may be allowed to retain in full the daily allowance that may be
paid by the above Army to the concerned employees.
IV.
Claims for injuries:
As regards the settlement of claims for injury etc., sustained by the employees when they
attend the camp, during the period they are treated as on duty and no claim will be against
us because at the relevant time the employees were on camp duty of the above Army. We
would be treating the employees on duty for the limited purpose of their attendance, and
their eligibility for payment of salary for the period.
69

V.
Travelling Expenses:
We confirm that the question of travelling expenses for the journeys undertaken by the
employees for attending to the work connected with the above Army, is to be settled by the
employees directly with the above Army, and we have nothing to do in the matter.
CHAPTER - 10
TRAVEL RULES AND REGULATIONS
1. Definition of tour:
Tour shall mean a journey beyond 8 Kms. from the outer municipal limits of the headquarters.
2. Definition of each completed journey:
The expression each completed journey shall mean that the journey is completed when an
employee reaches the next place of duty. Thus if the employee is posted at headquarters 'A'
and is proceeding on tour to Station 'B', he shall be deemed to have completed his journey
once he reached the Station 'B'.
If, however, he has to proceed on further tour from Station 'B' to Station 'C' his journey
between Station 'B' to Station 'C' shall be taken as separate journey. It should, however, be
noted that if two or more journeys are completed on the same calendar day from midnight to
midnight, all such completed journeys shall be treated as one complete journey.
3. Travelling Allowance (Mode & Class of travel):
I. OFFICERS
70

a.The Officers while undertaking official tours shall be reimbursed the actual fare (inclusive of
reservation charges) by the mode and class of travel indicated below:Cadre of Officer
Mode
Class of Travel
Scale VII, VI & V
Air/Rail
Economy Class/A.C-I Class
Scale IV
Air/Rail
Economy Class/ II Class A.C Sleeper/I

class
*Scale III, II & I
Rail
II Class A.C. Sleeper/I class

(Dy.
Manager, AM & AO are entitled to
travel by II Class A.C Sleeper by
Rajdhani Express)
* However, for Scale-II & III Officers, Air Travel facility is allowed subject to the air fare not
exceeding 125% of the entitled rail (Rajdhani Express, if plying on the route) fare and the
tour approving authority satisfying before such air travel, so allowed shall result in adequate
saving on Daily Halting Allowance (DHA) and Hotel Charges.
b) In case of travel by Steamer the Officers may travel by the highest class.
c) Where the places are connected by road but not by train, the Officers may travel by the
First Class in a Bus, wherever it is provided or by taking a single seat in Taxi where such
facilities are available.
d) If, the places are connected by Train and still the Officers travel by Bus or Taxi, the fare
reimbursable shall be actual fare by Bus or Taxi but not exceeding Rail fares for a Class to
which he is entitled to travel as per regulation referred to above.
e) Notwithstanding above, the Officers entitled to conveyance facilities and taking tour by
their vehicles shall be governed by the following rules:
In case of Offices using Company owned cars
Petrol and Oil expenses as per actuals

supported by cash memos
Type of Vehicle
In case of Officers assigned with

Cars (Petrol)
development functions and other eligible
officers undertaking tour in their own vehicles Cars (Diesel)
(including vehicles on loan basis)
Two-wheelers
71
Mileage Allowance
(per km.)
w.e.f.01.06.2006
12%
15%
5%
f) When the Officer is on sanctioned tours outside city limit beyond 8 kms, from the
municipality limits of his place of posting, the mile age allowance shall be paid for the entire
distances i.e. from the office/residence (from where he proceeds on tour) to the place of tour.
II. SUPERVISORY. CLERICAL & SUBORDINATE STAFF
The eligibility of mode and class of travel shall be as under:Employees with Basic Salary of Rs.5,375/- & Rail-I Class (other than Rajdhani Express)above
Travel by A/C II Class sleeper coach may be
permitted where I Class accommodation is not
available. In addition to the above travel by
A/C II Class sleeper coach in ordinary trains 3
Tier sleeper coach in Rajdhani is permitted.
Employees with Basic Salary Less than Rail-I Class/II A/C sleeper (other than
Rs.5,375/Rajdhani Express) where night journey is
involved.
Class IV employees with Basic Salary of Rail-I Class (other than Rajdhani Express)Rs.5,375/- & above
Travel by A/C II Class sleeper coach may be
permitted where I Class accommodation is not
available. In addition to the above travel by
A/C II Class sleeper coach in ordinary trains 3
Tier sleeper coach in Rajdhani is permitted.
Class IV employees with Basic Salary less Rail-II Class, II class sleeper where night
than Rs.5,375/journey is involved.
Travel By Road:
Supervisory, Clerical and Subordinate Staff, by Public Transport by taking single seat.
Actual fare (by upper class if provided for all employees except Subordinate Staff).
III. TRAVEL BY HIGHER CLASS:

(a) FOR OFFICERS
The Chairman-cum-Managing Director, the General Manager may permit any other officer to
travel by Air or by a Class higher than the class by which the officer is eligible to travel under
these instructions.
(b) FOR EMPLOYEES
The Chairman-cum-Managing Director has been authorised by the Board of the Company to
permit the employees, in special circumstances, to undertake travels either by Air or by a
class higher than the class of their entitlement, when considered necessary and expedient. All
references in this respect have to be made to Head Office, HRM Department. Prior approval of
Head Office must be sought in all such cases.
72

IV. INSURANCE PROTECTION FOR TRAVEL ON OFFICIAL TOUR BY AIR:OFFICERS
1. Any officer travelling on office duty by Air may be allowed reimbursement of the premium
for air insurance cover. This insurance protection cannot be granted to officer undertaking
travel by modes other than Air.
2. An officer may, if he so desires, take out at his own cost an annual personal accident
insurance, which provides cover for the air journeys to be undertaken on official duty. As and
when an air journey is undertaken on official duty, the Officer may charge proportionate cost
of insurance for that journey in his bill for travelling expenses, quoting the insurer's name;
policy number and annual premium paid. In this way the officer can claim reimbursement of
the annual premium borne by him provided that the amounts so claimed during the year do
not exceed the cost of his annual insurance cover. The limit is as under:
DGM & above
Rs. 5 Lakhs
Chief Manager/Manager
Rs. 3 Lakhs
Dy. Manager/AM/AO
Rs. 2 Lakhs
SUPERVISORY. CLERICAL AND SUBORDINATE STAFF

3. Employees who are allowed by the Chairman-cum-Managing Director to travel by Air on
official duty, may be provided with insurance protection in the form of reimbursement of cost
of Air travel insurance for Rs.1 lac.
V. CONVEYANCE EXPENSES (RESIDENCE TO STATION & VICE-VERSA):
Employees when they undertake official tours may be reimbursed expenses actually and
necessarily incurred by them towards transport from their residence to the railway/bus
station/airport and from the railway/bus station/airport to their residence, both at the headquarters and at the places 1of their tours subject to the following:
Officers
Supervisory, Clerical & Subordinate Staff
Actuals
Actual subject to a maximum of 100% of
Halting Allowance at C Class city rate for
one day for each completed journey.
(Inclusive of incidentals, if any.)
73

Officers
General Provisions
Actuals
If two or more journeys are completed on
the same calendar day from midnight to
midnight, all such completed journeys
shall be treated as one completed journey
for the above purpose.
Where the employees are staying outside
the City limit of the Headquarters in
adjoining townships, the journey on tour
should wherever practicable start from the
Railway Station nearest to the residence.
VI. INCIDENTALS:
For Officers only :
In addition to applicable halting allowances the incidental expenses actually incurred by the
officers on coolie, hire charges, cost of transporting of personal luggages (including of excess
charges) and hire of bedding supplied by railway authorities for night journeys by train,
subject to a maximum of an amount equal to appropriate halting allowance for half a day
(Class "C" cities) for each completed journey, may be reimbursed.
If two or more journeys are completed on the same calendar day from midnight to midnight,
all such completed, journeys be treated as one complete journey for the purpose of claiming
incidentals.
VII. LOCAL JOURNEY AT TOUR STATION:
1. No expenses on local transport will be admissible to an employee who is provided with
transport at the tour station.
2. If an employee on Tour is not provided with local transport he may be allowed actual
expenses incurred on moving from the place to place on office work at the tour station
provided the amount spent was the minimum and inescapable.
3. No local conveyance expenses shall be allowed to employees on tour for proceeding from
the place of stay at the tour station to the office or first place of duty and vice versa.
4. Where an officer assigned with development function who undertakes an official tour by his
car, may claim reimbursement of 80% of the cost of petrol used for running at the place of
tour, subject to normal monthly limit on running expenses as per rule. Thus when such an
officer undertakes an official tour by his car, he should produce the bills/receipts for the petrol
purchased for the tour and show separately the quantum used for travel to the place of tour
and back and that used for running at the place of tour so as to apportion reimbursement of
mileage allowance under travelling rules and running expenses under conveyance facilities.
5. Sometimes Engineers have to proceed from the place of stay at tour station to the first
place of duty like insured's premises situated more than 30 kms. away. Such journeys beyond
8 Kms. from the municipal limits of the tour station should not be treated as local journeys
and should be treated as tour.
74

VII. HALTING ALLOWANCE
1. Rate of Halting Allowance:
CATEGORY
A-CLASS
CITIES
B-CLASS
CITIES
C-CLASS
CITIES
General Manager
600
550
500
Deputy General Manager
600
550
500
Chief Manager
600
550
500
Manager
600
550
500
Deputy Manager
550
500
400
Assistant Manager
550
500
400
Administrative Officer
550
500
400
2. Classification of cities:
'A' Class City means:
Cities with population exceeding 12 lacs includes Ahmedabad, Agra,Bangalore, Bhopal,
Chennai, Coimbatore (including Sulur), Faridabad, Gandhinagar, Ghaziabad, Goa and all cities
in the State of Goa, Gurgaon, Hyderabad, Indore, Jaipur, Kanpur, Kochi (including
Tripunithura & Kalamassery), Kolkata, Kozhikode (Calicut), Lucknow, Ludhiana, Madurai
(including Thirunagar), Mumbai, Nagpur, New Delhi, Noida, Patna, Pune (including Pimpri,
Chinchwad & Hadapsar), Secunderabad, Surat, Thiruvananthapuram, Ulhas Nagar, Vadodara,
Varanasi, Vashi, Vishakhapatnam (including Gajuwaka) & Meerut.
'B' Class City means:
Cities with population of 5 lacs and above but not exceeding 12 lacs, State Capitals with
population not exceeding 12 lacs includes Agartala, Aizwal, Aligarh, Allahabad, Amravati,
Amritsar, Asansol, Aurangabad, Bareilly, Bengaum, Bhavnagar, Bhubaneshwar, Bikaner,
Chandigarh, Cuttack, Dehradun, Dhanbad, Dharwad, Durg-Bhilai, Gangtok, Gorakhpur,
Guntur, Guwahati, Gwalior, Hubli, Imphal, Itanagar, Jabalpur, Jalandhar, Jammu, Jamnagar,
Jamshedpur, Jharia, Jodhpur, Kohima, Kolhapur, Kota, Mangalore, Mohali, Moradabad,
Mysore, Nasik, Panchkula, Pondicherry, Port Blair, Raipur, Rajkot, Ranchi, Salem, Shillong,
Sholapur, Sas Nagar, Shimla, Srinagar, Tiruppur, Trichirapalli, Vijayawada & Warangal.
'C' Class City means:
All cities other than those specified above.
3. Calculation for Halting Allowance
a) For calculating the halting allowance for the period of journey, the rate applicable for 'C'
class cities may be applied.
b) Halting Allowance shall be paid for the period from the time of commencement of outward
journey to the time of return to headquarters. For every unit of 24 hours, it shall be paid at
the above rates. Payments in respect of fraction of 24 hours shall be regulated by the
following table:
75
i) Period exceeding 12 hours

ii) Period exceeding
exceeding 12 hours
hours
Iii) Period not exceeding 6 hrs.
Same as for 24 hrs. unit

but
not 50% of the amount for a 24 hrs. unit

30% of the amount of a 24 hrs. unit
c) Where the departure of train/plane/bus is delayed, the scheduled time of departure of

train/plane/bus (irrespective of the actual departure time of train/plane/bus) should be taken
as the time of commencement of tour.
d) Where the arrival of train/plane/bus is delayed, the actual time of arrival of train/plane/bus
(irrespective of the scheduled time of arrival of train/plane/bus) shall be taken as the time of
termination of tour.
e) Where free lodging provided at the place of halt, 3/4th of the Halting Allowance will be
admissible.
f) Where free boarding is provided at the place of halt, 1/2 of the Halting Allowance will be
admissible.
g) Where free lodging and free boarding are provided at the place of halt, 1/4th of the Halting
Allowance will be admissible.
h) In cases where the officers get the facility of guest house accommodation provided by the
Company / Government / Public Sector Undertakings or staying with relatives, friends or
acquaintance halting allowance will be paid in full.
i) When Boarding and Lodging are provided free by the client to an officer on tour such officer
will be allowed 25% of the usual halting allowance admissible to him to cover the incidentals
during the period of stay at the place of tour.
j) Halting Allowance in the case of Development Officers and Supervisory, Clerical and
Subordinate Staff, who stay in guest houses maintained by the Company or any of its
Subsidiaries or the Life Insurance Corporation shall be admissible at half the normal rate
where Boarding or Lodging is provided free and 1/4th of normal rate if both the Boarding and
Lodging are provided free.
k) In case of stay in Hotel, Halting allowance will be reduced by Rs.10/-
4. Limit of Halting Allowance

a) OFFICERS
Full rate upto 180 days
Half rate beyond 180 days
b) SUPERVISORY. CLERICAL AND SUBORDINATE STAFF
76

Full rate upto 180 days only
Note : Counting of 180 days for 100% Halting Allowance is to be reckoned from the date of
departure from Headquarters and not from place to place, as the purpose of reduction is to
discourage unreasonably prolonged tour.
IX. HOTEL EXPENSES
(1) Officers in various grades/scales may be reimbursed the actual hotel expenses, restricting
to single room accommodation charges in ITDC Hotels, subject to the limits (category of
Hotels) given below :
Scale VII Officer
4 Star AC Single Room
Scale VI Officer
Scale V Officer
Scale IV Officer
Scale III Officer
2 Star Non-AC Single Room
Scale II Officer
Scale I Officer
Note:
a) If at a centre ITDC hotel of eligible star category is available the Officer should
normally stay in that hotel. If, however, no accommodation is available in any of the
ITDC hotels of eligible star category, or there is no ITDC hotel of eligible star
category, he may stay in any other hotel and seek reimbursement of actual lodging
expenses incurred to the extent of maximum tariff of an ITDC hotel of eligible star
category at the same centre.
b) The ITDC Hotel single room tariff ceiling as given above is exclusive of all taxes and
such taxes may be reimbursed over and above that amount.
c) Officers should invariably stay in Guest House. Whenever due to accommodation not
being available in a Guest House, an Officer is compelled to stay in a Hotel, he should
furnish a certificate to the effect that no accommodation was available in any Guest
House.
2. Limit of Lodging Expenses (Hotel Charges)

The employees who stay at hotel while on official tour may be allowed reimbursement of
actual lodging charges upto the following maximum limits:(w.e.f. 1.1.1997)
Category of
employees
Maximum lodging charges which can be reimbursed

Major Cities
Area I
Other Places
Scale VII & VI Officer
4000
2000
1750
Scale V & IV Officer
2500
1500
1300
77

Category of
employees
Maximum lodging charges which can be reimbursed

Major Cities
Area I
Other Places
Scale III & II Officer
1500
1000
800
Scale I Officer
1000
750
500
Superintendent/Sr.Asst./
Stenographer/Assistant/
Record Clerk
800
600
400
Subordinate Staff
700
525
350
Note:
Major Cities for this purpose shall mean the cities of Ahmedabad, Mumbai,
Bangalore, Kolkata, Delhi, Hyderabad and Chennai
** Area I shall consist of Cities of :
a) Pune, Nagpur, Kanpur, Surat, Jaipur, Lucknow
b) Vizag, Patna, Vadodara, Kochi, Indore, Bhopal, Ludhiana, Coimbatore,
Madurai, Agra and Varanasi (fresh inclusion on the basis of 2001 Census)
Officers in the cadres of DGM and GM who are unable to stay in eligible hotels in Delhi,
Kolkata and Mumbai within the permissible room tariff, may be reimbursed actual lodging
expenses for staying in other hotels not exceeding 125% of the room tariff for their entitled
class in Delhi, Kolkata and Mumbai.
X. GENERAL PROVISIONS
1. Check-off Time
In case of an employee staying in hotel where the check-off time is fixed at 12 noon is
charged lodging expenses for 2 days though his stay was less than 24 hours, he may be
reimbursed the actual lodging expenses charged by the hotel within the ceiling limit for 2 days
as per his entitlement subject to production of bills.
2. Taxes. Service Charges. Surcharges
The limit of reimbursement of lodging charges as given above is exclusive of all taxes, service
charges, surcharges and such payments may be reimbursed over and above that amount.
3. Reimbursement of Tips
Reimbursement of tips over and above the bills of hotel cannot be allowed.
4. Reimbursement of Breakfast Charges (Officers)
For the days the officer stays in a hotel, he will get reimbursed both the lodging charges and
the standard breakfast charges reasonably incurred at the same hotel. The daily halting
allowance admissible will be reduced by Rs. 10/- The following points are to be noted
78

a) If the hotels have standard breakfast as package on their menu for fixed charges, such
charges or the breakfast charges reasonably and actually incurred at the same hotel may be
reimbursed against the bill.
b) If the breakfast is taken at any other hotel/places, the same shall not be reimbursed.
c) In view of varying rates of standard breakfast served by hotels, no specific ceiling has been
laid down on reimbursement of standard breakfast charges. However, the reimbursement is
restricted to the actual charges which are reasonably incurred by the employees.
d) It has been reported that there are a few instances where proper care was not taken to
check the bills for breakfast charges and reimbursement has been allowed beyond what may
be considered reasonable charges for breakfast. Therefore, while settling the bills it is
necessary to check the cash memo/bills for standard breakfast charges (which have to be
necessarily from the same hotel where the employee stays) and ensure that the
reimbursement is restricted to the actual charges reasonably incurred for breakfast only.
5. Reimbursement of Breakfast charges (Class III & IV)
Supervisory, Clerical and Subordinate staff staying in a hotel or in a guest house maintained
by an organisation other than GIC/GIPSA Companies or the LIC shall be allowed
reimbursement of actual lodging charges and actual charges of standard breakfast subject to
limits for lodging charges in a hotel. Thus the Hotel limit is combined limit' for lodging and
breakfast charges.
XI. Special provisions with respect to training

1. Officers and Employees attending training programme outside city of their posting should
be considered as on tour. However, with respect to halting allowance the provision will be as
under
a) Halting Allowance shall be payable at full rate for the entire training period subject to, a
maximum period of 90 days if neither boarding nor lodging is provided free.
b) If boarding or lodging is provided, the Halting Allowance shall be payable at half rate.
c) If boarding and lodging are provided free, the halting allowance shall be payable at 25% of
normal rate for the period such facilities are provided. The rate of halting allowance to be
considered for this purpose shall be the rate applicable in case of tours to that city.
XII. Training at Management Institutions
The Officers deputed for training at the Management Institutions where the lodging and
boarding charges are included in the fees payable shall be paid daily halting allowance @ 25
% of the halting allowance as applicable.
XIII. Training at headquarter
79
1. Where an officer has to necessarily stay at the venue of the training (residential course) at
their headquarter and when the Officer actually stays at such venue boarding and lodging are
covered by tuition fees or are provided free the Officer is entitled to draw 25 % of the daily
halting allowance for the period of such training.
2. In case of non-residential training at the place of posting where the venue of training is far
away and in a different direction from the office, the officer/employee concerned may be
reimbursed reasonable travelling perks for attending the training.
XIV. TA/HA for purposes other than tour
1. In case of officiating
Where such officiating arrangement according to existing rules, is done it would be in order to
pay both officiating allowance and travel and halting allowance admissible to the officer if he
has been deputed to hold temporary charge of post other than his headquarters.
2. Attending conference of Insurance Institute of India
(a) Officers/Employees attending the conference as Council Member nominated by the
Company and those invited to Annual Conference of the I.I.I. to collect their prizes and also to
present Technical Session paper will be entitled to payment of travelling and halting allowance
etc. as per rules.
(b) Officers and Employees attending the Conference in any other capacity will not be eligible
for the said facility. However, the period spent by them on attending the Conference and the
journey time will be treated as on duty.
3. Appearing in test for conversion
TA/HA to employees who appear in the pre-recruitment test for conversion to Clerical cadre
from Typist may be allowed, provided they have to go to an outstation other than their place
of posting. Claims for overtime allowance, if any should not be entertained.
4. Appearing in the examination for recruitment in higher cadre
When employees attending interview for higher post in our industry they may be treated as
on duty and be paid TA/DA accordingly. However, employees appearing written examination
for higher post in the industry are not eligible to TA/DA on tour.
XV. Treatment of leave on tour Casual Leave
1. Casual Leave
The employee may be allowed to take Casual Leave whilst on official tour. However, for the
period the employee is on Casual Leave he shall not be entitled to any halting allowance. If
however, the employee proceeds out of tour station on Casual Leave and on holidays and
Sundays, prefixing and/or suffixing Casual Leave remains out of station he shall not be
entitled to halting allowance for the holidays and Sundays prefixing and suffixing such Casual
Leave, unless the employee is actually and not merely constructively in camp. However he
should be allowed to travelling fare etc. for the return journey to headquarters.
2. Sick Leave
80
An employee falling sick while on tour and compelled to take Sick Leave or Earned Leave or
any other leave on grounds of sickness may be allowed the fare for the return journey to
headquarters. However, he will not be entitled to halting allowance and lodging for the period
he is laid up with sickness at the place of tour and for the period of journey.
3. Earned Leave
If Earned Leave is taken while on tour, tour comes to an end. However, such Earned Leave is
taken on grounds of sickness the matter should be dealt with as mentioned above.
Note:
1. When an employee is required to proceed on official tour from a place (other than his
headquarters) where he is on leave, he should be considered to be on tour from that place
and the actual travelling expenses and halting allowance etc. admissible between
headquarters and the tour station whichever is less, should be allowed. He should be deemed
to have resumed his duties on the day the tour commences.
2. When an employee who is on Earned Leave is recalled to duty he/ she will be entitled to
TA/DA in respect of self only for returning to his headquarters provided the employee had
furnished his/her leave address in his/her leave application.
XVI. Submission of documents for settlement of claim
For travel by Rail, it should be enough for the employees to submit the details of ticket
numbers and the train by which the journey has been undertaken. The claims may, therefore,
be settled on the basis of these details furnished by the employees.
The relaxation shall apply only to journey by train and that too during the period the Railway
Authorities have dispensed with the practice of issuing money receipts. Under no
circumstances bills not supported by Money Receipt/ticket in case of journey by Air and Bus
and Ticket No./Ticket in case of journey by train shall be entertained.
XVII. Miscellaneous
1. Ticket Booking Charges
When the employees undertake official tours, the service charges required to be paid to travel
agents for booking Railway Tickets through them may be reimbursed. It may be stated that
such booking of tickets through travel agents may by kept at the minimum.
2. Advance Salary on Tour
Employees who will be away on tour on salary day may draw three days before the date of
their departure on tour, advance salary period not exceeding one month.
3. Expenses for attending Lok Adalat Session
a) The Officers may be paid Rs.1,000/- towards reimbursement of out of pocket expenses if
they attend the Lok Adalat on Saturdays and Sundays or holidays at the place of posting.
81
(b) If the Officer attends Lok Adalat at a place other than his/her place of posting, he/she
shall be eligible only for TA/HA applicable as on touras per rules in addition to Rs.500/towards reimbursement of out of pocket expenses.
4. Undertaking of official tour on hired taxi should be only with the permission of the
Competent Authority who sanctions the official tour. The reimbursement in the normal course
would be limited to the fare for eligible class unless dispensation is given by the appropriate
authority for travel by higher class mode.
5. In cases of tour undertaken by an Officer in the car owned by him or registered in the
name of his spouse, the travelling expenses can be settled on the basis of mileage allowance
applicable, provided the Competent Authority who has sanctioned the tour has specifically
authorised undertaking of tour by car.
Benefits applicable to In-situ promotions:
Officers selected for in-situ promotion (i.e. who are placed in the scale of pay applicable to the
higher cadre without upgradation of post or change of designation shall be given all the
benefits / perks attached to the higher cadre such as TA/DA, class of travel on tour, LTS,
Transfer, Retirement, Telephone facilities etc, as applicable.
CHAPTER - 11
TRANSFER BENEFITS
I. OFFICERS:
1. TRAVELLING EXPENSES:
Travelling Allowance shall be allowed to such Officer and members of his family by the class
of travel to which the Officer is entitled to travel on tour.
In case of travel of an Officer by hired taxi on transfer, reimbursement can be allowed subject
to the maximum fare by eligible class. This would be same even if an Officer owns a car
under the Company's loan scheme but undertakes travel by hired taxi on transfer.
Service charges paid to the travel agents for booking tickets will be paid in case of transfer.
Family includes spouse, legitimate dependent children, brothers, unmarried or widow sister
and parents residing with and wholly dependent on the Officer.
2. SECOND TRIP
a)
When the family and/or luggage of an Officer is left behind at the old head
quarters due to various compelling reasons, the Officer shall be allowed to make another trip
to his original place of posting to take his family and/or household effects to the new place of
posting and be allowed to and fro fares by the entitled mode and class.
82

b)
It may be noted that the second trip will be permissible only if the Officers'
family and/or his household effects are left behind at the old head quarters and the second
trip is considered necessary for shifting the same to the new head quarters.
c) The concerned Officer should obtain prior permission from the Competent Authority
before making second trip to his previous head quarter, giving reason for the same.
3.TIME LIMIT FOR SHIFTING FAMILY/HOUSEHOLD GOODS

a)
The Officer may be allowed to shift his family and/or household effects within a
period of six months of the date of release from place of transfer or the date of
commencement of the next academic year for his children's education whichever is later.
However, in exceptional circumstances, the CMD may allow extension of time limit of shifting
the family for a further period not exceeding six months.
b) Any Officer desirous of seeking extension of time limit for shifting family and/or household
effects on transfer must apply in advance through proper channel.
c) No post facto approval shall be accorded. Regional-in-Charge while forwarding the
representations must furnish the information as under:
i)
Date of release on transfer from the previous place of posting.
ii) Commencement of next academic year of children's education, if any. It may be

noted that the Regional-in-Charge must give his recommendation in such case. In case of
Officer retiring or the family of an Officer dying in harness intending to settle down at their
home town as declared by them or any other place of choice outside their place of posting
can be allowed the benefits only when they complete such shifting of family and/or household
goods within six months from the date of retirement/death.
83
UNITED INDIA INSURANCE COMPANY LIMITED

Regd. & Head Office : 24, Whites Road, Chennai 600 014
Phone : 044-28520161
Fax : 044-28524191
APPLICATION FOR SEEKING EXTENSION OF TIME FOR SHIFTING

FAMILY/HOUSEHOLD GOODS
1. NAME
2. EMPLOYEE NO.
3. DESIGNATION
4. TRANSFERRED FROM
-NAME OF THE OFFICE
-DATE OF RELIEF
:
:
5. PRESENT PLACE OF POSTING

NAME OF THE OFFICE
DATE OF JOINING
:
:
:
6. DETAILS OF ACADEMIC COURSES BEING PURSUED BY CHILDREN :
NAME OF THE CHILD
ACADEMIC COURSE
DATE ON WHICH
ACADEMIC SESSION IS
ENDING AT THE PRETRANSFERRED PLACE
84
DATE OF COMMENCEMENT
OF NEXT ACADEMIC
SESSION AT THE NEW
PLACE OF POSTING

7. PARTICULARS OF RESIDENTIAL
ACCOMMODATION WHETHER LEASED/
COMPANY OWNED ACCOMMODATION
PROVIDED AT PRE-TRANSFERRED PLACE :
YES
IF YES, DATE UPTO WHICH EXTENSION

IS GIVEN BY THE COMPTENT AUTHORITY
FOR CONTINUATION OF THE SAID
ACCOMMODATION
LIKELY DATE ON WHICH ACCOMMODATION

IS PROPOSED TO BE SURRENDERED
8. REASONS FOR SEEKING EXTENSION OF

TIME FOR SHIFTING FAMILY/HOUSEHOLD
GOODS
9. DATE UPTO WHICH EXTENSION OF TIME IS

REQUESTED FOR SHIFTING FAMILY/
HOUSEHOLD GOODS
NO
SIGNATURE OF THE OFFICER

10. RECOMMENDATIONS OF THE REGIONAL CHIEF
4. JOINING TIME/LEAVE:
The joining time on transfer to the Officers shall be allowed as under :
a)
If no change of residence is involved, one day. Saturday, Sunday and holiday
being reckoned as a day for the purpose.
b)
If change of residence from one station to another is involved, six days for
preparation plus the actual time of the journey by different modes of transport without any
break of journey. The Officer may be allowed to avail of joining time either on his first trip or
on the second trip when he takes his family and/or household effects to the new place of
posting or the same may be split up on these two occasions according to his convenience.
However, the joining time not availed of on either of these occasions cannot be claimed
thereafter.
c) Joining time may be availed of in conjunction with any type of leave as may be
necessarily admissible to the Officer.
5. HALTING ALLOWANCE DURING JOURNEY PERIOD:
For the period of journey, the Officer and members of his family (Children below 12 years
50%) shall be paid daily allowance at the following rates:
For the period of journey exceeding 12 hours, the daily allowance will be paid @ 100%.
For the period of journey between 6 hours and 12 hours, the daily allowance will be paid @
50%.
85
For the period of journey less than 6 hours, the daily allowance will be paid @ 30%.
6. TRANSFER GRANT :
Equivalent to one month's basic pay. The increment component of FPA may also be taken
into account for calculation of transfer grant.
The grant should be paid after reporting to the new place of posting. The transfer grant shall
be payable irrespective of whether an Officer transferred out of urban agglomeration shifts his
family or not.
7.BAGGAGE ALLOWANCE: (Reimbursement of expenses for transportation of
household effects.
LIMITS APPLICABLE FOR CLASS I:
CATEGORY
MAXIMUM PERMISSIBLE FREIGHT
a) DGM and above
Full four wheeler wagon or 6000 kgs. by Goods Train

or one double container.
b) Manager & Chief Manager
Full four wheeler wagon or 6000 kgs. by

Train or one single container.
c) Other Officers
4000 kgs. by Goods Train.
Goods
d) In cases where the personal effects are transported by road transport, the reimbursement
is restricted to maximum charges as would be payable to transport personal effects on
goods train, subject to the following limits:
Managers and above
Actual charges subject to a maximum of charges for

90 quintals by Goods Train.
Deputy Manager and below
Actual charges subject to a maximum of charges for

60 quintals by goods train.
Note : In case the goods are transported by road, Service Tax paid at the applicable rates
(the existing rate being 12.24%) may be reimbursed on the said eligible amount.
8. PACKING CHARGES:
Actual expenses subject to following limits may be reimbursed
a) DGM and above
b) Chief Manager & Manager
c) Dy.Manager/AM/AO
:
:
:
Rs.2,500/Rs.1,800/Rs.1,500/-
9. FORWARDING CHARGES:
86

Actual expenses on loading local transportation and unloading of goods subject to maximum
of Rs.500/- at each end.
10.
BAGGAGE INSURANCE: (All risk Marine transit)
Actual subject to production of receipt and relevant documents.

11.
OCTROI DUTY:
Actual subject to production of receipt (payable for both household goods & conveyance).
12.INCIDENTALS:
Incidental expenses are not payable to Officers on transfer.
13.
LOCAL CONVEYANCE:
Local conveyance expenses necessarily incurred for travel between Airport/Railway Station
and place of residence (both side) may be reimbursed.
14. TRANSPORT OF CONVEYANCE:
If the conveyance is transported by train or steamer, actual cost of transporting the
conveyance will be allowed. If it is taken by road, at least one member of the family of the
Officer shall accompany the vehicle and reimbursement as under the travelling rules of the
Company shall be allowed. Further, guidelines, under this head are as follows:
a)
Transportation charges for any one vehicle only shall be allowed to those
Officers who are entitled for cars and also to Officers of the rank of AM and above irrespective
of whether they are entitled to such conveyance or not.
b)
Other Officers may be allowed reimbursement of charges for transport of a
two wheeler vehicle owned by them.
c)
Officer, however, may transport their conveyance by Air or through a public
carrier in which case, the reimbursement shall not exceed the charges by goods train.
d)
If the transport is by road, the reimbursement shall be based on the full
mileage allowance for those who are entitled to conveyance facilities.
e)
Reimbursement shall be based on half the mileage allowance for those who
are not entitled to conveyance facilities if the transport is by road.
15. PET ANIMALS:
Transportation cost of pet animals are not payable separately.
16. MID ACADEMIC YEAR ALLOWANCE:
If an Officer is transferred from one place to another in the mid of an academic year and if he
has one or more children studying in school or college at the place from where he was
87
transferred and children are left behind to do their education, a mid academic year allowance
of Rs.680/- per month from the date the Officer reports at the later place upto the end of the
academic year may be paid. This Rs.680/- per month is payable irrespective of number of
children. If the children of the Officer are undergoing courses in institutions other than
regular schools/colleges (ICAI, ICWAI, ICSI, NIIT, etc.) he is not eligible for such allowance.
OFFICERS POSTED AT NORTH-EASTERN REGION:
However, Officers posted at North-Eastern Region will be paid Mid Academic year Education
Allowance @ Rs.680/- per month for the entire period of their posting in North-Eastern Region
(i.e., Assam, Meghalaya, Manipur,Tripura, Arunachal Pradesh, Nagaland and Mizoram)
irrespective of date of transfer provided the children of such Officers do not join the Office at
their place of posting in these areas.
The grant of the above allowance is effective from 1 st August, 2007 or the date of taking
charge at the North-Eastern States of posting whichever is later.
The Officer will be eligible to receive this allowance only if his child/children is/are staying
away from him and prosecuting studies at a place not falling in the North-Eastern Region.
Further, no allowance would be admissible if the children are not studying in a course
requiring regular attendance in a recognised school/college/university.
The payment of this allowance will be stopped from 1st of the month following the month in
which the Officers' child/children discontinue(s) full time studies or joins him at his posting in
North-Eastern Region.
In case of Officers already receiving Mid-Academic year Education Allowance under general
transfer rules, they will not be entitled to this allowance separately.
However, directly recruited Officers on their first posting, Officers transferred at their own
request and Officers who are transferred from one place to another place in the North-Eastern
Region are not eligible to this Mid Academic year Education Allowance.
Illustration for Para 16
An Officer who had reported to the new headquarter on transfer on 26.05.2008 and family
has been left in old headquarter for the sake of child/children's education, the question of mid
academic year allowance is to be dealt with as under:1.
If academic year is from July, 2008 to June 2009

The Officer may be paid the above allowance for May, 2008 (pro-rata) and June,2008
only.
2. If the academic year is from January, 2008 to December, 2008
The Officer may be paid the above allowance from May, 2008 (pro-rata) and till
December, 2008.
3. If the academic year is from May, 2008 to April, 2009
The Officer may be paid the above allowance from 26th May, 2008 to
April, 2009.
88

4. If the academic year is from April, 2008 to March, 2009
The Officer may be paid the above allowance from 26th May, 2008 to March, 2009.
17. HALTING ALLOWANCE IN LIEU OF HOUSING ACCOMMODATION
a) Where no Company owned or leased accommodation/rent compensation is provided to the
Officer after reporting to the new headquarter, a daily halting allowance as per tour rules to
be paid for a period not exceeding 30 days.
b) This allowance is payable to all the Officers regardless of categories.
c) This allowance is payable to the concerned Officer only and not to the members of his
family. However, hotel expenses are not to be reimbursed where accommodation is not
provided.
d) The daily halting allowance on transfer may be paid during the journey time, if any, availed
at the headquarters. However, it shall not be paid during the period of leave or tour.
e) The daily halting allowance is payable for a period not exceeding 30 days and not
necessarily for first 30 days.
ILLUSTRATION:
The Officer reported at the new headquarters on 01.01.2009.
He was not in a position to get accommodation upto 01.03.1989. During this period of 59
days from 01.01.2009 to 28.02.2009, he availed of leave of 20 days from 11.01.2009 to
30.01.2009 and is on tour for 10 days from 11.02.2009 to 20.02.2009. He will get
accommodation from 01.03.2009. The said Officer will be entitled to daily halting allowance
for a period of 29 days viz., 01.01.2009 to 10.01.2009 (10 days), 31.01.2009 to 10.02.2009
(11 days) and 21.02.2009 to 28.02.2009 (8 days). If the same Officer gets accommodation
on 02.03.2009 or from any later date, he would be entitled to daily halting allowance for 30
days (the other details of leave and tour remaining unchanged).
f)
When an Officer is allowed to retain Company accommodation at the previous
headquarter, he may be allowed daily halting allowance not exceeding 30 days if he does not
get residential accommodation at the new headquarters.
g) The halting allowance for the first 30 days is to be paid only to Officers who need
accommodation but the company could not provide staff quarter/leased accommodation
within 30 days.
h) Normally this allowance is not payable to the Officers who have got their own
accommodation at the place where they have been transferred.
i) However, where it is found that though the Officers owning house at places to which they
are transferred but not able to occupy the same for the reasons that the house is under
tenancy and the tenants require sometime to vacate the house. In such an event, Officers
89
are forced to stay initially in the transit camp or any other place till they get possession of
their own house.
In that event if such Officers represent and if the Sanctioning Authority is fully satisfied
about the genuineness of the circumstances that the Officer is not able to occupy the house
even partially, he may be paid halting allowance for first 30 days.
18. ALLOTMENT OF GUEST HOUSE/TRANSIT FLATS ON TRANSFER
a) An Officer on transfer may be permitted to stay in the guest house/transit flat as an
interim arrangement pending shifting of his establishment to the new place of posting. The
period of stay in the guest house/transit flat under this arrangement should not normally
exceed 120 days.
b) Requests for extended period of stay may be examined and the CMD may allow to
continue the Officer's stay in the guest house/transit flat under the following circumstances:i) Officer is not above to shift his family immediately because of school/college going
children or for other equally valid reasons. In such cases, the request to over stay
beyond the period of the three months may be agreed to, but such extended stay
shall not exceed in all a total period of six months or till the academic year comes to
an end, whichever is later.
ii) If the Officer has less than one year's service left before attainment of age of
superannuation he may be allowed to continue to stay till his retirement date.
In all the above cases, the Officer shall pay the normal tariff charges for the frirst 120 days
and at twice the normal rate for the subsequent period.
19. ON PROMOTION
The employees promoted to the higher cadre and transferred on promotion to different places
may be paid travelling allowance and other travelling benefits on transfer applicable to the
promoted (Higher) cadre.
20. ON RECRUITMENT
Existing employees who enter as Direct Recruits in the AO's cadre or clerical promotional
cadre may be allowed benefits such as travelling allowance for joining learning centre and
transfer benefits including TA/DA to members of family if the employee is selected and
posted to a place other than the present place of posting at the time of selection. This should
be on the basis as if the employee is promoted and transferred.
21. ON RETIREMENT AND TO FAMILIES OF OFFICERS DYING IN HARNESS
a) Officers retiring from services and the families of Officers dying in harness (including those
voluntarily retiring under TSR Scheme) are eligible for transfer benefits for journeys from the
place of posting to their home town/place of their choice, in which case the benefit will be
restricted to the maximum reimbursable for shifting to their home town. This benefit is
available only if the Officer/family of the deceased Officer claims for it within six months from
the date of retirement or death of the Officer as the case may be.
90
b) An Officer who has to vacate Company owned/leased accommodation on his retirement or

the family of an Officer dying in harness shifts to new residence which is within city limits, the
expenses incurred for transportation of household goods and loading/unloading charges etc.
may be reimbursed on actual subject to the following limits.
i) Transportation Expenses for Actual transportation charges subject to limit

household goods
of rail freight charges for the quantity of goods
specified for his category for the distance
involved.
ii) Packing charges
Rs.12.50 per quintal subject to the ceiling of Rs.500/-
iii) Forwarding charges
Actual subject to maximum of Rs.250/-
iv) Octroi Duty
Actual in case the municipal limits are crossed and

octroi duty is levied.
v) Transfer Grant
Transfer Grant is not to be paid
This benefit can be claimed within 6 months from the date of retirement/dying in harness.
22. MISCELLANEOUS
a) If an Officer is transferred from place (A) to place (B) and does not shift his family and/or
household goods to place (B) within the prescribed time limit and further transferred to place,
he/she may be allowed to shift his/her family and/or household goods from place (A) to place
( c )within the prescribed time limit from the date of his/her release from place (B) but the
reimbursement would be limited to the cost of transportation from place (B) to place (c ) or
actuals as per rules whichever is less.
b) An Officer who does not have a spouse or any other dependents at the time of joining at
the new place of posting (on transfer) but subsequently gets married cannot be allowed
reimbursement of travelling expenses for his/her wife/husband or other dependent when
he/she shifts his/her family.
c) When an Officer shifts from one station to another, entry tax on vehicle is (whether
purchased under company's loan or not) payable subject to the overall limit on
transportation charges available to the Officer.
II. SUPERVISORY, CLERICAL AND SUBORDINATE STAFF:

1. TRAVELLING EXPENSES:
The rates of travelling allowance payable to an employee on transfer and the conditions
thereof shall be as under:
91
a) Travelling allowance shall be allowed to such employee and the members of his/her family
by the class of travel to which the employees is entitled to travel on tour.
b) Towards incidentals for thejourney, halting allowance shall be granted to such employee
and the members of his/her family for the time spent on journey. For children below 12
years, the entitlement shall be at half the rate of halting allowance.
2. JOINING TIME
Joining time on transfer shall be allowed as follows:
i) One day, if no change of residence is involved; Saturday, Sunday or a holiday being
reckoned as a day for the purpose.
ii) Six days, if change of residence from one station to another is involved, plus the actual
time of the journey by different modes of transport without any break in journey.
3. BAGGAGE ALLOWANCE
a) Reimbursement of expenses on transportation of personal baggage shall be as follows:
For employees drawing basic salary
With Family
Without Family
Over Rs.22930/-
30 Qtls./3000 Kgs.
10 Qtls./1000 Kgs.
Between 14531/- and Rs.22929/-
25 Qtls./2500 Kgs.
7.5 Qtls./750 Kgs.
Rs.14530/- and below
15Qtls./1500 Kgs.
5 Qtls./500 Kgs.
b) The luggage may be carried by Goods Train or by Passenger Train or if Rail Transport is
not available, by other mode of transportation, subject to the conditions that the cost of
transportation shall not exceed the maximum permissible by goods train.
c) The rate of transportation by Road shall be 5 paise per Km. for every 35 Kgs. or part
thereof. For cartage of luggage from residence to rail-head and vice versa, the same rates
shall apply.
4. PACKING CHARGES
For packing charges, reimbursement shall be as follows:
i) For employees drawing basic salary over Rs.22930/ii) For employees drawing basic salary from Rs.14531/- to Rs.22929/iii) For employees drawing basic salary of Rs.14530/- and below
Rs.
500/500/350/-
5. TRANSFER GRANT (Other than promotion posting)
BASIC SALARY
TRANSFER GRANT
Over Rs.22930/-
Rs.1,000/-
Between Rs.14531/- & Rs.22929/-
Rs.750/-
92
BASIC SALARY
TRANSFER GRANT
Rs.14530/- & below
Rs.500/-
Note:
1.'Family' in relation to an employee, includes the Spouse, legitimate dependent
children and parents residing with and wholly dependent on the employee.
2.'Dependent' means not having income exceeding Rs.1,500/- p.m.
3.Second Trip may be allowed to employees to shift family and/or household effects
for transfers other than request transfers. The time limit for shifting of family and the
extension of time limit thereof shall be on the lines of the Officers.
4.Employees promoted from Class III to AO Cadre, will be eligible for transfer benefits
including transfer grant as applicable to the promoted cadre.
5.Splitting up of Joining time is permissible where the second trip is undertaken for
shifting of family and/or household articles.
6. For transfer under promotional posting, transfer grant is one month basic salary.
III.
GENERAL PROVISIONS
Subordinate
Staff
(For
Officers
and
Supervisory,
Clerical
and
1. 'Dependent' means not having income exceeding Rs.1,500/- p.m. It is clarified that the
mother of an employee cannot be treated as a dependent if the father of the employee is
having an income of more than Rs.1,500/- p.m.
2. (a) Where both husband and wife are employees of GIC/Companies and are transferred
from and to the same stations simultaneously, transfer grant and all other transfer benefits
as applicable, should be allowed as one single unit. The transfer benefits will be payable
to only one employee drawing higher basic pay as on the date of taking charge at the new
place of posting.
(b) Transfer of one spouse, within a period of three months of the transfer of the other
shall be deemed to be simultaneous for this purpose.
3. No transfer grant shall be allowed to an employee/officer transferred from one office to
another located in the same Urban Agglomeration.
Note:
There is no provision for payment of transfer benefits and allowing joining time to the Part
Time Sweepers transferred from one place to another except in cases where the transfer is on
account of merger of a non-viable office with another office in a different location. In such
cases, grant of joining time and other benefits as in the case of Class IV employees may be
allowed as a very special case.
93
Reimbursement of expenses for shifting of personal effects from

Company's
residential
accommodation/leased
residential
accommodation/existing accommodation to the Company leased/company
owned/Company's rented residential accommodation.
As per the existing practice, officers who are shifting their personal effects from
leased residential accommodation to company's residential accommodation within the
same municipal limits only are allowed reimbursement of expenses with specified
limits which needs a revision.
In this regard, the Competent Authority has decided that the employees who shift
personal effects from Company's residential accommodation/released residential
accommodation/existing accommodation to the company leased/company
owned/company's rented residential accommodation as per limit given below or
actual expenses incurred which ever is less w.e.f. 01.11.2010 subject to production of
bills:
Sl.No.
1
2
3
CADRE
Scale I, Scale II & Scale III
Scale IV & Scale V
Scale VI & Scale VII
Miximum Amount
Eligible
Rs.5,000/Rs.7,500/Rs. 10,000/-
Note: *The above amounts may be limited to the extent of 25% only if the shifting is
within the same compound/Colony/Premises.
The transferred Class III employees who are eligible for leased residential
accommodation as per Rules may also be allowed reimbursement of actual shifting
expenses up to a maximum Rs.3,000/- subject to production of bills. In all other
cases no reimbursement would be allowed.
94
CHAPTER - 12
ENCASHMENT OF LEAVE
I.
LEAVE ENCASHMENT DURING SERVICE:
A. OFFICERS
Officers may encash earned leave during service as per the following rules :
1.
Once in a block of two calendar years, the Earned Leave standing to the credit of an
employee may be encashed subject to a maximum of 15 days and upon such leave
having been encashed, the Earned Leave account of such employee shall be debited
with a number of days of Earned Leave encashed by him.
Provided that before such employee is allowed to encash the Earned Leave as
aforesaid, he shall be required to avail of Earned Leave for a continuous period of not
less than 15 days. However, with effect from 1.12.2010, this condition is dispensed
with.
2.
The first block of two calendar years commenced on 30.9.80 and ended on 31 st
December, 1981. The subsequent blocks of two calendar years would be 1982/83,
1984/85 and so on.
3.
The encashment may be permitted only once in a block of two years. It is, therefore,
clarified that the encashment upto the maximum permissible period of leave shall be
allowed only on one occasion in the stipulated block. For example, if an employee
avails encashment of Earned Leave say for 7 days, in a particular block, he shall not
be eligible to avail of encashment again in the same block.
4.
The salary for the purpose of encashment shall consist of basic pay, special pay (if
any), personal pay (if any) and all other allowances including FPA (increment
component of FPA plus DA there on as on 01.11.1993) drawn by the concerned
employee excluding Officiating Allowance, Functional Allowance, Conveyance
Allowance and Entertainment Allowance drawn by him.
5.
No contribution to Provident Fund shall be effected from the amount payable to the
employees towards the encashment of Earned Leave.
6.
It is clarified that the period of earned leave encashed, shall count for the purpose of
accrual of Earned leave.
95

7.
The employee may be allowed encashment of 15 days earned leave or less for a
particular block.
(a) Leave encashment facility will be available to India based Officers posted abroad,
only during the period they are in India on leave.
(b) The salary for the purpose of encashment would be the salary he would draw in
India at that point of time.
(C) It will be in order to make the disbursement of leave encashment amount to the
India based Officers posted abroad at the Officers place of posting.
Note:
1.
The deduction of wages for participation in strike or unauthorised absence or SL with half
pay during the month prior to the month in which the employee proceeds on encashment
leave will not have any impact on the quantum of leave encashment salary. In other
words, the encashment would be in the basis of the salary the employee is normally
entitled to.
2.
Officers who resign from services are not entitled to claim leave encashment.
3.
For the purpose of calculating encashment of Earned Leave, the normal salary for the
previous month of encashment should be divided by 30 days (irrespective of number of
days in a month) and multiplied by number of days of Earned Leave for encashment.
4.
The application for encashment of earned leave should be submitted to the Competent
Authority in the prescribed form. Payment shall be made within 3 days from the date of
receipt of application.
5.
The encashment of earned leave is deemed to have been done in the block year in which
the application in prescribed format is received by office.
6.
The number of days if earned leave encashed (maximum 15 days in one block) shall be
debited to leave.
B: SUPERVISORY, CLERICAL AND SUBORDINATE STAFF

Supervisory, Clerical and Subordinate Staff may Encash Earned Leave during service as per
the following rules :
1.
The encashment of Earned Leave may be permitted only once in a block of two calendar
years. The first block for this purpose shall commence on the first day of April 1992 and
end on 31st December 1993. The subsequent blocks of two calendar years shall be
1994/95, (1.1.1994 to 31.12.1995), 1996/97 (1.1.1996 to 31.12.1997), 1998/99
(1.1.1998 to 31.12.1999) and so on.
2.
Salary for this purpose shall consist of Basic Salary, HRA, Special Functional Allowance, if
any, Personal Allowance and other allowances (incl.) qualification pay, graduation
96

allowance, FPA (increment component of FPA plus DA there on as on 01.11.1993) drawn
by the Employee prior to the date on which he proceeds on Earned Leave but shall
exclude Officiating Allowance, Entertainment Allowance, Functional Allowance,
Conveyance Allowance, if any, drawn by him/her.
3.
No contribution to Provident Fund shall be effected from the amount payable to the
employee towards encashment of Earned Leave.
4.
The number of days if earned leave encashed (maximum 15 days in one block) shall be
debited to leave.
5.
The maximum encashment shall be for 15 days at a time. If any employee avails
encashment of Earned Leave for less than 15 days during a block of two years he/she
shall not be eligible again to avail of encashment of Earned Leave during the same block.
Refer caluse 5 of previous NOTE above.
Employees who resign from services are not entitled to claim leave encashment.
6.
7.
The encashment of earned leave is deemed to have been done in the block year in which
the application in prescribed format is received by office.
Note:
1.
The additional temporary increment paid to employees for passing Hindi Typing/Steno
examination is not to be included as salary for the purpose of encashment.
2.
Part Time Employees are not entitled for leave encashment during service/on retirement
or death.
3.
For the purpose of calculating encashment of earned leave, the normal salary for the
previous month of encashment should be divided by 30 days (irrespective of number of
days in a month) and multiplied by no. of days of earned leave for encashment.
4.
The deduction of Wages for participation in strike or unauthorised absence or Sick Leave
with half pay during the month, prior to the month in which the employee proceeds on
encashment leave will not have any impact on the quantum of leave encashment salary.
In other words, the encashment would be on the basis of the salary the employee is
normally entitled to.
5.
Payment shall be made within 3 days from the date of receipt of application by the office.
ENCASHMENT OF LEAVE AT THE TIME OF RETIREMENT AND IN CASE OF
DEATH
A.
OFFICERS
At the time of retirement: (including voluntary retirement)

1. Balance leave at credit (subject to a maximum of 240 days) can be encashed.
2. For calculating the encashment amount, salary should be taken as the amount drawn
immediately preceding the date of retirement but excluding HRA, CCA, Officiating,
Functional, Special Area allowances and other non-core benefits such as Conveyance,
Entertainment and telephone allowances. (Personal allowance, if applicable to be
97
included). The increment portion and the DA component of the FPA shall count for the
purpose of encashment of PL on retirement. Any HRA component shall not count for the
above purpose.
3. Payment not to be made before the actual date of retirement.
In the case of death

1. Entire leave (subject to a maximum of 240 days) standing to the credit at the time of
death can be encashed.
2. For calculating the encashment amount the salary should be taken as the salary as on
the date of death excluding officiating, special area and functional allowances and other
non-core benefits like conveyance, entertainment and telephone allowances (Personal
allowance, if applicable to be included). The increment portion and the DA component of
the FPA shall count for the purpose of encashment of PL on retirement.
A.
SUPERVISORY, CLERICAL AND SUBORDINATE STAFF
At the time of retirement : (including voluntary retirement)

1.
Balance leave at credit (subject to a maximum of 240 days) can be encashed.
2.
For calculating the encashment amount, the salary should be taken as the amount
drawn immediately preceding the date of retirement but excluding HRA, CCA,
Officiating, Functional and Special Area allowances and other non-core benefits if any.
The increment portion and the DA component of the FPA shall count for the purpose
of encashment of PL on retirement.
3.
Payment not to be made before the actual date of retirement.
In the case of death:

1.
Entire leave (subject to a maximum of 240 days) standing to the credit at the time of
death can be encashed.
2.
For calculating the encashment amount, the salary should be taken as the salary as
on the date of death excluding Officiating, Special area and Functional allowances and
non-core benefits if any. The increment portion and the DA component of the FPA
shall count for the purpose of encashment of PL on retirement.
Other Aspects:
1.
Encashment of earned leave whilst in service is taxable in full. In case of retirement,

exemption is available as per the provisions of I.T. Act.
98
2.

The amount of Encashment of Earned Leave should be paid only by means of an
Account Payee cheque after getting a proper discharge from the concerned employee
across a revenue stamp. The stamp charges are to be borne by the Company.
3.
A register should be maintained in such a manner where from information as to

different block years, encashment whether utilised or not can be obtained, for control
purposes.
4.
Proper internal check measure must be in vogue to see that the leave records of
employees are immediately posted.
5.
Last Pay Certificate issued at the time of transfer of employees to other offices should
include details of Leave Encashement paid and due for the current Block year.
99
CHAPTER 13
LEAVE TRAVEL SUBSIDY
I. Employees to whom the Instructions apply:
1. Save as otherwise provided by or under these instructions, leave travel subsidy shall
be admissible to confirmed employees of the Company.
2. The Subsidy shall not be admissible to:
(a) any employee, who is not a whole time employee of the Company, or who has
been appointed on contract or work charged basis;
(b) any employee serving out of India; provided however, the India based Officers
posted abroad may during the period they are in India on leave be allowed
the Subsidy.
II. Definition:
1. 'Block' shall mean a block of two calendar years and in case of Officers it shall
commence on the 1st day of January, of an odd numbered year and expire on the
31st December, of the following even numbered year, whereas in case of all other
employees, the block shall commence on the 1st day of January of an even numbered
year and expire on the 31st day of December of the following odd numbered year.
2. 'Children' shall mean legitimate, legally adopted or step children.
3. 'Corporation' means the General Insurance Corporation of India formed under Section
9 of the General Insurance Business Nationalisation Act, 1972.
4. 'Company' means the National Insurance Company Limited, the New India Assurance
Company Limited, the Oriental Insurance Company Limited or the United India
Insurance Company Limited.
5. 'Competent Authority' shall mean an Officer, not below the rank of an AM, duly
appointed for the purpose by the Officer-in-charge of the Office where the employee
is working.
6. 'Dependant' shall mean a person with an earned income not exceeding Rs.1,500 per
month. A stipend or a scholarship granted for educational purpose shall not be
deemed as income for this purpose. The mother of an employee cannot be treated as
the dependant if the father of the employee is having an income of more than
Rs.1,500 per month.
A divorced daughter who is totally dependant on the employee and does not have an
income of Rs. 1,500 or more per month is eligible for LTS. (Competent Authority
should satisfy about total dependability of divorced daughter on the employee)
7. 'Employee' shall mean a confirmed employee working in India, but shall not include
those appointed on contract or work charged basis.
8. 'Family' in relation to an employee shall include spouse, legitimate dependant children
and dependant parents residing with and wholly dependant on the employee.
[legitimate children include legally adopted and step children].
100

9. 'Holiday leave travel' for the purpose of these instructions shall be a travel to places
other than hometown.
10. 'Home town' for the purpose of these instructions shall mean the home-town of the
employee as declared by him, duly supported by reasons as the place where he would
normally reside but for his absence from such a station for service in the Corporation
/ Company. Such a declaration shall be subject to acceptance by the Competent
Authority.
11. 'Officer' means an employee appointed in India, and serving whether in India or
outside India, in a position other than Supervisory, Clerical and Subordinate position
but does not include a member of the development staff.
12. 'Subsidy' means Leave Travel Subsidy.
III. Entitled Distance:
1. For travel to place other than hometown - 2000 kms. each way for all employees.
2. Travel to hometown - the actual distance from place of posting to the hometown by
the shortest route.
IV. Entitled mode and class:
Entitled mode and class for this purpose shall mean the mode and class of travel by which the
employee is entitled to travel on duty (on tour).
V. Home Town:
1. Every employee shall submit the declaration within one month from the date of his
confirmation.
2. The declaration of hometown shall be submitted in the prescribed form.
3. For the purpose of determining, whether an employee's declaration of hometown may
be accepted, the Competent Authority shall satisfy one or more of the following
criteria.
a) whether the place declared by the employee is one which requires his physical
presence at intervals for discharging various domestic and/or social obligations
and whether, after his entry into service, the employee has been or is likely to
visit that place regularly.
b) Whether the employee owns residential or landed property in that place or
whether he is a member of a joint family owning such property there.
c) Whether near relations of the employee are resident in that place.
d) Whether the employee had been living in that place for some years prior to his
entry into the service.
4. Where the employee or his family owns residential or landed property in more than
one place, one such place among these as is chosen by the employee, for reasons to
be given, may be declared by him as his home town, subject to acceptance by the
Competent Authority
5. A declaration of hometown once made and accepted by the Competent Authority shall
be treated as final.
Provided that the CMD may in exceptional circumstances accept a change in the
hometown but such a change shall not be made more than once during the entire service
period of an employee.
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VI. Conditions for admissibility of Subsidy:

1. Subsidy shall be available to an employee and his family members provided the
employee goes on leave for travel to any place in India including the travels to islands
forming part of India.
Further, employees desirous of availing leave for travel outside Indian border may
submit their claims for L.T.S. and reimbursement in such cases will be limited to
entitled fare admissible for travel upto 2000 Kms. or Indian border whichever is less,
depending on the category of the employee and class of travel to which he/she is
entitled.
2. Travel Subsidy can be availed by an employee during any sanctioned leave including
the Casual Leave without any restriction as to the minimum number of days. It
should, however, be noted that such leave should be sanctioned in advance and also
due intimation to avail LTS be given to Office. The Competent Authority may, if
considered necessary in individual cases, waive the requirement with regard to prior
intimation
3. Leave travel subsidy shall not be admissible to an employee who proceeds on leave
and then resigns his post without returning to duty.
VII. Frequency of Entitlement
1. The subsidy shall be admissible once in every block of two calendar years.
2. In the event of the return journey falling in the succeeding calendar year, leave travel
subsidy shall be reckoned against the calendar year in which the outward journey
commenced.
3. In case an employee is promoted to the cadre of Officer, he shall be entitled to the
subsidy in the promoted cadre from the date following the date of expiry of the block
in the lower cadre for which he has already availed of the subsidy or the date of
promotion whichever is later.
4. Admissibility of leave travel subsidy for one way journey shall be determined with
reference to the facts existing at the time of commencement of outward and return
journeys respectively.
5. Special provisions where spouse of the employee is also entitled for subsidy or other
leave travel concession from his/her employer:
a) When both husband and wife are employees of the Corporation and/or any of its
GIPSA Companies, they shall be treated as a single family unit and the dependant
children and dependant parents of both the employees shall be included in the family
unit for the purpose of these instructions. The appropriate 'class' for this family unit
shall be the higher of the classes to which the employees are entitled individually to
travel on duty (on tour). The subsidy shall be admissible to one employee and not to
both.
b) When the spouse of an employee is entitled to avail from his / her employer, leave
travel concession or free pass in terms of his/her employment and the spouse has
availed of this concession for a particular travel, the employee shall not avail of the
subsidy for the same travel in respect of such members of the family for whom the
concession was availed.
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Note: The blocks of two years referred to in item(1) shall be the same for all employees
irrespective of the date from which they become eligible for the subsidy.
VIII. Advances
1. An advance may be granted to an employee against the reimbursement admissible
under these instructions subject to maximum of 90% of the total subsidy.
2. The advance may be granted at the time of commencement of the outward journey
only. Application for advance must be forwarded alongwith application for leave.
3. a) An employee may be allowed to draw advance prior to the commencement of the
journey. The advance shall be granted only if the leave necessary for availing the
Leave Travel Subsidy is sanctioned.
b) For journeys to be undertaken by train where the advance bookings are
necessary, advance for leave travel subsidy shall be paid 60 days prior to the
commencement of the journeys. When the Journey is being undertaken by
unreserved class in Train or by Taxi, the advance for LTS shall be paid 3 days before
commencement of leave/journey.
c) Tickets purchased (atleast for outward journey)out of the advance drawn shall be
produced to Competent Authority within a week of drawing the advance for
verification and return.
d) Advance drawn has to be refunded forthwith if the outward journey is not
commenced as per the leave already sanctioned at the time of drawing advance.
There is no provision for refund of the advance amount on account of LTS journeys in
instalments.
e) In the event of an employee changing the date/period of leave in connection with
the journey to be performed under LTS, the advance drawn is to be refunded
forthwith unless the changed date/period of leave makes an employee eligible
to
draw advance in terms of 3(b)as stated above. The same is applicable to
employees in case of non-availability of train reservation.
Employees, not refunding forthwith the entire amount drawn as LTS advance in the
event of not performing the journey owing to change in the date of leave and/or nonavailability of train reservation and thereby becoming ineligible in terms of 3(b)above
to hold the advance amount shall be liable to appropriate disciplinary action for failure
to maintain absolute integrity, acting in a manner prejudicial to the interest of the
company and committing of an act subversive of good conduct and behaviour.
f) If an employee returns the advance in full without availing the LTS for personal
reasons, further advance towards LTS will not be considered and such employees are
required to intimate the intention to avail LTS, as usual and should submit the bills
after availing, for processing and reimbursement.
IX. Reimbursement Entitlement:
A. Travel to a place other than home town:

The amount of reimbursement admissible on LTS shall be as under:
1. For AO, AM and Deputy Manager:
a) Travel by other than Rajdhani Express:
Irrespective of mode and class by which the officer travels, the amount of reimbursement
admissible as LTS shall be:
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i) the fare actually paid both for onward and return journey;
or
ii) aggregate of A/c II Sleeper railway fare for 2000 Kms. each way (for train other
than Rajdhani) whichever is less.
b) Travel by Rajdhani Express:
Notwithstanding(a) above, if the entire travel is by Rajdhani Express II A/c Sleeper, the
reimbursement shall be on actual basis, provided the distance travelled does not exceed 4000
Kms.
c) Part of travel by Rajdhani II A/c Sleeper:

If travel by Rajdhani II A/c Sleeper is less than 4000 Kms. both ways and the travel by the
other modes/class is also undertaken, the reimbursement will be the aggregate of (i) and (ii)
below:
i) the actual Rajdhani II A/c Sleeper fare, and
ii) the fare actually paid for the distance travelled by other than Rajdhani II A/c
Sleeper but not exceeding the aggregate of 'Entitled Railway Fares' for half of the
'
Remaining distance' each way.
Note:
1) 'Remaining distance' for this purpose shall mean 4000 Kms. minus the distance travelled
both ways by Rajdhani II A/c. sleeper.
2) 'Entitled Railway Fare' shall mean II A/c Sleeper fare by train other than Rajdhani Express.
2.For Manager:
a) Entire travel by air:
If entire travel is undertaken by air, the reimbursement will be the fare actually paid provided
the distance travelled both ways does not exceed 4000 kms. If the distance travelled both
ways exceeds 4000 kms, the amount to be reimbursed shall be restricted for 4000 kms.on pro
rata basis. For example, if an officer has travelled a distance of 4500 kms., both ways and has
spent aggregate fare of say, Rs. 11,250/-, his reimbursement will be Rs.10,000 i.e.4,000/4500
x Rs.11,250 = Rs. 10,000/b) Entire travel by mode other than air:
If the entire travel both ways is undertaken by any mode other than air, the reimbursement
will be equal to the fare actually paid subject to a maximum of the aggregate of II class A/c
Sleeper fare for 2000 kms. each way for train other than Rajdhani.
c) Travel partly by air and partly by other modes:
If an Officer travels partly by air and partly by other modes, the reimbursement shall be as
under:
i) Where the total distance travelled by air is more than 4000 kms. the reimbursement
will be restricted to the pro- rata air fare for 4000 Kms. As in para 2(a) above.
(ii) Where the total distance travelled by air is less than 4000 kms. the reimbursement
will be the aggregate of (x) and (y) below:
x) the actual air fare incurred, and
y) the fare actually paid for the distance travelled by mode other than air but not
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exceeding the aggregate of entitled railway fares for half of the "Balance Distance
each way.
Note:
"Balance Distance" for this purpose shall mean 4000 Kms. minus total distance travelled by air
Provided that if part of the distance is travelled by 'Rajdhani' II A/c Sleeper, reimbursement of
fare for distance so travelled shall be on actual basis as in case of air travel subject to the
condition that aggregate of distance travelled by air and Rajdhani II A/c Sleeper does not
exceed 4000 Kms.
Provided further that for calculating 'Balance Distance', distance travelled by 'Rajdhani' II A/c
Sleeper shall also be added to the distance travelled by air.
3. For Chief Manager and above:
Reimbursement shall be as stipulated in case of Manager subject to the change that wherever
the reference is made to 'II A/c Sleeper' , it should be read as ' A/c I Class
4. For Supervisory, Clerical and Subordinate Staff:
A. Travel to a place other than home town:
Irrespective of mode and class by which the employee travels, the amount of reimbursement
admissible as LTS shall be:
a) The fare actually paid both for onward and return journey; or
b) Aggregate of railway fare for 2000 kms. each way by entitled class; whichever is lower
Note:
i) The reimbursement shall be of the actual fare incurred for the journeys and charges for
sleeper berths and shall also include reservation charges paid to the Railways as well as for
other modes of transport also viz. Sea and Road.
Further charges, surcharges, etc. for travel by appropriate class for special/super fast trains
may be treated as part of fare and reimbursed accordingly. It shall not include expenses on
local transport or any other incidental expenses.
ii) Entitled class shall mean.
Mode of Journey
Eligible Class
a)
Employees with basic Rail (Other than Rajdhani) I Class/II AC Sleeper
salary of Rs.12365/Rajdhani
Chaircar/3 Tier Sleeper
b) (i) Class III employees Rail (Other than Rajdhani)
with basic salary less than
Rs.12365/(ii) Class IV employees with Rail (Other than Rajdhani)
basic
salary
less
than
Rs.12365/-
II Class (I Class/II AC Sleeper

where
night
journey
is
involved)
II Class (Sleeper Class where
night journey is involved)
Note : Night journey would mean travel of atleast four and a half hours durations
between 9.00 p.m. and 6.00 a.m
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REIMBURSEMENT ENTITLEMENT :
1.
2.
3.
4.
Chief Manager & Above

Manager
Admn. Officer to Deputy Manager
Class II, III & IV employees
Economy Class (Air) /I AC(Train)

Economy Class (Air) /II AC(Train)
II AC(Train)
II AC(Train)/I Class/II Class(Sleeper)/II Class
Note:- Where a Class III & IV employee drawing a basic pay of Rs. 12365/-and above travels
by different Modes or different classes, the maximum reimbursement of actual expenses will
be limited to II A/c fare(other than Rajdhani Express) for the eligible distance, i.e. 2000
Kms.each way.
B. Travel to Home Town:
All employees travelling to Home Town are expected to travel by the shortest route. The
reimbursement shall in such cases be limited to the fare(fare for outward and return journey
combined)by the entitled class by the shortest route. Even if the employee travels by different
modes of travels and different classes, the amount of entitlement shall be the actual amount
spent by him not exceeding to and fro return fare by the shortest route by the entitled class.
If however, the employee travels by longer route to his Home Town it will be necessary to
ascertain the excess distance travelled and deduct from his claim the fare for the excess
distance by the lowest mode/class travelled by him during the entire to and fro journey.
X. Procedure for reimbursement:
1. An employee who proposes to avail of leave travel subsidy should intimate the
authority in prescribed form. Such intimation shall be prior to the date of outward
journey with details of the names of the persons availing of concession and the
proposed date of the outward journey.
2. An employee availing of leave travel subsidy shall submit his claim for reimbursement
within 15 days from the date of completion of the return journey, provided the
Competent Authority may condone the delay in submission of the claim, if he is
satisfied with the reasons.
3. An employee shall alongwith his claim for reimbursement, submit cash receipts or
vouchers or tickets in respect of the fares. The employees shall also give such other
information as may be required by the authority competent to sanction the
reimbursement.
4. The employee may submit the details of ticket numbers and the train by which the
journey has been undertaken. The claims may, therefore, be settled on the basis of
these details furnished by the employees.
5. If the employees do not produce the relevant receipts or vouchers etc., in accordance
with the rules, their claims shall straightaway be rejected.
6. If any doubt is raised about the timing for submission of claims in cases where the
outward journey performed by the employee is jointly with his family but the
employee returns to the headquarters earlier and his family returns on a subsequent
date, in such cases the claims for reimbursement should be submitted by the
employee separately for himself and for his family members within the prescribed
time limit from the date of completion of return journey by the employee and the
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members of his family respectively, even though advances may have been drawn by
the employee for him as well as his family members.
Note:
a) The claim for reimbursement shall be submitted in prescribed form. Where however an
employee has undertaken the journey or part of a journey in his own or hired conveyance he
shall also submit a declaration giving the number of persons though not entitled for subsidy
under the scheme had travelled in the said conveyance and shall give complete details.
b) Receipts issued by travel agents for tickets purchased by the employee through them may
be accepted provided ticket number, the name of the passenger and other relevant details are
given therein. The term 'travel agents' mentioned herein is intended to mean those travel
agents who are specifically authorised by the Railway Authorities to book railway tickets on
behalf of their clients.
Of late, new model cars having passengers capacity of more than 7 is under operation with
the permit of Tourist Taxi. In such cases, the employee and his/her dependants of less/more
than two persons can perform the LTS journey by Tourist Taxi irrespective of the passengers
capacity of the Motor vehicle provided the employee, before proceeding the journey by
Tourist Taxi, shall furnish the following :
i. Name of the Travel Agency
ii. Vehicle Registration
iii. Make of the Vehicle
c) If an employee avails of subsidy, for him and his family members travelling as members of
touring parties organised by professional tour organisers, the reimbursement shall be on the
same lines as indicated above but the employees shall have to produce a Certificate-cumReceipt from the tour organiser concerned, giving following items of information:
i) Name and the number of train/bus etc.
ii) Name of the Passenger and the Seat No. allotted to him
iii) Dates of commencement and completion of each of the outward and return journeys.
iv) Total distance travelled.
v) Fare charged for each person excluding boarding, lodging and halting charges.
d) Leave travel subsidy shall not be admissible in respect of the journey performed by an
employee or a member of his family holding a ticket on which reservation has been made in
the name of the other person.
e) There will be no reimbursement of fare for local sight seeing tours within the municipal
limits on Leave travel.
XI. Misuse of L.T.S.
In case some employees claim reimbursement under the Leave Travel Subsidy by producing
false receipts/vouchers etc. or by giving false intimation, strict disciplinary action will be taken
on the following lines.
i) Whenever a case of fraudulent claim of LTS comes to the notice and the
Competent/Disciplinary Authority arrives at a conclusion that there is a prima facie case for
initiating disciplinary proceedings against the employee for this misconduct, the claim for LTS
should be withheld and he should not be allowed this facility till finalisation of the
proceedings.
107
ii) If the employee is fully cleared of the charges of misuse of LTS, he will be allowed to avail
of the LTS withheld earlier as additional set(s) of LTS in future blocks of years but before his
normal date of superannuation. In such a situation, the provision relating to lapsing of LTS
facility not availed of within the next block will not apply.
iii) If, however, the employee is not fully cleared of the charges of misuse of LTS, he shall not
be allowed the next two blocks of LTS in addition to the set(s) of LTS already withheld.
iv) If the nature of the misuse is grave, the Competent Authority may disallow more than two
blocks of LTS, such disallowance will be without prejudice to the punishment for any proved
misconduct in the disciplinary proceedings.
v) Where on two occasions LTS advances drawn are not accounted immediately on
completion of the trip by submission of relevant claim forms with supporting documents/ticket
nos. etc.or refunded immediately on cancellation of the proposed trip, the employees
concerned shall not be eligible for any further advance in future.
XII. Carry Forward of Subsidy
a) Restricted to next block only:
The employee may carry forward the subsidy of any block and avail it during the immediately
next block of two years. Subsidy for such carried forward block shall not be further carried
forward beyond the next block.
b) Availing Subsidy of carried forward block:
i) Travel to hometown:
The employee may avail during the current block the subsidy of the preceding block so carried
forward and may also avail separately the subsidy of the current block any time during the
same block. However, aggregating the subsidy of two blocks and availing the same beyond
the actual distance by the shortest route between the place of posting and the home town
shall not be permissible.
ii) Travel to a place other than home town:
The employee may avail during the current block the subsidy of the preceding block so carried
forward together with the subsidy for the current block in which case the entitled distance
shall be 4000 kms. each way and reimbursement may be made as per travel other than home
town. Alternatively, the employee may avail the subsidy of the carried forward block any time
within the span of two years of the current block; in which case he may avail separately the
subsidy of the current block, any time during the
same block or carry it forward to the next block.
c) LTS for future blocks cannot be availed in advance.
d) When two blocks are clubbed together and availed by the employee, the maximum
entitlement shall be the fare calculated by multiplying the fare for 2000 kms. by 4.
XIII. Travel with family members:
The employee and the members of his family may travel together or separately in not more
than two groups and claim reimbursement accordingly. Claims for not more than two such
groups shall be allowed in respect of any block or for combination of two consecutive blocks.
When one group has availed LTS already, the second group shall avail it before the expiry of
the block year, in which the first group has availed. There cannot be carry forward of subsidy
for the second group alone.
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XIV. Miscellaneous
1. 1. Subject to the above, an employee may choose his own route of journey by the
mode and/or class of travel.
2. 2. Officers on retirement will be entitled to Travelling Allowance etc. on retirement
irrespective of the fact whether they have availed Leave Travel Subsidy during the
current block on the date of their retirement or not.
3. 3. Officers transferred to North-Eastern Region from other parts of the country be
granted leave travel subsidy to visit the place of residence of their family once in a
year instead of once in a block of two years as admissible under the normal rules.
4. This facility is granted to enable the Officers who have not shifted their family to their
place of posting in North Eastern Region to visit their families annually. If the officer
has shifted his family to the place of posting then grant of LTS every year is not
applicable.
5. Partial carry forward of LTS Block year is not allowed in case of any employee. E.g.
Where the family members of an officer has availed of LTS for the Block year 1987-88
in August,1988. However officer has not availed the LTS facility for the same blockyear till December, 1988. The Officer has now requested to allow him the benefit of
1987-88 block year together with the LTS facility for Block-year 1989-90. It is clarified
that since the officer has already availed of LTS for the block-year 1987-88 in respect
of his family members and as no provision exists for carrying forward a part of LTS,
the officer is not eligible for the 1987-88 block of LTS after 31.12.1988.
6. The eligibility norms on dependancy and other entitlement for the subsidy shall be
reckoned at the time the employee avails LTS.
7. Employees are allowed LTS when they are on any sanctioned leave. Accordingly when
an employee is on Sick Leave and the Medical Advice is for a change of climate the
employee may be allowed to avail of LTS.
8. a) Leave Travel journey may be undertaken in employee's Own conveyance or in
hired ones.
b) It is clarified that own conveyance would only imply vehicle whose ownership vests
with the employee and registered with the motor vehicle authorities in his name.
Further a car registered in the name of the spouse of the employee can be used for
availing LTS facility and reimbursement could be allowed as per rules.
c) An employee cannot avail LTS if he travels by Car of his friend/relative.
d) If an employee uses his/her own Vehicle or hired one for the travel, the amount
reimbursable is the amount actually spent on petrol and oil for the journey or amount
paid by way of hire charges subject to the maximum subsidy entitled for members
who
travelled in the own/hired conveyance.
e) In case of travel by hired taxis, employee should submit
(i) petrol/diesel bills indicating vehicle number at various places visited during the
trips as also permit no.
(ii) trip sheets
(iii) daily odometer readings and the timings of departure and arrival at various
destinations
(iv) Inter-State permit, for travel beyond State borders
(v) No. of persons travelled in the vehicle.
(vi) Driver Bata,night halting charges, passenger tax and toll at the check post can be
reimbursed in addition to the hire charges provided they are included in the bill issued
109
by the Tourist Agency, subject to total reimbursement not exceeding the eligibility of
the employee concerned.
9. Service charges for booking tickets may be allowed only if tickets are booked through
agencies recognised/approved by railways or agency through whom Office books
tickets at a given centre. The reimbursement of service charges may be limited to the
extent the office allows for official bookings.
10. Superfast Charges and Safety surcharges levied by the Railways would be reimbursed
since it forms part of Railway Fare, subject to the condition that the overall actual
expenses including Superfast charges and Safety surcharges fall within the entitled
fare of the employee under LTS rules.
11.
The cost of Tatkal Charges are reimbursable since it forms part of the Railway fare,
subject to the condition that the overall actual expenses including Tatkal charges fall
within the entitled fare limit of the employee under LTS rules.
12.
Cancellation charges incurred by the employee is reimbursable subject to the

condition that the overall actual expenses including cancellation charges fall within the
entitled fare of the employee under LTS rules.
12. Certain queries have been raised regarding the first LTS block year to Officers promoted
from Class-III:
The following illustrations are provided to clarify the position:a) A Senior Assistant promoted as AO on 1.8.1989, if he has availed of the 1988-89 block of
class -III LTS before his promotion as AO, he shall be eligible for the 1989-90 block of Class-I
LTS from 1.1.90.
b)If the above employee has not availed of the 1988-89 block of Class-Ill LTS before his
promotion as AO he shall be eligible for the 1989-90 block of Class-I LTS immediately on
promotion as AAO.
Please note the employee after promotion as AO is not entitled for any Class-Ill LTS, the
question of carrying forward any unavailed -Class-Ill LTS does not arise.
13. Existing LTS regulations do not prohibit an employee from returning to head quarters stay
there and thereafter continue the LTS tour and in such cases, the LTS will be terminated only
when he joins duty.
14. The concession fare for Physically Handicapped employee as well as the escort may be
reimbursed as per the following rules :
(a) If the above employees undertake the tour by train, the concessional fare as
applicable in railways for Physically/Visually handicapped persons as well as the escort
may be reimbursed as per their entitlement.
(b) If the said employees perform their journey by train by availing the concessional
fare for travel upto 2000 kms. and want to utilise the concessional fare for travelling
longer distance (i.e more than 2000 kms.), the employees cannot be permitted to do
so and the reimbursement will be limited to 2000 kms, each way on concessional fare.
110

(c) In case the above employees alongwith escort undertake the trip of LTS by
car/bus, the basic fare of railways for travel 2000 kms. each way by the entitled class
may be reimbursed and as such the concession in fare need not be taken into account
while arriving at the amount reimbursable.
12. LTS is not admissible to an employee who is under suspension.
13. When an employee is not eligible to travel by Air under LTS rules, he cannot be
reimbursed any amount paid for travel by air for his infant child or child who has not
completed 5 years.
14. Any member of the family of an employee may commence the outward journey and end
the journey at places other than the employee's headquarters and be at the place of
holiday/home town as the case may be. However, the maximum reimbursement would be
restricted to the quantum as stipulated above for places of holiday and to the maximum that
would have become admissible had the journey been commenced and ended in the
headquarters for home town travel.
15. For children between the age of 3 and 5 years travelling by bus, entitlement may be
determined on the basis of notional half fare by entitled class as Railways do not charge for
children upto 5 years. Further, with regard to the entitlement when a child between the age
of 5 and 12 years travels by bus and charged full ticket whereas the Railways charge only half
fare, the reimbursement is to be limited to the rail fare that would have been charged for the
child for the same distance.
16. Consequent to the amendment, to Rule 28 of the Income Tax Rules, 1962 there will not
be any taxable perquisite (i.e. the difference between Air and Train Fare) in case the eligible
members travel by air on LTS where the journey is performed on or after 1.10.1997.
Subject to the following clarifications
1. Children born before 1.10.1998 can avail this exemption at any point of time (that is both
before and after 1.10.1998) irrespective of the number and in cases where the children are
born after 1.10.98 the exemption will be restricted to two children only. However, this
restriction of two is not applicable in the case of multiple births (i.e. twins, triplets, etc.) after
one child.
2. Exemption for travel by air is an amount not exceeding the air economy fare of National
Carrier which means that we can travel by any Airlines but the exemption is restricted to
economy air fare of Indian Airlines/Air India where it has flights within the country
3. The restriction of the eligible members is only with respect to the children. So the
dependant parents continue to enjoy the exemption.
DOCUMENTS TO BE PRODUCED IN CASE OF THE JOURNEY UNDERTAKEN BY :
AIR :
(1) Boarding Pass/Air Ticket
(2) In case of Foreign Tour Indian Border
(3) In case of a trip to Andaman & Nicobar Islands Nautical miles by sea
RAIL :
(1) PNR NO.
111

(2) Ticket copy/e-ticket copy
ROAD :
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Permit Copy
Trip Sheet in the prescribed form or Letterhead of the Taxi operator
Petrol / Diesel Bills
The distance travelled and the place of journey to be mentioned by the Travels
Daily Odometer readings and timings of departure and arrival at various destinations
Inter-State permit, if any
No. of persons travelled in the vehicle
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CHAPTER - 14.
EXGRATIA IN LIEU OF BONUS
1) Rate of Exgratia
The exgratia payment for the relevant financial year shall be made at the percentage (of
annual salary drawn by the employee) decided by the Competent Authority.
2) Definition of Salary:
Salary shall mean Basic Salary, Dearness Allowance, Personal Allowance or any other
Allowance shall not count for determining eligibility for calculating the ex-gratia in lieu of
bonus.
3) Eligibility for Ex-Gratia
(a) Employees who have worked for not less than 30 working days during the relevant
financial year (for which exgratia is paid) and have drawn the salary not exceeding Rs.
10,000/- per month during that period shall be eligible for ex-gratia and the maximum salary
for the purpose of calculation of ex-gratia will be Rs.3,500/- per month.
(b) Ex-gratia payment shall be made to all eligible employees including probationers and
those who are on the rolls of the Company during the relevant financial year provided they
had worked for not less than 30 working days and complied with the condition in (a) above.
(c) Employees who have worked during the relevant financial year but resigned subsequently
before the announcement of ex-gratia shall be eligible for ex-gratia payment.
(d) Employees who have worked for a period not less than 30 working days during the
relevant financial year and resigned in the same financial year shall be eligible for ex-gratia
payment only for the period they worked in the Organisation.
(e) Employees who have retired or died during the relevant financial year shall also be eligible
for ex-gratia for the period they worked during the relevant financial year. Ex-gratia amount
relating to employees who have died shall be disbursed to the person to whom the arrears of
salary, leave salary are paid after the death of the employee.
(f) Part time employees who have worked for not less than 30 days in a financial year are also
eligible for ex-gratia payment and it will be calculated on the wages actually paid to them.
(g) Persons who are not subject to service condition of the Company and who work on a
contract basis are not eligible for payment of exgratia.
113
(h) While calculating ex-gratia amount deductions have to be made proportionately, if the
employee was on loss of pay or had participated in strike or remained unauthorisedly absent
even though his gross salary was between Rs. 3,500/- and Rs. 10,000/-.
For example, if an employee with salary (for the purpose of Exgratia) between Rs. 3,500/and Rs. 10,000/- had gone on leave on loss of pay for a period of 10 days in a month during
the relevant financial year, the quantum of ex-gratia admissible to him for that month shall be
for 20 days only irrespective of the fact that his salary during that particular month still
exceeded Rs.3,500/-.
(i) If an employee is otherwise dis-entitled to ex-gratia because he was drawing a salary
exceeding Rs. 10,000/- reduction in salary to Rs. 10,000/- or less would not entitle him to
receive ex-gratia payment.
1. For example, if an employee's salary per month was Rs. 10,200/- but received actual
salary of Rs. 9,700/- on account of leave on loss of pay he will not be entitled for exgratia payment.
4) Disqualification for ex-gratia payment:
Such of the employees who are dismissed from the service of the Company for the following
misconducts shall not be entitled to draw exgratia payment:
(i) Fraud
(ii) Riotous or violent behaviour in the premises of the Company.
(iii) Theft, misappropriation or sabotage of any of the properties of the Company.
(iv) Employees who are under suspension shall not be allowed exgratia payment until such
time the domestic enquiry is over. The question of payment of exgratia in this case may be
decided in the light of the orders passed after such domestic enquiry.
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CHAPTER - 15
FESTIVAL ADVANCE
Employees to whom Festival Advance can be granted:
Festival Advance shall be granted only to confirmed employees in the service of the company,
excluding the following:a) Any employee serving outside India
b) Any employee against whom disciplinary proceedings are instituted or contemplated on the
date of disbursement of the advance
c) Any employee who has already drawn a festival advance during the calendar year and
d) Any employee against whom recovery of festival advance drawn previously is outstanding.
Quantum
The festival advance shall be limited as under:-
CATEGORY
QUANTUM
a) Officers
b) Supervisory,
Staff/FTS
One month's gross salary or Rs.13,000/whichever is less

Clerical
&
Sub-ordinate One month's gross salary or Rs.11,000/whichever is less
c) Part-time Sweepers
One month's gross salary or Rs.5.500/whichever is less
NOTE: Gross salary for

(a) & (b)
Basic, DA, HRA, CCA, H.S.A
(c)
Basic + DA
Repayment: The advance shall be repaid free of interest in not more than ten monthly
instalments commencing from the following month in which the advance is drawn.
Procedure to be followed: The employees desirous of drawing festival advance on any
festival of their choice shall apply in writing at least fifteen days before the date of festival.
The festival advance may be disbursed not more than 7 days in advance of the date of the
festival.
CHAPTER 16
FLOOD/DROUGHT ADVANCE
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INTEREST FREE LOAN TO EMPLOYEES AFFECTED BY NATURAL CALAMITIES

FLOOD ADVANCE, DROUGHT ADVANCE, ETC.
1. Interest free loan shall be granted only to such of those employees who have been directly
and actually affected by flood, cyclone, earthquake, storm, hurricane, drought, etc. and
have suffered loss on account of damage to their immovable properties/movable
properties (consumer durables) like Scooters, Car, Refrigerators, household furniture, etc.
situated at the station of working or at the Home Town of the employee, as already
declared, and only to those who are in a position to substantiate it to the satisfaction of
the Competent Authority.
2. The loan shall be granted only when the areas within the jurisdiction of employees, place
of work or Home town, as the case may be have been declared as areas affected by the
natural calamities by the Central/State Government.
3. No loan shall be granted to employees who have obtained relief/advance/loan from any
Government/Quasi-Government/benevolent body or organisation in respect of the same
loss suffered by them.
4. The application for the interest-free loan shall be accompanied by a Certificate from the
local Municipal Councillor or where there is no Municipality or Corporation, from the Local
Authorities like Tahsildar/Addl. Tahsildar, Block Development Officer, Local Member of
Legislative Assembly or Member of Parliament or from an Officer of GIPSA Companies not
below the rank of AM/Branch Manager (who will issue the Certificate only after due
verification). The Company will have the right to verify the loss by deputing an Officer to
do so. The Certificate so issued by the Authorities should indicate that the Authority is
satisfied that the property affected belongs to the applicant and it has been substantially
affected or damaged by the natural calamity along with a certification as to the
approximate value of the damage suffered by the applicant.
5. In the cases of areas affected by drought, the employee shall be requested to submit
application and certificate to the effect that he/she is facing acute water scarcity in the
locality in which he/she is residing and the loan is required for the purpose of
digging/deepening or sinking of tube wells or installation motor pump in his/her premises
or for meeting the extra cost of procuring water. The company will have the right to verify
by deputing an Officer.
6. The applications for grant of loan should be made to the Competent Authority within three
months of the occurrence of the calamity.
7. The quantum of loan shall be limited to the extent of damage suffered or Rs.15000/(w.e.f 1.9.2009) whichever is less. In cases where loan granted in the past is still
outstanding on the date granting a fresh loan, the quantum of loan in such cases whall be
restricted to an amount less the amount outstanding in respect of earlier loans. All
confirmed employees of the Company irrespective of salary limits and the class to which
they belong shall be eligible for advance in respect of losses suffered by them.
8. For regular part-time employees, the quantum of loan shall be limited to the following
amounts calculated on pro-rata basis;
Those with Four hours of work per day can get advance upto Rs.2500/Those with Three hours of work per day can get advance upto Rs.1875/Those with Two hours of work per day can get advance upto Rs.1250/-
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9. The loan granted will be interest-free and shall be recovered in 25 equal monthly
instalments, the first instalment being recovered from the salary for the fourth month from
the month in which the loan is granted. For example, if the advance is granted in the
month of January, recovery would start from the salary for the month of April.
10. The onus of proving the extent of loss or damage to the employee's property caused by
natural calamity would lie on the employee claiming for the loan and does not lie on the
Company. The employee is required to furnish necessary documents/certificates from the
officials specified by the Company in this respect.
11. The Competent Authority to sanction the loan shall be the Regional-in-charge for the
employees of the Region concerned and for Head Office employees, it shall be the General
Manager/Dy. General Manager in-charge of Personnel Department at Head Office. In the
event of delay in producing the certificates of proof to satisfy the conditions referred to
above, the Competent Authority may order grant of an interim advance of Rs.2,500/- or
Rs.1,500/- or less (depending upon the amount of actual loss) to the employee on the
basis of the declaration made by him to the effect that his property has been damaged by
floods. In such an event, the employee should give an undertaking to the effect that he
would produce all the requisite documents and comply with the requirements within one
month of the receipt of interim advance and failure to satisfy the requirements within this
period would result in the recovery of the entire interim advance granted to him in one
lumpsum from his salary. It is imperative that every specific event of natural calamities
requires approval of CMD. Based on the general sanction by the Competent Authority on
the basis of particular Taluk/District or State being declared as affected by any of the
natural calamities covered by the provision, loans to the individual employee posted within
the areas affected by the natural calamity may be disbursed by the Divisional-in-charge
after scrupulously following the guidelines given above. In case the employee's application
for interest free loan is in respect of loss suffered by him on account of damage to the
property situated at his/her hometown, such application should be forwarded to Regional
Office and the Regional-in-charge alone is the Competent Authority to sanction interest
free loan as per the above provisions, in individual cases of such nature.
The advance disbursing authorities shall before sanctioning the advance, take all reasonable
measures to ensure that the benefits of the Advance is confined to be availed by only
those employees who have genuinely suffered from the calamity for which the advance is
sanctioned.
12. After the applications for grant of loan from employees are processed, a statement of
loans paid indicating the number of employees who are availed of the loan and the total
amount disbursed as flood loan should be sent to Head Office.
13. No loan shall be granted to the employees appointed on contract basis or work-wage basis
or working outside India or employees under suspension.
14. There is no provision for grant of Interest Free loan to employees affected by landslide.
CHAPTER 17.
HOUSING LOAN SCHEME
I. FUNDS :
Housing Loan Fund shall consist of :
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(a)
A fund created during the year 1975 by setting apart for this purpose an amount
equal to 2% of net premium income of the company in India in the year 1974.
(b)
1% of the previous year's net premium income of the Corporation/Company in India
shall be added to the fund created as in (a) above from the year 1976 onwards. The additions
shall be done as on 1st July every year for distribution during the succeeding period e.g.,
additions as on 1st July 1976 on the basis of premium income for the year 1975 for
disbursement during the period from 01.07.1976 to 30.06.1977 and so on. The additions
shall be at 1.5% for the year 1988-89 and at 2% for the years 1989-90 and 1990-91. The
additions from the year 1991-92 shall continue to be at 2% of the previous year's net
premium income in India.
Amount received by way of re-payment of loans of which only the principal shall be
added to the fund.
(d) Of the total funds so credited, the apportionment for the various categories of employees
shall be as under:
COMPANY
(i)
AO/AM/Dy. Mgr./Manager/Chief 35% of the fund
Manager/DGM/GM & above
(ii) Dev. Officer Gr. II & Gr. I
15% of the fund
(iii)Sub-staff/Assistant/RC/ Sr.Asst./
Stenographer
65% of the fund
2. SCOPE AND ELIGIBILITY:

(a)
Loan under the Scheme is available:

i) For the purchase of land and to construct a house thereon.
ii) For the purchase of land and a house thereon whether the same is complete or
incomplete. Provided, however, that the employee shall produce satisfactory
evidence supported by architect and valuation certificate as to suitability and the
condition of the property and its value.
The decision of the Company on such
evidence shall be final and binding upon the employee.
iii) For the purchase of a house/flat/apartment whether complete or under construction.
Provided, however, that the employee shall produce satisfactory evidence supported
by one of the Company's panel of Architects and Valuation Certificate as to
suitability and condition of the property and its value. The decision of the Company
on such evidence shall be final and binding upon the employee.
iv) For the purchase of an apartment in a building which is subject to Apartment
Ownership Act and/or any other law having similar provisions.
v) For purchase of flat whether ready or under construction in Co-operative Housing
Society whether registered or under registration.
vi) For purchase of land and construction of a house/flat in a Co-operative Housing
Society where the number of members of the Industry is not less than 90% of the
total membership.
vii) For extension/renovation of an existing house/flat/apartment, provided the Company
is satisfied on such proof as they may deem fit, that the same is essential to suit the
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changed circumstances and needs of the employees provided that the loan under
the Scheme shall not exceed 100% of the actual cost of such extension/renovation
subject to his/her entitlement under clause 3 hereof.
viii)
Loan under the Scheme is also available under:
1) Jhuggis Jhomprised Resettlement Scheme,
2) Self-financing Housing Registration Scheme (1977) and
3) Hire Purchase Scheme and similar Schemes framed by Government, Municipal or
Local Authorities, City Improvement Trust, Housing Board, etc.
ix) For the purpose of repayment of a loan taken temporarily from Provident Fund,
Banks, Co-operative Societies, Housing Co-operatives or other Public Financing
Institutions to finance the purchase of a house/flat/apartment, including land,
pending sanction of the loan under this Scheme provided the employee gives
intimation about raising such temporary loan and simultaneously applies for loan
under this Scheme and subsequently produces evidence of repayment of the
temporary loan within one month of disbursement of the loan to him/her under the
Scheme. This facility would also be available to an employee who had availed of
housing loan from GIC Housing Finance Limited (GICHFL) as an interim measure
because he/she did not meet with the service eligibility criteria in the Housing Loan
Scheme. In such cases, the repayment of loan will be permitted subject to the
employee meeting GICHFL criteria that minimum period of housing loan with
GICHFL should be five years and the housing loan released will be utilised to
extinguish fully the GICHFL loan.
(b)
The loan under sub-clause 2(a) shall be available to any permanent employee of the
Corporation/Company who has put in a minimum of three years of service. However, in case
of employees from ex-servicemen category, the service eligibility criteria may be reduced to
two years and in case of Full-time-sweepers/Other Sub-ordinate Staffs for the purpose of
eligibility (number of years of service) service rendered as a Permanent Part-time employees
shall also be taken into account on pro-rata basis as per the table given below:
Actual service rendered on

Permanent Part-time basis
Length of corresponding qualifying

service for each year of service
rendered on Permanent Part-time basis
for calculating the year of
service
Less than 3 hours
th of a year
3 hours or more but less than 4 hours
3/8th of a year
of a year
5/8th of a year
3/4th of a year
7/8 of a year
2 A. SECOND LOAN
Second Loan at the normal rate of interest is available for the purpose of meeting the cost
of:(i) Construction of additional room for the use of the family of the employee, not being a self
contained room.
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(ii) Construction of garage, stair case, compound walls, overhead tanks, sump, pumps, wells
and bore wells.
The facility of Second Loan will be available not more than twice during the entire service
tenure of the employee.
As regards the quantum of Second Loan available to an employee for the aforesaid purposes,
the same may be determined by taking into account his/her current cadre eligibility for
Scheme Loan minus the Scheme Loan already sanctioned to him/her but not exceeding the
actual costs of the aforesaid items. In no case, the Scheme Loan sanctioned earlier and the
Second Loan to be sanctioned subsequently together shall exceed his/her current cadre
eligibility for the Scheme Loan.
3. SCHEME LOAN LIMITS
(a)
Cadre limit of loan hereinafter called Scheme Loan & Supplementary Loan.
Cadre
Scheme Loan
(Rs.)
Supplementary
Loan (Rs.)
TOTAL
(Rs.)
FTS/Sub-staff
1,75,000
2,25,000
4,00,000
Record Clerk
2,25,000
2,75,000
5,00,000
Assistant/Sr. Assistant/
Stenographer/Supdt.
2,75,000
3,25,000
6,00,000
Development Officer Gr. II
2,75,000
3,25,000
6,00,000
Development Officer Gr. I
2,75,000
3,75,000
6,50,000
Scale I & II
3,25,000
3,75,000
7,00,000
Scale III
3,65,000
4,35,000
8,00,000
Scale IV & V
4,00,000
4,50,000
8,50,000
DGM
4,00,000
5,00,000
9,00,000
GM & above
4,00,000
6,00,000
10,00,000
The Scheme Loan and the Supplementary Loan taken together should not exceed the cost of
the house/flat/apartment.
COMBINED ELIGIBILITY FOR HUSBAND AND WIFE EMPLOYEES IN GENERAL

INSURANCE INDUSTRY
In case where both husband and wife are employees in the General Insurance Industry, they
shall be eligible for the aggregate amount of their individual limits of Housing loan according
to their respective cadre eligibility, subject to however, to the condition that such aggregate
amount shall not exceed the cost of the dwelling unit/house to be constructed/purchased.
The Scheme Loan and the Supplementary Loan should be applied for simultaneously and
sanctioned as one Loan. The Scheme Loan and the Supplementary Loan will be treated as one
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for the purpose of accounting, documentation and administration of the Housing Loan
Scheme.
The rate of interest is 7.5% in respect of Supplementary Loan w.e.f. October, 2002 and 5% in
respect of Scheme Loan w.e.f. 01.04.2000.
4. QUANTUM OF LOAN:
Subject to the limits specified in Clause 3, the amount of loan shall not exceed the cost of
house/flat/apartment, including land.
5.
(a)
No loan shall be granted to an employee if he/she has accommodation whether a
house/flat/apartment at the centre where the house/flat/apartment is proposed to be
constructed/purchased and if the same is owned by him/her or dependent family members.
(b)
No loan shall be granted to an employee to purchase a house/flat or plot from family
members/relatives such as spouse, parents, brothers, sisters and grand parents of employees
as well as spouse and the respective in-laws. In the same way, in connection with transfer of
loan, the existing dwelling unit purchased/constructed with the help of housing loan from the
Company should not be disposed of to a family member or blood relatives as mentioned
hereinabove.
The Company, may in its sole discretion grant loan to seek alternate accommodation
on the following conditions:
(i) The Company is satisfied that the concerned employee has made all attempts to get
vacant possession of the premises for his/her bonafide personal use through due
process of law and that the Court proceedings in that regard are pending for over 5
years before the date of the application for loan to seek alternate accommodation.
(ii) When the possession of the original accommodation is received back by the
employee, he/she shall transfer the same primarily in favour of another employee of
the Industry at such price and other terms and conditions as may be fixed by the
Corporation/Company and/or
(iii)
If no other employee is available he/she may dispose of the original
accommodation and pay back such amount of the loan partly or wholly out of its
sale proceeds as may be stipulated by the Corporation/Company and/or
(iv)
That he/she is prepared to accept such terms and conditions and execute
such documents as may be prescribed by the Corporation/Company to enable
him/her to secure loan to have an alternate accommodation under the Scheme.
( c ) Subject to Clause 5(b), the Corporation/Company may grant loan to employees
who own accommodation to seek larger or alternate accommodation on a condition that the
employee will dispose of the existing accommodation within the period of six months from the
date of the possession of the new premises and pay the sale proceeds thereof to the
Corporation/Company towards the repayment of the loan amount. In such cases repayment
of the loan will be on the balance of the loan amount outstanding.
In case where an employee has purchased house/flat/apartment with the assistance of a
loan under the Scheme satisfies the Corporation/Company
that the size of the accommodation is no longer adequate for the employee's family and/or
is not in keeping with his/her improved status or on health grounds; or
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when the accommodation has been certified by an approved Architect as suffering from
structural defects, the employee may be permitted to dispose of the existing
accommodation and utilise the sale proceeds for purchase of a new house/flat/apartment.
The loan amount will be the current cadre eligibility as in the case of Second loan available
since October, 1994 provided under para 2A of Housing Loan Scheme may be granted i.e.,
the quantum of loan eligibility for transfer of loan cases as per Para 5C of the Scheme also
would be determined by considering the employee's current cadre eligibility of loan minus the
previous loan sanctioned in addition to the existing outstanding loan deposited with the
Corporation/Company (excluding interest subject of course to the limitation of the cost of the
proposed new dwelling unit/house to be purchased/constructed.
The Transfer of Loan along with current cadre eligibility and/or Second Loan as per 2A of the
Housing Loan Scheme, can be allowed only 2 times in a career. That is 'Transfer of Loan'
along with current cadre eligibility and/or 'Second Loan' if already availed earlier will have to
be taken into account, while granting the same second time, and subsequently the said
employee will not be eligible for any more loan. The entire formality of transfer of loan to
new property under Clause-V(c) of Housing Loan Scheme should be completed within 6
months from the date of sale of the existing property. For detailed instructions of transfer of
loan, refer Circular No.HO:HL:566:99 dated 10.03.1999.
6. (a) In case of loans for construction of a house/flat in Co-operative Housing Society

where the membership is not less than 90% from the Industry, the maximum loan that
may be granted shall be the total of loans permissible to the individual members according
to their respective eligibility or the proportionate cost/value of the land and building
whichever is lower, relating to the employees in the Industry.
(b) The loan shall be disbursed to the Society but the employee will be responsible for the
repayment of equated monthly instalments from his/her salary.
The loan applications in such cases will be processed as follows:
(i) The Corporation/Company whose employees constitute the largest number of
members of such a society being a lead Company should be entrusted with the work
of processing, supervising and controlling the loan to such a Society. The lead
Company will scrutinise the title deeds about the marketability of the property and
get the valuation done of the property. The original mortgage deeds executed by a
Co-operative Society will remain with the lead Company and photo copies will be
given to the subsidiaries whose employees are the members of the Co-operative
Housing Society. The documents to be executed by individual employees will be
scrutinised by the subsidiary to which the employees belong and the documents will
be preserved by the subsidiary.
(ii) There should be an interse agreement between constituent Corporation/Company
sharing the security in proportion to the amount disbursed by them.
(iii)
The Bye-laws of the Society should incorporate the clause that the Cooperative Society and/or its members will not deal with the property in any manner
besides the usual clauses in the Bye-laws.
(iv)
The Society shall produce documentary evidence in regard to marketability of
title duly certified by an Attorney/Advocate on the panel of the
(v) The disbursement of loan shall commence only after the approval of the building
plans by the Municipal Corporation/Local Authorities.
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(vi)
When the work of construction is entrusted to a firm of contractors the
Society shall not accept the lowest or any other tender called for the pupose without
the prior approval of the Corporation/Company.
(vii)
All contracts shall carry a penalty clause in the event of non-fulfilment of the
contract within the stipulated time specified in the contract.
7. SECURITY:
(a)
Where an employee is desirous of purchasing land/flat/apartment/house
he/she shall submit documentary evidence regarding marketability of the title duly certified by
an Attorney or an Advocate on the panel of the Corporation/Company.
To finance
construction, disbursement of loan shall be made only after the plans of the building are
approved by the Municipal Corporation, Architects of the Corporation/Company. In case of
housing loan applications under clause
2(a)(viii) the Corporation/Company need not insist upon the documentary evidence regarding
the marketability of title duly certified by an Attorney or an Advocate.
(b)
The prime security for granting of housing loan to an employee under clause
2(a)(i) to (iv), (vii) and (viii) shall be an Equitable Mortgage by deposit of title deeds recorded
by a recording letter. Where an Equitable Mortgage in the above form is not possible at the
place where the property is situated, then simple legal mortgage shall be taken. However, in
case loan for extension/renovation of an existing flat/house/apartment under clause 2(a)(vii)
where the mortgage in any form as envisaged above is not possible then the prime security
shall be the registration of the flat in the joint names of the Corporation/Company and the
employee in the Co-operative Housing Society or other body and where the registration in the
joint names is not possible then the employee must produce a letter from the Co-operative
Housing Society or other body recognising the charge of the Corporation/Company on the
flat/house/apartment.
In case of housing loan under clause 2(a)(viii) pending documentation in favour of employees
conferring ownership rights which are inordinately delayed by the authorities then the loan
application can be considered by the Corporation/Company if the employee gives a letter from
the concerned authority recognising the Mortgage/charge of the Corporation/Company on the
flat/land/house/apartment from the said authorities.
The employee will have to give a further letter of undetaking to create a mortgage on the said
land/flat/house/apartment on receipt of the documents from the authorities concerned.
The prime security to be taken from an employee for granting of loan under
clause 2(a)(v) shall be:
(i) Registration of flat/house in the joint names
of the employee and
Corporation/Company in the Co-operative Housing Society.
(ii) Where joint registration is not available, then recognition of the charge of the
Corporation/Company on the flat in the Co-operative Housing Society. However, in
either of the above cases, the employee will be required to deposit with the
Corporation/Company share certificate/s letter of allotment, money receipt, etc.
EXPLANATION
In case the Society is under registration, the Company may at its discretion, accept a suitable
undertaking and documentation as it may deem fit to secure the interest of the Company
before the Society is registered and the above documents are secured.
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(d) The prime security to be obtained for granting of loan under clause 2(a)(vi) shall be:
(i)
The loan should be secured by way of first legal Mortgage of the land and
building of the Society as a principal security in favour of the Corporation/Company
whose employees are in majority.
(ii)
Confirmation of charge in favour of the Corporation/Company concerned on
the individual flat of the employee of that Corporation/Company to be taken from
the Society.
(dd)
Where an employee has availed of a loan under the Housing Loan Scheme
together with the GIC Housing Finance Ltd. (GICHFL) for purchasing land and/or
purchasing/constructing house/flat/apartment under the Scheme, on the prime security
lodged by the employee, a pari passu charge may be created jointly in the name of the
corporation/Company and the GICHFL.
Further second mortgage can be created only in favour of financial institutions
mentioned below on the property on which charge has already been created in favour of the
Company, provided company's security by way of first charge is not affected in any manner:i) Banks
ii) LIC
iii) HDFC
iv) Financial Corporations set up by the Central/State Govt. which provides loan
for construction of House.
Further, second charge in favour of Banks/Financial Institutions on the property on which
specific charge in favour of the Company is already created, can be created for providing
educational loans to employees, provided the company's security by way of first charge is not
affected in any way.
(e)
Besides the prime security, the Corporation/Company should take the
following securities:
(i) Assignment of Life Insurance Policy under Mortgage Redemption or Endowment
Plan maturing on or before the date of retirement in favour of
The amount of policy under Mortgage Redemption,
Endowment Plan should be 100% of the amount arrived at after giving credit to the
full balance of the Provident Fund (i.e., Employee plus Employer's contribution, if
any), with interest standing to the credit of the account of the employee as on 31 st
March of the previous year and amount of Gratuity payable to the employee as on
the date of loan application. However, if any, employee wants to avail the facility
of the payment of interest only as provided under Clause 13(b) and , then the
employee can be allowed the option to assign in favour of the
Corporation/Company, Life Insurance Policy of the full amount of the loan under
Endowment Plan maturing on or before the date of superannuation.
(ii) The employee should also give irrevocable letter of authority in favour of the
Trustees of the Provident Fund confirmed by the nominee/s authorising the
Corporation/Company to adjust the entire credit balance with interest towards the
balance of the housing loan amount remaining unpaid together with the interest,
cost charges and expenses, if any.
(iii)
An irrevocable letter in favour of the Corporation/Company confirmed by the
nominee/s aurhorising the Corporation/Company to adjust the entire amount
payable as Gratuity towards the balance of the housing loan amount remaining
unpaid together with the interest, cost, charges and expenses, if any.
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(iv)
The employee should also execute a Promissory Note on a revenue stamp (as
applicable from place to place and as prevalent from time to time) to be renewed
after every 30 months confirmed by the nominee/s of the Provident Fund and
Gratuity account of the employee to cover the loan amount and interest (as
prevalent from time to time as per the provisions of the Scheme). The Promissory
Note as and when renewed, will be on the reducing balance of the loan amount.
(v) The employee should give a letter of authority in favour of the Corporation/Company
authorising them to make monthly deductions from his/her salary towards
repayment of loan, interest, cost, charges and expenses.
(vi)
Loan Agreement (in Rs.20/- stamp paper).
(vii)
An Indemnity Bond (in Rs.80/- stamp paper).
EXPLANATION
(a)
The Housing Loan under the Scheme can be available to an employee to build a
structure on a plot of land allotted by Public authorities, Government Undertakings, Municipal
Corporation, State or Central Government under:
(i) Jhuggis Jhomprises Resettlement Scheme.
(ii) Self-financing Housing Registration Scheme (1977) and
(iii)
Hire Purchase Scheme or such similar Schemes against the suitable securities
detailed as above.
(b)
Loans under the Hire purchase Scheme should not be given towards initial payment of
the price of the flat and that the balance with interest payment in monthly instalments over a
period of 10-15 years be paid by the Corporation/Company to the authorities concerned
directly.
The amounts payable to the authorities concerned be recovered from the employees
concerned in monthly instalments from the date of the possession of the premises or one year
from the date of the disbursement of the first instalment.
(d) The initial deposit for registration of flats under the Self-financing Scheme be borne by the
employees and not by the Corporation/Company.
8. RATE OF INTEREST:
(i) The interest will be 5.00% per annum Simple Interest on reducing balances for Scheme
Loan.
(ii) In case the Flat/House/Apartment or any part of house is rented out by the employee
posted at the same station where the subject property is situated, the rate of interest shall
be 2.5% over and above thereof interest of Scheme Loan. No additional/penal interest is
to be charged if the Employee Beneficiary is posted away from the centre where the
property is situated. No additional/penal interest is to be charged if the E.B falls under the
category of Entitled Officers irrespective of the location vis-a-vis place of posting.
(iii)
4.5% per annum simple interest on reducing balance in case of Co-operative Housing
Societies formed with 90% membership of employees from the General Insurance
Industry.
EXPLANATION
125
(i) Amount of interest calculated on reducing balance as per this clause together with interest
upto the date of commencement of recovery of instalments of Scheme Loan shall be
recovered along with the loan instalments in equal monthly instalments which shall be
calculated by dividing the total amount of interest recoverable as above by the number of
monthly instalments in which the loan is to be recovered.
(ii) When the rate of interest is increased to 7.5% per annum under clause 8(ii), additional
recovery of interest shall be made every month at the rate of 2.5% per annum or 3% per
annum as the case may be, on the amount of outstanding loan for the period during
which the house is rented out.
(iii)
Where the loan is to be terminated by payment of outstanding loan in lump sum
before the stipulated period, interest payable with such lump sum shall be the amount of
interest calculated at the appropriate rate for the period of the loan on reducing balances
less the amount of interest already recovered in instalments.
(iv)
Interest shall be calculated for the month in which loan is disbursed either wholly or
partly, from the 1st day of the month irrespective of the date of disbursement of the loan.
9. a) No
employee
shall
alienate
his/her
house/flat/apartment
purchased/constructed/renovated with the help of the loan taken from the Company,
except to another permanent employee of the Company on such terms and conditions and
price as the Company may at its sole discretion decide upon. This, however, would not
prejudice the right of the employee on his/her retirement or of his/her heirs after his/her
death to sell the property subject to the loan having been fully repaid before such sale (or
the sale proceeds are first adjusted towards the repayment of the balance, if any, of the
loan account).
b) If no employee of the Company is willing to purchase the house/flat/apartment even
on terms which are considered to be reasonable then the employee may be given
permission for the sale of house/flat/apartment to an outsider provided the employee
undertakes to repay his/her outstanding loan in full with interest and other dues.
c) No employee shall let out a house constructed with the assistance of loan under this
Scheme as long as the employee is posted at the same station where he/she has
constructed the house or purchased a flat. In exceptional circumstances, however, the
Company may permit the letting out of the house/flat/apartment even though the
employee is posted at the same station provided the Company is satisfied of the
genuineness of the reasons.
10.
The employee will during the terms of the loan keep the house/flat/apartment
properly and adequately insured against the risks of fire,riot, earthquake and shall maintain it
in good state of repairs for this purpose the employee shall permit any authorised Officer of
the Company to inspect the property on behalf of the Company at all reasonable times.
11. All expenses such as valuation, legal charges, Architect's fee for supervision shall be borne
by the borrower employee.
12. (a) The processing of the loan application, scrutinizing of the title deeds and the
securities to be obtained from the employees may be completed by the Company as early
as possible to enable the employee to submit an application for disbursement of the first
instalment of the loan.
(b) The employee-borrower shall avail of the full amount of the loan sanctioned within a
period of one year from the date of disbursement of the first instalment. However, the
Company may allow the employee to avail of the full amount of the loan beyond the period
of one year from the date of disbursement of the first instalment if the
Corporation/Company is satisfied as to the genuineness of the reasons given by the
126

employee in not availing of the balance of the loan amount within the period of one year
from the date of the disbursement of the first instalment.
13.
LOAN REPAYMENT:
a)
The loan should be repaid in equal monthly instalments spread over the balance
period of service or 30 years whichever is less. In case where the full amount of the loan is
disbursed within one year from the date of the disbursement of the first instalment, then the
recovery shall commence one year after completion of the disbursement of the final
instalment of Scheme Loan. If, however, disbursement of the full loan amount is not
completed within a period of one year from the date of the disbursement of the first
instalment of the loan, then the recovery of the monthly instalment shall commence two years
after the date of the disbursement of the first instalment or one year after taking possession
whichever is earlier.
b)
An employee with balance period of service of less than 30 years may be given the
choice of having the loan repayment worked out on 30 years basis and the repayment of the
same be made in instalments in the balance period of service provided that the balance of
Provident Fund and Gratuity amounts to which the employee is entitled on his/her retirement
will be adequate to cover the balance of loan.
Provided, however, where an employee assigns an Endowment Life Insurance Policy maturing
on or before the normal date of retirement, then the amount of instalment payable shall be
calculated on the amount of the loan reduced by the amount of the Endowment Life
Insurance Policy assigned, provided where an employee assigns an Endowment Life Insurance
Policy maturing on or before the normal date of retirement for the full amount of the loan,
then, only the interest will be recovered on the loan amount during the balance period of the
service.
c) Where the employee has balance period of service of 15 years or less, there will be no
repayment of the loan in instalments provided the employee gives an Endowment Life
Insurance Policy maturing at the time of his/her retirement for the full amount of the loan
or ensure to keep sufficient balance in his/her Provident Fund account and the amount of
accrued Gratuity is sufficient to meet his/her liability of the loan amount. Only interest will
be payable on the loan amount during the balance period of service.
cc) The entire Supplementary Loan shall be repaid in equated monthly installments during the
balance period of service of the employee. The recovery of the Supplementary Loan will
commence from the month immediately following the month in which such loan or part
thereof is disbursed, on the amount of loan actually disbursed. The repayment options
under this clause will not be available in respect of the Supplementary Loan.
d) The installments for repayment of the loan and the interest will be recovered by deduction
from the monthly pay of the employee. In case of cessation of service of an employee for
whatever reason, the outstanding loan amount will become payable immediately on such
cessation and the Company will have the right to recover the balance of loan in full with
interest from the security offered including the balance amount standing to the credit of
the Provident Fund, Gratuity of the employee.
127
e)
The employee shall give an irrevocable authority to the Company to deduct the
monthly installment from his/her salary every month along with interest, cost, charges,
expenses, arrears of Society outstanding, LIC premia, Government and Local Body Taxes,
dues and recoveries, etc., that the Company may have to bear to continue to hold good and
adequate security offered for the loan.
f)
The monthly installment in repayment of the aggregate of Scheme Loan and
Supplementary Loan should not exceed 45% of the employee's gross monthly emoluments
(gross monthly emoluments will include Basic Pay + D.A. + Other Allowances + Pro-rata
Bonus at current rate).
14. Loan for the purposes enumerated in Clause 2 will be available to
of properties situated anywhere in India.
15.
employee in respect
MISCELLANEOUS PROVISIONS:
1. It is permissible under the Scheme to grant an aggregate housing loan to husband
and wife working in the Industry subject to separate and adequate securities as per
provisions of Clause 7 of the Scheme.
2. The loan is admissible to an employee who has built a house on a plot of land
purchased by him/her.
(i) before the housing scheme was sanctioned if the construction of the building has
started after the loan application has been made and was under consideration and
also if the construction was over during the period loan application was under
consideration;
(ii) is to provide finance for the building of the house and not the plot which was
purchased long back (before six months).
3. Since the Scheme cannot visualize all possible combination of requirement of each
employee seeking loan and corresponding security to be taken, the CMD or any
person duly authorised by CMD concerned may use their discretion and make
suitable modification consistent with the overall scheme and adequacy of security.
4. Where the flat/apartment/house is built by or with the assistance of Statutory, Public
Authorities, Private Financial Institutions, the security may be suitably modified to
accommodate their prior charge upon the entire land and building after securing 2 nd
Mortgage and/or necessary recognition of GIC/Company's charge/lien on that part of
the flat/house/apartment and the proportionate right to the land.
5. The Company shall not be bound to grant additional loans due to escalation of cost
of construction or for any reason, whatsoever. However, where an employee has not
utilised full quantum of the loan to which he is eligible, he may be allowed additional
loan due to escalation of cost of construction to the extent of his/her eligibility.
6. Since the housing loan fund is subject to a ceiling, the loans under the Scheme shall
be granted on first come first served basis. If the funds available are exhausted, the
remainder of the applicants shall be listed in the order in which their applications are
received and their applications shall be considered as and when sufficient amount is
available for payment of loan. The sanction of the loan as also the quantum of loan
will be at the sole discretion of the CMD or any person duly authorised by CMD who
will be guided among other things, by the size of the house/flat/apartment the need
of the employee, his/her all other means of income, his/her seniority, the valuation
of the property and security offered.
7. The Chairman of the Corporation will lay down eligibility period for sanction of loan
to members of the Development Staff keeping in view of the provisions of General
Insurance (Rationalisation of Pay Scales and other conditions of Service of
Development Staff) Scheme, 1976 as prevalent from time to time.
128

8. Request for release of the flat/house/apartment constructed with the help of loan
under the Scheme allowed under Clause 2(a) will be considered on the following
conditions being fulfilled.
(a)
The loan allocated to the member concerned stands fully repaid along with
the interest and other dues;
(b)
The release of the flat/house/apartment will be in favour of the Society, if
any, which will in turn convey the same to the member concerned subject to the
Bye-laws of the Society;
Municipal Corporation/Local Authority's permission for sub-division of the land

and separate numbering of the portion of the land on which the particular
flat/house/apartment stands is obtained;
(d)
Permission, where necessary, of the other Public Authorities in respect of
common amenities/common passages, etc. is obtained;
(e)
The Release shall not create any obstruction with regard to the common
passages and common amenities available to the Society as a whole or act adversely
in any manner to the Society's interest or the Corporation/Company's interest, if
any, in this regard; and
(f)
The Corporation/Companies being satisfied that by such release the
Corporation's interest, as a Mortgagee, are not in any way adversely affected.
9. Each Company shall set up adequate administrative machinery to implement the
scheme during the time a loan application is received until the entire amount of the
loan with interest/cost/charges, etc., are recovered in full from the employee
concerned and give necessary understanding of the Scheme to the employees who
seek advice for filling in necessary date and particulars to be eligible for the Housing
Loan Scheme.
FORECLOSURE:
1. Foreclosure is permitted at any point of time.
2. Full foreclosure of Supplementary Loan can be allowed; partial foreclosure of
Supplementary Loan is not allowed.
3. Once foreclosed, the E.B. is not eligible for any further loan unless the foreclosure is made
as per 'Transfer of Property Rules.
CHAPTER 18
VEHICLE LOAN
VEHICLE LOANS TO OFFICERS NOT ENTRUSTED WITH FIELD

129
DUTIES OR DEVELOPMENT FUNCTIONS - INTEREST LOAN

The Board of the Corporation at their meeting held on 18th Octoher1988, approved granting
loan for purchase of motor 'cycles/scooters to Officers not entrusted with field duties or
development functions. The following administrative instructions are issued to regulate the
grant of vehicle loans to this category of Officers:- .
1. Eligibility:
(a) Four Wheelers : Confirmed Officer s of the 'rank of Deputy Managers /Managers with a
minimum of five years of total service including service in the lower cadres and on probation,
who are neither in-charge .of Divisional Office nor assigned any field duties development
functions, will be eligible for loan for the purchase of four wheelers . Loans for purchase of
four wheelers whether under this Scheme or any other Scheme will be .given once in ten years
and not more than two during the entire service of an officer.(
Two Wheelers: Confirmed Officers of the rank of Administrative Officers/Assistant
Managers' with a minimum of three years of total service including service in the lower cadres
and on probation, who are neither in charge. of :Branch Offices nor assigned any field duties
or development functions', will be eligible for loan for the purchase of two wheelers of
approved makes.
b)
Loans for purchase of two wheelers, whether under this Scheme or any other Scheme will be
given once in seven years and not more than two during the entire service of an office
2. Permissible amount of loan
Loan for purchase of four wheelers shall be full purchase price of subject to a maximum of
Rs,250000(w.e.f .1.4.98) and for two wheelers full purchase price of subject to a maximum of
Rs.50,OOOI- (w.e.f. 1.4.98)
Loan, for purchase of second hand car can be allowed provided such car is not more than 5
years old in case of Premier Padmini and not more than 3 years old in case of Hindustan
Ambassador and Maruti model.
The loan will be granted up to the values of the second hand car of
different models as indicated hereunder:
-------------------------------------------------------------------------------------------------------------------------------------130
Age of Car
One Year
Two years Three Years
Four Years
Max. 5 Years
Rs.
Rs
Rs
Rs
Rs
-------------------------------------------------------------------------1. Premier
Padmini
1,50,000
1,30,000
1,10,000
1,00,000
90,000/2. Maruti (various
Non-AC /
models) ,
a) Standard 1,60,000 . 1,55,000
1,30,000
b) Omni
1,50,000
1,35,000
1,20,000
c) Gypsy
1,75,000
1,45,000
1,30,000
3. Hindustan Motors
Ambassador 1,30,000 1,20,000
90,000
It is to be added that the values as given above are applicable to the vehicles which are
maintained in condition. Obviously, therefore, the loans to be granted would be limited to the
agreed purchase value or the actual valuation of the concerned vehicle preferably by
Automobile Engineer or an Officer conversant with Motor Car valuation or the values
indicated above whichever is less. The values indicated above will continue to be applicable
until further instructions. .
Deputy Managers and Managers on administrative side :maybe allowed to purchase diesel
version of vehicles. In any case, the loan a:mount will be restricted to maximum of
Rs.2,50,000/-. The additional cost of vehicle and the difference in insurance premium will be
borne by the Officer concerned.
Eligible Officers, who are willing to bear the difference between the cost of Non-A/C and
AlC models may be allowed to purchase the AlC model cars of approved .make. However, the
loan will be restricted to the price of Non-Ale approved model of car.
3. Rate of Interest.
Interest on the loan shall be charged at the rate of 5% per annum.
4. Repayment of Loan.
(a) Repayment of the principal amount of the loan and interest shall be in 120 equal monthly
instalments in case of four wheelers, in 'case ofnew cars and 84 equal :monthly instalments in
case of second hand cars and in 60 equal monthly instalments in case of two wheelers.
(b) Recovery of monthly instalment shall be made from the salary of the concerned officer
commencing from the month following the month in which the loan is disbursed. In the event
of suspension, the monthly instalment of repayment will be deducted from the subsistence
allowance of the concerned officer.
131
(c) In the event of cessation. of service of the concerned officer due to retirement, resignation,
death or for any other reason before the loan with interest has been fully repaid by him, the
full outstanding loan with interest .shall be deducted from his terminal dues. Any balance
remaining unadjusted from such dues shall be payable by the Officers or his heirs and
successors failing which the vehicle shall be surrendered to the Company.
(d) The officer taking the loan shall execute the Hypothecation Deed on an. appropriate nonjudicial stamp paper and also furnish a Declaration in forms prescribed by the Company.
5. Registration Charges, Octroi Duty and. Taxes.
These will be borne by the Officers concerned.
6. Insurance Premium.
The cost of insurance premium for providing Comprehensive cover (which including
unlimited Third -Party property damage cover) shall be borne by the Company.
7. Expenses on running, maintenance etc.
No expenses on running, maintenance, repairs etc., shall be borne by the Company, nor any
conveyance allowance or advance for repairs etc., shall be-paid to the officer concerned.
8. Effective date
The Scheme is effective from April 1-1989.
9. Funds
(a) For the purpose of providing funds for granting loans for a particular Financial Year under
this Scheme, the Company will earmark an amount equivalent to 0.5 % of its Audited Net
Premium Income as at the end of 31st March of the preceding year, of which 80% will be for
grant of two wheeler loans to officers and 20% for grant of loans to officers for four wheelers.
The amounts thus earmarked will be allocated to Regional Offices and Head Office of the
Company in the same proportion as the number of Officers of the two eligible categories i.e.
AOs/AMs and Deputy Managers/ Managers under each office bears to the total number' of
such officers in the Company on. 31st March of the preceding year.
(b) Loans granted under this Scheme will be accounted for under a separate head "Vehicle
Loans to non-entitled .Officers".
(c) Subject to availability of funds allocated to Head Office and each Regional Office for the
two eligible categories, loans will be sanctioned on "first come first served" basis.
(d) Monthly recoveries on account of the principal amount of the loan shall be credited to the
account head mentioned in (b) above.
132
(e) Applications pending at the end of the financial year for want of funds shall be carried over
to the next financial year. Similarly, the total un utilized balance of funds with the
Company/Corporation, if. any, at the end of the year shall be carried over to next year (April
to March) as to ensure that the total funds available for the year are equivalent to 0.5% of the
Audited Net Premium as at the end of March in each year. The same process will be repeated
year after year and the position would be reviewed after 5 years of the date of commencement.
of the Scheme.
10. Sanctioning Authority:
Loan for purchase of four wheelers shall be sanctioned by CMD or jointly by two General
Managers nominated by him/jointly by two General Managers nominated by him,as the case
may be.
In respect of two wheelers, loan shall be sanctioned to Officers under a Regional Office by the
Regional Manager and to those in the Head Office by the Deputy General Manager/General
Manager in charge of Admn./P.ersonnel Department who will maintain proper records of
receipt and disposal of applications and amount left unutilised at the end of the year in their
respective offices. Necessary monetary arrangements will be -made at each Head Office of the
Companyto determine the contribution to be made for each successive year.
11. Treatment on promotion/transfer .
(a) If an AM who is granted loan for two wheeler under the above Scheme gets promoted as
Deputy Manager. to the administrative side and is desirous of availing loan for four wheeler,
the same can be granted to him only after the existing loan for two wheeler is repaid in full.
In any event a loan for four wheeler shall not be granted until at least twelve clear months
have elapsed since the disbursement of the earlier loan for two wheeler.
(b) If an AO/AM having availed loan for two wheeler under this scheme is posted as in charge
of a Branch or is posted as in charge of a Divisional Office, and becomes entitled to
Conveyance Facility under the relevant scheme, he may continue the existing loan and utilise
the same two wheelers or may apply for loan for a four wheeler after repaying the entire
outstanding loan for two wheeler and avail of all the benefits admissible under the relevant
Scheme.
In any event, a loan for four wheeler shall not be granted until at least twelve clear months
have elapsed since the disbursement of the earlier loan for two wheeler.
Cases of Deputy Manager or Manager having availed loan under these instructions
and having been posted in charge of RNTB may also be treated on the lines indicated in (b)
above.
(c)
(d) When an Officer who has availed of four wheeler loan becomes entitled to conveyance
loan facility,he may be given the option to dispose of the loan vehicle and repay the full
proceeds of the loan vehicle immediately and repay the full outstanding loan to the Company
as also the Insurance and Taxes borne by the Company for the balance period. Having closed
the account,the Officer then can claim release of conveyance facilities in the normal course"
(e) If an Manager/Deputy Manager having availed loan for four wheelers under this Scheme is
posted as in charge of Divisional Office and becomes eligible for conveyance facility under
the relevant Scheme, may continue to use the same vehicle. Interest to be charged on this
existing loan shall, in that event be recalculated up to the date of his transfer and recovered on
the stipulated monthly instalments and the Officer will become entitled to all benefits under
the relevant scheme from the said date. Depreciation allowance will be calculated on the basis
133
of outstanding amount of principal on such cut-off date and the number of months in which
the loan remains to be repaid.
(f) When an entitled officer becomes non-entitled due to job rotation, he may be given the
option to continue the vehicle loan, or sell off the vehicle and terminate the to an arrangement
treating that loan arrangement as first loan. Thereafter, if he once again becomes entitled to
conveyance facility, he can be given a second loan and exhaust his service entitlement. The
above modifications will be given effect to prospectively.
(g) If an Manager or Deputy Manager having availed loan for four wheeler is promoted as
Manager, the same treatment as:.outlined in (d) and (e) above may be given.
Prior to reimbursing the insurance premium to the officers/ employees, we must ensure the
following:
1~ Whether form 31 is submitted.
2) Hypothecation agreement is executed.
3) Whether hypothecation endorsement noting the Company's interest incorporated in the RC
book.
4) Whether employee concerned has submitted copy of insurance policy to the office.
In the absence of the above, we need not consider -reimbursement of insurance premium. As
there is a-repeated Internal Audit Department Audit Para, we have to ensure strict compliance
of the provisions.
VEHICLE LOAN TO SUPERVISORY. CLERICAL AND SUBORDINATE STAFF

1. Eligibility
a) Confirmed Supervisory, Clerical and Subordinate Staff with a minimum of 5 years of total
service including service in lower cadres and on probation will be eligible for loan for purchase
of two-wheelers of approved make. Ex-servicemen shall be eligible for the loan on completion
of 3 years of service.
b) Loan for purchase of two-wheelers, whether under this scheme or any other scheme will be
given once in 7 years and not more than three such loans shall be allowed during the entire
service period of an employee.
2. The Loan shall be to purchase any Make/Model in the Vehicle.
3. Permissible Amount of Loan
The amount of loan shall be limited to 80% of the purchase price subject to a maximum loan
of Rs. 25,000/4. Rate of Interest
Interest on the loan shall be charged at the rate of 5% per annum on reducing balance.
5. Repayment of Loan
a) Repayment of the principal amount of the loan and interest thereon shall be in 60
equal monthly instalments.
b) Recovery of monthly instalment shall be made from the salary of the concerned
employee commencing from the month following the month in which the loan is
disbursed. In the event of suspension, the monthly instalment of repayment will be
deducted from the subsistence allowance of the concerned employee.
134

c) In the event of cessation of service of the concerned employee due to retirement,
resignation, death or for any other reason before the loan with interest has been fully
repaid by him, the full outstanding loan with interest shall be deducted from his
terminal dues. Any balance remaining unadjusted from such dues shall be payable by
the employee or his heirs and successors failing which the vehicle shall be
surrendered to the Company.
d) The employee taking the loan shall execute a Hypothecation Deed on an appropriate
non-judicial stamp paper and also furnish a Declaration in forms prescribed by the
Company.
6. Registration Charges, Octroi Duty and Taxation
These will be borne by the employees concerned.
7. Insurance Premium
The cost of Insurance premium for providing comprehensive cover will be borne by the
Company.
8. Expenses on Running, Maintenance etc.,
No expenses on running, maintenance, repairs etc., shall be borne by the Company nor any
conveyance allowance or advance for repairs etc., shall be paid to the employee.
9. Funds
For the purpose of providing funds (for a particular financial year) for granting loans under
this scheme, the Company will earmark amount equal to 0.5% of its Net Audited Premium
Income as at the end of 31st March of the preceding year for grant of loans to SCS Staff. The
amounts earmarked will be allocated to Regional Offices and Head Office of the Company in
the same proportion as the number of employees under each of the Office bears to the total
number of employees in the Company as at 31st March of the preceding year.
CHAPTER - 19
RESIDENTIAL ACCOMMODATION
The types of accommodations that are provided are :
(a) Company owned accommodation
(b) Company leased accommodation
(c) Accommodation on personal lease
Company Lease:
135
The lease is between the landlord and the company and hence the company would pay the
rentals monthly. Deposit is allowed.
Personal lease:
No deposit is payable by the company and the rent is reimbursed based on production of
rental receipt monthly. Authority to approve the same vests with Head Office.
There are two categories of Officers:
1. ENTITLED :
RMs/Chief Managers and above are entitled for company owned/leased residential
accommodation. Divisional Managers, full time faculty members are also entitled for housing
accommodation under service conditions. These officers are eligible for company's flats, in
spite of the fact that they own a house under housing loan Scheme of the Company at the
place of posting.
2. ELIGIBLE :
(a) All transferred Officers, provided they do not own house acquired under company's
housing loan at the place of posting.
(b) Direct Recruit Officers posted outside home town and on probation.
(c) Class III/II employees promoted to Class I and transferred from one
centre to another on promotion after 15.10.1992.
The rental eligibility of officers w.e.f. 11.02.2009 is as follows:
CADRE
METROS
Rs.
'A'
'B'
'C'
Rs.
Rs.
Rs.
Scale I & II 10,000

(other
than
Branch-I/C)
7500
4,500
3,300
Branch Manager
10,500
8,000
4,750
3,500
Scale III & IV 12,000

(Other than SDM)
9,000
5,300
4,200
SDM
13,000
9,500
5,750
4,750
Scale V
13,000
9,500
5,750
4,750
Scale VI
Scale VII
(* to be decided by the CMD upto 125% of the limit for Scale V Officers for the
respective class of city on case to case basis, till new limits are finalised by GIPSA)
Note:
136

1. Cities are classified as Metros, A, B and C class. Hill Stations and Hard stations to be
treated on par with A class cities.
2. The Board of Directors of the Company has withdrawn the discretionary power to allow
10% to 25% increase in the rental ceiling as was available earlier in view of the substantial
increase allowed for all cadres.
Employees:
(a) Promotee Sr. Asst./Stenographers transferred on promotion
The rental eligibility is as follows:
METROS
'A'
6,000
'B'
4,000
'C'
3,000
2,500
(b) Employees posted at Rourkela

The rental eligibility is as follows:
CADRE
REVISED LIMIT
Sr. Asst./Steno
2,270
Other Clerical Staff
1,815
Sub-staff
1,360
KASHMIR MIGRANTS EMPLOYEES
CADRE
METROS
'A'
'B'
'C'
Rs.
Rs.
Rs.
Rs.
Sr.Asst./Steno
6,000
4,000
3,000
2,500
Assistant
4,130
2,765
2,060
1,610
RC
3,300
2,215
1,615
1,210
Sub-staff
2,500
1,660
1,160
930
All the above employees are eligible for company's accommodation only in case they do not
have house under Housing Loan Scheme of the company at the place of posting.
DEPOSIT:
Upto 3 months rent the authority rests with Regional Chief, whereas over 3 months and upto
6 months, the authority vests with Head Office.
RETENTION OF ACCOMMODATION:
Retention on Transfer :
137
Retention of accommodation at the previous place of posting by transferred

Officers/Employees has to be referred to HO immediately on transfer. Competent Authority
can consider the same for a maximum period of 6 months or upto the opening of the next
academic year of school/college in case the Officer has School/College going children.
Retention after Retirement :
Retention of accommodation by a retired employee can be allowed by CMD.
a) for a period of 3 months subject to withholding of terminal benefits by the company
and the amount charged would be 1.2% of the cadre minimum Basic and alongwith
HRA at the time of retirement..
b) In case extension is sought for a further period of 3 months subject to approval by
CMD, the amount to be charged would be 2.4% of cadre minimum Basic alongwith
HRA at the time of retirement..
c) Beyond 6 months steps should be taken to get back the flat and at the time of
vacation, charge market rent plus maintenance charges plus taxes and penal charges,
if any.
Retention by the family of the deceased:
In case of widow/family of the employee who dies in harness, the rate of Licence fee will be
charged at the normal rate i.e., 1.2% of the basic salary at the minimum of the scale
applicable to the concerned employee for period not exceeding six months from the date of
death of employee.
Notes:
1) Whenever company owned accommodation is available, such suitable accommodation
will be provided to entitled Officers and eligible transferred Officers.
2) The lease agreement will have to be executed in the name of the Company for
company lease.
3) The twin parameters of carpet area and maximum rent upto which accommodation
will be leased will have to be borne in mind. However, while the monetary limit will
be the predominant within the range of carpet areas indicated in the table above.
4) Wherever leased accommodation is provided, Licence fee @ 1.20% of the basic pay
at the minimum of the scale applicable to the concerned Officer shall be deducted
from the salary, per month. Further, the concerned Officer shall not be paid House
Rent Allowance. The revision in license fee is made w.e.f. 01.11.2010.
5) The existing lease rent should not be revised till the expiry of the term of lease.
6) Current lease arrangement should be revised, when due, on terms provided for in the
subsisting lease agreement, subject to the overall limit as revised.
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CHAPTER - 20
LUMPSUM PAYMENT FOR DOMICILLIARY TREATMENT TO CLASS I OFFICERS
Lumpsum payment towards domicilliary medical benefit to Officers has been revised as per
General Insurance (Rationalisation of Pay Scales and other Conditions of Service of Officers )
Amendment, Scheme, 2010.
Administrative instructions are given below for reimbursement of the same.
1) Officers who are confirmed in service as on 1st January of the year will be eligible for
revised annual lumpsum domicilliary medical benefit.
2) If an Officer is confirmed in service during the year, the concerned Officer will be eligible
for the lumpsum payment towards domicilliary medical benefits for the year of
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confirmation only after confirmation, on pro-rata basis for the period of service put in by
him from the date of appointment to the end of the year, in terms of (1) above.
3) Officers who are promoted from Class III cadre and from the Development Officers cadre
will be eligible for the lumpsum payment as applicable to Officers on a pro-rata basis from
the first day of the month following the date of their promotion. Similarly, recovery on prorata basis may also be made from the lumpsum amount paid to the concerned employee
for the period prior to the promotion as Officer. Officers who retire/die in service during
the calender year commencing from Jan 2010 are eligible for full amount subject to
declaration by the officer/nominee. The payment may be made alongwith the terminal
benefits.
4) The amount of lumpsum payment towards domicilliary medical benefits will be admissible
as per the category of Officers as on 1st January every year as given hereunder :
i.
ii.
Upto Basic Pay of Rs.31725/Above Rs.31725/-
Rs.8,000/Rs.12,000/-
5) The revised annual lumpsum payment towards domicilliary medical benefits may be
paid to Officers in the month of December every year, subject to submission of a self
declaration by the Officer to the effect that the medical expenditure incurred for
self/dependents during the relevant year is not less than the annual limit of lumpsum
domicilliary medical benefit prescribed for the concerned officer. Necessary specimen
declaration form to be submitted by the Officers is enclosed, as Annexure-I.
Lumpsum payment can be made separately where both the spouse are employed either with
the same Company or other GIPSA member companies either both as Officers or one as
Officer and the other as Class III employee.
CHAPTER 21
MEDICAL BENEFIT SCHEME FOR CLERICAL AND SUBORDINATE STAFF LUMPSUM
PAYMENT (FOR DOMICILIARY TREATMENT)
1. The Clerical and Subordinate Staff will be eligible to get a lump-sum payment for
domiciliary treatment at the following rates
a) Employees shall be paid Rs.4000/- per annum (w.e.f 1.1.2010) in Clerical and Subordinate
cadres, irrespective of their length of service.
b)The lumpsum payment is to be made only to the employees who have been confirmed in
service. The service period will however, be reckoned from the date of appointment.
c) The relevant year for the purpose of the above payment is July -June.
2. If an employee is confirmed in service in the middle of the year as mentioned above,
he/she will be eligible for the lumpsum payment on pro-rata basis, for the period of service
put in by him/her from the date of appointment to the end of the relevant year i.e., July June. The amount shall be released only after confirmation.
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3. Those employees who are not covered under the Company's Mediclaim Scheme and are
covered under Medical Schemes available to their spouses from other organisation, will also
be eligible for the lumpsum payment. Similarly, in those cases, where the husband and wife
are both employed in the Company in Class III / IV cadre, both of them will be eligible for the
lumpsum payment.
4. The employees who may retire (and deceased) during a particular year will be entitled to
receive full lumpsum payment and there will be no deduction /recovery on pro-rata basis.
5. For employees resigned from services the lumpsum payment will be made on pro-rata
basis. The employees who are promoted as Officers or are converted as Development staff
during the course of a year will be eligible for the lumpsum payment on pro-rata basis from
1st July to the date from which they enter the Medical Benefit Scheme applicable to Officers
or Development Staff as the case may be.
6. The Lumpsum payment under this section may not necessarily be disbursed to employees
along with salary for the month of July every year. During the course of the year, if an
employee, having incurred medical expenses equal to or exceeding the amount to which
he/she is entitled should submit a declaration to that effect and seek reimbursement of the
same. (subject to the limits specified above)
7. Payment of Lumpsum medical benefit will not be affected in any way even if the spouse of
the employee is in receipt of fixed medical allowance from other undertakings.
8. PTEs are entitled for lumpsum payment as admissible to regular Class IV employees in
ratable proportion to the no. of hours of work fixed per day.
CHAPTER 22
GROUP MEDICLAIM POLICY
The Revised Mediclaim Insurance Policy has been made operative to the employees with effect from
1st April, 2002.
I. The Salient features of the Revised Group Mediclaim Policy are as follows:
(1) Categorisation : The benefits (Sum Insured) under the Revised Group Mediclaim Policy
has been categorised with effect from 01.04 2001 as follows:
Basic Salary
Sum Insured (Rs.)
Rs. 2,9001/- & above
1,10,000/-
Rs. 22730/- to Rs. 29,000/-
1,00,000/-
Less than Rs. 22730/-
70,000/-
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(2) Sum Insured: As per the Scheme, the minimum Sum Insured is
Rs.70,000/- and the maximum Sum Insured is Rs.5,00,000/-. However,

employees are given option to choose in multiples of Rs.5,000/i. Higher Sum Insured upto a maximum of Rs5,00,Q00/ii. Lower Sum insured upto the eligible category limit.
(a) The employee shall opt for himself and eligible family members for identical Sum Insured
only. (The same rule would apply in case of an employee who opt for inclusion of dependent
parents and additional dependent children).
(b) The change of Sum Insured would be allowed only from the annual renewal
date i.e.,
1st April of the year.

( c) Atleast 30 days notice should be given for effecting such change of Sum Insured.
(d) Waiting period would not apply for increasing the Sum Insured and settlement of claim.
1. Domiciliary Hospitalisation Limit:
Sum Insured is inclusive of Domiciliary hospitalisation
limit which, is approximately 20% of the Sum Insured

2. Maternity Expenses Benefit :
Sum Insured is also inclusive of Maternity Expenses
benefit and is limited to the maximum of Rs. 70,000/-. If an employee has opted for a sum
insured of Rs.2,00,000/- and has claimed Maternity Expenses of Rs.7,000/- balance Sum
Insured of Rs. 1,30,000/- can be utilised for claiming Hospitalisation expenses.
3. Sub-limits :
The various sub-limits for Room Charges, Medicines, etc. in the
existing policy would no longer apply to the revised policy and the maximum amount of claim
would be limited to the entitled sum insured or the higher Sum Insured opted by the
employee subject to maximum of Rs.5,00,000/- per person.
4. Premium : The premium rate escalates with every block of Rs.5,000/and varies with the age of the person, i.e., older the person, higher the
premium rate. The Premium Schedule for our employees is annexed
herewith. The premium sharing would continue as per the existing
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practice which is as under: (Premium, for the employee, spouse and
eligible children upto a maximum of two)
l/3rd by the Officer
Class I
Class III & IV
2/3rd by the Company
l/4th by the Employee
3/4th by the Company
For opting a higher Sum Insured the employee should bear, the entire
difference in premium between the entitled Sum Insured and higher Sum Insured. To
cover additional children and dependent/parents-in-law there could be no sharing of
premium by the Company and the entire premium should be borne by the employee.
a) Each employee should submit a proposal form containing the details of persons to be
insured over which the premium calculations would be made.
b) Annual Premium shall be determined in respect of each employee and eligible
dependent on the basis of Sum Insured.
c) Annual Premium per person will be multiplied by number of persons to be covered.
d) Employees will be allowed IT exemption for the premium paid under Section 80-D of
the Income-tax Act.
5. Service Tax : Service Tax as applicable is charged on the net premium and it should be
borne by the employee.
Insured beyond 80 years : There will be no reduction in the benefit (i.e., sum insured) in
the Revised Group Mediclaim Policy for the dependent parents and also the retired
employees of 80 years and above as the rating structure is linked to the age. Further,
when such insured persons cross the age of 80, the rating would be the same as for the
slab 76-80 years.
II. Scope of the Policy :
1. The Policy covers reimbursement of Hospitalisation and/or Domiciliary Hospitalisation
Expenses for illness/disease contracted or injury sustained by the Insured Person.
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2. In the event of any claim becoming admissible under Policy, the Company will pay to
the Insured Person the amount of such expenses as would fall under different heads
mentioned below as are reasonably and necessarily incurred in respect thereof any
where in India by or on behalf of such Insured Person, but not exceeding Sum
Insured for that person as stated in the Schedule in any one Period of Insurance.
III. Other terms and conditions :
A. DEFINITIONS :
1. Hospital / Nursing Home means any institution in India established for care and
treatment of sickness and injuries which
(a) has been registered either as a Hospital or Nursing Home with the
local authorities and is under the supervision of a registered and
qualified Medical Practitioner.
(or)
(b) Should comply with minimum criteria as under:
i)
It should have at least 15 in patient beds.
ii) Fully equipped Operation Theatre of its own wherever surgical operations are carried
out.
iii) Fully qualified nursing staff under its employment round the clock.
iv)
Fully qualified Doctors should be in charge round the clock.
v) Shall not include an establishment which is a place of rest, a place for the aged, a
place for drug-addicts or place of alcoholics, a hotel or a similar place
Note: In Class 'C towns the number of beds be reduced to 10.
2. Surgical Operation' means manual and/or operative procedures for correction of
deformities and defects, repair of injuries, diagnosis and cure of diseases, relief of
suffering and prolongation of life (including removal of kidney stone by ESWL method
lithotripsy).
3. Expenses of Hospitalisation for minimum period of 24 hours are admissible. However,
this time limit is not applied to specific treatment i.e., Dialysis, Chemotherapy,
Radiotherapy, Eye Surgery, Dental Surgery, Lithotripsy (Kidney stone removal), D &.
C, Tonsillectomy undergone in the Hospital/Nursing Home and the Insured is
discharged on the same day; the treatment will be considered to be taken under
Hospitalisation Benefit. The above is only indicative and the Companies may follow
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the guidelines given underneath for consideration of claims were the period of stay in
hospital is less than 24 hours.
i. The treatment should be such that it necessitates hospitalisation and the
procedure involved requires specialised infrastructural facilities available in
hospitals.
ii. Due to technological advances hospitalisation required is less than 24 hours.
4. Domiciliary Hospitalisation Benefit :
Medical treatment for a period exceeding three days for such illness/diseases, injury
which in the normal course would require care and treatment at the hospital/nursing home
but actually taken whilst confined at home in India under any of the following circumstances
namely :
i)
The condition of the patient is such that he/she cannot be removed to the
hospital / nursing home; or
ii) The patient cannot be removed to hospital/nursing home for lack of

accommodation therein.
Subject however that Domiciliary Hospitalisation benefits shall not cover :

(i)
Expenses for pre and post hospitalisation treatment; and
(ii)
Expenses incurred for treatment of any of the following diseases :

1. Asthma
2. Bronchitis
3. Chronic Nephritis and Nephritis Syndrome
4. Diarrohea and all types of Dysentries including Gastro-enteritis
5. Diabetes Mellitus and Insipidus
6. Epilepst
7. Hypertension
8. Influenza, Cough and Cold
9. All Psychiatric or Psychosomatic Disorders
10.Pyrexia of unknown origin for less than 10 days
11.Tonsillities and Upper Respiratory Tract infection including Laryngitis
and Pharyngitis.
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12.Arthritis, Gout and Rheumatism
Note:
When treatment such as dialysis, Chemotherapy, Radiotherapy, etc., is taken in

hospital/nursing home and the insured is discharged on the same day the treatment be
considered to be taken under hospitalisation benefit section.
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However, Domiciliary Hospitalisation claims in respect of the following chronic

diseases may be allowed even though the employee is not confined to house but attending
office duties, subject to the other requirements in respect of domiciliary hospitalisation claims
being satisfied. This relaxation will also apply to family members and dependents of the
employees.
1. Tuberculosis
2. Cancer
3. Cardiac Ailments
4. Poliomyelitis
5. Renal Failures
6. Leprosy
7. Ailments requiring Brain Surgery
8. Pleurisy
9. Paralysis
10. Crohn's disease
11. Mixed Glaucoma
12. Paranoid Schizophrenia
The Domiciliary Hospitalisation limit in respect of our employees is 60 days.
5. Any one Illness :
Any one illness will be deemed to mean continuous period of illness and it includes
relapse within 105 days from the date of last consultation with the Hospital/Nursing Home
where treatment may have been taken. Occurrence of same illness after a lapse of 105 days
as stated above will be considered as fresh, illness for the purpose of this policy.
6. Pre-Post Hospitalisation :
As regards pre-hospitalisation and post-hospitalisation treatment, it is clarified that if
the surgical/medical cases are treated in the operation theatre/hospital as in-patient and the
patient is discharged on the same day and further treatment under the advice of the hospital
continued at Home, such treatment will be deemed to be post-hospitalisation treatment and
would be reimbursed under the hospitalisation benefits. Similarly, any treatment or
pathological tests, etc., carried out at home prior to admission in the hospital but as a part of
treatment would also be reimbursable under the hospitalisation benefits. All prehospitalisation treatment should be taken immediately prior to hospitalisation of the patient
without any break in the continuity of treatment.
Relevant medical expenses incurred during period up to 60 days after Hospitalisation
on disease/illness/injury sustained will be considered as part of claim
.
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All Post-Hospitalisation treatment should be incidental to and/or continuation of the

treatment taken in the Hospital and can be for a maximum period of 60 days from the date
of discharge from the hospital.
7. Medical Practitioner means a person who holds a degree/diploma of a recognised
institution and is registered by Medical Council of respective State of India. The term Medical
Practitioner would include Physician, Specialist and Surgeon.
8. Qualified Nurse means a person who holds a certificate of a recognised Nursing Council
and who is employed on the recommendations of the attending Medical Practitioner.
9.Maternity Expenses Benefit means treatment taken in
Hospital/Nursing Home arising from or traceable to pregnancy, child
birth including normal Caesarean Section.
B. TERMS OF COVERAGE :
i)
All employees joining in the Industry on or after 10.9.90 shall be automatically

covered under Group Mediclaim Scheme and the cover will be effective from the first
day of the month following the date of their confirmation. These employees are to
submit the enrolment form immediately on confirmation, indicating the option
regarding category and the names of dependent to be covered, if any. The form
should be submitted by the last day of the month of the employee's confirmation and
on that basis steps shall be taken to deduct appropriate premium in respect of the
employee and dependents as per the category opted by him/her. The employee shall
cover his family consisting of spouse and two eligible children, who shall be the
eligible dependents of the employee.
ii) Even if the enrolment form is not submitted by the employee concerned within the
time, department shall arrange to deduct the premium in respect of his/her eligible
category. This will ensure grant of cover to employee from the date of eligibility. The
eligible dependents of the employee may also be included for cover from the first day
of the month following the date of submission of enrolment form, provided the
enrolment is submitted within a period of 6 months from the date of confirmation of
the employee. Coverage of dependents shall be for the identical Sum Insured for
which the employee is covered.
iii) In case the enrolment form is not submitted within the period of 6
months from the date of confirmation of the employee, the eligible
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dependent of the employee may be covered only from the next
renewal date provided the enrolment form is submitted before the said renewal date.
PS : If the employee fails to include his/her eligible dependents before the said renewal date
they cannot be further enrolled into the Scheme at a later date, unless specific option is
allowed by the Company for such inclusion.
iv) The employee's spouse/children becoming eligible for coverage after the employee's
entry into the Mediclaim Scheme, may be granted cover from the first day of the
month following the submission of enrolment form in respect of them. Such
enrolment forms shall be submitted by the employee within 6 months from the date
of their becoming eligible and in any case before the next renewal date. Children shall
be eligible only on completion of 3 months from the date of birth.
Note : Since the premium being linked to age as per the revised policy, the increased risk
factor has been taken care of. Hence, as and when any new dependent family members of
the insured is to be included, the same may be done, subject to exclusion of pre-existing
diseases.
v) Coverage of dependent parents and additional dependent children shall be subject to
the condition that the Company shall not bear any portion of the premium for such
dependent as in the case of eligible members of the family.
vi) All pre-existing diseases are excluded from the purview of the policy, whenever cover
incepts for the first time.
vii) If both the employee and the spouse, are employees in the General Insurance
Industry, the employee drawing higher basic salary shall be eligible to join the
Scheme who will be termed as Principal Employee and the spouse of the principal
employee will be covered under the policy as his/her family member. In such case it is
possible that the dependent parents of both the employees could also be covered as
the family members of the principal employee. No separate deduction of premium
shall be made from the other spouse.
viii) Employees serving abroad will not be covered by this Scheme. However, Officers
posted abroad shall be entitled to join the Scheme on the first day of the month
following their return to India.
ix) If during the calendar year, an employee covered under a particular sum insured is
eligible to be placed in another sum insured due to change in his basic pay (due to
149
promotion, increment or for any other reasons) he shall be placed in the revised sum
insured from the next renewal date (1st April) only.
The cut-off date to determine the age of the employee and family members will be as per the
completed years as of 01st April of respective year. If an employee crosses cut-off date during
currency of policy and goes to higher age group Premium on higher side will be charged only
from the date of renewal
x) The spouse of the deceased employee who die whilst in service would be continued to
be covered under the Group Medicalim Scheme subject to payment of annual
premium on the next renewal date.
xi) The employee can exclude his family member from the coverage and such exclusion
is to be informed to the office one month prior to ensuing anniversary date of renewal
i.e., 28/29th February of the year preceding the date of renewal.
xii) An employee / family members who have opted out of the Scheme cannot be reenrolled under the Scheme again.
Definition, of Family and Dependents
Family shall comprise of self, spouse and any two Eligible children of the employee.
For considering the eligibility following shall be the condition:
a) Children shall be legitimate children and shall include legally adopted children.
b)The children shall be dependent on the employee i.e., he/she does not have an income of
more than Rs.l,500/- p.m. (through any source including scholarship/stipend).
c) Male children shall be below the age of 21 years (25 years in the case of those prosecuting
whole-time studies in recognised Educational Institutions). In case of children exceeding the
above age limits, who continue to be dependent on their parents owing to chronic ailments,
etc., CMD may consider, further relaxation in the age limit, viewing the merits of the case.
d) There shall be no age limit for unmarried daughters.
e) Married children shall not be eligible for coverage.
f) Widowed daughter shall also be eligible provided she is wholly dependent on the employee
and residing with the employee.
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g) For the purpose of ascertaining dependency, it is clarified that the income limit should be
not more than Rs. 1,500/- per month. If any one of the parents of an employee is a pensioner
drawing pension more than
Rs. 1,500/- p.m. he/she cannot be enrolled as a dependent.
If the father of the employee is not a dependent in view of his income being Rs. 1,500/- or
more per month, Mother of the employee cannot be considered as dependent and hence not
covered.
h) An insured employee whether male or female can cover parents and/or parents-in-law
subject to the declaration of dependency.
C: EXCLUSIONS :
1. Diseases which have been in existence at the time of proposing this insurance. Preexisting disease means, any injury which existed prior to the effective date of this
insurance. Pre-existing condition also means any sickness or its symptoms which
existed prior to the effective date of this insurance, whether or not the insured person
had the knowledge, that the symptoms were relating to the sickness. Complications
arising from pre-existing disease will also be considered as part of the pre-existing
condition.
2. During the first year of the operation of the policy the expenses on treatment of
diseases such as Cataract, Benign Prostatic Hypertrophy, Hysterectomy, Menorrahagia
or Fybromyoma, Hernia, Hydrocel, Congenital internal Disease, Fistuala in anus, Piles,
Sinusitis and related disorders are not payable. If these diseases are pre-existing at
the time of proposal they will not be covered even during subsequent period of
renewal.
3. Injury or disease directly or indirectly caused by or arising from or attributable to War,
Invasion, Act of Foreign Enemy, Warlike operations (whether war be declared or not)
4. Circumcision unless necessary for treatment of a disease not excluded hereunder or
as may be necessitated due to an accident, vaccination or inoculation or change of life
of cosmetic nature or treatment of any description, plastic surgery other than as may
be necessitated due to an accident or as a part of any illness.
5. The cost of spectacles, contact lenses, and hearing aids.
6. Dental treatment/Surgery of any kind unless requiring hospitalisation.
7. Convalescence, general debility, Run-down condition or rest cure, congenital external
disease of defects or anomalies (expenses in respect of congenital diseases can be
151
payable if it is not in the nature of cosmetic surgery) sterility, venereal disease,

intentional self-injury and use of intoxicating drugs/alcohol.
8. All expenses arising out of any condition directly or indirectly caused to or associated
with Human T-Cell Lymnphotriopic Virus III (HTLV III) or Lymphadinopathy
Associated Virus (LAV) or its derivative or variations, deficiency syndrome or any
syndrome or conditions of a similar kind commonly referred to as AIDS.
9. Charges incurred at Hospital/Nursing Home primarily for diagnostic, X-ray or
laboratory examinations or other diagnostic studies not consistent with or incidental
to the diagnosis and treatment of the positive existence of presence of any ailment
sickness or injury, for which confinement is required at a Hospital / Nursing Home or
at Home under Domiciliary Hospitalisation as defined.
10. Expenses on Vitamins and tonics unless forming part of treatment for injury or
disease as certified by the attending Physician.
11. Injury or Disease directly or indirectly caused by or contributed by nuclear weapons /
materials.
12. Cost incurred towards naturopathy Treatment.
D:
SPECIAL CONDITIONS APPLICABLE TO MATERNITY

EXPENSES BENEFIT EXTENSION:
1. These benefits are admissible only if the expenses are incurred in Hospital / Nursing
Home as in-patients in India.
2. Waiting period of 9 months applicable for payment of any claim relating to normal
delivery or caesarean section or abdominal operation for extra uterine pregnancy has
been waived.
3. Claim in respect of delivery for first two children and /or operations associated
therewith will be considered in respect of any one Insured Person covered under the
Policy or any renewal thereof.
However, those Insured Persons who are already having two or more living
children will not be eligible for this benefit. If the female employee gives birth to twins in
the
first delivery who are surviving, she will not be eligible for reimbursement of
expenses for her second confinement. In other words, if conditions of either two
surviving children or two confinements is fulfilled, the employee is not eligible for
reimbursement of expenses under Maternity benefits section.
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4. Expenses incurred in connection with voluntary medical termination of pregnancy
during the first 12 weeks from the date of conception are not covered.
5. Pre-natal and post-natal expenses are not covered unless admitted in Hospital /
Nursing Home and treatment is taken there.
6. The expenses relating to miscarriage / abortion induced by accident or any other
medical emergency can be allowed under the Hospitalisation Benefit even though
such miscarriage takes place after first two children. It cannot be claimed under
maternity benefit extension.
Miscellaneous Conditions:
1. Employee who has got two children through his first wife, now divorced
and one child through his second wife, the employee is not entitled for
maternity benefit for the delivery of child through second wife as he has
already got two living children. However it is open to him to cover that
child through second wife as additional child on his bearing full premium for that
child.
2. If the member is hospitalised during the first policy period and treatment
was started when the first policy was in force and continued after the
expiry of the policy, the entire hospitalisation will come under one
treatment and will have to be considered as only one claim and can be
admitted in the first policy only to the extent of the limit available under
the first policy and can not be accommodated in the renewed policy. For
deciding the question under which policy the claim should be admitted, the
date of commencement of hospitalisation shall only be taken.
3. In the event of transfer of employees from one GIPSA Company to another or to /
from GIC, the coverage will be under the group mediclaim policy issued to the
Company to which the employee is transferred from the first day of the month
immediately following the transfer.
4. Employee who bad not included his/her spouse/children for their being
covered under medical policy of his / her employer can not be included
under the medical scheme even if this spouse looses her / his job or for
any other reasons covered by his/her employer's medical scheme.
Similarly, spouse of employee who is covered by his / her employer's
medical scheme can not be allowed to re-exercise his option to be
covered at a later date in our scheme.
153
In other words only such spouse and children who acquire eligibility due to
marriage / childbirth /and / or on account of provisions of revised conditions can be
covered as per the specific rules made. Spouse and children who were already eligible
but not covered by the scheme are not allowed to be covered at a later date.
5. If spouse is covered under any other scheme, she cannot be covered under our
scheme.
6. Deletions of the names of members may be made immediately on death, intercompany transfer, addition in transferee company, retirement or resignation.
7. New born child, who is under observations/treatment in an ICU or incubator these
expenses can be covered under maternity benefits of the mother as mother and child
are treated as one unit.
8. Sisters and brothers of an employee can not be included under group mediclaim
policy even if they are dependent on the employee.
9. Dependency will be applicable only for children and parents of the employee and not
the spouse of the employee. Spouse will be eligible for coverage irrespective of the
income earned by him / her.
10. Age of the family members proposed for coverage under group mediclaim policy may
be ascertained from the date of birth mentioned by the employee in the enrolment
form. Proof of age may not be insisted upon in the normal course.
11. Children exceeding the age limit who continued to be dependent on the employee
because of chrome ailments etc., can be covered for relaxation of age limit for
coverage under group mediclaim on a specific request to CMD who considers on the
merits of the case.
12. Hospitalisation expenses incurred by an employee on his wife and children can be
paid even if she is employed in other Government services provided the same are not
claimed from her employer.
13. There is no relaxation in age in respect of physically handicapped son who is
dependent on the employee under group mediclaim.
14. Medical test for inclusion under policy may be done preferably by Doctors on the
panel of GIC / subsidiaries / LIC for Medical test for recruitment. Such expenses
should be borne by the employee.
15. Whenever an intimation is received from the employee for deletion of members who
axe covered under the policy for reasons whatsoever, full annual premium is charged
154

in case a claim is preferred in respect of the said employee / dependents during the
policy.
16. In respect of employees who have tendered resignation after termination /
resignation from the service of the Company, Mediclaim premium till the date of relief
has to be recovered from them. In addition an undertaking has to be obtained from
them that they will lodge no claim during the period they were in the service of the
Company.
17. In case the employee had already lodged a claim, during the current year policy,
entire annual premium has to be recovered before settlement of his terminal benefits.
18. Patient who does not pay bed charges but is operated in the operation theatre of the
hospital can claim expenses in case of D & C, Tonsil operation and the like, depending
on the merits of the case as certified by the medical practitioner where the patient is
operated.
19. In respect of claim of Donor and Donee of kidney transplant operation, even though
the Donor is also having a Mediclaim policy, the expenses in respect of both Donor
and Donee can be admitted only under the Donee's policy subject to the limits
available to the Donee and can not be entertained by the Donors policy because
Donor has not suffered any disease within the meaning of the policy.
20. The reimbursement of cost of Intra Ocular Lens, which is implanted in the eye during
cataract operation, can be considered under Group Mediclaim Policy.
21. Ambulance charges can not be reimbursed under mediclaim for employees.
22. Treatment taken only for Allopathic, Ayurvedic, Homeopathic and Unani systems is
covered under existing scheme. In respect of pre-existing ailment, claim is limited to
the sum insured chosen prior to the renewal and not enhanced sum insured declared
by the employee at the time of renewal.
155

GROUP MEDICLAIM PREMIUM
SCHEDULE FOR OUR EMPLOYEES
PREMIUM PER PERSON PER YEAR AGE WISE

AGE
UPTO 35
36-45
46-55
56-65
SUM
INS
URE
D
BASE
PRE
MIU
M
PR
E
G.
D.
BAS
E
PRE
MIU
M
PR
E
G.D
.
BAS
E
PRE
MIU
M
PRE
G.D
.
BASE
PRE
500
00
550
00
600
00
650
00
700
00
750
00
800
00
850
00
900
00
950
00
100
000
105
000
110
000
115
000
120
000
125
000
130
000
135
000
140
000
145
000
638
21
3
23
6
24
7
26
8
28
9
30
9
33
0
35
1
37
2
39
3
41
2
43
1
45
0
47
0
48
9
50
8
52
7
54
6
56
5
58
5
694
23
1
25
6
26
9
29
2
31
5
33
5
35
8
38
1
40
4
42
7
44
8
46
9
49
0
51
0
53
1
55
2
87
3
59
4
61
5
63
5
995
332
109
9
115
1
124
8
134
6
144
3
154
1
163
8
173
6
183
3
192
4
201
5
210
6
219
7
228
8
237
9
247
0
256
1
265
2
274
3
707
742
805
868
926
989
1052
1116
1179
1236
1294
1351
1409
1466
1524
1581
1639
1696
1754
769
806
875
944
100
6
107
5
114
4
121
3
128
1
134
4
140
6
146
9
153
1
159
4
165
6
171
9
178
1
184
4
190
6
66-70
71-75
PRE
G.D.
BAS
E
PRE
MIU
M
PR
E
G.D
.
BAS
E
PRE
MIU
M
PRE
G.D.
1131
377
423
1248
416
384
1313
438
416
1417
472
449
1528
509
481
1638
546
514
1749
583
546
1859
620
579
1970
657
611
2080
693
641
2191
730
672
2295
765
702
2399
800
732
2503
834
763
2607
869
793
2711
904
823
2815
938
854
2919
973
884
3023
1008
914
3127
1042
135
9
149
5
157
3
170
3
183
3
196
3
210
0
223
6
236
6
249
6
262
6
275
6
288
6
301
6
314
6
327
6
340
6
353
6
366
6
379
6
453
366
126
8
139
8
146
9
159
3
171
0
183
3
195
7
208
7
220
4
232
7
245
1
256
8
268
5
280
2
291
9
303
6
315
3
327
0
338
7
350
4
MIU
M
156
466
490
531
870
611
652
696
735
776
817
856
895
934
973
101
2
105
1
109
0
112
9
116
8
498
524
568
611
654
700
745
789
832
875
919
962
100
5
104
9
109
2
113
5
117
9
122
2
126
5
76-80 &
ABOVE
BAS
PR
E
E
PRE G.D
.
MIU
M
167
55
7
9
184
61
6
5
193
64
7
6
209
69
3
8
227
75
5
8
241
80
8
6
260
86
0
7
276
92
9
3
293
97
8
9
309
10
4
31
325
10
0
83
342
11
6
42
360
12
1
00
377
12
7
59
395
13
2
17
412
13
8
76
430
14
3
34
447
14
9
93
465
15
4
51
483
16
0
10
150
000
155
000
160
000
165
000
170
000
175
000
180
000
185
000
190
000
195
000
200
000
205
000
210
000
215
000
220
000
225
000
230
000
235
000
240
000
245
000
250
000
255
000
260
000
265
000
270
000
275
000
1811
1863
1915
1967
2018
2070
2122
2174
2225
2277
2329
2375
2421
2467
2513
2559
2605
2651
2697
2743
2789
2835
2881
2927
2973
3019

60
196
65 283 945
4
9
6
4
62
202
67 291 973
1
5
5
9
63
208
69 300 100
8
1
4
3
1
65
213
71 308 102
6
8
3
8
9
67
219
73 317 105
3
4
1
2
7
69
225
75 325 108
0
0
0
7
6
70
230
76 334 111
7
6
9
1
4
72
236
78 342 114
5
3
8
6
2
74
241
80 351 117
2
9
6
0
0
75
247
82 359 119
9
5
5
5
8
77
253
84 367 122
6
1
4
9
6
79
258
86 375 125
2
1
0
7
2
80
263
87 383 127
7
1
7
5
8
82
268
89 391 130
2
1
4
3
4
83
273
91 399 133
8
1
0
1
0
85
278
92 406 135
3
1
7
9
6
86
283
94 414 138
8
1
4
7
2
88
288
96 422 140
4
1
0
5
8
89
293
97 430 143
9
1
7
3
4
91
298
99 438 146
4
1
4
1
0
93
303
10 445 148
0
1
10
9
8
94
308
10 453 151
5
1
27
7
2
95
313
10 461 153
0
1
44
5
8
97
318
10 469 155
6
1
50
3
4
99
323
10 477 159
1
1
77
1
0
10
328
10 484 161
08
1
94
9
6
3231
1077
3328
119
3426
1142
3523
1174
3621
1207
3718
1239
3816
1272
3913
1304
4011
1337
4108
1369
4206
1402
4297
1432
4388
1463
4479
1493
4570
1523
4661
1554
4752
1584
4843
1614
4934
1645
5025
1675
5118
1705
5207
1738
5298
1766
5389
1798
5480
1827
5571
1857
157
362
1
373
1
384
2
395
2
406
3
417
3
428
4
439
4
450
5
461
5
472
6
483
0
493
4
503
8
514
2
524
6
535
0
545
4
555
8
588
2
576
6
587
0
597
4
607
8
618
2
628
8

120 392
130
500
7
6
9
5
124 405
135
517
4
0
0
4
128 417
139
534
1
3
1
3
131 729
143
551
7
7
2
2
135 442
147
568
4
0
3
1
139 454
151
585
1
4
5
0
142 466
155
601
8
7
6
9
146 479
159
618
5
1
7
8
150 491
163
635
2
4
8
7
153 503
167
652
8
8
9
6
157 516
172
669
5
1
0
5
161 527
175
685
0
8
9
8
164 539
179
702
5
5
8
0
167 551
183
718
9
2
7
3
171 562
187
734
4
9
6
5
174 574
191
750
9
6
5
8
178 586
195
767
3
3
4
0
181 598
199
783
8
0
3
3
185 609
203
799
3
7
2
5
183 621
207
815
7
4
1
8
192 633
211
832
2
1
0
0
195 644
214
848
7
8
9
3
199 656
218
864
1
5
8
5
202 688
222
880
6
2
7
8
205 679
226
897
1
9
5
0
209 691
230
913
5
6
5
3
16
68
17
25
17
81
18
37
18
94
19
50
20
06
20
63
21
19
21
75
22
32
22
86
23
40
23
94
24
48
25
03
25
57
26
11
26
65
21
79
27
73
28
28
28
82
29
36
29
90
30
44

280
000
285
000
290
000
295
000
300
000
3065
3111
3157
3203
3249
10
22
10
37
13
52
10
88
10
83
333
1
338
1
343
1
348
1
353
1
11
10
11
27
11
44
11
80
11
77
492
7
500
5
508
3
516
1
523
9
184
2
186
8
159
4
172
0
174
6
5882
1887
5753
1918
5844
1948
5935
1978
6026
2009
639
0
649
4
959
8
670
2
680
8
213
0
216
5
219
9
223
4
225
6
703
3
715
0
725
7
738
4
750
1
234
4
238
3
242
2
248
1
250
0
929
5
945
8
962
0
978
3
994
5
The above figures are gross amounts. On this a group discount of 66 2/3% or as decided by
the Company from time to time has to be applied.
On this appropriate loading if any, bas to be applied,
Note:
The cut off date to determine the age of the employee and family members for premium will
be as per the ruling for General public policy holders, i.e completed years as on 1 st April of
the respective year. If an employee crosses cut off date during the currency of the policy and
goes to higher age group, premium on higher side will be charged only from the date of
renewal, E.g. A member if the age 45 years 11 months 29 days on 1 st April would come
under the age slab upto 45 years, whereas during renewal his age would be 46 years 11
months and 29 days and he would be falling in the age slab 45-55 years and has to pay the
corresponding higher premium,
CHANGES IN THE GROUP MEDICAL SCHEME

Waiting Period:
The waiting period of 30 days in respect of hospitalisation and domiciliary
hospitalisation claims and 9 months in respect of maternity claims is removed. It may be
pointed out however that the exclusion of 3 daysin respect of domiciliary hospitalisation claims
will continue.
Major Diseases and /or major Surgical
Definition of major surgical and/or major diseases has been, extended to
include the following diseases in addition to those listed in the existing
policy.
Cardiac ailments, poliomyelitis, leprosy, ailments requiring brain surgery, paralysis,
paranoid schizopernia.
158
30
95
31
53
32
07
32
61
33
15

Congenital Diseases:
Exclusion in respect of congenital defects or anamolies is deleted from exclusion No.6

provided that such, treatment is not in the nature of cosmetic surgery or treatment and is
taken on medical advice.
Query No. l
Whether an employee who is already having two children (twins in one delivery) can
claim maternity benefit to the third child birth?
Clarification:
The Insured is not entitled to any benefit under the maternity benefits
section of the Group Mediclaim Policy if he has already got two or more
children. It is not material whether two children are born in one
delivery.
Query No. 2
Expenses related to miscarriage/abortion induced by accident.
Clarification:
If the miscarriage/abortion is due to accident, expenses relating to such miscarriage
can be entertained under Maternity benefits if the claimant does not have two living children.
In case the claimant has two living children their claims for miscarriage can be admitted
under Hospitalisation Benefits without any limit. Further expenses relating to miscarriage /
abortion induced by accident or any other medical emergency can be allowed up to the limits
of the Hospitalisation benefits even though such miscarriage takes place after the first two
children.
Coverage of Dependent Children of Retired employees under GMIS
As per Medical Benefits Rules, retired employees with spouse are allowed to continue
to be covered under the Group Mediclaim Policy as per its normal terms and conditions with
effect from the 1st April following the date of his / her retirement provided full annual
premium after allowing the admissible group discount is paid by the employee in advance of
commencement of each policy year.
159
Now the Group Mediclaim cover can be extended to the dependent children of the
retired employees w.e.f. 01.04.2002. Kindly note that such inclusion is one time and should
be effected only from the next renewal date of the policy as above.
Query 3:
Some of the retired employees may wish to opt out of the policy and take coverage
under individual mediclaim policy. Please intimate us what measures should be taken in such
cases for the current policy period?
Clarification:
Those of the retired employees who wish to opt out of the policy may be allowed to
do so from the next renewal date. However, they will have no option to re-enroll.
Query 4:
Whether the retired employee opting for an individual policy for self, spouse and
children at this time of retirement is eligible for staff discount.
Clarification
The discount is applicable only to the retired employee and his spouse.
Query 5:
Some of our existing employees are willing to discontinue the coverage of dependent
parents/additional children due to increase in premium. Whether the same may be allowed?
Clarification:
Those of the existing employees who wish to discontinue the coverage of spouse, children,
dependent parents / additional children due to increase in premium may be allowed to do so
at the time of renewal of the policy. However, such employees would not have an option to
re-enroll their family members at a later date.
Query 6:
Whether coverage to dependent parents and parents-in-law of both female and male
employees can be allowed, as allowed to the public.
Clarification:
It has been decided that subject to a declaration of dependency, an insured employee
whether male or female can cover parents and / or parents-in-law.
Query 7:
160

Can the treatment taken at Tibetian Herbal Centre and Agasthya Madam Sidha Vaidya
Sala be covered under GMIS.
Clarification:
No. However, treatment taken only from Allopathic, Ayurvedic, Homoeopathic and Unani
Systems is covered under the existing Scheme.
Query 8:
Is the cost of Intra ocular Lens payable under Group Mediclaim Policy.
Clarification:
The reimbursement of cost of Intra Ocular Lens which is implanted in the eye during
cataract operation can be considered under Group Mediclaim Policy.
Query 9:
Can dependent parents who are above the age of 75 years be covered under the Revised
Group Mediclaim Policy.
Clarification:
Dependent parents who are above the age of 75 years can be covered under the Revised
Group Mediclaim Policy only if they were continuously covered earlier ie., (fresh enrolments of
dependent parents beyond the age of 75 years cannot be considered)"
Query 10:
How to recover premium in respect of employees who have resigned/terminated from
services?
Clarification:
In respect of employees who have resigned from the service of the Company, Mediclaim
premium till the date of relief has to be recovered from them. In addition an undertaking has
to be obtained from them that they will lodge no claim during the period they were in the
service of the Company.
Clarification:
Retired employees who-want to rejoin the Mediciaim Scheme after a gap of one year may be
permitted to join the Scheme provided they are below the age of 75 years and subject to a
medical examination.
23. GROUP MEDICLAIM POLICY-PART TIME EMPLOYEES

161
Group Mediclaim policy has been extended to cover PTE w.e.f. 01.05.1996. They will be
covered in the same sum insured as applicable to Class-IV employees, as the salary drawn by
PTEs is in proportionate to the gross emoluments drawn by the Sub-staff at the minimum of
the scale. The time limit for coverage has been extended upto 31.07.1996 and another option
given for coverage from next renewal date.
a) All part-time employees joining the industry on or after 01.05.1996 shall be automatically
covered under Mediclaim scheme as per their eligible Sum Insured as above. The coverage
will be operative from the 1st day of the month following the date of confirmation. The
concerned department shall deduct the premium in respect of part-time employee as per
his/her eligible category even if the enrolment form is not submitted by him/her. This will
ensure grant of cover to part-time employee from the date of his/her eligibility. Once the
cover is provided under this item, the requests for change of category can be entertained
earliest from the next renewal date as per existing procedure laid down in this regard.
b) Notwithstanding what is provided in (a) above, it is desirable that a part-time employee
submits the enrolment form immediately on confirmation indicating the option regarding
category and names of dependents to be covered, if any. The form should be submitted by
the last day of the month of the part-time employee's confirmation. After such form is
received, the concerned department shall take steps to deduct appropriate premium in
respect of part-time employee and dependents as per the category opted by him/her.
c) If the enrolment form is not submitted by the last day, the eligible dependents may be
covered from the 1st day of the month following the date of submission of their enrolment
form, provided the same is submitted within a period of six months from the date of
confirmation of the part-time employee. Coverage of dependents shall be as per the same
category under which the part-time employee is covered.
d) In case the enrolment form is not submitted within a period of six months from the date of
confirmation of the part-time employee, the eligible dependents may be covered only from
the annual renewal date immediately following the six months period provided their enrolment
from is submitted by the part-time employee before the said annual renewal date.
e) If the part-time employee does not submit enrolment form for all or any of the eligible
dependents) as prescribed in items (b), (c) and (d) above, such dependents) shall not be
covered from any later date.
f) In respect of parents, spouse/children becoming eligible for coverage after the part-time
employee's entry into the mediclaim scheme, the coverage may be granted from the 1 st day
of the month following submission of enrolment form in respect of such eligible dependents.
Part-time employees may be advised that enrolment forms in respect of such dependents
should be submitted within six months from the date of their becoming eligible.
g) However, if the enrolment form is not submitted within Six months, coverage may be
granted only from the next renewal date immediately following the expiry of six months
period provided the enrolment form is submitted before the said annual renewal date.
162

h) As regards coverage of pre-existing diseases, if the cover incepts for the first time all preexisting diseases are to be excluded.
i) If the enrolment form is not submitted even before the relevant annnal renewal date, such
eligible dependents shall not be granted cover from any later date.
j) The PTEs covered under the entitled SI. would have the claims settled under that S I
benefit. Where Part-time employee opts for a higher sum insured all claims made under
existing policies well be settled as per existing sum insured and these diseases will not be
covered under higher sum insured.
k) When cover incepts for the first time, all pre-existing diseases are to be excluded. If
however, they had earlier continuous insurance then the first year exclusion may not apply.
If a PTE is covered initially and he opts for a higher cover than the entitled one, pre-existing
diseases will have to be excluded for extended portion.
CHAPTER - 24
163
MEDICAL BENEFITS FOR RETIRED EMPLOYEES

Coverage under Group Mediclaim Policy may be extended to retired employees. This shall be
administered as follows :1. Cover will be available under Group Mediclaim Policy as per its normal terms and
conditions only to retiring/retired employees (including those retired voluntarily after
attaining the age of 55 years and those retired under Pension Scheme) and their
spouse and dependent children provided they were members of Group Mediclaim
Policy before retirement.
2. Cover is optional. For employees who shall be retiring such option is to be exercised
before retirement.
3. The entire premium, less group discount, shall be borne by the retired employee in
lumpsum and paid before 31 st March, of every year.
4. As mentioned in (2) above the retiring employees are required to exercise option for
coverage before retirement. The employees may opt for higher sum insured and any
sum insured subject to maximum of Rs. 5 lakhs. However,
(i)
higher Sum Insured upto a maximum of Rs.5,00,000/(ii)
lower Sum Insured upto the eligible category limit.
5.
Premium for the remaining period of the policy year in which the employee retires will
be recovered in single payment on retirement. From April 1, immediately following the
retirement, coverage shall be under the sum insured opted for, provided entire annual
premium is paid by the concerned retired employee before the commencement of every policy
year.
6. It is clarified that for the unexpired period of the policy year in which the employee
retired, cover may continue even for the dependants. However, from the following
renewal of policy , the retired employee, spouse and dependant children can be
covered.
7. An acknowledgement will be given on receipt of premium stating the period of cover,
amount received, sum insured and the names of persons covered.
8. If there is a break in coverage under the Group Mediclaim Scheme for retired
employees due to non-payment of premium before the due date cover cannot be
granted from any subsequent date under the rules relating to retired employees.
1. BREAK IN COVER FOR LESS THAN ONE YEAR
164
With a view to mitigate the hardship, it has been decided that the break less than one year in
the coverage may be condoned and the cover can be renewed under Group Mediclaim Policy
subject to the following conditions:
a) The employee is less than 80 years of age at the time of the renewal of the cover.
b) Satisfactory medical report is received from the medical examiner the cost of
which will be borne by the retired employee.
c) Full renewal premium covering the break period is also paid.
d) Claims occurred during the period of break in cover cannot be paid.
e) The cover will recommence from the date of payment of renewal premium
without any waiting period.
f) Claims in respect of diseases contracted or accidents suffered during the period of
break in cover are excluded.
1. A retired employee who settles down at a place other than his/her last place of posting,
may renew the cover at any office of any Company, near his/her place of residence. Such
ex-employees will have to produce a certificate, to be issued by the previous mediclaim
policy servicing office stating the names of the ex-employee, name of the persons
covered, their date of birth, category opted for and policy year upto which cover was
renewed.
2. The sum insured which could be opted by retired employees would be as in the case of
existing employees, i.e., maximum upto Rs.5,00,000/3.
Retired employees who continue to be covered under Individual Mediclaim Policy may be
allowed to join the Group Mediclaim Policy without insisting on the medical examination,
provided the Divisional Office where they have been serviced certifies that there has been
no pre-existing diseases suffered by the retired employee and, or spouse, while covering
them under the individual policy for the first time.
4.
The spouse of retired employee after the demise of retired employee will continue to be
covered under the revised Group Mediclaim Policy subject to payment of premium in
advance and other underwriting guidelines.
5. Group discount may be allowed to the employee who retire voluntarily under TSR Scheme
as also under the Pension Scheme provided he/she continues to be member of the group.
6. Terminated employees cannot be covered under Group Mediclaim Policy.
Coverage of Dependent Children of Retired employees under GMIS

As per Medical Benefits Rules, retired employees with spouse are allowed to continue to be
covered under the Group Mediclaim Policy as per its normal terms and conditions with effect
165
from the 1st April following the date of his/her retirement provided full annual premium after
allowing the admissible group discount is paid by the employee in advance of commencement
of each policy year.
Now the Group Mediclaim cover can be extended to the dependent children of the retired
employees also effective from the next renewal date of Group Medical policy i.e., 01.04.2002.
Kindly note that such inclusion is one time and should be effected only from the next renewal
date of the policy as above.
Those of the retired employees who wish to opt out of the policy may be allowed to do so
from the next renewal date. However, they will have no option to re-enroll.
166
CHAPTER 25
FACILITY OF GENERAL MEDICAL CHECK-UP
In order to encourage Senior Officers to undergo diagnostic medical check up at periodic
intervals as a preventive step, the following scheme has been approved.
i) Eligibility
Officers of the rank of

Manager(Scale-IV) and above
ii) Nature of Expenses

reimbursable
Rs.2000/- for one check-up
iii)Limit on check-up
i) Once before 50 years

ii) Twice between 50 years and 55
years
iii) Twice after 55 years
167

Phone : 044-28520161
Fax : 044-28524191
LETTER FOR REIMBURSEMENT OF GENERAL MEDICAL CHECK-UP

(for the cadre of MANAGER & ABOVE)
From
(Name)
(Employee No.)
(Designation)
(Department)
To
Establishment Department,
Head Office.
Sir,
Re : Reimbursement of General Medical Check-up
I hereby request you to reimburse me the charges incurred (subject to a maximum of
Rs.2000/- only) in respect of my general medical check-up, details of which are given below. I
enclose the Original bills and copies of the reports and also confirm that I have not claimed
reimbursement more than what is allowed for the current block.
1. Date of Birth and Age
2. The Block for which Claim is made :

Once : Before 50 years
Twice : Between 50 to 55 years
I / II
Twice : After 50 years
I / II
3. Bills/Receipt now submitted for Rs.
4. Month and Year in which last claim was made:

___________________
Signature of the Officer
Dated :
Enclosures :
168

CHAPTER -26
EX-GRATIA REIMBURSEMENT OF MEDICAL EXPENSES TO EMPLOYEES FOR HIGH

COST/PROTRACTED TREATMENT
The Scheme was formulated in 1985, fixing certain limits. The limits were revised
subsequently in October 1988, April 1993, October 1995 and October 2000.
As per the original Scheme, ex-gratia reimbursement could be considered for the treatment
of employee/non-earning spouse/dependent children not exceeding 2 times for
specified major diseases in the entire service of the employee.
The salient features of the revised Scheme are:(12)
90% of the amount claimed (of uncovered balance), subject to maximum of
Rs.3,00,000/- and this provision will apply for employees as well as their eligible
dependents.
(13)
Further if the uncovered expenses are beyond ex-gratia eligibility of
Rs.3,00,000/- the same may be reimbursed to the extent of 80% of the amount in
excess of ex-gratia eligibility of Rs.3,00,000/- subject to the overall limit of ex-gratia
of Rs.5,00,000/-.
(14)
All confirmed employees are eligible to apply for ex-gratia reimbursement
either to self or non-earning spouse or dependent children not exceeding two who are
covered under Group mediclaim. The definition of dependent would be as applicable
to Group Mediclaim Policy.
(15)
This benefit is available twice during the entire service period.
(16)
Uncovered amount means the amount spent for such treatment in excess of
the entitlement under Mediclaim/Welfare Society Grant/ compensation from legal
forums and amount receivable from any other source including PA policies.
(17)
The limit on each occasion is Rs.5,00,000/- and any un-utilised portion of the
limit in the first occasion cannot be carried over. There is no provision for clubbing of
limits of both the occasions for a single treatment/ailment.
(18)
If this benefit has already been claimed once under the earlier Scheme, either
for the employee, or non-earning spouse or dependent child, the benefit of revised
Scheme can be allowed only once during the balance service of the employee.
(19)
The limits applicable for treatment taken in India is also applicable for
treatment abroad (payable in Indian Currency).
(20)
The list of major diseases covering 28 different kinds of ailments for which
ex-gratia reimbursement could be considered is appended herewith.
(21)
The employee shall submit a request for ex-gratia in the prescribed Format
(as per Annexure-B) duly filled in and recommended by Regional Chief(in case of RO)
and Chief Manager of the dept(in case of HO).
169
(22)
The Chairman-cum-Managing Director may approve ex-gratia, subject to the
production of medical reports, bills and details about the reimbursement already
availed through other sources.
The Scheme allows payment of Advance under ex-gratia reimbursement Scheme of uncovered
Mediclaim expenses in connection with high cost/protracted treatment with effect from
02.06.2000 are as under :
a) Advance payment of ex-gratia reimbursement Scheme may be granted to the extent of
75% eligible ex-gratia limits or 75% of the estimated uncovered cost of treatment whichever
is less in respect of employees/ eligible dependent family members.
b) The authority to sanction such advance payment would be vested with CMD and
sanctioned if he is convinced as to the genuineness of the case of hardship faced by the
employees/dependent family members suffering from any of the specified major illnesses
covered under the Ex-gratia Reimbursement Scheme.
c) Advance payment under the Ex-gratia Scheme be, however, considered only in cases
where the limits under the Group Mediclaim Insurance Scheme are likely to be exhausted.
d) The advance payment may be made directly to the hospital and not in favour of the
employees subject to submission of bills within a month. Refund, if any, to be made to the
Company/Corporation.
ANNEXURE-A
LIST OF SPECIFIED DISEASES UNDER EX-GRATIA MEDICAL REIMBURSEMENT
SCHEME
i) Renal Diseases.
ii) Cerebral or Vascular strokes.
iii) Open & Close Heart Surgery including CABG.
iv) Kidney Transplantation & Dialysis.
v) T.B. which includes Pulmonary T.B.
vi) Malignancy including Leukemia.
vii) Encephalitis (viral).
viii) Neuro Surgery.
ix) Total replacement of joints.
x) Cardiac ailments including ailments necessitating permanent pace maker.
xi) Poliomyelitis.
xii) Leprosy.
xiii) Ailments requiring Brain Surgery.
xiv) Paralysis
xv) Paranoid Schizophrenia.
xvi) Angioplasty
xvii)
Major operations of Spine and Vertebra including for correcting congenital
spinal deformity.
xviii)
Gall Bladder/Pancreatic Calculi or Nesidioblastosis.
xix) Ectopia Vesica
170

xx) Major accidents resulting in multiple fractures and/or amputation of limbs and/or
involving vital organs.
xxi) Diseases of Liver leading to Hepatic failure or transplantation.
xxii)
Burns more than 20%.
xxiii)
Cerebral Malaria leading to major complications.
xxiv)
Diseases needing artificial ventilation for more than 24 hours.
xxv)
Meningeomyelocele/Hydrocephalus Complex.
xxvi)
Surgery of Portal Hypertension.
xxvii)
Unconsciousness of more than 24 hours, excluding Diabetes Mellitus.
xxviii)
Thalassemia Major.
ANNEXURE -B

Phone : 044-28520161
171
Fax : 044-28524191
APPLICATION FOR EX-GRATIA REIMBURSEMENT OF MEDICAL EXPENSES FOR

HIGH COST PROTRACTED TREATMENT
S.NO.
DETAILS
Name of the Employee
Employee Number
Designation
Office of work
Date of Birth
Date of entry in service and no. of

years of service
Details of Ex-gratia benefit

availed, if any, earlier
Present request whether for

Self/Spouse/Children
a) Whether the Spouse is

earning:
b) Whether the Children are
dependants
10
Nature of Illness/Disease/Accident
11
Period of Hospitalisation
12
Total amount of expenses

incurred
13
Amount due to Hospital, if any
14
Amount reimbursed under Group

Mediclaim from the amount
shown in item No.12 (Break-up
details to be give with supporting
Bills and Counter signed by
Officer-in-charge)
15
Mediclaim details
16
Advance drawn/on Account

payment made, if any
17
Amount of grant received from

Welfare Society/applied for from
Welfare Society
18
Any other Financial Assistance
Yes
NO
Yes
NO
i) Category
ii) Amount reimbursed
in the current year
iii) Balance
172
:
:
:

S.NO.
DETAILS
19
Amount of Assistance, if any

applied for /Claimed or Received
from Social Organisation or any
other Voluntary/Govt. Agency/any
other Source/ any other Insurance
20
Balance amount still uncovered
DECLARATION :
I ___________________________, working as _________________________ in
_____________________________, do hereby declare that the particulars
mentioned above are true and correct and I am fully aware that the Ex-gratia
reimbursement of medical expenses is available only twice in my entire service
period. I hereby declare and confirm that, I
Have not applied for and obtained on earlier occasion

Have applied for and obtained only once as per details furnished against item
NO.16 above
(strike out whichever is applicable)
Ex-gratia reimbursement of medical expenses.
___________________________
SIGNATURE OF THE EMPLOYEE
PLACE :
DATE :
CERTIFICATE OF THE CLAIM SETTLING OFFICER :
Information furnished in the application relating to the nature of diseases, period of
hospitalisation, total amount of expenditure incurred, total reimbursement under the Group
Mediclaim Policy and/Advance Ex-gratia availed/grant from Welfare Society availed/Loan from
Welfare Society for the above medical expenses availed / or any other reimbursement have
been verified with reference to the original bills, discharge summary produced and are
certified as correct. Copies of the Discharge Summary and Medical Bills are attached.
SENIOR/DIVISIONAL MANAGER
RECOMMENDATIONS OF THE REGIONAL CHIEF
173
The details furnished by the employee in the application have been verified by the Regional
Office and are certified as correct. Ex-gratia reimbursement is recommended as per the
guidelines.
REGIONAL MANAGER/DEPUTY GENERAL MANAGER
INSTRUCTIONS TO FILL THE FORM

(1) The information should be complete in all respects and nothing should be kept blank.
(2) Copy of Discharge Summary specifying the nature of disease/diagnosis and the course of
treatment should be attached.
(3) Copies of all receipts for payment of bills covering the entire amount of expenses as
shown against item No.10 should be attached.
(4) Forwarding office should confirm verification receipts, bills, etc. for correctness of the
amount allowed and certify the discharge summary and the receipts/bills for having verified
with originals and should attach heads under Group Mediclaim Policy.
CHAPTER - 27
BENEFITS FOR EMPLOYEES MEETING WITH ACCIDENTS WHILST ON DUTY
174

(For all classes of employees)
The following benefits may be granted to the employees (including probationers) meeting
with accidents whilst on duty:
(i) reimbursement of medical, surgical and hospitalisation expenses that are actually and
necessarily incurred by the employees who sustain injuries on account of accidents arising out
of and in course of duty.
(ii) Special Leave to cover the absence from duty on this account. Such leave shall not be
debited to sick leave or earned leave to the credit of the employee concerned. For the period
of Special Leave, Earned Leave shall not accrue to the credit of the employee.
(iii) the employee may opt for claiming reimbursement of expenses incurred in treating the
injury suffered whilst on duty under the above scheme, i.e. the employee need not as a
precondition make a claim under the Group Mediclaim Scheme.
(iv) reimbursement of the expenses shall be limited to the excess of the expenses over the
amount received or claimed from any other source.
(v) the benefit shall be available only if the accident is not due to the negligence on the part
of the employee.
(vi) the benefits being Fringe benefits will not be available in case of accidents while the
employee commutes from his residence / place of stay to the place of work or vice-versa
(vii)This benefit will be available even to an employee who is on probation
Note:
1. The expenses incurred should be reasonable and shall be restricted to the treatment taken
in India.
The authority to sanction the above benefits is restricted only to DGM/Chief Regional Manager
in respect of employees coming under their control. (at RO) and DGM(P) at HO.
2. The term 'whilst on duty' shall mean the period covering the hours of work excluding lunch
recess or rest interval. However, cases of employees who meet with accident whilst on duty
not falling under the purview of the above, may be referred to Personnel Department, Head
Office with the observations / recommendations of the Regional-in-charge.
CHAPTER - 28
INCENTIVES FOR FAMILY PLANNING
175
The following facilities/incentives are available to employees for undergoing family planning:
I. LEAVE FACILITIES
(i) Six days Special
Salpingectomy):
Leave
for
undergoing
sterilization
operation
(Vasectomy
or
(ii) Fourteen days Special Leave to a female employee for undergoing puerperal or nonpuerperal sterilisation;
(iii) One day's Special Leave to a female employee who had I.U.C.D insertion.
Note: The leave facilities mentioned above is available only if the employee himself/herself
has undergone family planning operation.
II. REIMBURSEMENT OF EXPENSES:
Reimbursement of surgical fees incurred in respect of Vasectomy performed on a male
employee or Tubectomy performed on a female employee or the wife of a male employee
may be made to the limit of Rs. 250/-. This reimbursement shall be limited to the actual
amount incurred, if it is less than the maximum limit
III. INCENTIVE AWARD
An incentive award of Rs. 250/- is extended to an employee whose wife has undergone
tubectomy operation or whose husband has undergone vasectomy operation.
It should be noted that the benefit at II above in the nature of reimbursement benefits and,
therefore, the medical bill(s) in the first instance shall be paid by the employee concerned.
Thereafter, he/ she can claim reimbursement from the office, upto the admissible limit. If the
employee has already received any reimbursement or contribution from any other source, say,
any government agency, the office shall reimburse only the excess of the expenses incurred
over the amount so received, subject to the overall maximum limit that is stipulated. The
above incentives shall be available to all confirmed employees. In case of both Husband and
Wife undergoing family planning operation, the surgical charges and incentives award of
Rs.250/- each shall not be considered separately as the purpose of family planning would be
served if one of the married couple undergoes a sterilisation operation and consequently only
one of them would be entitled to reimbursement of the surgical expenses as also the claim for
incentive. The benefits can be claimed only once. Regional In-charge shall be the Competent
Authority for sanctioning family planning incentives.
CHAPTER 29
GROUP SAVINGS LINKED INSURANCE SCHEME
a) DATE OF COMMENCEMENT :
20.11.1988
176

b) RISK COVER AND PREMIUM:
The premium shall be Rs.10/- per Rs.10,000/- sum assured per month. The apportionment of
premium towards risk premium and savings portion shall be in the ratio of 1:3.
Under this scheme the employees will be divided into six categories on the basis of their
basic salary. Life cover available and contributions payable by employees in different
categories are as under :
Employees covered
Category
Basic salaries
2
Monthly contribution by Employee towards
Life cover
3
Risk
premium
4
Savings
portion
5
Total
6
49411/- and above
7,00,000
164
492
656
II
35661 to 49410/-
5,60,000
131
393
524
III
25451/- to 35660/-
4,20,000
98
294
392
IV
13691/- to 25450/-
2,80,000
65
195
260
7391/- to 13690/-
2,00,000
47
141
188
VI
Upto 7390/-
1,10,000
26
78
104
Part-time employees may be covered from the renewal date viz., 20.11.1996 under Category
VI.
Benefits available under the scheme will be as under:
On death whilst in service
Life cover (indicated in column 3 above

together with member's savings
accumulation with accrued interest thereon.
On retirement or leaving
Return of member's savings accumulations

with accrued interest thereon.
C.
ELIGIBILITY:
All employees shall have option to enter the scheme from the date of introduction of the
scheme.
All new new entrants shall automatically become members of the full-fledged scheme i.e.,
term insurance + survival benefits from the annual renewal date following the date of
appointment of the employees. However, they shall be covered under term insurance
provision right from the date of appointment for which the premium for life cover under
column 4 may be deducted. This provides for automatic cover without option.
Employees who did not join the Scheme earlier may now opt to join the scheme and their
options will be dealt with as per the following conditions laid by Life Insurance Corporation of
India:
(1) Inclusion is effective from next annual renewal date only i.e., 20th November every year.
177
(2) Insurability condition i.e., not absent on ill-health grounds on the date of entry into the
scheme.
(3) The employee was not absent from duty on health grounds during the last six months
period fro six days or more continuously.
(4) The Officer is required to certify as in (3) above for all such cases.
(5) If the Officer is not willing to certify as in (4) above, on account of the employee not
satisfying the condition laid down under (3) above or otherwise it would be necessary to
produce medical evidence of fitness in the form of Short Medical Report from an
authorised medical examiner with adequate limit at the cost of the employee on the basis
of which his admission to the scheme will be considered.
In case an employee is not eligible to join the scheme as above, he may be considered for
inclusion into the scheme on next annual renewal date only on his satisfying the above
condition.
(D)
FORMS:
1. Forms to be submitted by the Company:
(a) Particulars of person joining the GSLI
(b) Particulars of contribution for the month.
2. Forms to be submitted by the eligible employees :
(a) Letter of Admission-cum-Authority
(b) Form of Appointment of Beneficiary
It is clarified that the offices which will deduct the monthly contribution from the employee on
the basis of forms submitted shall send these forms to the Regional Offices. These forms
shall be submitted in triplicate one copy to be kept in the personal file of the employees,
one to be kept each at Regional Office and Head Office Accounts Department. The forms
may be cyclostyled/printed at R.O/D.O level and it should be on back to back basic and on full
scape paper.
E. MODE OF RECOVERY OF PREMIUM AND REMITTANCES:
The Offices are requested to follow the guidelines laid down by H.O., Establishment
Department in this respect.
F.
GENERAL:
The benefits under an employee's life portion for the GSLI Policy may be accepted as
collateral security for housing loan advanced under Company's staff housing scheme.
In case of exit of an employee from the scheme by way of death, retirement, resignation,
termination of services, the relevant form shall be filled up and sent to Establishment
Department, Head Office with the seal of the Office concerned. This would enable them to
lode a claim with LIC.
CHAPTER 30
178

GROUP TERM INSURANCE SCHEME
Life Insurance Corporation of India has consented to the introduction of Group Term
Insurance Scheme (GTIS) to cover loss of commutation of Pension due to death while in
service subject to 60% of the eligible employees opting for the GTIS. The employees who are
in service of the United India Insurance Company Ltd. (hereinafter referred to as UIIC) as on
the GTIS date and who are governed by the General Insurance (Employees) Pension Scheme,
1995 shall be given the option to become members of the said scheme. All those employees
who join the service subsequent to the date of introduction of the said scheme and governed
by the General Insurance (Employees') Pension Scheme,1995, shall compulsorily become
members of the Group Term Insurance Scheme, 1997.
The Scheme becomes effective from 01.10.1997.
The details of the Scheme are given below:
1. Short Title :
The Scheme may be known
referred to as GTIS).
as the Group Term Insurance Scheme, 1997 (hereinafter
2. (1) In this GTIS, where the context so admits the masculine shall include the feminine
and the following words and expressions shall unless repugnant to the subject or context,
have the following meanings:
a) Employees means any person employed in the service of the UIIC on full-time work on
permanent basis and who is governed by the General Insurance (Employees') Pension
Scheme, 1995;
b) Group Policy shall mean the policy taken out under clause 6 hereof;
C ) Insurer shall mean the Life Insurance Corporation of India as insurer under the Scheme;
d) Member shall mean an employee of the UIIC who has been admitted to the membership
of the GTIS;
e) Pension Scheme means the General Insurance (Employees') Pension Scheme, 1995;
f) Relevant Date in relation to the GTIS shall mean (i) in the first year of the Group policy, 1.10.97
and
(ii) in the subsequent years of the Group Policy 1st October each year.
g) GTIS Date means the first day of October 1997
h) Service Rules means :
(i) the General Insurance (Rationalisation and Revision of Pay Scales and Other
conditions of service of Supervisory, Clerical and Subordinate Staff) Scheme, 1974
(ii) the General Insurance (Rationalisation of Pay Scales and other conditions of
service of Officer) Scheme, 1975 and ;
179
(iii) the General Insurance (Rationalisation of Pay Scales and other conditions of
service of Development Staff)
i) CDA Rules means the General Insurance (Conduct, Discipline & Appeal) Rules, 1975.
2) All words and expressions used in these rules but not defined and defined in the Service
Rules or CDA Rules or Pension Scheme shall have the same meaning respectively assigned to
them in the Service Rules or the CDA Rules or the Pension Scheme, as the case may be.
3. Application and Eligibility :
1. GTIS shall apply to employees who a) are in the service of UIIC on the scheme date; and
b) are governed by the General Insurance (Employees') Pension Scheme, 1995 and
exercise an option in writing by giving an irrevocable letter of authority in the
proforma prescribed in Schedule I;
OR
c) join the service of the UIIC on or after the scheme date.
2.
In respect of employees covered by sub-clause 1(a), the scheme shall apply from
01.10.1997 and in respect of employees covered by sub-clause1(b) the scheme shall
apply from the date of their confirmation.
4. Categorisation of employees :
1. The employees under the GTIS shall be divided into six categories depending upon basic
salary as on 1st October of every year as per the Table given below :
Category
(Basic pay range)(Rs.)
30,176 and above
II
22,681 to 30,175
III
16,386 to 22,680
IV
8,826 to 16,385
4,855 to 8,825
VI
Less than 4,855
2.
Change of Category of an employee on change of his Basic Pay will be given effect to on
the relevant date every year coincident with or following the due date of change of Basic
Pay.
5.
Benefits under the Scheme

1. On the death of an employee while he is a Member of the Scheme, the Insurer shall
under the Group Policy taken out by the Employer, pay to the Beneficiary under the
Scheme or if no appointment of Beneficiary has been made or is subsisting, to his or
180

her heirs the sum assured as shown in the table below (herein after referred to as the
family benefit) in accordance with the provisions of the Scheme.
Category
(1)
Cover
(Basic
range)(Rs.) (2)
pay Life Cover (Rs.)

(3)
Monthly
Premium(4)
30,176 and above
7,00,000
164
II
22,681 to 30,175
5,60,000
131
III
16,386 to 22,680
4,20,000
98
IV
8,826 to 16,385
2,80,000
65
4,855 to 8,825
2,00,000
47
VI
Less than 4,855
1,10,000
26
Provided that the claim is admissible in respect of the deceased employee under the terms
and conditions of the Group Policy.
2. Every appointment of beneficiary made by an employee shall be in accordance
with the provisions contained in Schedule .
3. Notwithstanding anything contained in sub-clause (1) or any other provisions of
the Scheme, the UIIC shall be entitled to have a lien on the family benefit
admissible in respect of the deceased employee for any sum due from him, and
where any such lien exists the beneficiary or the heirs, as the case may be, shall
be entitled to receive only the balance of the amount of family benefit after
recovering such dues.
4. An employee who moves from one category to a higher category, shall be eligible
to the appropriate higher family benefit applicable to the promoted class with
effect from the next relevant date.
6) Group Policy:
1) A Group Policy shall be taken with the Insurer on the lives of the employees who are
Members of the Scheme under the one year Renewable Group Term Insurance Plan
thereby assuring payment of family benefit in accordance with Clause 5.
2) The Group Policy shall be renewed on 1st October every year as long as the Scheme
continues.
3) The UIIC shall act for and on behalf of the Members in all matters relating to the
above assurance with Insurer and every act done by the UIIC shall be binding on the
members.
7) Premium
181
1) The Premium determined in accordance with column (1) of the above table shall be borne
by the Members. The premium shall be deducted from salary and shall be payable in
advance.
2) Where a Member joins the Scheme on a date other than the Relevant Date, the monthly
premium payable by him till the next Relevant Date shall be the same as applicable to the
other Members of his Category.
3) Where an employee ceases to be a Member of the Scheme, the premium in respect to
him/her shall cease to be payable to the Insurer from the month of cessation of Membership.
4) The Insurer reserves right to review the premium rates applicable to this Scheme,
depending upon the claim experience, 3 years from the commencement and once in three
years thereafter.
8) Exit from the Scheme:
If an employee ceases to be in the service of UIIC for any reason whatsoever, he/she
shall forthwith cease to be a Member of the Scheme.
For removal of doubt, it is clarified that no benefit shall be allowed under the Scheme
except in the case of the death of an employee while he is a Member of the Scheme
and no benefit shall be allowed if he/she dies after his/her membership ceases.
9) Interpretation:
I.
The provisions of the Scheme may be amended or modified by the LIC from time to
time.
II. In matters of interpretation of any of the provisions of the Scheme, the LIC's decision
shall be final.
SCHEDULE
(See Clause 5(2) of the Scheme)
182

(1) In this Schedule, unless the context otherwise requires
A)
B.
C.
D.
E.
F.
G.
(2)
'appointment' means appointment of beneficiary to whom the amount of family

benefit admissible under the Scheme shall be payable;
'benefit' shall mean the amount of family benefit admissible under the Scheme;
'clause' shall mean a clause in this Schedule;
'Competent Authority' shall mean (i) in the case of an employee working in a Branch or Divisional Office, Senior
Divisional Manage/Divisional Manager in-charge of the Division ;
(ii) in the case of an employee working in a Regional Office, the Regional Manager;
(iii) in the case of an employee working in the Head Office, Chief Manager
(Pension)/(HR);
'family' shall mean (i) wife in the case of male employee
(ii) husband in the case of female employee
(iii) sons (including step children and adopted children)
(iv) daughter (including step children and adopted children), whether married,
unmarried or widowed;
(v) brothers (including step-brothers) or sisters (including step-sisters)
(vi) father
(vii) mother and
(viii) children of a predeceased son
'share' shall mean the share of the benefit payable to a beneficiary
'sub-clause' shall mean a sub-clause of the clause in which the word occurs.
(1) An employee may, when joining the Scheme or at any subsequent date thereto
appoint a beneficiary to whom the amount of family benefit admissible under the
Scheme shall be paid on his death
Provided that if at the time of making the appointment the employee has a family, the
appointment shall not be in favour of any person other than a member of his family.
(2) The employee may provide by such appointment

(i) in respect of the specified beneficiary that in the event of his predeceasing the employee or if such beneficiary dies prior to receiving the benefit, the right
conferred upon the beneficiary shall pass to such other (hereinafter referred to as the
"alternative beneficiary") as may be specified in the appointment.
Provided that if at the time of making the appointment the employee has a family consisting
of more than one member, the alternative beneficiary so specified shall not be a person other
than a member of his family.
(ii) that the appointment shall become invalid in the event of the happening
of a contingency specified therein.
(3) Where an employee has no family, the appointment can be of any person including any
Company or Association or body of individuals, whether incorporated or not; where an
employee has only one member in his family (who shall be the original beneficiary), the
183
alternative beneficiary can be any person who is not a member of the family including any
Company or Association or body of individuals, whether incorporated or not.
(4) The appointment made by an employee who has no family at the time of making it or an
alternative appointment made by an employee whose family consists of only one member at
the date of making the. appointment shall become invalid in the event of the employee
subsequently acquiring a family or an addition of a member in the family as the case may be.
(5) Every appointment shall be in the Form specified in Annexure 'A' and forwarded to the
Competent Authority by the employee concerned when completed
(6) An employee may, in any case, where the beneficiary is a minor, appoint a guardian to
receive the benefit if the beneficiary continues to be a minor at the time the benefit becomes
payable. Such appointment of guardian shall be made in the Form specified in Annexure 'B'
and forwarded to the Competent Authority by the employee concerned when completed.
(7) An employee may at any time cancel the appointment of beneficiary or of guardian by
sending a notice in writing to the Competent Authority:
Provided that if the appointment of beneficiary is cancelled, the employee shall along with the
notice of such cancellation send a fresh appointment of beneficiary made in accordance with
this Schedule.
(8) In the event of death of a beneficiary in a case where no alternative beneficiary has been
specified or on the occurrence of any event by reason of which the appointment becomes
invalid in pursuance of the foregoing provisions, the employee shall send to the Competent
Authority a notice in writing formally cancelling the appointment together with a fresh
appointment made in accordance with this Schedule.
(9) When any appointment made under this Schedule or notice of cancellation thereof or
appointment of a guardian for a minor beneficiary is received, the Competent Authority or the
person authorised by him in this behalf, shall countersign it indicating the date of receipt and
keep it under his custody. An acknowledgement shall be sent to the employee concerned
confirming that the appointment or notice of cancellation or fresh appointment or
appointment of guardian has been duly received and placed on record.
(10) Every appointment made and every notice of cancellation given by an employee shall, to
the extent it is valid, take effect on the date on which it is received by the Competent
Authority.
3. Payment of the Benefit:
(1) In the event of the death of an employee who has made an appointment in accordance
with Clause 2, the eligibility of the beneficiary to receive the benefit shall be determined with
reference to the facts obtaining as at the date of death of the employee and any subsequent
event (e.g. remarriage of widow or marriage of unmarried sister) will not affect the eligibility
of such person.
(2) If a beneficiary dies before receiving the payment, the benefit shall pass on to the
alternative beneficiary. In case there is no alternative beneficiary the benefit shall be paid as if
there was no appointment.
184

(3) In the case of a minor beneficiary, the payment shall be made to the person appointed as
guardian in terms of sub-clause (6) of Clause 2 to receive the payment. If no such
appointment has been made, the payment shall be made to the natural guardian and in the
absence of a natural guardian to the person who furnishes a guardianship certificate.
(4) Any payment in settlement of the benefit under the Scheme shall be payable by the
Insurer only on receiving a certificate from the Competent Authority that a claim has arisen
and only on admission of the claim by the Insurer. While furnishing the certificate that a claim
has arisen, the Competent Authority shall also furnish particulars of appointment of
beneficiary and of guardian, if any.
(5) If no appointment has been made or is subsisting, the Insure? shall satisfy itself that the
person/persons claiming the payment is/are the legal heir/heirs to the deceased employee,
and such heirs shall be required to produce evidence of title such as Succession Certificate,
Administrator General's Certificate or Letter of Administration.
(6) If, in any case, the Insurer is satisfied that there is no dispute as regards the title to the
benefit it may dispense with evidence of title;
Provided that the Insurer may require the claimant to furnish such indemnity and / or
guarantee as it may think fit having regard to the circumstances of the case.
ANNEXURE 'A'
FORM OF APPOINTMENT OF BENEFICIARY
185
In accordance with Clause 2(5) of the UIIC Employees' Group Term Insurance Scheme, 1997,
read with the provisions contained in Schedule thereto I ______________________________
an employee of the United India Insurance Company Limited do hereby appoint as beneficiary
my ______________________ Shri/Smt. ________________________ aged _______ year
whose address is _______________ _____________________________________________
and confer on him/her the right to receive the amount of family benefit payable under the
scheme in the event of my death while a member of the Scheme.
In the event of the said beneficiary predeceasing me or such beneficiary dying after my death
but before receiving the payment of the family benefit, I appoint as alternative beneficiary
Shri/Smt. ______________________________ aged _____ years whose address is
___________
______________________________________________________________
and confer on him/her the right to receive the amount of the family benefit.
This appointment supercedes the appointment made by the earlier on___________________
which stands cancelled.
IN WITNESS WHEREOF I HAVE hereunto set my hand at _____________on the
________________ day of _____________.
Signature of employee
Salary Roll No.________
Name of Office _________
The above named has hereunto set his hand in the joint presence of himself and us who at
his request and in such joint presence have hereunto subscribed our names as witnesses.
Witnesses
1) Signature _____________________ 2) Signature _________________
Name __________________________ Name ____________________
Designation _____________________ Designation _______________
Address ________________________ Address __________________
ANNEXURE "B"
FORM OF APPOINTMENT OF GUARDIAN
(TO BE ATTESTED BY TWO WITNESSES TO SERVE AS A WILL)
186

I
________________________________________
presently
(Design.)
_____________________ in the service of the United India Insurance Company Limited,
having appointed under Clause 2(6) of the UIIC Employees' Group Term Insurance Scheme,
1997 read with Schedule thereto, my _________________ who is at present a minor of the
age of ________ years as the beneficiary to receive the amount of family benefit that may
become admissible under the said Scheme, do hereby appoint ____________________ of
___________________ whose consent to act as guardian is endorsed at foot hereof to be the
guardian of the said minor beneficiary to receive the moneys due to him/her on account of
the benefit in case the said minor beneficiary shall not have attained majority before my death
and to pass good discharge therefor. The said guardian shall utilise the moneys towards the
maintenance of the minor beneficiary, provided that in the following cases the guardian may
also utilise such portion of the corpus as may be necessary, namely (a) to meet the expenses
of any heavy sickness and convalescence of the minor beneficiary or (b) for his or her
education and shall hand over the balance thereof to the beneficiary upon his or her attaining
majority.
In witness whereof I have hereunto set my hand at ___________________
on the ________ day of __________.
Signature of employee
Salary Roll No______
Name of office______
The above named has hereunto set his hand in the joint presence of himself and us, who, at
his request and in such joint presence, have hereunto subscribed our names as witnesses
Witnesses
1) Signature ___________________________ 2) Signature
Name ________________________________ Name
Designation ___________________________ Designation
Address ______________________________ Address
I hereby consent to act as a guardian aforesaid and to the terms hereof
Signature of proposed Guardian _________________ Date _________
CHAPTER - 31
UNIFORMS
I. SUB-STAFF / DRIVERS
187
(1) Five sets of Terry-Cotton uniform in a period of two years are to be provided to the Substaff including Drivers. Three sets to be given in odd years and two sets in even years and so
on.
(2) Where winter is severe a heavy woolen uniform may be supplied once in two years in
addition to the five sets of Terry-Cotton uniform once in every two years as mentioned above.
(3) In places where winter is severe and use of Terry-Cotton uniform is not found suitable an
option may be given to Sub-Staff/Drivers to have either
Five sets of Terry-Cotton uniform every two years as specified above in (1) and a
heavy woolen uniform once in two year or
A light woolen uniform every year and a heavy woolen uniform once in two years
(however, no Terry-Cotton uniform as specified in (1) above will be given under this
option).
The list of places for this purpose shall be as under:
a) Arunachal Pradesh
b) Assam
c) Bihar
d) Gujarat
e) Haryana
f) Himachal Pradesh
g) Jammu & Kashmir
h) Madhya Pradesh
i)Maharashtra (excluding city of j) Manipur

Mumbai and District of Dahanu,
Kalyan and Thane)
k) Meghalaya
l) Orissa
m) Punjab
n) Rajasthan
o) Tripura
p) Uttar Pradesh
q) West Bengal
r) Chandigarh
s) Delhi
t) Chikmagalore,
u) Mercara and
v) Ootcamand
(4) Woolen Overcoat may be provided once in five years to Watchmen and Drivers posted in
areas where winter is severe.
The following places have been approved by the Company for this purpose:
A. STATES
1.
5.
2.
6.
Himachal Pradesh
Uttar Pradesh
Jammu & Kashmir
Haryana
188
3.
7.
4.
8.

Punjab
Union Territory of Delhi and
Rajasthan
Union Territory of Chandigarh
B. Specified Centres
Ranchi,
Motihari,
Purnea and Sabaur (in Bihar)
Rajkot and Baroda (in Gujarat),
Khandwa,
Deesa,
Bhopal (Bairagarh),
Betul,
Chindwara,
Indore,
Jabalpur,
Neemuch,
Satna,
Umaria,
Ambikapur,
Mandla,
Pachmari,
Guna and Gwalior
(in Madhya Pradesh)
Lumding,
Bagdogra,
Kalimpong,
Cherrapunji,
Nowgong and Shillong (in North Eastern States).
C. All Hill Stations where Hill Station Allowance is being paid to our employees.
(5) One Umbrella, once in every alternate year may be supplied. Sub staff provided with
cycle, if they so desire, may be provided with a Raincoat once in every three years. However,
the provision of Raincoat is in lieu of the supply of umbrella. On receipt of a request for the
supply of Raincoat in lieu of Umbrella, it should be made clear to him that once Raincoat is
supplied, he will not be supplied with either Raincoat or Umbrella for a period of three years.
If after the expiry of three years the said Sub Staff desires to have an Umbrella and not a
Raincoat, he may be supplied with an Umbrella.
(6) A pair of shoes once in two years and two pairs of socks every year may be provided.
(7) i) Washing Allowance may be paid at the rate of Rs.90/- per month (w. e. f. 01/08/2002).
When an employee is on leave/absent for a continuous period of six days or less, no reduction
in the amount is to be effected. In other words, if an employee remains absent for a
continuous period of 7 days or more in a month, he is eligible for only proportionate washing
allowance in the month.
Illustrations
189
a) If an employee avails 4 days of continuous leave in October, and also avails of one day's
leave on four different occasions in the same month, his absence for 8 days in the month may
be ignored for the purpose of washing allowance for the whole month. Because he has not
been continuously absent for more than 6 days in a month.
b) If an employee avails 8 days of continuous leave in October and also avails of 5 days' leave
in the same month, the employee will be eligible to be paid washing allowance for 23 days
only worked out on pro-rata basis.
c) An employee avails of 12 days leave from 27th October to 7th November and does not
avail of any other leave for a continuos period exceeding 6 days during October and
November. Since this is a continuous absence of over 6 days, the employee will not be eligible
for washing allowance for the said period. He may be paid washing allowance for October for
26 days (i.e. 31 minus 5 ) days and for November for 23 (i.e. 30 minus 7) days.
ii) When the Company makes arrangements to get uniform washed, washing allowance will
not be paid to the Sub-Staff. Where woolen (over coat) uniforms are supplied the actual dry
cleaning charges once in a year may be reimbursed in addition.
II. SECURITY GUARDS
(1) Five sets of Ten cotton uniforms in Khaki colour may be supplied in two years as in the
case of sub-staff i.e., three sets in odd years and two sets in even years. Shirts will have title
shoulders embroidered with Company's initials (UIIC)
(2) Woolen Overcoat may be supplied to them in similar lines as in the case of watchmen and
Drivers.
(3) The Washing Allowance shall be the same as in the case of Sub-Staff/Drivers.
(4) A pair of shoes once in two years, and two pairs of socks every year may be provided
(5) One umbrella once in two years may be provided.
(6) Following accessories may be provided in the frequency prescribed below:
One belt and one lanyard every two years.
One Khaki beret cap every year.
Plastic name tab for fixing on shirt pocket to be provided initially and replaced only
when it is damaged/lost but not earlier than two years.
Whistle to be provided initially and replaced only when it is damaged/lost but not
earlier than two years.
Lathi to be provided initially and replaced only when it is damaged/lost but not earlier
than two years.
Note:
The necessary monetary limit of uniforms and accessories to Sub-staffs (including other Substaffs) may be decided by consensus at the ICC meeting organised by flag Company. The
Admn. Dept of the Flag company, shall hold the meeting to decide the same.
The Uniforms shall be provided to Sub-staffs and Security Guards even on probation. During
the period of suspension of an employee, he shall not be entitled for washing allowance for
the period of suspension.
190
CHAPTER 32
PART - TIME EMPLOYEES
1. Job description:
The job of part-time employee would include sweeping and cleaning of the Office premises,
providing drinking water to staff and also cleaning of toilets and any other similar jobs that
they may be asked to perform. They are required to do their jobs before and/or after office
hours.
191
2. Remuneration
a) The remuneration of Part-time workmen engaged for a fixed number of duty hours per day
shall be as under:-
Daily working hours (duty

hours)
Total remuneration payable per month as percentage

of monthly gross emoluments applicable to workmen
on full time basis in the corresponding cadre
If required to work from
Monday to Friday
If required to work from

Monday to Saturday
2 hours
20%
24%
2 hours
25%
30%
3 hours
30%
36%
3 hours
35%
42%
4 hours
40%
48%
The total remuneration shall consist of basic salary (pro rata) and other emoluments which
may be indicated separately in the letter of appointment. Minimum and maximum duration
per day indicated in the above paragraph should be strictly adhered to.
3. Benefits
Part-time workmen employed on regular basis shall be entitled to:
(a) Provident Fund Benefit at the same rate as is applicable to full time employees. The part
time workmen's contributions to the Provident Fund shall be calculated on basic salary
component as indicated in Paragraph (2) above and the Company shall contribute an equal
amount.
(b) Gratuity
As per the provisions of the Payment of Gratuity Act.
(c) Increment
Prorata increment after one completed year of service put in by part-time employees.
(d) Medical
Regular part-time workmen will be eligible to get lumpsum benefit as admissible to regular
Class IV employees proportionate to the number of hours of work fixed per day.
NUMBER OF
WORKING HOURS
/ DAY
FOR ALL EMPLOYEES IRRESPECTIVE

OF LENGTH OF SERVICE (Rs.)
Working for 5
days in a week
192
Working for 6
days in a week

NUMBER OF
WORKING HOURS
/ DAY
2
FOR ALL EMPLOYEES IRRESPECTIVE

OF LENGTH OF SERVICE (Rs.)
400
480
600
720
800
960
(e) Transport Allowance

Transport Allowance is payable to Part-time employees w.e.f.01.08.2002 on a pro-rata basis
of Rs.150/- per month depending upon hours of work.
Leave Benefits
i.Privilege leave of one day for every month of service with maximum accumulation of 30
days.
ii.Casual Leave of 8 days in a year w.e.f.01.01.2006.
iii.Sick Leave of 10 days (on half pay basis ) for each completed year of service subject to
maximum of 160 days (half pay) throughout the service period; and
iv.Maternity leave of maximum three months to be availed on a maximum of 2 occasions.
Maternity leave is admissible only after completion of 2 years of continuous service. Provided
that maternity leave shall not be admissible to a female employee having three or more living
children.
v.In case of miscarriage/abortion, a woman part-time employee may be granted six weeks
leave subject to other conditions for grant of maternity leave.
(f) Uniforms
i.Part-time Sweepers will be supplied three sets of terrycotten uniforms in two years. Whilst
for male Sweepers a set of uniform will comprise of a full pant and full sleeved shirt, for
female part-time sweepers a saree and blouse would form a set. The supply of uniforms will
be on the basis of two sets in even years i.e. 1992, 1994, 1996 etc. And one set in odd years
i.e. 1993, 1995, 1997 and so on.
ii.In addition to the above, wherever the offices provide woolen uniforms to full-time Substaff, the same shall also be provided to Part-Time Sweepers.
(g) Washing Allowance

Rs. 54/- per month is payable w.e.f.01.08.2002. Where any regular Part-time Sweeper
remains absent and/or avails of leave or does not attend office for whole of the calendar
month, no washing allowance shall be paid in respect of that month. The payment of washing
allowance will be subject to the regular part time sweeper wearing clean/washed uniform.
193

(h) Supply of Shoes / Socks / Chappal & Umbrella
i.Pair of shoes / chappal once in two years. Where shoes have been provided, two pairs of
socks may also be allowed every year.
ii.An umbrella once in two years may also be supplied to Part-time Sweepers.
Note:The necessary monetary limit for the above may be decided by consensus at the ICCC
meeting organised by flag company of Tariff Zone. The Admn. Dept of the flag company shall
hold the meeting and decide the same.
(i) Festival Advance
Part-time Sweeper shall be granted one month's salary (Basic+DA) being received by them on
pro-rata basis, as Festival Advance, subject to a maximum amount of Rs.5,500/-. The
Advance shall be interest free and would be recovered in ten equal monthly instalments.
All other terms and conditions shall be as that in case of regular full-time employees.
(j) Flood Advance
The Part-time Sweepers will be granted Flood Advance as under:
i.PTS having 4 hours duty per day Rs.2500/ii.PTS having 3 hours duty per day Rs.1875/iii.PTS having 2 hours duty per day Rs.1250/All terms and conditions applicable to regular full-time employees for grant of Flood Advance
and its recovery shall be applicable to regular Part-time Sweepers also.
k) Facilities for Family Planning: Part-time Sweepers will be allowed Leave:
(a) Six days special leave for under going Sterilization Operation (Vasectomy or
Salpingectomy)
(b) Fourteen days Special Leave to a female Part-time Sweeper for undergoing non-puerperal
sterilization.
(c) One day Special Leave to a female Part-time Sweeper who had IUCD insertion.
ii.Benefits:
iii.(a) Reimbursement of surgical fees in respect of Vasectomy subject to a maximum of
Rs.100/(b) Reimbursement of surgical fees in respect of Tubectomy performed on female sweeper or
on the wife of a regular part-time sweeper, upto a maximum of Rs. 200/-
iv.Additional Benefits
Part-time Sweepers or their spouses with not more than two children who undergo
Vasectomy/Tubectomy Operation shall be paid a cash incentive of Rs. 250/l) Conveyance Allowance :
194

Conveyance Allowance is paid to the permanent Part-time Employees in the same proportion
in which they are paid remuneration as the number of hours fixed per day, based on the
conveyance allowance admissible to class IV employees.
PTS are not per-se governed by the provision of Rationalisation Scheme, 1974 as applicable to
SCS staff and they are eligible for benefits approved by the Board of the Company from time
to time.
4.Computer Increment / Fixed Personal Allowance to Part-time Employees
1. Permanent part-time employees who were in service on 1st November, 1993 be granted an
increment on pro-rata basis in the scale in which they were on that date. Increment will be
with effect from 1.11.1993.
2. Any part-time employee who joined service after 1st November, 1993 is not eligible for this
(computer) increment.
3. There shall be no change in the date of normal grade increment on account of sanction of
this (computer) increment.
4. Such permanent part-time employees who had reached the maximum of the scale as on
1st November,1993, will be allowed a Fixed Personal Allowance from 1st November, 1993
which will be equivalent to the last (pro-rata) increment drawn in consequence of which they
reached the maximum of the scale of pay plus dearness allowance payable thereon as on 1st
November, 1993, and the difference in House Rent Allowance that may be payable on account
of release of this (computer) increment. FPA as may be payable for Permanent Part-time
Employees in the aforesaid situation would include components of:
(i) Pro-rata increment
(ii) D.A. payable thereon (as on 1.11.1993) and
(iii) HRA, if any, payable on such (pro-rata) increment (as on 1.11.1993)
FPA where payable, has been quantified as tabulated hereunder; amounts indicated in the
table below include all the three components as stated above.
Part-time employees who

are required to work from FPA payable at cities with
FPA payable at other cities
Onday to Saturday with
population more than 12
(Rs.)
following daily working
lakhs (Rs.)
hours
4 hours duty
58.24
57.28
3 hours duty
43.68
42.98
2 hours duty
29.12
28.64
6. Regular part-time employees who have retired, died or resigned after 1.11.1993, may also
be granted the Computer Increment or Fixed Personal Allowance as admissible under these
instructions. In such cases, the terminal benefits may also be recalculated and paid alongwith
the arrears payable on account of computer increment /fixed personal allowance.
195
7. In all cases where arrears are payable, Provident Fund contribution shall be recovered as
per rules and matching contributions of the Company shall be added and remitted to the
Provident Fund Trust. In the case of those who have retired, died or resigned, the provident
fund amount may be paid directly to the same person in whose favour the PF payment has
been made earlier.
8. There could be instances where a permanent part-time employee who was in service as on
1.11.1993 has subsequently become permanent full time employee. It would appear that no
such employee would have reached maximum of his scale upto the time of absorption as full
time employee. In the case of such employee, (Computer) increment would have been
released on pro-rata basis in the scale in which he was as on 1.11.1993. On becoming full
time employee, his fitment would have been made at the start of the Sub-Staff scale as per
rules. On fitment, the Computer increment would have been merged and the concerned
employee would not draw any additional payment on that account.
If such employee reaches the maximum of the scale after becoming full time employee, he
would be eligible to receive Fixed Personal Allowance (FPA) after 12 months from the date of
reaching the maximum of his scale. FPA would be equivalent to (computer) increment he was
drawing whilst he was working as part-time employee, together with DA and HRA as on
1.11.1993 thereon. The following example would make the position clear:
Basic pay of Part-time employee (having four hours duty)
as on 01.11.1993
Computer Increment as on 01.11.1993
Total
Absorbed as Sub-staff on 01.10.1994 and fixed in Basic pay at
Sub-staff Rs.1600/-
Rs.1401.60
Rs. 48.00
Rs.1449.60
1 st stage of scale applicable to
(a) The employee on reaching maximum of the scale of Sub-Staff (viz. Rs. 3020/-) shall be
eligible for FPA on completion of 12 months from reaching such maximum.
(b) The quantum of FPA shall be as specified in paragraph 4, viz. Rs.58.24, if posted in city
with a population more than 12 lacs and Rs.57.28 if posted at other cities.
9. Where a permanent part-time employee draws Fixed Personal Allowance under these
instructions and is absorbed as a permanent whole time employee in the regular scale of pay,
such an employee will continue to draw the FPA as shown in paragraph 4 above.
Clarification:
Any unavailed leave to the credit of PTS who has been appointed to the full time post of substaff or other related cadre cannot be carried over since such appointment as full time basis is
considered as a fresh appointment.
CHAPTER -33
196
GUIDELINES GOVERNING RESIGNATION AND VOLUNTARY RETIREMENT OF

OFFICERS.
1. As soon as the letter of resignation is received from an Officer, the date of receipt of the
letter at his place of posting, i.e. Branch Office, Divisional Office, Regional Office as the case
may be, should be recorded with date stamp.
2. As per our rules, an Officer has to give notice at the time of tendering his resignation from
the Company as under:
(a) An Officer on probation has to give one month notice and
(b) A confirmed Officer has to give three month's notice.
The Officer should be asked to clearly mention in his/her letter of resignation that he/she is
resigning from the services of the Company and is also giving notice from a specified date.
3. The notice period will be reckoned from the date of receipt of resignation letter at the place
of posting.
(a) The notice shall be deemed proper only if the Officer remains on duty during the notice
period. During the notice period, the Officer is not entitled to avail any leave except
proportionate Casual Leave. If he/she avails leave other than CL, the sanctioned/availed leave
will have the effect of postponing the date of relief or the leave period will be treated as
shortfall in notice period.
(b) The Officer is also not entitled to set off Earned Leave against the notice period.
4. If an Officer is unable to give the required notice, he/she has to pay in lieu thereof the
gross salary (all components) for the shortfall in notice (either full or in part) as notice pay.
It is emphasised that irrespective of whether the Officer joins the Central/State Government
services or other Public Sector Undertakings or not, he/she should give the required period of
notice.
5. If a direct recruit who has submitted a service agreement desires to leave our Company
before completing the period mentioned therein and if he/she joins Central/State Government
or other Public Sector Undertaking he/she should serve the new employer for the remaining
bond period. The Officer has to submit a copy of appointment letter received from his/her
new employer. He/she should submit an undertaking on a (Five Rupees) non-judicial stamp
paper that he/she shall serve the new employer for the balance bond period. If he/she does
not join the Government Service or Public Sector Undertaking, he/she should pay to us the
liquidated damages mentioned in terms of service agreement.
6. If an Officer who has submitted service agreement for the purpose of Study Leave desires
to leave our Company before completing the period specified in the agreement, he/she has to
pay the compensation in terms of the agreement.
7. If the Officer has been provided with Company owned/leased accommodation, it should be
surrendered before the date of his/her relief.
197
8. The Officer resigning, should settle all the dues to the Company or he/she should submit a
letter authorising the Company to recover the dues from the terminal benefits payable if
sufficient amount is available in his/her Provident Fund & Gratuity Accounts.
9. The Original Letter of resignation together with a format duly filled in shall be forwarded to
HO.(format is annexed)
198

Phone : 044-28520161
Fax : 044-28524191
REGION :
DATA ON :
1.RESIGNATION
2.VOLUNTARY RETIREMENT UNDER TSR SCHEME
3. VOLUNTARY RETIREMENT UNDER PENSION SCHEME
1. Name of the Officer & Cadre
(
(
(
2. Present Place of Posting

3. Date of Birth
4. Date of Joining the Company
5. Date of the Letter
6.Date of receipt by Office
7. Reasons for Resignation / Voluntary Retirement
8. Period of Notice given
9. Waiver of Notice Period, if any
10. Date of relief required
11. Date upto which Service Agreement, if any force
12. Leave record
:CL
Balance at the beginning of the year
SL
Leave availed during the year so far:

Balance as on date
LOP availed so far {if any}
13.Please specify whether the Officer is attending Office now.
If not, specify the date from which he/she is absent or on leave.
14.Monthly Gross Salary as on date
Basic
DA
Others
Gross
HRA
199
CCA
PL
)
)
)

15.Details of amounts due to the Company as on date.
Housing Loan
Festival Advance
Vehicle Loan
Other Dues
Total
Flood Advance
16.Residential Accommodation / Telephone provided and surrender if any:

17.Details of Disciplinary /Vigilance Case if any pending:
Recommendations of the REGIONAL CHIEF on acceptance of Resignation / Voluntary
Retirement and other remarks if any
SIGNATURE OF THE REGIONAL CHIEF.
DATE:
200

CHAPTER - 34
HONOURING OF EMPLOYEES ON RETIREMENT

It has been decided to introduce a system of conducting a formal function on the last working
day of the Retiring Employee in the Office where he is working at the time of retirement. For
conducting this function, the following guidelines are prescribed:
The function will be organised half-an-hour before the close of the working hours of the day.
The function shall be presided over by
(a) Branch-in-charge in case of Branch Office.
(b) Division-in-charge in case of Divisional Office.
(c) Regional Chief/Manager in case of Regional Office.
(d) AGM / Manager concerned of the Dept. in case of H.O.
It shall be ensured that the Presiding Officers stipulated for this function make themselves
available on the day and other engagements are suitably programmed to avoid any absence
in the function.
During this function, a shawl will be presented to the retiring employee and the cost of which
shall not exceed Rs.200/-. It should be ensured that only a shawl is presented and it is not
substituted by any other article, gift to maintain uniformity in this regard.
The Officer-in-Charge shall take all efforts seriously to secure the cheques towards settlement
of terminal benefits from the higher Office and present it on this occasion without fail.
After the function is over it should be ensured that the retiring employee is accompanied by
another employee of the office to reach his home in the Office Car where the facility of pool
car is available or in the car of the Officer-in-Charge.
It is expected that the Officer-in-Charge will readily come forward to honour this guideline as
a gesture of goodwill and affection to the retiring fellow employee.
This procedure shall be applied for permanent Part Time Employees and also for Employees
retiring voluntarily under VRS Scheme.
In extreme cases where the facility of pool car or the car of the Officer-in-charge is not
available, the facility of hired conveyance may be resorted to for a reasonable cost to drop the
employee at his residence in the station of his work.
CHAPTER - 35
201
GENERAL INSURANCE EXECUTIVES (ACCEPTANCE OF COMMERCIAL EMPLOYMENT

AFTER RETIREMENT) RULES. 1994
1. Short Title :i) These Rules may be called General Insurance Executives (Acceptance of Commercial
Employment after Retirement) Rules, 1994.
ii) These Rules shall come into force from the date they are approved by the Board.
iii) These Rules do not amend, modify or delete any provisions existing on the date of their
adoption.
2. Application:
These Rules shall apply to Officers holding the following the position:
i) Chairman of the Corporation
ii) Managing Director of the Corporation
iii) Chairman-cum-Managing Director of the Subsidiary Company
iv) General Manager of the Corporation/Subsidiary Company including one on deputation to
another organisation.
v) Deputy General Manager of the Corporation/Subsidiary Company including one on
deputation to another organisation.
vi) Chief Manager/Regional Manager of the Corporation/Subsidiary Company including one on
deputation to another organisation.
vii) Manager of the Corporation/Subsidiary Company or a Senior Divisional Manager in the
rank of Manager of a Subsidiary Company including those on deputation to another
organisation.
3. Definitions :- In these Rules, unless the context otherwise requires
a) "Board" means the Board of Directors of the Corporation
b) "Chairman" means the Chairman of the Corporation
c) "Competent Authority" means the Authority specified in the Schedule appended to these
Rules.
d) "Commercial Employment" means
i) Employment in any capacity under a Company, Co-operative Society, Firm or Individual
engaged in trading, commercial, industrial, financial or professional business;
ii) Employment as agent under such Company, firm etc.;
iii) Directorship of such Company/Co-operative Society or Partnership of such firm.
iv) Setting up of practice either independently or as a partner of a firm, as Adviser or
Consultant in matters in respect of which the Executive has no professional qualifications and
the practice proposed to be set up or carried on is relatable to his official knowledge or
experience;
v) Setting up of practice independently or as a partner of a Firm, as Adviser or Consultant in
matters in respect of which the Executive has professional qualification but such practice is
likely to give his clients an unfair advantage vis-a-vis the Corporation/Subsidiary Company by
reason of his previous official position;
vi) Work involving liaison/contact with the Officers of the Corporation/Subsidiary Company;
but does not include :
202

i) Employment under a body corporate wholly substantially owned or controlled by Central
Government or State Government;
ii) Appointment by a public financial institution or by Government, of an Executive as
Chairman/ Managing Director or Director of a private company or of a firm whose
management, has been taken over by public financial institution or by Government.
iii) Appointment as Arbitrator or employment in a University or in a National/State level
Institution registered as an Association not for profit;
iv) Employment under an International Organisation of which India is a member like the
Commonwealth Secretariat/UN Secretariat and other UN Organisations like World Bank,
UNESCO etc.
e) "Corporation" means the General Insurance Corporation of India formed under Section 9 of
the General Insurance Business (Nationalisation) Act, 1972;
f) "Executive" means the Chairman, Managing Director of the Corporation, Chairman-cumManaging Director of a Subsidiary Company, General Manager, Deputy General Manager,
Chief Manager and Sr. Divisional Manager of a Corporation/Subsidiary Company and includes
a General Manager, Deputy General Manager, Chief Manager, Manager or Sr. Divisional
Manager of the Corporation/Subsidiary Company who is on deputation to another
organisation.
g) "Prescribed" means prescribed by the Chairman under administrative instructions.
h) "Retirement" means cessation of service on superannuation or on voluntary retirement.
i) "Subsidiary Company" means the Subsidiary Companies of the Corporation viz, National
Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and
4. Acceptance of Employment after Retirement
No Executive shall without the previous sanction of Competent Authority take up any
Commercial Employment before the expiry of two years from the date of his retirement from
service of the Corporation/ Subsidiary Company.
The Executive shall seek prior sanction from the Competent Authority in the prescribed
format. The Competent Authority shall consider all such requests in terms of the
administrative instructions issued in this regard. The Competent Authority shall take a decision
and communicate the same to the applicant before the expiry of 60 days from date of receipt
of the application. If the decision is not conveyed before this time limit, the Executive can
presume permission to accept commercial employment. This period of 60 days will be counted
only from date when the application in prescribed form is submitted with all particulars called
for or required.
5. Consequences of not obtaining Prior Permission:

If an Executive takes up commercial employment in contravention of Rule (4); he/she shall
203
a) become disentitled to post-retirement benefits in whole or in part, 'such as pension,

payable to him
b) forthwith become disentitled to special facilities extended to retired employees in the
Industry, including discount on Personal Insurances, inclusion under Group Mediclaim Policy
and the like
c) become ineligible to be considered for any assignment by the Corporation/Subsidiary
Company, including nominee directorships, consultancy, guest faculty and the like.
6. Administrative Instructions Clarifications:
Chairman, may from time to time, issue detailed administrative instructions and clarifications
for implementation of these Rules, in line with the provisions in the Brochure on Post
Retirement Commercial Employment governing Civil Servants.
7. Amendments:
The Board may amend, modify or add to these Rules from time to time and all such
amendments, modifications or additions shall take effect from the date stated therein.
SCHEDULE
Executives Competent Authority
Chairman, Managing Director & Chairman cum Managing Director
Central Government
General Manager and Deputy General Manager
Chairman.
Chief Manager and Manager/
Sr. Divisional Manager
Managing Director of the Corporation
for employees of the Corporation and
Chairman-cum-Managing Director for
employees of the Subsidiary Companies.
CHAPTER - 36
TERMINAL BENEFITS
204

I. PROVIDENT FUND
OBJECT:
The Company administers an Employees' Provident Fund Scheme on a contributory basis with
the primary object of providing a lump sum in the old age of the employee. The fund will also
enable an employee to tide over temporary financial difficulties by means of withdrawals
permissible in the Rules.
MANAGEMENT:
The Provident Fund is managed by a Board of Trustees constituting 8 (Eight) trustees four of
whom are appointed by the Board of Directors of the Company and the remaining four are
elected by the members of the fund. The Provident Fund is recognised by the Income-Tax
Department. The EPF Act, 1952 is not applicable for our industry with effect from 1st August
1988.
MEMBERSHIP:
Every existing employee of the Company are compulsorily the members of the Fund.
With the introduction of the New pension scheme W.E.F 1.1.2004 all new entrants shall be
governed by the New Pension Scheme.
CONTRIBUTION:
The rate of contribution to PF shall be 10 per cent of the Basic pay of the member,
irrespective of the cadre, rounded off to the nearest rupee, on a monthly basis.
The Company will contribute an equivalent amount monthly for employees not opted for
pension.
VOLUNTARY CONTRIBUTION:
A member may also opt to contribute additional amounts to his PF account, either as a
specific quantum or Ninety percentage of his basic salary as voluntary contribution but the
total contribution, both own and voluntary cannot exceed 100 per cent of the basic salary.
No matching contribution for this by the employer is given.
A member may commence or discontinue voluntary contribution only from months of April,
July, October or January by giving due notice to the Establishment Department of the
respective pay drawing office before 7th of the said month.
If voluntary contribution is once discontinued during the financial year, it cannot be
recommenced in the same financial year.
INTEREST TO MEMBERS:
The fund's financial year is from 1st April to 31st March.
Interest to individual members is credited on the average balance during the year at the rate
decided by the Regional PF Commissioner or the average rate earned by the fund whichever
is higher. (For 1996-97, the interest rate is 13 per cent)
Proportionate interest is calculated in cases of Transfer into the fund and
Non-Refundable withdrawals.
205
EXPENSES OF FUND:
The entire expenses in the administration of the fund are borne by the Company.
SETTLEMENT:
The settlement of PF is effected in the following circumstances.
a. Retirement
b. Migration from India
c. Termination on a mass scale retrenchment
d. Winding up of the Company.
e. Resignation of the member from or Termination of service of member by the Company
(subject to a waiting period of 2 months)
f. Death of the member.
The settlement of P.F. dues are subject to clearance by Personnel Department for the Class I,
III & lV employees and Marketing Department for Development Staff respectively who will in
turn seek clearance from Regional Office, Housing Loan, Internal Audit, Establishment,
Welfare Society, Vigilance Departments for any possible recoveries which will have to be
quantified.
The list of retiring employees are expected to be furnished by the pay disbursing office every
year to the PF trust, based on which the P.F. Department will send the necessary forms for
settlement two months prior to retirement for processing. Even if no member retires during a
year, a "Nil" statement is to be furnished.
Information of Death or Retirement or Resignation or Termination of members are also to be
sent to P.F. There will not be any forfeiture of Company's contribution from the accumulated
balance of P.F. irrespective of number of years of membership.
Interest for the broken period will also be calculated in cases where settlements take place in
the mid of financial year.
The pay disbursing officer shall adhere to the instructions of the PF Department in cases
where recoveries have to be made before settlement.
The settlement in death cases will be made as per the nomination forms available with the
Trust. If nominations are not available, PF will be settled based on legal heir
certificate/succession certificate. If nominations are not available, PF will be settled based on
Legal heir Certificate/Succession certificate.
In cases where a member seeks settlement of P.F. Account on grounds of Termination from
service or Resignation, the same can be made after a waiting period of two months and on
obtaining declaration from the employee about his non-employment with any other employer
having a Recognised Provident Fund
When transfer of P.F. account is sought, Form 13A is to be submitted by the employee.
REFUNDABLE LOANS:
PURPOSES:
a. Medical Expenses of Self/or Family (necessary medical certificate is to be submitted)
b. Higher Education of Children (the education should be post-matric and lasting more than 3
years.
206

c. Marriages , religious functions in the household of the member which is incumbent on the
member to perform.
ELIGIBILITY:
a. The maximum amount of loan will be restricted to the accumulation of Own and Voluntary
contributions to the Fund, and it is however, subject to the sub-limits mentioned under.
i. For marriage purposes, the marriage loan permissible in 6 months of Basic and D.A.
of the member and for other purposes the maximum loan is 3 months of Basic and D.A. of the
member.
ii. The quantum of loan will be made as multiples of Rs.240 and Rs.120 for marriage
and other purposes respectively.
RECOVERY AND INTEREST:
a. The recovery of loan will be made in 48 (for self) and 24 (for dependent) monthly
instalments (from salaries) for marriage and other purposes respectively.
b. The interest on PF loans will be at a rate 1 per cent higher than the rate in which interest is
credited to the balance to the members accounts by the fund. At present, interest is
calculated for the year 2009-10 @ 9.5 per cent on the monthly diminishing balance of the
principal loan.
c. The monthly recovery of principal and interest are equated and the pay disbursing office
has to effect recoveries as per the loan recovery advice.
PROCESSING:
a. The sanctioning of Refundable loans has been decentralised to the Regional Offices with
effect from 1st April, 1990.
b. The loan application will have to be made in the prescribed forms duly forwarded by the
pay disbursing office.
c. Consolidation of P.F. Loan can be made by a member only 6 months after the earlier loan.
NON-REFUNDABLE WITHDRAWALS:
The Non-refundable withdrawals are permitted from the Provident Fund for the following
purposes to the extent and subject to the conditions mentioned in the following paragraphs.
Though HO PF Department is processing the NRL applications they will have to be certified by
the pay disbursing offices and routed through the Regional Offices.
HOUSING : (FIRST TIME LOAN)
A:
a. For purchase of a plot and construction of house thereon , or
b. Outright purchase of a house or a flat ; or
c. Construction of house on the existing plot ; or
d. Further construction (completion or continuation of construction) of the existing house.
B. The withdrawal will be permitted even if the property is in the name of the spouse of the
member, provided no withdrawal has been made by the member himself for similar purposes.
C. Minimum 5 years of membership is necessary to be eligible for this withdrawal.
D. The maximum limit for withdrawal will be the least of
207
(i) actual accumulation in the fund by way of own, voluntary and Employer's contribution
decreased by refundable loans, if any, availed
(ii) Cost of purchase and I or construction less other loans, if any, availed for the same
purpose
(iii) 36 times of Basic pay and Dearness Allowance , per month.
HOUSING - SECOND LOAN
a. After a minimum period of 5 years from the completion of the construction of house for
which the first withdrawal was availed a second non-refundable withdrawal can be considered
for additions, or substantial alterations or improvements which will have the effect of
increasing the intrinsic value of the property.
b. The maximum withdrawal permissible will be the aggregate of 12 months Basic plus DA or
the accumulated balance in the fund out of own and voluntary contributions and interest
thereon as reduced by refundable loans, if any, taken, whichever is less.
HOSPITALISATION / MEDICAL EXPENSES:
a. For getting a non-refundable withdrawal on this score, the conditions is that the self or any
member of the family should be hospitalised for medical treatment for a period of not less
than 1 month.
b. The maximum withdrawal is restricted to 3 months' Basic plus DA or own and voluntary
contribution and interest thereon as reduced by refundable loan, if any, availed, whichever is
less.
c. Maximum withdrawal permissible is 50 per cent of the own and voluntary contribution
accumulation and interest thereon as reduced by the refundable loan balance, if any.
d. A maximum of 3 withdrawals only for this purpose are allowed for a member during the
entire period of membership.
NRL for Marriage Purposes: NRL is also permitted to a member for his Dependents marriage,
subject to a maximum of 50% of own & voluntary contribution accumulation and interest
thereon as deducted by refundable loan balance, if any. For self marriage purpose, member
should have completed 7 years of service.
REPAYMENT OF LOANS TAKEN FOR HOUSING:
a. For members who have completed 15 years of membership , non-refundable withdrawals
are permitted for their repayment of other loan taken for the purpose of house construction,
provided such loan had been availed from any recognised agency like State Government,
Housing Board, Housing Finance Corporations, Banks, LIC etc,.
b. The accumulated balance in the member's PF account together with interest should atleast
be Rs.1,000Ic. The payment will be directly be made to the concerned recognised agency only.
d. The maximum limit of withdrawal will be the actual outstanding principal loan amount and
interest thereon due to the concerned agency or 36 months basic pay plus DA whichever is
less.
e. For the quantum eligibility, the accumulated Provident Fund balance by way of own,
voluntary as well as company contributions and interest thereon less refundable loan taken, if
any, will be considered.
EOUIPMENTS FOR PHYSICALLY HANDICAPPED:
208
a. Non-refundable withdrawal is also permitted to a member, who is physically handicapped

for purchase of any equipments that would help minimise the hardship on account of the
handicap.
b. This is subject to the condition that a competent medical practitioner certifies the physical
impairment.
c. The amount of withdrawal shall not exceed 6 months Basic and DA or own and voluntary
contributions with interest or the cost of equipment whichever is less.
d. No second withdrawal for this purpose will be permitted for 3 years since the first
withdrawal.
REMITTANCE OF PF CONTRIBUTIONS BY THE PAY DISBURSING OFFICES:
The pay disbursing offices will be responsible for deductions of Provident Fund contributions
inclusive that of voluntary contributions by member as well as the deductions of refundable
loans / interest thereon and accounting the same to the PF Trust.
The Establishment departments of the pay disbursing offices shall prepare a monthly
statement in Form No. CPF-3 showing details of deductions of own and voluntary
contributions, PF refundable loan deductions, interest, etc., as also the company's contribution
to PF and send the same with a copy to ROs alongwith the credit advice for the total amount.
On decentralisation of PF functions at RO levels now the pay disbursing offices are not
required to send any remittance to HO. Even to RO, the funds transfers are made only
through accounting entries and by credit advices to Ros.
Wherever pay roll mechanisation is on, the facility of computerised transfer of data through
"Interface" method also is available by which the pay disbursing offices are required to
transfer the PF related data every month by invoking the interface programme in-built in the
Salary system into a diskette to be despatched to the RO.
However, till instructions from HO, PF department , the CPF-3 statements (either computer
print outs of the salary system or manual preparations wherever pay-roll mechanisation is yet
to be implemented) are also to be sent.
The Family Pension Fund Scheme is no longer applicable to us and hence the contribution
need not be bifurcated as PF & FPF.
II. GRATUITY
1. Gratuity is intended to help the employees retiring etc to tide over the difficulties that
he/she will be facing after his/her retirement etc and also to discharge his/her financial
obligations or to help the legal heirs, if the employee dies in harness, to tide over the financial
problems, after the death of the employee. The Gratuity will be paid to the employees on the
occurance of any of the following events viz.
(a) Retirement
(b) Resignation
209

(c) Termination
(d) Death
Provided the employee has rendered continuous service of not less than 5 years. (The
completion of 5 years shall not be necessary for death cases). In death cases minimum 6
months should be completed. The amount of Gratuity payable to the various classes of
employees are as follows.
2. Officers and Development Staff:
The Gratuity payable to Class I & II will be as follows
No. of Completed years of Service
Rate of Gratuity
Between 5 and 11 years
50% of Last Drawn Basic
On completion of 12 years
On completion of 15 years (upto 30 years)100% of Last Drawn Basic
In other words, Gratuity payable is equal to one month basic salary for each completed year
of service, subject to a maximum of 15 months basic salary, for those who have put in 15
years of service and for those with lesser number of years of service, the total gratuity
payable will be calculated applying the above mentioned percentages, for every completed
year of service
However, if the total service exceeds 30 years for every additional year of service after
completing the said 30 years, half a months basic salary will be added to the maximum
amount mentioned above.
3. Class III & IV:
In the case of Class III and IV employees the Gratuity payable will be either in accordance
with the provisions of the payment of Gratuity Act (1972) as amended from time to time or as
per the scheme whichever is higher.
a) Gratuity payable under the Act will be at the rate of 15 days wages based on the rate
of wages last drawn, for every completed year of service or part thereof in excess of six
months.
The maximum amount of Gratuity payable under the Act is restricted to Rs.3.50 lakhs for
those employees, who have left the company before 24/05/10 and Rs.10 lacs for those
employees who have left the Company or or after 24/05/10
(Explanation : In the case of a monthly rated employee the fifteen days wages shall be
calculated by dividing the monthly rate of wages last drawn by him by twenty six and
multiplying the quotient by fifteen).
b) Gratuity payable as per the scheme will be as follows:Where the employee has rendered continuous service of not less than 15 years and upto 30
years, it will be 15 times the last drawn terminal basic salary plus half a month's terminal
basic salary for every additional year of service over 30 years, subject to a maximum of 20
months last drawn terminal basic salary.
It may be noted that no employee is eligible for Gratuity if he/she does not complete a
minimum of 5 years of service.
210

4. Settlements:
The employees are to submit the prescribed application for settlement of Gratuity and the
Office concerned has to submit the details of the salary drawn, tax deducted at source
therefrom etc in the prescribed form to enable the gratuity department to calculate the tax
payable and deduct the same before releasing the Gratuity.
5. Payment of Gratuity to Officers promoted from Supervisory, Clerical and
Subordinate Staff Cadres.
Employees promoted as Officers from Supervisory, Clerical and Subordinate staff cadres on or
after 1.1.1973 are also paid gratuity as per para 10 of the Rationalisation Scheme 1975 for
Officers as amended from time to time. The proviso to para 10 stipulates that where an
employee to whom the General Insurance (Rationalisation and Revision 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' 1.1.1973 and becoming entitled to Gratuity on or
after 1.8.87, the amount of Gratuity shall be higher of (a) or (b) as shown below :a) Gratuity as per the rate applicable to the Officers
OR
b) Gratuity as per the formula applicable to Class III employees taking into account:
1. The total service put in by the employee (including service as an Officer) and
2. The notional basic salary (including DA) which the employee would have drawn on the date
on which the gratuity becomes due and payable had he/she not been promoted as Officer and
continued as a Class III employee.
Explanation:
The Notional Basic salary for this purpose should be arrived at as under:1. Notionally release the Normal Grade increments in the Class III Scale of pay from which
he/she was promoted as Officer.
2. No stagnation increments are to be notionally released. However, stagnation increments
already granted before promotion as Officer should be taken into consideration.
3. Notionally fit the basic salary in the amended scale if the said class III pay scale was
revised effective from a date on or before the due date of Gratuity.
4. If an employee was promoted as Officer from the cadre of Assistant, notional basic salary
to be ascertained on the date the gratuity becomes due shall be in the Assistants' Scale
without any stagnating increments were released on or before the date of his/her fixation on
promotion as Officer.
ILLUSTRATION -I
Name of the Officer
Date of Joining
Class III post from which promoted
:
:
Mr./Mrs/Ms. x
24.10.1963
211

as Officer
Date of Promotion
Basic salary drawn as Sr. Asst
immediately before promotion
Retired as Dy. Manager on Terminal
Basic Salary as A.M.
:
:
Sr. Asst.
27.06.1979
Rs.665/-
Total Service
Rs.10450/-+Rs. 250 (FPA)

Rs. 10,700/34 Years
Gratuity Calculation:
a. As per Gratuity Rules for Officers
10700 X 17 Rs. 181900
b. As per Gratuity Rules for Class III employees ascertain the Notional Basic Salary as on
31.10.97 in the Senior Assistant Scale :27.06.1979
01.04.1983
(Date of revision)
1.4.1987
(Date of revision)
1.8.1992
(Date of revision)
31.10.1997
(Date of retirement)
Total Salary for Gratuity purpose
Basic Rs. 6700
DA
Rs. 3301 As on 31.10.97
FPA
Rs. 236
:
:
Rs. 665/Rs. 1960/-
Rs. 3340/-
Rs. 6470/-
Rs. 6700/:
Gratuity payable as per Gratuity Act

Rs. 10237 X 34 X 15/26 = Rs.200803
Mr/Mrs/Ms. X may be paid as Gratuity a sum of Rs.200803/ILLUSTRATION II:
Name of the Officer
Date of Joining
Class III post from which promoted
as Officer
Date of Promotion : 23.12.85
Basic Salary drawn as Sr. Asst
immediately before promotion
Retired as AO on : 02.01.98
Terminal Basic Salary as A.O.
:
:
Total Service
Mr/Mrs/Ms.. Y
22.5.61
Sr. Asst.
Rs. 2110/-
Rs.9430/- +230 (FPA)

Rs.9,660/37 Years
Gratuity Calculation:
a. As per Gratuity Rules for Officers
212

Rs. 9660 X 18.5 = Rs. 178710/-
b. As per Gratuity Rules for Class III employees Ascertain the Notional Basic Salary as on
2.01.98 in the Sr.Asst Scale.
23.12.85
01.08.87
01.08.92
02.01.98
Rs. 2110/- (first stagnation Increment)

Rs. 3580/- (first stagnation Increment)
Rs. 6930/- (first Stagnation Increment)
Rs. 6930/-
Salary for Gratuity purpose

Basic
DA
FPA
Rs.
Rs.
Rs.
Rs.
6930/3607/230/10767/-
Gratuity payable as per Gratuity Act

Rs. 10767 X 37 X 15/26 - Rs. 229834/Mr/Mrs/Ms. Y may .be paid as Gratuity a sum of Rs. 229834/III. SETTLEMENT OF TERMINAL DUES ON RETIREMENT / DEATH / RESIGNATION
AND TERMINATION GUIDELINES.
1. RETIREMENT.
A. Notice to the employee:
1) Notice as per specimen should be sent to the employee 12 months prior to the date of
his/her retirement. Such notice shall be signed by,
For employees in RO/DO/BO.
For employees in Head Office
Regional Manager/DGM for all
Officers
Manager for all Development Officers.
DGM /Chief Manager of Personnel

Dept for all the Officers.
Chief Manager/ Manager of
Establishment Dept for Supervisory,
Clerical
& Subordinate staff.
Deputy Manager for Supervisory, Clerical &

Subordinate staff.
2) Copies of notice shall be marked to Internal Audit Cell and Housing Loan Department at
Regional Office.
3) In addition copy each shall also be marked to HO Estate and Administration Departments in
case of Officers.
213

B) Action two months prior to Retirement:
1) Application forms for settlement of terminal dues should be obtained from the employee 2
clear months in advance of the date of retirement.
2) Completed application forms shall be obtained in respect of retiring employee by the
Personnel Department, RO for all the employees in the Region and Establishment Dept for the
employees working in H.O.
3) On receipt of applications, the Personnel Dept, RO/Establishment Dept, HO will obtain
clearance from the Housing Loan Department, Internal Audit Dept, Administration Dept,
Estate Dept and Establishment Dept for dues if any payable by the employee or for
surrendering of Company's property in the possession of the retiring employee. Vigilance
Department clearance shall also be obtained. Information with regard to dues if any to the
Local Co-operative Thrift Society or the Employees' -Welfare Society shall also be obtained.
4) Normally recoveries from the retiring employee under the heads like Travelling Advance,
Festival Advance, Excess salary paid etc shall be effected well in advance and even if any
balance is left out, such recoveries shall be made out of the amount payable towards
encashment of earned leave on retirement.
The PF contribution for the last month of service of the employee shall be deducted from the
salary of the previous month itself and remitted to the PF Department, HO along with
employer's contribution also. (If an employee is retiring on 31st December, deduction for PF
contribution for the month of December shall be made from his/her salary for November
itself.)
C) Action one month in advance.
After collecting these details/clearances the original application shall be forwarded by the
Personnel Dept of RO/Establishment Dept, HO directly to PF Dept, HO and copy of the
application together with consolidated clearances in the prescribed format shall be sent to
Personnel Department, HO one month in advance.
Letter containing the clearances shall be signed by an Officer not below the rank of Assistant
Manager, Personnel Department, in ROI Establishment Dept, in HO.
In the case of Officers/employees who have been provided with accommodation/telephone
etc. by the Company, the terminal benefits including payment of encashment of earned leave
available on retirement shall be released only on surrender of the residential accommodation
and/or telephone etc. It is therefore necessary that as soon as the p05session of the
accommodation and/or the telephone etc. surrendered, information is passed on to the
Personnel Department, HO with copy of PF & Estate Depts, HO so that steps can be taken to
release terminal benefits.
D) A week prior to the date of retirement.
After the initial clearance is forwarded by the Personnel Dept, RO / Establishment Dept, HO if
some other recoveries to be made form the employee come to notice, such information
should be communicated to Personnel Dept, HO immediately (preferably by fax/telex) so that
before final clearance is given by the Personnel Dept, HO to PF & Gratuity Dept, HO, the
recoveries can be taken care of. If no such information is received by the Personnel Dept, HO
latest by 3 days prior to the date of retirement, it will be assumed that, other than the
214

recoveries mentioned in the first clearance, no other recoveries are to be made from the
employee and accordingly the final clearance would be sent to PF Department, HO.
2) DEATH
As soon as intimation of death of an employee is received at the Regional Office, a
condolence letter should be sent to the next of kin of the deceased employee, in case of
Development Officers, Supervisory, Clerical and Subordinate Staff, the Regional Manager shall
sign the condolence letter and in the case of Officers, the information shall be passed on to
the CMD's Secretariat, HO who will arrange to forward the condolence letter signed by
CMD/GM/DGM.
Simultaneous intimation shall be sent to Personnel Dept, HO, and PF Dept, HO. Regional
Office shall immediately thereafter arrange for collecting the application form filled in by the
nominee of the deceased employee and also get clearance from the Internal Audit,
Establishment, Estate, Administration, Housing Loan and Vigilance Departments for dues if
any to be recovered/adjusted from the terminal benefits.
If the deceased employee was a member of the GSLI Scheme, request shall be sent to HO
Establishment Dept and the necessary forms be got submitted by the nominee of the
deceased employee.
If the employee had died in an accident while on duty, necessary intimation shall be sent to
HO Administration Dept, who will arrange for sending the forms for preferring claims under
Group Personal Accident Policy.
If the forms for PF & Gratuity settlement are not received within 20 days from the date of
death of the employee, an Officer from the Regional Office or Divisional Office may be
requested to visit the family of the deceased employee and to get the forms duly filled in and
signed by the nominee. Documents such as Death Certificate, Legal Heir Certificate (wherever
there was no nomination) will also be obtained and forwarded to HO PF Department with a
copy to HO Personnel Dept.
In case the widow of the employee is interested in seeking appointment either for herself or
for anyone of her sons/daughters on compassionate ground, application with copies of
records necessary for the purpose may be obtained and forwarded to Personnel Dept, HO
simultaneously with the forwarding of records for settlement of terminal benefits.
3) RESIGNATION
When an employee submits letter of resignation immediate reference shall be made to
Housing Loan Dept, Estate Dept, Vigilance Department, Internal Audit and Administration
Dept, while the Competent Authority may accept the resignation, relieving order will be issued
only after the properties of the Company are surrendered to the Company and all the dues to
the company are settled.
After the resignation is accepted and the employee is relieved, the Personnel Department,
RO/Establishment Dept, HO shall forward the forms submitted by the resigned employee
along with clearances. The original application form shall be forwarded to HO PF Department
and a copy to HO Personnel Dept along with clearances obtained.
215

4) TERMINATION
In the case of employees terminated form service by order of Competent Authority, the
application forms for settlement of PF and Gratuity, if payable, shall be forwarded by the
Regional Office, Personnel Dept / Establishment Dept, HO to PF Dept, HO and a copy of the
application along with necessary clearances to Personnel Dept, HO.
DRAFT OF LETTER TO BE SENT 12 MONTHS PRIOR TO RETIREMENT
To
Dear Sir/Madam,
As per our records and in terms of the provisions of the Schemes relating to Retirement from
service, you will be attaining the age of superannuation on ..
Accordingly, you shall be retiring from our services at the close of Office hours on .
In order to ensure settlement of your terminal dues in time, please clear of all the dues to the
Company such as those arising form Internal Audit queries, excess payments made by the
Company and various advances, if any, drawn by you but remaining unadjusted etc well in
advance.
Yours faithfully,
Cc
Cc
Cc
Cc
Cc
to
to
to
to
to
Internal Audit Dept.

PF Dept.
Housing Loan Dept )
Estate Dept. ) If applicable.
Administration Dept )
CHAPTER 37
VIGILANCE CLEARANCE
(I) Vigilance Clearance is to be obtained before:
a) Promotion
b) Confirmation on Completion of probationary period
c) Issue of no objection certificate for obtaining passport
d) Acceptance of resignation and settlement of dues, and
e) Release of retirement/terminal benefits.
216

ii) Vigilance Clearance on the above lines will be necessary in the case of all officers and
employees of the Company. The requests for clearance in respect of employees under ROs
seeking above clearance shall be forwarded in the prescribed format through Personnel
Department, RO to Personnel Department, HO who in turn refer the same to Vigilance
Department for clearance. On receipt of vigilance clearance, HO Personnel Department will
inform Personnel Department, RO. In case of employees of HO, the Department concerned
shall forward the request to Personnel Department, HO for doing needful.
(iii) If clearance is not given by Vigilance Department in any particular case, further action
will depend upon circumstances of each case. Competent Authority concerned may consult
C.V.O., in such cases, if necessary.
CHAPTER 38
NO OBJECTION CERTIFICATE
I. For obtaining Passport:
The employee shall apply for NOC and shall complete all entries in the format prescribed. On
receipt of an application as above, the concerned office shall forward the application along
with its remarks to Regional Office concerned for necessary action. CMD has authorised
Regional Chiefs of the regions and Chief Manager / DGM / GM of HO (Personnel) to issue NOC
for employees at ROs and HO respectively.
Broad guidelines to be kept in view while considering request for NOC for obtaining passports:
(i) NOC may be issued if the office, where the employee is working, has no objection in
relieving him for the period of absence.
(ii) Where disciplinary proceedings are pending/contemplated against an employee, clearance
may be obtained from the appropriate authorities conducting enquiries or dealing with
vigilance or disciplinary matters before issuing such a certificate.
217
(iii) The Competent Authority shall also examine, before issuing a certificate, whether such a
certificate can be issued in the light of the purpose of the visit as explained by the employee.
II. Outside Employment
A. The following broad guidelines are provided for dealing with NOC for employment outside
the company:
(i) All applications shall be routed through the Company, that is Regional Office in respect of
all categories of employees, including Class I Officers unless otherwise stipulated.
(ii) NOC shall be issued not more than four times in a year in respect of all employees
including Class I Officers.
(iii) NOC shall be issued by the Chief Executive In-charge of the Region in respect of
employees upto the rank of Manager and by HO for Chief Manager and above.
(iv) It should be made clear to the employee that issue of NOC does not mean that he will be
relieved of his duties in case selected for appointment in other organisation.
(v) No recommendation shall be recorded in the application while forwarding except
verification of facts relating to the employment of the applicant wherever required.
(vi) Issue of NOC or forwarding the application would not absolve the employee of his
obligation to give due notice before leaving the employment of the Company.
(vii) No application should be forwarded unless:
a) the job applied for has been advertised publically in newspapers or otherwise and a copy of
such advertisement is attached with the application.
b) the employee fulfills the minimum eligibility criteria with regard to educational qualification,
experience, age, etc.
CHAPTER 39
MISCELLANEOUS
A. HOURS OF WORK:
1. The total working hours in a week comprising of five full days shall be:
i. Thirty Six and half hours excluding the daily lunch break for thirty minutes.
Days
Timings
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For all staff other than Sub-Staff

Monday to Thursday
Friday
Lunch recess
For peons
Monday to Thursday
Friday
Lunch recess
10.00 a.m to 5.45 p.m

10.00 a.m to 6.00 p.m
30 minutes (01.30 p.m to 2.00 p.m)
09.30 a.m to 5.50 p.m
09.30 a.m to 6.10 p.m
30 minutes (01.30 p.m to 2.00 p.m)
ii. For all employees in the cadre of Subordinate Staff other than Drivers, Liftmen, Cleaners,
Watchmen, Electricians, Plumbers and Gardeners, Thirty nine and half hours excluding the
daily lunch break for thirty minutes.
2. The total working hours in a week comprising six full days shall be forty eight hours for
Subordinate Staff such as Drivers, Liftmen, Cleaners, Watchmen, Electricians, Plumbers, and
Gardeners.
Subject to the maximum weekly hours of work stipulated in 1 and 2 above, the Chairmancum-Managing Director shall from time to time specify the number of working days in a week
and the number of daily working hours of each office and employee as considered necessary.
B. GROUP PERSONAL ACCIDENT POLICY

1. The Company arranges a Group Personal Accident Insurance cover for all its employees, for
compensation for death, loss of limbs, permanent total disablement and permanent partial
disablement caused as a result of accident on "24 hours cover" basis with limit of Capital Sum
Insured of 36 times the Basic Salary of the Employee or Rs. 3,00,000/- whichever is less.
2. In the event of any claim, HO Administration Dept. will have to be intimated with all the
relevant details which in turn will take up with our Insurers.
C. CHANGE OF DUTY
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1. From Non-Clerical functions to Clerical Functions on Grounds of Health

The Chairman-cum-Managing Director may at his discretion agree to the change of duty from
non-clerical cadre to clerical cadre provided he is satisfied on the strength of a medical
certificate of a qualified medical officer nominated by the Company, that there is genuine
hardship to the employee in performing non-clerical functions. Such change of duty may be
permitted only as a special case and on specific understanding that this will not be treated as
a precedent for the future.
The recommendations for change of duty on medical grounds for Class III staff may be
forwarded to the Head Office. Further, before a request is forwarded to HO along with the
recommendations from the Regional In-charge a report from an independent medical
practitioner nominated by the Company should be obtained in respect of employee's ailment.
2. Development Side to Administrative Side
The Chairman-cum-Managing Director has discretionary power to give relief to employees
suffering from ailments, defects, deformities etc. for their absorption (on Administrative side)
in suitable postings and all such cases may be disposed off by the Chairman-cum-Managing
Director under the discretionary powers vested in him.
Before such a request is acceded to, it is to be verified and included in the bio-data whether
the employee has passed in SSC Examination with English as one of the subjects. This is
because of the fact that as per the scheme for conversion, the Development Officer who has
passed the SSC Examination with English as one of the subjects is to be placed in the cadre of
Assistant. The Development Officer not possessing such qualification is to be placed in the
cadre of Record Clerk.
On conversions, the salary is to be fitted on gross basis i.e. the total of basic pay, DA, HRA
and CCA drawn as Development Officer should be equivalent to the total of Basic pay, DA,
HRA and CCA in the converted scale.
Upon conversion, for the purposes of promotion the services of an Assistant would be
reckoned form the date of his/her conversion as Assistant including the period of his/her
probation as Assistant. However, he / she would be considered for any promotion to higher
cadre only after he / she is confirmed in the cadre of Assistant. Further, for the purpose of
calculation of retrial benefits it would be necessary to reckon the total service rendered by
him/her right from the time he/she entered the services of the Company/unit including the
service as Development Officer.
While referring such cases to HO; the following details/documents must be sent:
(a) Copy of Medical Report submitted by the Company nominated doctor.
(b) Date of birth.
(c) Police report for the accident, if any
(d) Educational qualifications
(e) Performance details such as premium figures for the last 5 years, cost ratio etc.
220
D. ASSISTANCE FOR MANAGEMENT STUDIES

I. OFFICERS:
Officers who take up part-time courses in Management and allied subjects conducted by the
Universities of duration not less than one year may be given monetary assistance- in the
shape of reimbursement of 75% of the tuition fees. No reimbursement towards cost of books,
examination fee etc. shall be made. Before effecting reimbursement, a service bond should be
obtained from the officer agreeing to continue to serve the Company for a period of 3 years
after passing final examination of the course for which the reimbursement is being made.
If an officer who has been given assistance to take up Management and allied course,
abandons the course in between and does not write the examination, the amount of monetary
221
assistance given to him/her shall be recovered from him/her. Similarly, if an officer leaves
his/her service before the completion of three years of service as per the bond executed, the
amount of monetary assistance given to him/her shall be recovered from him/her.
II. SUPERVISORY, CLERICAL & SUBORDINATE STAFF:
1. Supervisory and clerical staff in the industry could take up Management and Allied Courses
conducted by the Universities of a duration of not less than one year towards which 75% of
the Tuition fees would be reimbursed and there will be no reimbursement for books,
examination fees and other incidentals. In case of failure, the Company will not pay the fees
for repetition of the course. The course should be part-time course conducted outside the
working hours in the industry.
The courses to be selected should also satisfy two requirements namely:(a) The courses if prosecuted would be of direct benefit to the Company and the employee.
(b) The courses should be those which are not eligible for Qualification Pay.
SCS Staff are not entitled for financial assistance for management studies for prosecuting
Master of Business Administration of a recognised University/Institution w.e.f. 1.8.94, since
they are paid Qualification Pay for completing MBA.
A service bond should be taken from the employee concerned before allowing this facility.
2. When regular management courses are available from the local Universities
correspondence course will not rank for reimbursement of fees. However, where the local
University is not providing instructions in respect of any Management subject as a regular
course, financial assistance can be extended for prosecuting the course on that subject
through correspondence. The Competent Authority may ascertain the need for prosecution of
such course from point of view of the Company and grant permission accordingly.
3. The employees who take up studies in Insurance Management Courses conducted by the
recognised Universities may be allowed financial assistance as per following terms and
conditions
i) The assistance is available only to employees who are in the confirmed service of the
company which may be interpreted to include also employees who are on probation, on
promotion but in confirmed service of the Company.
ii) An amount representing 75% of the fees paid by the concerned employees may be
reimbursed to them on production of satisfactory receipts from the University concerned. If an
employee fails at one of the examinations, there would be no reimbursement of the tuition
fees for the repetition of the Course. It is clarified that the reimbursement referred to above
shall be only in respect of tuition fees and there will be no reimbursement towards cost of
books, examination fees etc. Before effecting reimbursement as above a service bond should
be obtained from the employee concerned agreeing to continue to serve the Company for a
period of three years after passing the final examination of the course for which the
reimbursement is being made.
iii) If an employee who has been given assistance to take up Insurance Management Course
abandons the course in between and does not write the examination, the amount reimbursed
to him/her and monetary assistance is to be recovered. Similarly, if an employee leaves the
222

service before completion of three years of service as per the bond executed for obtaining the
assistance the amount reimbursed to him/her is to be recovered.
E. PAYMENT OF INCENTIVE - SCHEME FOR IMPARTING TRAINING IN HINDI

TYPING I HINDI STENOGRAPHY
An employee working as English Typist / Stenographer shall be eligible, on his/her passing
Hindi Typing or Stenography examination after training, for lumpsum payment and in addition
Personal Pay equivalent to one increment for a period of 12 months. However, Stenographer
whose mother tongue is other than Hindi will be granted personal pay equivalent to two
increments on his/her passing Hindi Stenography examination.
For the purpose of personal allowance equivalent to one or two increments payable for a
period of 12 months, allowances admissible such as DA, HRA, CCA etc., shall also be included.
English Typists or Stenographers who have passed Hindi Typing/Stenography examination,
who have been in the meanwhile assigned function of DEO/Programmer, can also be granted
the incentives provided the employee makes declaration that in addition to his/her normal
223
duties, if required, he/ she will also do the Hindi Typing/Stenography work for which he/she
received training and incentives.
Employee can be allowed to draw such personal pay for the full 12 months (on the basis of
his pay applicable to the post which he was holding on the date of announcement of the
result or the date as given in the option exercised by him), even if he/she is promoted to a
higher cadre before completion of these 12 months.
Cash incentive for doing work in Hindi
The Company has introduced Incentive Scheme for doing work in Hindi with a view to
encourage employees for progressive use of Hindi in initiating correspondence Noting,
Drafting etc. This Scheme is applicable only to the employees in the cadre of Stenographers,
and Assistants.
The salient features of the Scheme are:
1. RATE OF INCENTIVE:
Employees found eligible may be paid incentive at the following rates:
Stenographer
Rs.300/-
Assistant
Rs.150/-
Special Cash Awards based on Marks secured are given hereunder :

PERCENTAGE OF
MARKS
97% or more
ASSISTANT
300/-
PERCENTAGE OF
MARKS
95% or more
STENOGRAPHER
300/-
95% or more but 200/less than 97%
Personal Pay (whose mother tongue One increment for 12 months including
is not Hindi)
DA, HRA, CCA
Criteria For Awarding Cash Incentives/Prizes:

For Typists & Stenographers:
a.
The above cash incentive will be payable to those Assistants/Stenographers who do
Hindi Typing/Stenography in addition to their normal duties i.e. English Typing/Stenography.
b.
Only those Stenographers/Typists would be entitled for the cash incentive who type on
an average of 300 notes/drafts/letters in Hindi with minimum 12000 words in a quarter
c.
Such non-Hindi speaking Typists/Stenographers i.e. whose mother-tongue is Tamil,
Telugu, Kannada, Malayalam, Bangla, Assamiya, Oriya, Kashmiri etc. i.e. the languages
spoken in States and Union Territories of 'C' Region will be eligible for concession of 20 per
224

cent in qualifying notes/drafts/letters. i.e. 240 notes/drafts/letters in Hindi with minimum of
9600 words.
d.
The employees shall become entitled for cash incentive on the basis of the assessment
done for the quarter and eligibility as per above norms is established. There will be
assessment done for every quarter independently and incentive shall be payable for the
quarter provided that eligibility is established through such assessment.
FOR CLERICAL STAFF:
1. Only those employees will be eligible to participate in the Scheme, who write atleast
20,000 (Twenty thousand) words in Hindi in a year in regions 'A' & 'B' (i.e. Bihar, Haryana,
Himachal Pradesh. Madhya Pradesh, Uttar Pradesh, States of Punjab, Gujarat & Maharashtra,
Union Territory of Andaman & Nicobar Island, Union territory of Delhi & Chandigarh) and
atleast 10,000 (Ten thousand) words in Hindi in a year in region 'C' (which comprise all other
States & Union Territories except region 'A' & 'B'). In addition to original noting and drafting,
this will also include such other items of work done in Hindi which can be verified such as
entry in the registers, preparation of lists, accounting, preparation of vouchers and cheques
etc. Numerical entries will not be counted for the purpose.
2. Employees working in Accounts Department also shall be given concession of 20 per cent
i.e., for them the eligibility will be 16000 words in 'A' & 'B' region and 8000 words in 'C' region
offices. However, numerical entries will not be counted for this purpose.
Incentive Schemes For Passing Hindi Examinations
Awards are given to employees for undergoing training in Hindi as per instructions of
Management and passing following examinations conducted under the Hindi Teaching Scheme
of Government of India.
Courses
Prabodh
Praveen
Pragya
Hindi Teaching Scheme Rs. 250//Oral Coaching
Rs. 350/-
Rs. 450/-
Correspondence
Rs. 700/-
Rs. 900/-
Rs. 500/-
Awards will not be given to employees:

i) whose mother-tongue is Hindi and/or
ii) who have already passed Marticulation/Higher Secondary or equivalent examination with
Hindi as a regular subject and/or who have passed any other Hindi examination of any other
Body.
F. BENEFITS FOR OFFICERS SERVING AS FACULTY MEMBERS AT THE COMPANY'S
LEARNING CENTRE
Full time faculty members:
225
Officers who serve as full time Faculty Members at the Learning Centre of the Company, shall
be paid a Special Allowance at 10 per cent of their basic pay subject to a maximum of
Rs.200/- per month.
Visiting faculty members:
Visiting faculty members may be paid honorarium for sessions lasting upto 90 minutes.
Officers from the industry may be paid Rs.200/- per session and those from outside the
industry Rs.300/- per session. For this purpose, Officers from National Insurance Academy,
TAC and LPA will be considered as Officers from the Industry.
G. REIMBURSEMENT FOR PURCHASE OF BRIEFCASES / LEATHER BAGS TO

OFFICERS.
The limits of reimbursement of briefcases/leather bags to Officers are as per details given
below w.e.f 1.12.2006 :
CADRE
LIMIT (Rs.)
Deputy General Manager & 2500/Above

Chief Manager/Manager
2150/-
Deputy
Manager/Asst.Manager
1850/-
Administrative Officer
1500/-
The above shall be subject to the following conditions:-
226

1. A Brief Case may be supplied to an Officer whose services has been confirmed and who has
to frequently carry office papers outside the office premises for office work. Hence AO
promoted from Class II/III cadre may be allowed brief case during probation as their service
is confirmed.
2. For Officers posted at BO/DO/RO, the Regional Chief shall be the Competent Authority for
the purpose of sanction of Brief Case.
3. For Officers posted at the Head Office, the DGM/GM in-Charge of the department shall be
the Competent Authority for the purpose of sanction.
4. Lady Officers entitled to brief cases, may be allowed reimbursement of cost of Ladies hand
bags suitable for carrying papers upto the limits prescribed for briefcases.
5. The frequency of reimbursement will be once in three years from the date of last
reimbursement with effect from 1.12.2006.
6. The limit of reimbursement shall be inclusive of sales tax and other supplementary taxes, if
any.
7. The limit applicable to AO shall also apply to Audit Assistants.
8. The reimbursement will not be allowed during the Notice period to Officers who have
opted for VRS/who have submitted resignation from services of the Company.
H. DEPUTATION TERMS ON FOREIGN SERVICE OUTSIDE INDIA

Terms of deputation for service outside India:
1.Period of Deputation:
Normally, the deputation shall be for a period not exceeding three years. However, extension
may be granted for a further period to be decided by the Competent Authority at his
discretion depending upon the merits of each case.
2. Pay, Allowance and other terms, whilst on deputation:
This would be determined in consultation with the foreign employer. If the deputation is
sponsored by the Government of India, it shall be governed by the terms and conditions fixed
by the Government of India in this regard.
3. Pay during joining time:
No joining time would be allowed, but the employees would be at liberty to avail himself of his
Privilege Leave or Casual Leave for preparation of journey. The deputation would commence
227
from the date the employee joins duty with the foreign employer and would end when he
leaves the service of the foreign employer. However, the employee may be allowed joining
time provided the foreign employer pays the salary for the period.
4. Leave and Leave Salary:
During the period of deputation, the employees shall not earn any kind of leave under the
rules of the Corporation but shall be governed by the rules of the foreign employer during the
period he is on foreign service.
The unavailed balance of Privilege Leave and Sick Leave remaining to the credit of the
concerned employee on the date he proceeds on deputation would be protected and will be
available to him on repatriation to the Company.
5. Contribution whilst on deputation:
(i) Leave Salary : No contribution towards leave salary will be recovered.
(ii) Provident Fund : If the employee who is posted abroad is required to make contribution
to Provident Fund as per statutory requirement, in the country of posting, he need not make
any contribution to the Provident Fund of India, however the employee may be permitted to
contribute to the Provident Fund in India at his specific request but the Company will not
make any matching contribution to wards Provident Fund during the time the employee
serves abroad.
(iii) Gratuity : Employees would contribute towards Gratuity liability an amount equivalent to
3 per cent of the Notional Salary (Basic Pay) which he would have drawn in India for the
period from the date he is relieved from the post in India to join the assignment abroad and
the date he rejoins duties in India on his return.
(iv) Housing Loan . The employee would remit the amount representing repayment of
instalments of housing loan and any interest thereon and the Housing Society Charges
(v) Interest for delayed payments: Contributions would be paid within 60 days from the due
dates failing which interest on the amount due by way of such contributions shall be from the
employees at the charged same rate as is allowed from time to time on Provident Fund
additional 1 per cent per accumulations plus annum from the due date
6. Lien:
The employee will have the lien on service of the Company and during the period of
deputation he will be granted salary increases that would have been granted had he not been
deputed to Foreign Service. His name would be maintained in the seniority list or other
statement on the basis of which promotions are considered from time to time to the superior
cadre, as if he continued to be in the service with the Company and he will be considered for
and if considered fit, granted proforma promotion.
During the period of deputation, the employee would not be entitled to any salary or any
other benefits from the Corporation/Subsidiary. This period of deputation would not be
treated as a break in service for any purpose. He would receive gratuity and other retiral
benefits as if he had continued in the service of the Company and not been on deputation, in
terms of relevant rules from time to time.
228

No deputation on foreign service outside India or any extension thereof will be agreed without
the written consent of the Company.
On expiry of the period of deputation, the employee will report for duty as may be ordered by
the Competent Authority. Should he fail to do so, he would be considered to have abandoned
his job with the Company and treated as such.
I. EMPLOYEES/OFFICERS VISITING FOREIGN COUNTRIES SANCTION OF LEAVE

Regional Offices seek the advice/guidance of Personnel Department, HO when the
employees/officers who have gone abroad apply for extension of privilege leave or sick leave
or leave on loss of pay or when they remain unauthorized absent after the sanctioned leave
period is over. In some cases, ROs do not refer the matter to Head Office for months or even
years together and when the situation goes beyond control, they refer the matter to HO
seeking guidance. There are instances where the period of unauthorized absence exceeds
even three months but no proper action is taken against such employees by ROs.
In order to streamline the matter, ROs are advised to follow the procedure given below
whenever employees/officers submit application seeking permission to visit foreign countries
1. The employee/officer has to submit specific application seeking permission to visit abroad,
containing the following details along with the leave application.
a.
b.
Designation
229

a.
c.
Present Office
d.
Name of the Country/Countries to

be visited
e.
Specific purpose of the visit (should

not be vague as 'Personal Work
f.
Date of Departure
g.
Date of probable arrival
2. If the employee has sufficient PL at his credit, leave may be granted subject to other rules
governing sanction of PL and also permission to visit abroad by the Competent Authority.
3. If he/she seeks extension of PL, it may be sanctioned if satisfied by the Competent
Authority subject to availability of PL. Under no circumstances, the total PL thus granted shall
exceed 90 days even though sufficient PL is available to his / her credit.
4. If he/she seeks further extension of PL beyond 90 days, he/she should be clearly and
promptly advised that his extension of leave has not been granted and he/she should report
for duty immediately.
5. If the employee desires to go abroad for taking treatment for self-sickness, he/she has to
produce medical certificate to that effect and leave may be granted subject to availability.
6. No Sick leave will be granted to an employee proceeding/whilst abroad unless it is a case of
his/her hospitalization supported by documents. Many employees, as a routine apply for
extension of leave on medical grounds based on medical practitioner in a foreign country. It
is impossible for us to verify the genuineness of such medical certificates. Hence, we may
restrict grant of sick leave only in cases of hospitalization.
7. After the first spell of sanctioned leave if he/she does not report for duty and also does not
seek extension of leave, he/she should be advised by a letter that he/she has overstayed the
sanctioned leave and he/she is now unauthorized absent and he/she should report for duty
immediately. The unauthorised absence should not be adjusted against any leave (including
leave on loss of pay), though leave may be available in his/her credit. If the unauthorised
absence of the employee is treated as leave on loss of pay, then it would mean that his / her
absence is regularised and hence disciplinary action cannot be initiated against the employee.
Care should be taken to ensure that no payment is made towards salary for the period of
his/her unauthorised absence i.e. for the period beyond the sanctioned leave.
8. If an employee does not report back for duty on expiry of sanctioned leave after going
abroad, his/her absence will be deemed as unauthorised and departmental action will be
initiated for the unauthorised absence. Besides, the leave sanctioned for the earlier period
will be revoked and the entire absence will be treated as unauthorised and the employee will
be liable to repay the leave salary drawn.
9. Similarly, if an officer who goes abroad on Study Leave, does not report for duty on expiry
of the sanctioned Study Leave, he/she should be advised that he/she is unauthorisedly absent
and should report for duty immediately. Even after second reminder, if he/she does not report
230

for duty, disciplinary action should be taken against him/her on the same basis as mentioned
earlier. If there is no communication from him/her for ninety days from the date of expiry of
the sanctioned leave, it may be construed as abandonment of his/her post and further action
has to be taken immediately. The service agreement he/she has entered with us, should also
be invoked.
10. No Officer/employee shall accept gainful employment whilst being abroad on leave/unauthorised absence. In case of doubt about the Officer's/employee's employment abroad, the
Company may refer the matter to the Indian Embassy/High Commission for investigation and
further action.
If any employee/officer seeks permission to go abroad, the above guidelines may be followed
scrupulously. For employees and officers upto the cadre of Deputy Manager(Scale-III),
Regional chief may grant permission to visit abroad and also sanction leave. In the case of
BMs, DMs and Managers and above, if the period of leave does not exceed 30 days, the
Regional chief may deal with the same and wherever the period of leave exceeds 30 days, the
application seeking permission to visit abroad has to be forwarded to HO-HRM Department
along with recommendation of Regional Chief.
J. DISPLAY OF COMPANY'S BANNER

We may sanction expenses for displaying banners (subject to prescribed limits) to the
Associations/Unions which are permitted to participate in structured meetings.
The annual budget for reimbursement of amount for release of advertisement display of
Company's banner is Rs.5000/- per Union/Association per year. The maximum amount that
can be reimbursed for the All India function of an Association shall be Rs.3000/- and for
Regional function, it is limited to Rs.2000/-.
The request for release of advertisement/display of banner shall be made only by the All India
Body of the Association/Union. The Regional/local Units shall have to route the requests
through the All India Body.
The Association/Organisation should submit their request in advance and seek prior approval
of GM/CMD for such display. The expenses could only be reimbursed on production of
photograph in evidence of such display and no advance payment could be made in this
regard.
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K. FACILITIES FOR EMPLOYEES AND EX-EMPLOYEES FOR ATTENDING COURT

CASES AND ENQUIRIES
FACILITIES GIVEN TO EMPLOYEES SUMMONED BY VARIOUS COURTS OF LAW:
It has been decided that:
(1) Whenever any employee is summoned to appear as witness in the court of law on behalf
of or as representative of the Company, he may be:
(a) treated as on duty for the period spent in that regard.
(b) paid Travelling Allowance and Halting Allowance as for a journey on tour.
Provided that he attaches with his bill a 'Certificate of Attendance' given by the Court;
Provided further that in case any payment is made by the Court towards his expenses, the
same is deposited by him with the Company.
(2) Whenever an employee is summoned by court of law in his private and personal capacity,
the employee shall
(a) be granted casual or other leave, as may be due to him under the rules and no special
leave shall be granted to him for the purpose; but if no leave is available to his credit, he shall
be allowed to proceed on leave on loss of pay;
232

(b) not be paid Travelling Allowance, Halting Allowance or any other allowance. However, he
shall be allowed to retain any payment made to him by the Court towards the expenses.
FACILITIES AVAILABLE TO EX-EMPLOYEES WHEN THEY ARE CALLED TO ATTEND
COURT CASES, ENQUIRIES, INVESTIGATIONS ETC.
When ex-employees of our Company are called by the Company for attending court cases,
enquiries, investigations, etc. It is only reasonable that such employees are given certain
facilities to enable them to attend to certain requirements.
It has been decided that CMD will decide on the following facilities to be made available to
such ex-employees called for attending court cases, enquiries, investigations, etc.
I. When the ex-employees are required at centres outside their headquarters:
1.(a) When they are required at Metropolitan centres where we have our guest-house they
may be provided with guest-house facilities at the expense of Company.
(b) When they are required at other centres where we have no guest-house facilities they
may be provided at the expense of Company, hotel accommodation, the type of which may be
decided by the Competent Authority in keeping with the status of the ex-employees and the
exigencies of the case.
2. The ex-employees may be paid an out-of-pocket expense allowance of Rs.100/- per day to
take care of all other expenses, this allowance may be admissible in respect of cases covered
by both (a) and (b) above.
3. The ex-employees may be reimbursed the travelling expenses which would have been
admissible to them, had they continued in our employment in the position in which they were
immediately prior to their going out of employment. The Competent Authority may, however,
depending on the exigencies of the case, allow an ex-employee, reimbursement of expenses
for a better mode of transport and/or transportation by a higher class.
II. When the ex-employees are required at their headquarters:
a) The ex-employees may be paid an out-of-pocket expense allowance of Rs.50/- per day to
take care of all expense.
b) The cases are to be referred to Head Office, HRM Department through ROs with all details
including name and designation of the authority who advises the ex-employees to attend such
requirements.
233
L. LIST OF PLACES FOR PAYMENT OF CITY COMPENSATORY ALLOWANCE

LIST - A.
(Cities with population exceeding 12 lacs)
Ahmedabad, Agra, Bangalore, Bhopal, Chennai, Coimbatore (including Sulur), Faridabad,
Gandhinagar, Ghaziabad, Goa/Panaji, Margao and any other city in the State of Goa, Gurgaon,
Hyderabad , Indore, Jaipur, Kanpur, Kochi (including Triputhinura and Kalamassery) Kolkata,
Kozhikode (Calicut), Lucknow, Ludhiana, Madurai (including Thirunagar), Mumbai, Nagpur,
New Delhi, Noida, Patna, Pune (including Pimpri, Chichwad & Hadapsar), Secunderabad,
Surat, Trivandrum, Ulhas Nagar, Vadodara, Varanasi, Vashi & Vishakapatnam (including
Gajuwaka)
LIST - B :
(Cities with population of 5 lacs and above but not exceeding 12 lacs)
234

Agartala, Aizwal, Aligarh, Allahabad, Amaravati, Amritsar, Asansol, Aurangabad, Bareilly,
Belgaum, Bhavnagar, Bhubaneshwar, Bikaner, Chandigarh, Cuttack, Dehradun, Dhanbad,
Dharwad, Durg-Bhilai, Gangtok, Gorakhpur, Guntur, Guwahati, Gwalior, Hubli, Imphal,
Itanagar, Jabalpur, Jalandhar, Jammu, Jamnagar, Jamshedpur, Jharia, Hodhpur, Kohima,
Kolhapur, Kota, Mangalore, Meerut, Mohali, Moradabad, Mysore, Nasik, Panchkula,
Pondicherry, Port-Blair, Raipur, Rajkot, Ranchi, Salem, Shillong, Sholapur, Sas Nagar, Shimla,
Srinagar, Tirupur, Trichirapalli, Vijayawada and Warangal.
M. LIST OF PLACES FOR PAYMENT OF HILL STATION ALLOWANCE

LIST A
Adimaly, Almora, Coonoor, Darjeeling, Kotagiri, Kullu, Mussoorie, Ooty, Rishikesh, Shillong,
Solan, Srinagar
LIST B
Chickmagalur, Damanjodi, Dehradun, Gudalur, Haldwani, Hamirpur,Hosur, Kalpetta, Kashipur,
Khatima, Kichha, Madikeri, Mandi, Sulthans Battery, Sunabeda, Tura, Udhampur
LIST C
Damanjodi, Mandi
The sanction of payment of Hill Station Allowance has to be given by the Flag Company, HO,
after ascertaining the details from the Geological Survey of India.
Note :
List A
1500 metres and over (Above mean sea level).
List B
1000 metres 1500 metres (Above mean sea level) and places which
are specifically declared as Hill Stations by Central/State Govts. for
their employees.
List C
Not less than 750 metres and surrounded by and accessible only
through hill with a height of 1000 metres and over.
235
N. IMPLEMENTATION OF TRANSFER ORDERS

We quite often come across cases of non-implementation of the Transfer Orders issued by
Head Office or there is enormous delay in implementation.
In the past, on many occasions, the notice of the Regions was drawn on the need to enforce
administrative discipline in matters of this nature and clear cut guidelines were issued on time
limits, manner in which the orders are to be implemented, etc.. The guidelines indicated in
these circulars are reproduced for ready reference.
1) The Transfer Order, once issued, has to be served to the Officer under transfer on the
same day it is received by the Officer-In-Charge or, in his absence because of leave or tour,
by the authorised Officer of the office concerned, be it RO, DO, or BO. In case the Officer
under transfer happens to be on leave for a short duration, the order has to be served to him
on the same day of his return from leave.
2) Even if the Regional Chief/Divisional Chief/Branch-In-Charge feels that the Order requires
modification, and that the matter has to be referred to the Higher Authority, he can do so,
simultaneously serving the order to the Officer concerned.
3) The Officer under transfer has to be relieved at the earliest possible time and, in any case,
not later than the 30th day of the date of issue of the order to the officer concerned (10th day
in the case of transfers within the station). Even in cases where reference has been made to
236

the Competent Authority for cancellation or modification of the order either due to office
exigencies or at the instance of the individual concerned and if no final communication has
been received before the due date of relief, the Officer will be deemed to have been relieved
on the due date. However, including such cases, every care has to be taken to issue a
Relieving Order to dispel any ambiguity.
4) If the Officer had made representation, for which no final communication has been
received, and if he desires to pursue the matter, he may do so, remaining on leave from the
date following the date of his relief.
5) The Officer who normally sanctions leave to the Officer under transfer, may grant leave for
a maximum period of 15 days either for reasons mentioned in (4) above or, in the normal
course, when the Officer desires to avail before joining at the place of posting. However, the
granting of leave should be advised to the Officer-In-Charge of the office to which the Officer
is to report on transfer.
6) Any additional leave beyond 15 days as mentioned above, for whatever reasons, shall be
granted only by the Regional Chief of the Region, under whose jurisdiction the office to which
the Officer under transfer has been posted. For this purpose, it is absolutely essential that the
Leave Record and other relevant records of the Officer under transfer are furnished
simultaneously to the Regional Office concerned, whilst relieving the Officer.
7) Under no circumstances, salary for the relevant month shall be disbursed to the Officer
under transfer by the office from which he has been relieved unless the date of disbursement
of salary coincides with the date of relief or the Officer is under sanctioned leave and is not to
return before the salary disbursement day for the relevant month or would not be able to
receive salary at the new place on the due date on account of his availing joining time.
Administrative Jurisdiction relating to Officials relieved on transfer from an Office :
The administrative Jurisdiction relating to an Official/employee (who has been relieved from
one office on transfer and not reported at the new place of posting), vests with the authority
of the new office/new region to which he has been posted. Accordingly, the relevant
authority in charge of the new office of posting/new Region who has jurisdiction over that
Office, shall exercise all administrative powers (leave, salary, etc.) and disciplinary powers
over the said official/employee though he has not reported for duty at the new place of
posting.
Procedure for in-absentia relief :
1. In the event of an Official/employee concerned (who has been transferred out of the office)
does not attend the present office or applies for long leave and does not attend the present
office in order to avoid getting relieved,the relieving letter may be constructively served on
him by following the procedure mentioned below :
i) The Transfer Order/Relieving letter may be sent by RPAD to his last known residential
address and simultaneously a copy of the same may be displayed on the Notice Board of the
Office. Such display on the Notice Board may be recorded by way of Minutes and placed in
the Personal File of the Official/employee concerned, besides sending copies of the same to
the controlling office.
237
ii) In case, the communication sent by RPAD is returned undelivered/refused acceptance, the
envelope concerned may be kept in safe custody without being opened.
Iii) On such constructive serving of the relieving letter, the Officer/employee is deemed to
have been relieved. Hence the name of the Officer/employee shall be struck off from the
muster roll of the office and all related correspondence/notice/Personal File be sent to the
new office under copy to the Controlling Office and to the Establishment Department and IT
Department of the present Regional Office and new Regional Office.
iv) Procedure for sanction of leave : The procedure to be followed in different contingencies
is as follows :
In case the leave application is received before relieving the employee, the
present office may approve the same in normal course, on merits of the case provided the
same does not interfere with the proposed date of relief and relieve the Officer/employee on
expiry of such sanctioned leave. If the leave application is for an unduly longer period and
intended to avoid transfer, the same is to be refused and the concerned Officer to be advised
in writing. Further, the approving authority may deal with the matter on merits in case the
application is for sanction of sick leave.
Where the Officer/employee sends the leave application by post after deemed
relief, the same should be forwarded to the new office he/she is transferred, for their
necessary action under copy to the Officer/employee and to the new controlling office.
Where the employee does not submit a leave application after deemed relief, the
new office shall issue a notice to the employee as per procedure advising him to report for
duty failing which necessary action would be initiated against him. Such Notice is to be issued
by the new office after the expiry of a period of six days plus the joining time reckoned from
the date of deemed relief.
CHAPTER 40
9A(iii) SCHEME
This Scheme is applicable to Branch Managers, AOs and AAOs as signed with Development
functions.
1. Loan :
Interest free loan shall be granted for purchase of approved model of cars. The amount of
loan shall not exceed the purchase price of the vehicle. The loan shall be recovered in 120
equal monthly instalments in case of new vehicle and in sixty equal monthly instalments in
case of second hand vehicle with age more than 3 years. In case of vehicles of less than 3
years old, the loan shall be recovered in the number of instalments equal to 120 minus the
age of the vehicles in months.
Sanction of loan for purchase of car shall be further subject to the following conditions :
i.
ii.
Not more than two loans for purchase of cars be granted during the entire service of
the Officer and for this purpose the car being used as on 15.04.1988 be treated as
first vehicle.
Even if the Officer repays the loan prior to completion of 120 months from the date of
purchase in the case of new cars an sixty months in the case of second hand cars and
238

two wheelers, fresh loan shall not be granted before the expiry of the full period
mentioned therein.
2. Fixed Monthly Allowance :
The allowance should be divided into 3 constituent groups according to the purpose for which
the allowance is meant viz.,
Purpose
Amount to be allowed
(80% of the following)
1. Depreciation (variable with price)
Purchase
price/No.
instalments
2. Cleaning and Servicing (fixed)
Rs.50/-
Of
repayment
3. Minor repairs and replacements (fixed) Rs.50/-
Note : The expenses incurred on mobile oil/engine oil are not pay able separately since these
expenses form part of fixed monthly allowance in the case of cars provided under 9A(iii)
Scheme.
3. Running Expenses :
80% of the actual cost of petrol consumption is payable. However, monthly reimbursement
shall not exceed cost of 100 litres.
4. Replacement of Tyres and Tubes :

80% cost of replacement of tyres and tubes or both or retreading of tyres to the extent
considered necessary shall be borne by the Company after every 32000 kms. run of the car.
The cost of replacing once retreaded tyres may, however be borne after a run of 16000 kms.
after the date of retreading the tyres (radial tyres not allowed). Where the car is used in
difficult terrain, the replacement of tyres or tubes or both may be considered upon after a run
of 24000 kms. and 12000 kms. respectively.
5. Replacement of Batteries :
The cost of replacing batteries after 18 months from the date of purchase of car/batteries
shall be borne by the Company.
6. Loan for major repairs :
Whereas a fixed allowance per month is paid to meet depreciation and maintenance as also
minor repairs and replacement, there is no provision for granting any allowance or
reimbursement for the cost of major repairs and replacements. However, in order to provide
an assistance for financing major repairs, the Officers may be allowed interest free loan to
meet the cost of major repairs/replacements. The loans at any time during the currency of
the vehicle under the Scheme shall not exceed the following limits :
239

Age of Car (Year/s)
Loan for major repairs/replacements not

to exceed (Rs.)
1st year of use
750/-
2nd year of use
1500/-
rd
3 year of use
2000/-
4 to 10 years of use
2500/-
Note : The Officers entitled to fresh loan may like to use the same car beyond 10 years. It
would, therefore be in order to apply beyond 10 years the same limit as are applicable to the
10th year.
The loan shall be repaid by the Officer in 10 equal monthly instalments to be recovered from
his salary. The first instalment of repayment shall be deducted from the salary of the Officer
for the month following the date of disbursement of loan. If the Officer requires loan for
major repairs when the previous loan is outstanding, the balance outstanding loan shall be
deducted from the maximum allowable limit shown above and the fresh loan to be granted
shall not exceed such reduced limit. If, on the date the Officer leaves the services of the
Company, there is any outstanding loan the same shall have to repaid in cash by the Officer
or shall be deducted out of the terminal benefits due to the Officer.
7. Provision for payment of taxes and insurance premium :
The Company will bear the premium for insuring the car under comprehensive cover including
the cover against the risk of strike and riot and will also pay registration charges and road
taxes and other taxes payable on the vehicle including the accessories fitted thereon for which
the Company has advanced loan.
Approved models :
CATEGORY
P.A.L.
HINDUSTAN MOTORS MARUTI UDYOG
AO(D)
&
Branch a) Premier Std
Ambassador Std. &
Managers/ Sr. Branch b) Premier Dlx. BE
Ambassador Deluxe
Managers
c) Premier Dlx.BU
d) Premier S1
Executive
e) Premier S1 Deluxe
d. Maruti 800
di. Maruti Omni
It will be in order to sanction Car loans for Diesel Cars to Officers who have been assigned
with Development functions as per the above approved models.
8. Loan for purchase of Two-Wheelers
The AOs (including Branch Managers and Assistant Branch Managers) with Development
Functions entitled to loan for purchase of cars shall have the option to avail loan for purchase
of two-wheelers. Where such an option is exercised, the loans granted for two wheelers shall
be repayable in 60 equal monthly instalments, whether the vehicle is new or second hand.
The allowance, petrol limits shall be reduced as under :
a) Fixed Allowance :
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80% of Purchase Price of Vehicle, divided by the number of instalments towards depreciation.
b) Running Expenses :
80% of the cost of Petrol subject to the provision that the consumption of petrol shall not
exceed 70 litres per month.
Note : This provision of 80% for petrol cost with a maximum limit of 70 litres shall mean that
actual reimbursement shall not exceed the cost of 56 litres of petrol per month.
c) Replacement of tyres and tubes :
80% of cost of replacement of tyres and tubes or retreading of tyres to the extent considered
necessary shall be borne by the Company after 20,000kms. for Motor Cycles and after 15,000
kms. for Scooters. The cost of replacing once retreaded tyres however be allowed after a
further run of 10,000 kms. in case of Motory Cycles and 7,500 kms. in case of Scooters.
d) Major Repairs :
Interest free loan recoverable in 6 equal monthly instalments. The maximum loan amount
will be 60% of that available in respect of Cars.
Note :
ii) Both in case of cars and two-wheelers, components of depreciation, wear and tear
shall be payable only till the loan is outstanding.
iii) It would be in order to include the cost of helmet in the amount of loan to be
sanctioned for purchase of two wheelers.
9. General
The 'approved makes' for grant of loan for two-wheelers for conveyance schemes are as
under :
a) SCOOTERS :
iv) Lambretta,
v) Bajaj Vespa,
vi) Vijay,
vii) Allwyn Pushpak,
viii) Girnar,
ix) Falcon,
Priya,
Lamby,
Kinetic Honda,
LML Vespa,
150 NV model,
Bajaj Cub,
Lambretta Cento-100
b) MOTOR CYCLES
241

3.
4.
5.
6.
7.
8.
9.
Royal Enfield (Bullet)

Jawa
Rajdoot and Yezdi
Bajaj M-80
Kawasaki Bajaj KB-100
Hero Honda
Spark
Silver Plus
Bajaj M-50
Yamaha RX-100
TVS-Suzuki
The following makes of Mopeds are also approved for grant of loan :
2.
3.
4.
5.
6.
7.
Suvega
Mayram (T.N.Govt.)
Luna
Dart-T.T.
TVS-50
Hero Majestic Moped
Generally, two wheelers manufactured by public sector undertaking may be considered as

'approved makes'.
c) In respect of cars provided under various Schemes, the Company may bear insurance
premium, only in respect of Cars and such accessories fitted therein for purchase of which
Company has advanced loan.
d) In case of Officers who were granted loan for purchase of vehicle under regulation 9A(iii)
and they continue to use, for official purpose, the same vehicle until such time the second
loan is sanctioned or second loan may not be granted at all, it will be in order to continue the
said vehicle under Scheme 9A(iii) with benefits except depreciation component of the monthly
allowance. Hence, monthly allowance payable to officer shall be Rs.80/- to take care of minor
repairs, replacement, cleaning and servicing. As there is no provision for repair charges under
Scheme 9A(iii), the officer may be allowed loan for repair as provided in scheme 9A(iii).
10. Loans for Second hand Vehicles
At present loans are not allowed for purchase of second hand car. The matter has been
reviewed and it has been decided to allow loan for purchase of second hand car provided
such car is not more than five years old in case of Premier Padmini and not more than three
years old in case of Hindustan Ambassador and Maruti models. Loans would be granted upto
the value of second hand car of different models and ages as may be circulated by GIC from
time to time. The repayment of loan (and interest wherever applicable) shall be in 84 equal
monthly instalments.
In case of Officers covered under 9A(iii) and the New Conveyance Scheme, where
depreciation allowance is applicable the depreciation allowance will be worked on the basis of
purchase price of second hand car divided by 84 monthly instalments.
It is clarified that even when the loan is granted for second hand cars, the limitation of two
vehicles during the service period will remain unaltered.
242
NEW CONVEYANCE SCHEME, 2002

New Conveyance Scheme (Loan Scheme) is applicable to the Officers of the rank of GM
(Scale VII), DGM (Scale VI), Chief Manager(V) and Senior Divisional Manager (Scale IV),
Divisional Manager (Scale III) on the Marketing side, Senior/Branch Managers in-charge of the
Branch Offices (Scale III & II), Assistant Manager(Scale II) and Administrative Officers (Scale
I) assigned
with Development functions. They are eligible to have the use of the four
wheeler/s which may be purchased by the Office under this New Conveyance Scheme.
The provisions of this Conveyance Scheme are as follows:
1. Date of Commencement
The Scheme shall come into force with effect from 01.01.2003 or the date of purchase of
the vehicle whichever is later.
2. Conditions of Eligibility with effect from 01.03.2004:
1) Only new cars shall be purchased under the Scheme
2) The purchase price of the cars will be borne by the Company as given
below :
Scale
Amount (Rs.)
Scale VI & VII
5 Lakhs
Scale IV & V
4 Lakhs
Scale I, II & III
3.25 Lakhs
3) The period of usage of the Motor will be 8 years.

4) Registration Charges, Octroi, Insurance Premium and Road Tax will be
borne by the Company in proportion to the financial limit prescribed for each
cadre.
5) The eligible Officer/s will be allowed the use of vehicle/s so purchased as
per the terms and conditions specified in this Scheme or that may be
decided by the Company from time to time. All the Officers/Users will be
bound to comply with all such instructions, present or those which may be
issued at any time in the future.
6) Not more than three cars can be availed under this scheme and under the
earlier scheme(s) taken together, during the service of an officer. However, as in the
previous scheme, for officers in the cadre of Chief Manager and above, it would be in order to
allow the facility of two cars to be reckoned from the time of their entry into the cadre of
Chief Manager for the balance period of their service, under this New Conveyance Scheme,
2002.
7) The amount of Rs. 5000/- given towards accessories stands withdrawn.
8) No deduction for A/C as the A/S system is an integral part of the vehicle.
9) No provision for buying vehicle priced higher than the limit approved.
243
3. Categories of Officers eligible to be covered by the Scheme :

All Officers whose vehicles are at present covered under the New Conveyance Scheme and
Conveyance Scheme under para 9A(iii) are eligible to be covered under this Conveyance
Scheme.
4. Competent Authority referred to in the Scheme shall be as follows :
S.No.
Category of Officer
Competent Authority
01
In respect of all the eligible Officers in In-charge

of
the Branch/Division including the Regional Office
Senior/Divisional Manager and other
eligible officers in the Regional Office
02
In respect of Officers in the cadre of General Manager

Chief Manager and above and other
eligible officers, if any, in Head Office
the
5. Booking and Purchase of New Vehicles :

The Office concerned will do booking of vehicles under this Conveyance Scheme. The
vehicle will be purchased, owned and registered in the name of the Company viz., United
India Insurance Company Limited. The Agreement to be executed between the Company and
the user Officer will be as per the draft Appendix A attached to this Scheme.
6. Perquisite Value of the Conveyance :
The perquisite value of the Conveyance provided to the user Officer will be
determined as per the provisions of the Income tax Rules, CBDT Regulations and any other
relevant regulations in force from time to time in this regard.
7. Shifting/Transfer of vehicle on transfer of the user Officer :
When the user Officer gets transferred from the present place of posting to a new place of
posting, the vehicle will also move simultaneously and the car account will be sent to the new
accounting unit. All the existing provisions for shifting of vehicle to the new place of posting
will apply under the Scheme (as per transfer rules).
8. Recovery of depreciated value :
(a) The vehicle on going out of the scheme, for any reason whatsoever excepting as
provided in (b) below, is to be necessarily taken over by the user Officer. For this purpose,
the user Officer has to pay the depreciated value in one lump sum at the time of exit of the
vehicle from the scheme.
(b) When an Officer with development function is transferred to the Administration
side by the Company, the car shall be transferred at the officer's option to his/her name and
the depreciated value of the car be treated as loan to the officer at 5% interest to be realised
on monthly instalments of the balance period of 96 instalments from original purchase date.
This option will not be available to an officer who voluntarily opts for transfer from Marketing
to Administration side. Such cases shall be covered under the provisions of para 14(e).
244

9. Fixed Charges :
No payment of Fixed Charges to the Officer shall be made under the Scheme. An
amount of Rs.200/- shall be paid to the Officer every month towards cleaning. Servicing
charges of not more than Rs.2000/- p.a shall be reimbursed to the officer.
10. Replacement of Tyres/Tubes & Batteries :
(i) The cost of replacement of tyres and tubes shall be borne by the Company in full
after the vehicle has run for 32,000 kms. subject to production of bills/receipts.
(ii) If the tyres are required to be re-treaded, the cost of re-treading shall be borne
by the Company after the Car has run 16,000 kms. In such cases, the next replacement of
tyres shall be allowed only after the car has run a further 16,000 kms. and the cost of such
replacement shall be borne by the Company in full.
(iii) The cost of replacement of batteries shall be borne by the Company in full after
18 months from the date of purchase of the vehicle and after every 18 months thereafter
subject to production of bills/receipts.
(iv) The cost of premature replacement of battery shall be borne by the Company, in
full, in cases where the Competent Authority considers it necessary, after one year from the
date of purchase of the vehicle/battery, but in no case before the expiry of the guarantee
period.
(v) While bearing the cost of such replacement of tyres/tubes/batteries, due account
will be taken of trading in values of worn out tyres and batteries.
(vi) At present the cost of each tyre is limited to Rs. 2500/- and battery Rs. 2850/-. However,
with effect from 1.9.2010, the said limits have been withdrawn and full cost is reimbursed.
11. Repairs :
(a) Expenses under this head shall be borne by the Company
(b) Full cost of major repairs and replacements shall be borne by the Company,
subject to the conditions that the amount so spent shall not exceed the following ceilings in
each of the eight years from the date of purchase of the vehicle subject to production of
bills/receipts and verification that the said repairs have actually been carried out :
Age of the
Car
Maximum Admissible
Repair Charges (Rs.)
First Year
2250
Second Year
3250
Third Year
3750
Fourth Year
4250
Fifth Year
4750
Sixth Year
5250
245
Age of the
Car
Maximum Admissible
Repair Charges (Rs.)
Seventh Year
5750
Eighth Year
5750
(c) The yearly limits mentioned in sub-clause (b) above, would be cumulative in
nature and balance in the repair budget of a particular year, if any could be carried forward in
the next year (s). However, if the actual expenses exceed the relevant year's budget plus any
carry forward of the previous year(s), the excess will not be adjusted against future
accumulations nor will it be taken into account for the purpose of reimbursement.
(d) No expenses shall be allowed in respect of repairs and replacements, which are
necessitated by accident, or otherwise, to the extent such expenses are to be met by the
Insurer of the Vehicle as a claim arising out of the accident .
(e) If any of the repairs and replacements prescribed in Appendix B are carried out
earlier than due because of an accident, the charges of which are borne by the Insurer of the
vehicle, such repairs shall not be admissible at the time they would otherwise have been due
and would be incurred only at a later date when they are considered necessary by the
Competent Authority.
(f) No advance shall be granted for the repair of a car under the Scheme. However,
in cases where the estimated cost of major repairs undertaken at one time exceeds Rs.4000/and where the garage requires an advance, the Competent Authority, on request, may
sanction such advance not exceeding 50% of the estimated cost of repairs or the amount of
advance required by the garage whichever is less. The Competent Authority shall satisfy that
the concerned repairs are carried out within a month of payment of the advance. The
advance shall be adjusted out of the amount due on account of the repairs and shall not be
allowed to be carried over.
12. Running Expenses :
(a) All the running expenses will be borne by the Company as long as the Car
remains under the Scheme. The running expenses shall be payable per quarter subject to the
limits :
Chairman-cum-Managing Director
No limit
General Managers
375 litres
Deputy General Managers/Chief Regional Managers 300 litres
Chief Managers other than RO-in-charge
250 litres
Division/Branch-in-charges and other Officers

assigned Marketing functions in
Metro Cities
250 litres
246

Chairman-cum-Managing Director
No limit
A Class Cities
225 litres
B Class Cities
180 litres
C Class Cities
150 litres
(b) The settlement of running expenses shall be made every month to the Officer.
(c) The norms for reimbursement of fuel expenses during the leave period of an
Officer shall remain unchanged as at present.
13. Exit of Cars from the Scheme :
(i) The period of usage of car under the Scheme will be eight years. After the end
of eight-year period, the car shall be transferred in the name of the officer concerned by
recovering an amount equal to the written down (depreciated) value of the car determined as
per rules in force from time to time. As per the present system, example is worked out below
:
For example : if the cost of car is Rs.1,00,000/-, then the written down value (book
value) of the car every year will be as follows as the book value of the car is determined at
the end of each year by reducing 20% on the written down value of the car at the beginning
of the year :
Age of the Car
Written down value of the Car

(Rs.)
End of First Year
80,000
End of Second Year
64,000
End of Third Year
51,200
End of Fourth Year
40,960
End of Fifth Year
32,768
End of Sixth Year
26,214
End of Seventh Year 20,971

End of Eighth Year
16,777
The amount so arrived at the end of the eighth year i.e. Rs.16,777/- shall be
recovered in one lump sum.
(ii) Where the vehicle goes out of the scheme at any time before completion of the
eighth year period as per para 8(a), the depreciated book value will be calculated as on the
date of exit for the purpose of calculating the amount actually to be recovered from such an
Officer. The amount so arrived at shall be deposited immediately in one lumpsum by the
concerned Officer failing which it will be recovered in one lumpsum from any/all dues payable
to the Officer at the time or in future and the vehicle transferred in the name of user Officer.
For Example :
1) Assume purchase price of the vehicle as Rs.1,00,000/-
247

2)
3)
4)
5)
6)
Date of purchase of the vehicle 01/09/2003

Date of retirement 01/06/2005
Total months for which the car is covered under the Scheme 21 months
Depreciation for the period 01/09/2003 to 31/08/2004 is equal to Rs. 20000/Depreciation for the period 01/09/2004 to 31/05/2005 is equal to Rs.12000/(Rs.80,000x20%x(9/12)
7) Total depreciation is to Rs. 20000/- + 12000 = Rs. 32000/8) Written down value as on 01/06/2005 = Rs.68,000/- (Rs.100,000/- - Rs.32,000/-)
9) Amount to be recovered from the terminal dues is Rs.68,000/-
NOTE : If the vehicle goes out of the scheme up to 15th of a month, the
depreciation will be calculated as at the end of the previous month. Otherwise, the same will
be calculated as at the end of the month in which the car exits out of the Scheme.
14. General :
a) A new car bought by the Company and kept for the use of an Officer eligible
under the Scheme shall be kept by the officer for 8 years.
b) An Officer having a car covered by the Scheme and using the same after 8 years
from the date of its purchase shall continue to be covered by the Scheme for a further period
not exceeding one year. The Company shall bear all the expenses as per the provisions of this
Scheme.
c) An Officer using a car under the Scheme shall not normally be permitted
premature change/transfer of the car in his/her name within 8 years from the date of its
purchase. However, the Competent Authority, after reference to the garage or any surveyor
nominated by the Competent Authority, if satisfied that it will not be possible or worthwhile to
get the car repaired, send his/her report to the Chairman-cum-Managing Director in respect of
the Officers of the rank given below :
Cadre
Competent Authority
Chief Managers and above
GM (Marketing) to CMD
All other eligible officers on marketing CRM to General Manager (Marketing

side.
who on receiving the report may permit the disposal of such car subject to the following :
While a sale is so permitted, the car shall be sold by the Company by advertisement
charges for which shall be borne by the Officer. The sale proceeds shall be utilised as under :
i) The first charge shall be the written down value of the vehicle as on the date of
disposal.
ii) The shortfall, if any, shall be recovered from the Officer concerned
iii) Excess, if any, shall be retained by the Company.
For example :
Assume purchase price of the vehicle as
Date of purchase of the vehicle
Date of exit of Car
Total months for which the car is covered under the Scheme
248
Rs.1,00,000/01/09/2003
01/06/2005
21 months

Depreciation for the period 01/09/2003 to 31/08/2004
Rs.20,000/Depreciated value as on 01/09/2004
Rs.80,000/(Rs.1,00,000/- minus Rs.20,000/Depreciation for the period 01/09/2004 to 31/05/2005=Rs.12,000/{(Rs.80,000/-x20%x(9/12)}
Written down value as on 01/06/2005 Rs.68,000/- (Rs.80,000/- minus Rs.12,000)
i) Sale proceeds of the Car Rs.90,000/- The Company shall retain the excess of Rs.12,000/- after appropriating the written
down value of the car namely Rs.68,000/-.
ii) Sale proceeds of the Car is Rs.60,000/-.
The Company shall recover Rs.8000/- from the officer being the shortfall after appropriating
the sale proceeds.
d) If the car meets with an accident and the claim for total loss is paid by the
Insurer of the Car, the claim amount shall be apportioned on the same basis as indicated in
clause 'c' above.
e) An Officer to whom the car is allotted for use under this scheme is transferred to a
post which is not covered by this scheme, he shall cease to be eligible for the benefits under
this scheme from the date of handing over charge of the earlier post. He/She has to remit the
depreciated value of the car calculated as on date to the office within 3 months and get the
car transferred in his/her name. Otherwise, the car shall be disposed off by the Office and
the provisions of clause 'c' above shall apply.
f) In the event of cessation of service of an Officer using a car under this scheme,by
retirement, death or any other reason, the car shall be transferred to him/her or to his/her
heirs on payment to the Company the outstanding depreciated value of the car on the date of
cessation of service of the officer.
g) In many States, one time road tax is levied taking certain years as life of the
vehicle. When the vehicle goes out of this scheme for any reason whatsoever, the recovery
of the road tax from the user officer for the balance life of the car shall be that portion of the
road tax that could be applicable had the vehicle been registered in the name of the
individual. This recovery shall be made at the time of transfer of the car in the name of the
user officer or his/her heirs as the case may be.
15. TRANSITIONAL ARRANGEMENTS

A. Conditions for transfer to Conveyance Scheme 2002 :
a)
(i) All the Officers who have their vehicles covered under the existing New
Conveyance Sheme (Loan Scheme) & Conveyance Scheme under Para 9A (iii) shall have the
option to switch over to the revised Conveyance Scheme, 2002. In such case, the Officer
concerned will have to exercise option to switch over for the revised Conveyance Scheme
2002 within a fortnight from the date of the Circular as per proforma enclosed in Appendix
B. The option once exercised shall be final.
249
(ii) On exercising such an Option, the vehicle/s will be transferred in the name of the
Company for the amount outstanding in respect of the vehicle account as on 01/01/2003.
The Account Code and the Head of Accounts is ......... and 'Office Cars under Scheme 2002'.
(iii) All the Officers who have exercised the option to switch over to the Conveyance
Scheme 2002 shall have to execute a fresh agreement as per Appendix 'A' attached to the
Circular. The amount of stamp duty will be as applicable in the respective States in which the
agreement is executed and the expenses related to the same shall be borne by the Company.
(iv) An Officer who opts to be governed under this Scheme, has to make payment of
the depreciated value required for transfer of the vehicle in the name of the user in one
lumpsum as on the date of exit for any reason whatsoever subject to the provisions of para 8
of this Scheme.
b) In case Officers who do not exercise the option to switch over to the revised Conveyance
Scheme 2002 within the prescribed time limit, they shall have their vehicles covered under the
existing Conveyance Scheme and shall continue to get the benefits as applicable to the
respective Schemes. The Income Tax Liability will be decided on the basis of rules and
regulations in force, in such a case, from time to time.
c) An Officer will not be allowed to exercise the Option for switchover to the revised
Conveyance Scheme, 2002 if his/her Car has ceased to be covered under the existing
Conveyance Schemes or who have retired/resigned from the services of the Company, as the
case may be, as on the date of the Circular.
d) An Officer will have the option to have the vehicle covered either under the existing
Conveyance Schemes or under the revised Conveyance Scheme 2002. No Officer is allowed
to surrender the vehicle to the Company.
e) At the end of eight years from the date of purchase of present case, the new car, if
sanctioned, would automatically be under the Conveyance Scheme 2002.
B. Payment of Fixed Charges & Recovery of Loan Instalment :
No Fixed Charges shall be paid to an Officer who has opted for switchover to the revised
Conveyance Scheme w.e.f.01/01/2003. Similarly, no monthly recovery towards advance shall
be made from the Officer as per the earlier system.
C. Repairs :
In respect of the maximum admissible repair charges relating to the various age of the car,
towards the cost of the repairs and replacements, the age of the car will be determined from
the date of purcase of the car and not from the effective date of implementation of
Conveyance Scheme, 2002 or the date of entry into the Conveyance Scheme, 2002.
D. Income Tax & Surcharge :
The Income Tax and Surcharge, if applicable, would be deducted at source as per the
provisions of the Income Tax Act prevailing from time to time and as per instructions from
Accounts Department, Head Office.
16. INTERPRETATIONS OR CLARIFICATIONS :
250

Any point requiring interpretation or clarification for implementation of this Scheme may be
referred to the Chairman-cum-Managing Director whose decision shall be final and binding on
the user officer, his/her heirs and or any other person concerned.
APPENDIX A

Phone : 044-28520161
Fax : 044-28524191
This AGREEMENT is made at _____________________this________________day of

_____________________between UNITED INDIA INSURANCE COMPANY LIMITED having its
Registered Office at 24, Whites Road, Chennai 600 014 (thereinafter called 'the Company'
which expression shall unless repugnant to the context of meaning thereof be deemed to
include
its
successors
and
assigns)
of
the
one
part
and
Shri/Smt/Kum_________________________,
Son/Wife/Daughter
of
____________________residing at _____________________(hereinafter called the
employee which expression shall include his/her heirs, executors, administrators and assigns
wherever the context or meaning shall so require or permit) a permanent wholetime salaried
employee of the Company of the other part;
WHEREAS
1. The employee is in the service of the Company working at __________________ and
requires a Motor Car for the proper discharge of his duties
251
2.
The Company has agreed to purchase the Motor Car specified in the Schedule hereto
(hereinafter called The said car) and place it at the disposal of the above said employee to
be used by him/her for the purpose of the business of the Company on the terms and
conditions hereinafter contained.
NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS :
1.
The Company shall purchase the said Motor Car with all the tools and accessories
belonging thereto at or for the price of Rs._________________. The said Motor Car shall
remain registered in the name of the Company.
2. The Company shall allow the employee the use of the said Motor Car during the period
he/she remains in the service of the Company and performs and observes all the conditions of
his/her service and all the covenants on his part and the conditions herein contained.
3. The employee shall agree to remit to the Company in a lumpsum the written down value
of the car at the end of the eighth year or earlier exit from the scheme. The written down
value of the car being equal to the total amount received from the user Officer, the car shall
be transferred in the name of the user employee.
4. During the course of the vehicle being in the use of the employee, the employee will :
a) bear and pay all the expenses of keeping the said Motor Car in good order and condition
and do or cause to be done all necessary repairs to keep the said car in good order and
condition to the satisfaction of the Company;
b) provide a safe garage or parking place for the said Motor Car;
c) use the said Car solely for the business of the Company and for reasonable town running
for personal purposes and bear and pay all charges for the upkeep of the said car;
d) pay all fines that may be imposed or levied for driving or using or allowing the said Motor
Car to be used in contravention of the law or police regulations or any other regulations in
force from time to time;
e) allow the Company's representatives at all reasonable times to inspect the said Motor Car
and view the state and conditions thereof;
f) shall not sell, pledge, mortgage or part with possession of the said car or otherwise deal
with the same in any manner whatsoever;
g) shall not use the car for any commercial purposes
h) shall take all steps and precautions to keep the car in good working condition as if the car
is his/her own and as any prudent owner would reasonably do.
5.
a)
So long as the said car shall be used by the employee under this Agreement, the
Company shall bear and pay all the charges (but not fines or penalties mentioned in clause
4(d) above) and taxes payable to Government or any Municipality or any Public Body in
connection with the said car including all vehicle Taxes.
b) The user officer shall ensure that the car is always kept adequately insured in the name
of the Company against fire, theft, burglary and third party liability for death or injury to any
person and such other insurable risks with such Insurer as the Company may deem fit at
his/her own expenses and pay the premium from time to time and continue such insurance
until the car is transferred to the employee as a exclusive property pursuant to the provision
in that behalf hereinafter contained. Such premium shall be reimbursed / paid by the
Company.
c) The user Officer will ensure that the car/vehicle in use is always kept adequately insured.
252
6) If the employee fails to comply with any of the conditions of this Agreement or in
case
he/she shall be adjudicated insolvent or in case any execution or distress shall
be levied or
effected upon the said Motor Car, the Company shall be entitled to terminate this Agreement
and to retake and resume possession of the said car and for that purpose to enter into any
garage or premises where the said motor car may be lying for the time being without being
liable for any action for trespass or otherwise. The Company as the owner of the vehicle shall
also be entitled in its absolute discretion to sell the said Motor Car by public auction or by
private treaty and upon such terms and conditions as the Company may deem fit and with
power to give all necessary receipts and discharges on such safe and to do all acts that may
be necessary for completing such sale without being answerable for any loss caused by such
sale and the Company shall out of the net proceeds after paying all expenses
pay
and
satisfy the money which shall then be due and owing to it under the said Car
Account and
shall pay the surplus if any, to the employee on his/her heirs executors and administrators.
Should there be any loss the Company shall be entitled, apart
from its right to recover such
loss by suit against the employee or his/her estate, to deduct the amount of such loss from
any money due and payable by it to the employee on account of salary or other
emoluments/payments.
7. This agreement shall come to an end and the motor car shall become the property of the
employee and Company shall transfer the said car to the employee on recovery of the
depreciated value as at the time of exit from the scheme for any reason whatsoever after the
same is paid to/recovered by the Company.
8. In the event of the employee ceasing to be in the employment of the Company for any
reason or in the event of his/her death while in the service of the Company, the Company as
the owner of the vehicle shall be entitled to exclusive possession of the said Motor Car and for
that purpose to enter upon any garage or premises in which the said Motor Car may be lying
for the time being and the employee and his/her heirs, executors and administrators shall not
be entitled to the payment made by him/her in the said Car Account or any part thereof
PROVIDED that if the employee or his/her heirs, executors and administrators as the case
may be shall so desire he/she or they can pay to the Company within a period of one month
from the date of such event, the outstanding written down value of the Motor Car as on that
date due to the Company under the said Car Account after giving credit for all payments
made by the employee therein and upon payment of such amount, the Company shall
transfer the said Motor Car to the employee or his/her representatives. If the amount due to
the Company shall not be paid within the aforesaid period of one month, the Company as the
owner of the vehicle shall be entitled in its absolute discretion to sell the said Motor Car by
public auction or private treaty and upon such terms and conditions as it shall think fit and
with power to give all necessary receipts and discharges on such safe and to do all acts that
may be necessary for completing such sale and to do all acts that may be necessary for
completing such sale without being answerable for any loss caused by such sale and the
Company shall out of the moneys received from such sale, pay and satisfy the money which
shall then be due and owing to it under the said car account and shall pay the surplus if any
to the employee or his/her heirs executors and administrators. Should there be any loss the
Company shall be entitled apart from its right to recover such loss by suit against the
employee or his/her estate to deduct the amount of such loss from any money due and
payable by it to the employee on account of salary or other emoluments/payments.
9. Any time or indulgence granted by the Company to the employee shall not prejudice or
affect the rights of the Company.
253
IN
WITNESS
WHEREOF
these
presents
have
been
signed
by
______________________General Manager/Deputy General Manager/Chief Regional Manager
of the Company at __________________ and by the said _______________ the dau and
year first herein above written.
THE SCHEDULE ABOVE REFERRED TO :
1. Registered Number
2. Class of Vehicle
3. Maker's Name
4. Type of Body
5. Year of Manufacture
6. Number of Cylinders
7. Chassis Number
8. Engine Number
9. Horse Power
10. Maker's Classification, or if not known, wheel base
11. Seating Capacity (including driver)
12. Unladen weight
APPENDIX 'B'

Phone : 044-28520161
Fax : 044-28524191
APPLICATION FOR TRANSFER OF CAR FROM OTHER SCHEMES TO

CONVEYANCE SCHEME, 2002
1
I hereby request that the Car, which is being used by me under Scheme__________ may be transferred to
Conveyance Scheme, 2002
Particulars of the Car :
(a)
Make
(b)
Year of Make
(c)
Registration No.
(d)
Date of purchase of the car by the Officer
(e)
Actual purchase price paid by the Officer

(excluding cost of optional Accessories)
(f)
Amount of loan advanced by the Company Rs.

towards purchase price
No. of repayment instalments :
Instalment p.m.
Rs.
254

1
I hereby request that the Car, which is being used by me under Scheme__________ may be transferred to
Conveyance Scheme, 2002
Particulars of the Car :

(g)
Tyres :
(I)
(a) Distinctive number of tyres :
(b) Whether ordinary or nylon or radial
tyres:
(h)
(a) Distinctive numbers of Batteries:

(b) Make of the Battery :
(i)
Is the car roadworthy and in good running

condition ?
(II)
(III)
(IV)
(V)
The Scheme/Schemes under which the

car has been
Since the date of purchase :
Scheme(s)
Date of entry
I hereby agree for payment of depreciated book value in one lumpsum
I certify that the information furnished by me above is correct
I have read the terms and conditions of Conveyance Scheme 2002 and agree to
furnish such information as is required under the Scheme and also such other
information as may be required by the Company in connection with the Scheme and
also to execute the necessary agreement
I undertake to maintain the car in good running condition
I agree to pay Income tax or such other taxes as may be levied by the
Government/CBDT from time to time and hereby authorise the Company to deduct the
same at source from my salary/any other payment
________________________
________________________
(Signature of the Officer)

Place :
Name :
Date :
Designation, Office and place of posting:

APPENDIX 'C'

Phone : 044-28520161
Fax : 044-28524191
Ref :
Dear Sir,
Re : Intimation of Admission of Car to Conveyance Scheme, 2002
255
Please refer to your application dated ________________ requesting the transfer of your Car
No................................ to Conveyance Scheme, 2002. Your request has been considered
and the above car is admitted to Scheme 2002 with effect from ____________. The terms
and conditions of Conveyance Scheme, 2002 shall henceforth be applicable.
2. The monthly allowance admissible to you will be Rs.100/- towards cleaning.
3. The depreciated value will be paid in lumpsum at the time of exit of the vehicle from the
Scheme.
4.
Particulars of repairs and replacements of tyres/battery and major repairs and
replacements of the car carried out by you have to be intimated to us in the appropriate forms
as the case may be even though the amount is not borne by the Company eg. Where
payment is made by the Insurance Company.
5. Please note that Officers of the Company empowered in this behalf will have the right to
inspect the condition of the car, note the odometer readings, etc. from time to time.
Yours faithfully,
COMPETENT AUTHORITY
ADMINISTRATIVE GUIDELINES TO CONVEYANCE SCHEME, 2002

1. CONDITIONS OF ELIGIBILITY :
Only new cars of approved make and model shall be purchased under the Scheme and no
second hand cars or two wheelers can be purchased under the Scheme.
Not more than three cars can be availed under this Scheme and under the earlier Scheme(s)
taken together, during the service of an Officer. The car which was used as on 01.06.1987 in
respect of cars under New Conveyance Scheme and as on 15.04.1988 in respect of cars under
9A(iii) Scheme shall be reckoned as first car for this purpose.
2. CATEGORIES OF OFFICERS ELIGIBLE TO BE COVERED BY THE SCHEME :
In cases where Officers posted as Divisional Heads have purchased the car under with
interest loan Scheme (Administrative side loan) such cars may be covered to Conveyance
Scheme, 2002. The procedure for conversion is according to the conditions for transfer to
256

Conveyance Scheme, 2002 as laid down in Para 15 - Transitional arrangements of the said
scheme. It may be noted that the repayment period for cars purchased under with interest
loan Scheme is 10 years. In such cases, reworking of loan repayment on 8 year basis has to
be done as on 01.01.2003 or the date of assignment of development functions, whichever is
later to arrive at the loan outstanding for the purpose of transfer in the name of the
Company. The officer is required to pay the difference in principal between 120 EMI and 96
EMI in one lumpsum prior to transfer of the car in the name of the Company. Similarly,
differential interest, if any, should also be paid by the Officer. The Competent authority for
this purpose shall be the same as specified in Para 4 of the Scheme, 2002.
3. BOOKING AND PURCHASE OF NEW VEHICLES :
The office concerned (i.e. DO in the case of Division-in-charge and BO in the case of Branchin-charge) will do the booking of the vehicle on prior approval from the Competent Authority
for this purpose.
The Agreement between the Company and the user Officer as per the draft Appendix A has
to be executed on non-judiciary stamp paper of value prescribed for this purpose. The
Competent Authority as specified in the Scheme shall be the Authorised Signatory to above
agreement. The records of individual cars under the control of the Region shall be maintained
at the Regional Office concerned.
Record shall include the following :
i) Documents regarding purchase of vehicle by the Officer under the previous loan scheme.
ii) Agreement as per Appendix A enclosed with the Scheme, 2002.
iii) Documents showing details regarding amount outstanding under the previous loan account
transferred to Company's Account under the Conveyance Scheme, 2002 (Copy of letter to
Accounts Department)
iv) Copy of the R.C book showing the change of ownership of the vehicle to the Company.
v) Any other documents relevant for this purpose.
4. SHIFTING/TRANSFER OF VEHICLE ON TRANSFER OF THE USER OFFICER :

When the user officer gets transferred from the present place of posting to a new place of
posting, all the existing provisions for shifting of the vehicle to the new place of posting shall
apply provided the officer shifts the vehicle to his new place of posting within 120 days of his
joining at that place. Otherwise, the officer is not eligible for benefits under the Conveyance
Scheme, 2002.
5. RECOVERY OF DEPRECIATED VALUE :
When an Officer with development function is transferred to administrative side determined as
per rules in force from time to time shall be treated as loan to the officer at 5% interest. On
such transfer interest as mentioned above shall be charged from the date of exit of the car
from Conveyance Scheme 2002. In such cases, recovery of one time road tax will be as
specified in Para 14(g) of the Scheme. However, recovery of proportionate premium does not
arise.
257

6. REPLACEMENT OF TYRES/TUBES AND BATTERIES :
The cost of replacement of tyres and tubes shall be borne by the Company in full after the
vehicle has run for a minimum of 32,000 kms., subject to production of bills/receipts.
Replacement of radial tyres is permitted and the actual cost of such replacement shall be
borne by the company subject to a maximum of Rs.2,500/- per tyre/tube set. Replacement of
batteries is permitted after a minimum period of 18 months and the actual cost of such
replacement shall be borne by the Company subject to a maximum of Rs.2,850/- per battery.
7. REPAIRS :
Expenses under this head shall be borne by the Company.
Under the 9A(iii) Scheme applicable for Administrative Officers assigned with development
functions, Assistant Managers and Deputy Managers in charge of Branches, there is no
provision for yearly limits in respect reimbursement for cost of major repairs and
replacements. However, when such officers opt for conversion to the Conveyance Scheme,
2002, the repair budget as specified under 11 (b) of the Scheme shall be applicable according
to the age of car at the time of conversion to the Scheme. (For eg., if the age of the car is
three years at the time of conversion to Conveyance Scheme, 2002, the repair budget for the
third year shall be reimbursed subject to the conditions specified). Accumulation of repair
budget is not permissible in such cases at the time of conversion to Conveyance Scheme,
2002.
8. RUNNING EXPENSES :
The limits of running expenses under Conveyance Scheme, 2002 shall be effective from
01.01.2003 for the Officers who opt for conversion to this Scheme. In such cases, the
Depreciation Allowance paid to the Officer from January 2003 shall be recovered.
As per Para 15(b) of the Conveyance Scheme, 2002, if an Officer does not exercise the option
to switch over to the revised Conveyance Scheme, 2002 and continues to be covered under
either of the loan schemes, the limits regarding petrol reimbursement shall be as specified
under the loan schemes applicable of the officer concerned which shall be 80% of the actual
cost of petrol consumption subject to the limits under the loan schemes.
9. CALCULATION OF DEPRECIATED VALUE IN RESPECT OF SECOND HAND CARS
CONVERTED TO CONVEYANCE SCHEME, 2002 :
When a second hand car purchased under any of the existing interest free loan schemes is
converted to Conveyance Scheme, 2002, the period of usage of such car will be seven years
(since the repayment period under loan scheme in respect of such cars is eighty four months).
The loan amount outstanding as on 01.01.2003 transferred in the name of the Company shall
be reckoned for the purpose of calculation of written down (depreciated) value of the car and
the written down book value of the car is determined by reducing 20% p.a on that amount for
the unexpired period out of seven years from the date of purchase of the second hand car
under the earlier scheme.
10. CALCULATION OF DEPRECIATED VALUE IN RESPECT OF BETTER MODEL CARS
CONVERTED TO CONVEYANCE SCHEME, 2002 :
When a car listed as better model under any of the interest free loan scheme is converted to
Conveyance Scheme 2002, for the purpose of calculation of written down (depreciated) value
258

of the car, the loan amount outstanding as on 01.01.2003 shall be taken and the written
down value of the car is
11. EXIT OF CARS FROM THE SCHEME :
The period of usage of car under the Scheme will be eight years. For the purpose of
conversion from the existing interest free loan schemes to Conveyance Scheme, 2002, the
balance of loan outstanding in respect of the vehicle as on 01.01.2003 should be taken into
account. The written down value of the car is determined by reducing 20% p.a on that
amount for the unexpired period out of eight years period from the date of purchase of the
car under the earlier scheme.
Para 13(ii) of the Conveyance Scheme 2002 deals with the calculation of depreciated book
value as on the date of exit for the purpose of calculating the amount actually to be recovered
from the officer on exit of car from the Scheme.
The example cited under this paragraph should be read as follows :
1) Assume purchase price of the vehicle as Rs.1,00,000/2) Date of purchase of vehicle 01.01.2003
3) Date of retirement 01.09.2004
4) Total months for which the car is covered under the scheme-21 months
5) Depreciation for the period 01.01.2003 to 31.08.2004 is equal to Rs.12,000/- {Rs.80,000/x 20% (9/12)}
6) Written down value as on 01.09.2004 = Rs.68,000/- (Rs.80,000/- minus Rs.12,000/-)
7) Amount to be recovered from the terminal dues Rs.68,000/-
12. GENERAL :
i) Conveyance Scheme, 2002 is effective from 01.01.2003 and all new cars purchased will be
only under this Scheme. No cars will be purchased under any of the interest free loan
Schemes.
ii) An officer having a car covered by the Conveyance Scheme, 2002 and using the same
after 8 years from the date of its purchase shall...............8 th year. However, the written
down value of the car at the end of the 8th year will remain unaltered.
If the officer does not avail the facility of another car even after completion of the extended
period of one year (i.e.9th year) and opts to use the same car, the car shall be transferred in
the name of the officer on payment of written down value as at the end of 8 th year and the
officer shall be eligible for only the running expenses as mentioned above.
iii) Disposal of car as per para 14(c) and 14(e) of the Conveyance Scheme, 2002 :
While a sale is permitted as per provision of 14(c) and 14(e) of Conveyance Scheme, 2002,
the car shall be sold by the Company by advertisement, charges for which shall be borne by
the Officer. The said proceeds shall be utilised as under :
a) The first charge shall be the written down value of the vehicle as on the date of disposal.
b) The shortfall, if any, shall be recovered from the Officer concerned.
259
c) Excess, if any shall be retained by the Company. However, in cases of better model cars
purchased under any of the interest free loan schemes where the officer has contributed over
and above the loan sanctioned, excess retained by the Company will be in the ratio of loan
sanctioned and the purchase price of the car and the balance amount will be repaid to the
officer concerned.
Same is the case where the officer had contributed an amount towards AC model of the car.
d) In cases where better model car purchased under any of the interest free loan schemes
and converted to Conveyance Scheme 2002, meets with accident and the claim for total loss
is paid by the Insurer of the Car, the claim amount shall be apportioned on the same basis as
indicated in para 14(c) and excess retained by the Company will be in the ratio as mentioned
above.
iv) LIMITS FOR ACCESSORIES :
Under this Scheme, the entitled officers are eligible for a maximum of Rs.5,000/- towards
fitment of accessories as under :
i) Petrol Tank lock
ii) Extra Dicky lock
iii) Extra Door lock
iv) Rubber foot mats
v) Bonnet light i.e. (engine light)
vi) Reverse light
vii) Sub Shade/Sub Control Film/Tinted Glass
viii) Seat covers
ix) Rubber Seal
x) Ammeter
xi) Oil Pressure Gauge
xii) Side Mirrors
xiii) Steering Lock
v)
TREATMENT OF
LEAVE/SUSPENSION
CONVEYANCE
FACILITIES
DURING
THE
PERIOD
OF
a) In the case of officers other than Manager and above assigned with development
functions, if they avail Earned Leave, the petrol limit is reduced at 2 litres per day will be after
the first 15 days from 16th day onwards. There will not be any curtailment in the limit for Sick
Leave upto 15 days. Similar procedure will be followed when an Officer is attending training at
an outstation or at the same station but the car is not used.
b) There will not be any reduction in the limit of petrol for Manager and above for Earned
Leave, Sick Leave or outstation training not exceeding 30 days continuously.
c) Where the leave period exceeds 30 days, running expenses shall .....
d) If the leave period exceeds 120 days, running expenses as well as repair expenses, yearly
servicing charges shall not be allowed. However, the repairs expenses accumulated and
unutilised upto that period shall be allowed.
e) In all such cases, the depreciation will not be affected. However, if the period exceeds 6
months continuously depreciation for the purpose of calculation of written down value in
respect of the car used by the officer will be 50% of the normal depreciation for that year and
260
if the period exceeds one year continuously, no depreciation will be allowed for that year and
proportionately for the period exceeding one year. The written down value/book value shall
be calculated with reduced depreciation or without depreciation as the case may be, while
transferring the car in the name of the officer.
f) In case of an officer being placed under suspension, all the benefits under the Conveyance
Scheme 2002 including calculation of depreciation for the purpose of arriving at written down
value shall cease from the date on which the officer if placed under suspension. If the period
under suspension is subsequently ordered to be treated as spent on duty, all the benefits
except running expenses viz., reimbursement of petrol, shall be restored.
13. TRANSITIONAL ARRANGEMENTS :
When an Officer exercises option to switch over for the revised Conveyance Scheme, 2002
and applies for the same in the prescribed proforma, approval for conversion to Conveyance
Scheme 2002 has to be obtained from the Competent Authority in respect of individual officer
and agreement as specified in Appendix A be signed by the Competent Authority after which
the procedure laid out by the RTO fro transfer of ownership should be complied with.
The Account Code and the Head of Account for transfer of cars and new cars under the
Scheme in the name of the Company is as follows :
ACCOUNT CODE
5312
DESCRIPTION
OFFICERS CAR UNDER SCHEME 2002
On exercising of option by officers, who are already covered by the existing schemes for
switching over to Conveyance Scheme 2002, an agreement as per Appendix 'A' has to be
executed and letter issued to the officer as per Appendix 'C'. The office should take
immediate steps to make an application to the Registering Authority for transfer of the car in
the name of the Company, incurring the necessary expenses such as transfer fee, etc. and
additional road-tax if any.
The above formalities have to be completed before 31st MARCH 2003 and necessary records
as specified should be maintained.
AMs. AOs AND SUPERVISORY AND CLERICAL STAFF
ASSIGNED FIELD DUTIES:
1. Eligibility Condition:
All confirmed Supervisory and Clerical Staff as well as Officers in
the rank of Administrative Officer, assigned mainly field
duties of marine cargo claims minimisation and services of motor
claims on regular basis.
2. Rate of interest:
Loan advanced shall be free of interest.
3. Maximum loan permissible for purchase of Motor Cycle
Scooter with or without a side car.
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The amount of loan shall be equal to full purchase price of the
vehicle.
Loans for the purchase of second-hand vehicles may be permitted
provided that the vehicle is not more than 5 years old and the
valuation report on the value of the vehicle and its mechanical
condition is submitted from an independent surveyor.
Note: Not more than three such loans can be granted to an employee
during the entire service period of the concerned employee,
treating the vehicle in use as on 6.9.88 as the first vehicle for
this purpose.
4. Recovery of the advance amount:
The amount advanced for the purchase of the vehicle shall be
payable in monthly installments by deduction from salary:
In case of New Vehicle
In case of Second-hand vehicle
(Not more than 5 years old)
: 84 Instalments
: 36 Instalments
5. Conveyance Allowance:
All the employees who are allowed the facility of loan for the
purchase of a vehicle under the above regulations shall be paid
conveyance allowance of Rs. 400/- per month (w.e.f. 1-4-98). This
Conveyance Allowance of Rs. 400/- per month will also be payable
to the employees who use their own motor cycle/scooter and do not
avail of the loan facility provided by the Company to purchase a
vehicle.
In case of those employees who have been assigned mainly field
duties and use their own motor cars for such work, conveyance
allowance will be Rs. 500/- per month. (w.e.f.1.4.98)
The allowance indicated above would be for the running of the
vehicle within the municipal limits of the employee's headquarter
and a distance of less than 8 Kms. therefrom. For tours
undertaken by the employees using their own conveyance outside
the municipal limits of "his headquarters and the distance of 8
Kms." therefrom, the employee would be eligible for the payment
of mileage allowance as per rules in force.
6. Provision for payment of Insurance Premium and Taxes:
The Company shall bear the cost of insurance premium for
providing comprehensive cover including unlimited property
damage. The Company shall also bear the taxes. However, the
payment of insurance premium and taxes will not be made to those
employees who use their own cars for office duties but they will
262

continue to get the Conveyance Allowance as stipulated in para 5.
above.
7. Registration charges and Octroi Duty:

These are to be borne by the employee concerned.
8. Grant of advance to meet expenses on repairs of vehicles:
Once in a calendar year an interest-free loan ranging from Rs.100/
- to Rs. 1000/- shall be allowed to meet the expenses of repairs to
vehicles. In case, an advance drawn in the previous year for the
purposes of meeting expenses of repairs to the vehicle is outstanding the loan for repairs in
the current year shall be reduced by amount of outstanding loan and only the balance will be
allowed. This loan should be repaid in 6 to 20 instalments.
9. Payment of Running Expenses:
Besides the Conveyance Allowance, no running expenses shall be
paid.
10. Disposal of vehicle:
After expiry of the period of 5 years (3 years in case of second-hand
vehicle) the vehicle may be allowed to be disposed off at the will of
the employee concerned. However, in case the vehicle becomes
totally unserviceable, the same may be allowed to be disposed off
before such a period provided the employee concerned pays off the
outstanding loan.
In this event, however, while granting the second loan for purchase
of vehicle, the loan available shall be reduced by the surplus (if
any) of the selling price over the outstanding loan. If, however, the
employee does not go for a second vehicle, the surplus if any of the
selling price of the first vehicle over the outstanding loan shall be
kept in deposit with the Company till the expiry of the period of 5
years (3 years in case of second-hand vehicle).
Note:
When the outdoor duties assigned to the employees are withdrawn,
the conveyance allowance payable to an employee shall
automatically cease to be paid from the date of withdrawal of such
functions. However, the employee shall continue to repay the loan,
if any, on the same conditions on which such loan was granted. The
insurance premium and taxes may also be continued to be borne by
the Company until such time the loan is fully repaid.
IV. CONVEYANCE FACILITIES TO VETERINARIANS EMPLOYEDAS AO:
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In view of the nature of duties of the Veterinarians being similar to
Administrative Officers who are mainly assigned with field
duties, the Veterinary AOs may also be provided with similar
conveyance facilities as are applicable to Admn. Officers
assigned with field duties. Where the Veterinary AOs are having
their own vehicles, insurance and taxes as applicable to two
wheeler would be reimbursed to them.
AOs who are allowed conveyance facility may be continued with
these facilities even after their promotion to the higher cadre of
Asst. Manager provided they continue to be assigned with field duties. Similarly AMs (Veterinary) who are assigned with field duties
may also be provided with the conveyance facilities.
Note: The maximum number of such loans shall be three during
the entire service period of the officer.
V. CONVEYANCE FACILITY TO AO (INVESTIGATORS. ENGINEERS & LEGAL)

AO (Investigators/Engineers/Legal), who have been appointed for
expeditious settlement of Third Party Claims, may be provided
with similar conveyance facilities as are applicable to Admn.
Officers assigned with field duties, provided the functions assigned
to these officers comply with the stipulations as applicable to AOs
assigned mainly with field duties of Marine Cargo Claims minimisation and servicing of Motor
Claims on regular basis. Needless to mention that such facility will be considered only for
those who are confirmed in Service.
Note:
When the outdoor duties assigned to the employees are withdrawn,
the Conveyance Allowance payable to an employee shall automatically cease to be paid from the date of withdrawal of such functions.
However the employees shall continue to repay the loan, if any, on
the same conditions on which such loan was granted. The insurance premium and taxes may also be continued to be borne by the
Company until such time the loan is fully repaid.
Officers assigned with field duties, who are allowed conveyance facilities so long as they remain in AO cadre, shall continue to be
allowed this facility on their promotion to the higher cadre provided they continue to be assigned with field duties.
VI TREATMENT OFCONVEYANCE FACITILIES DURING THE PERIOD OF LEAVE/
OTHER CONTINGENCIES:
1. Casual Leave, Examination Leave or Special Leave:
Normally, leave of the above types is availed of for short duration.
Therefore, no adjustment need be provided in benefits in the
Scheme of Conveyance facilities.
264

2. Other Leave period not exceeding 30 days at a stretch (except Extra Ordinary Leave on loss of pay)
i) Chief Managers and above and Officers Incharge of Division:
No adjustment. All benefits will be allowed as provided in
the Scheme
ii). Officers with development functions:
a. Privilege and Maternity Leave:
Reduction in reimbursement of petrol by 3 litres for every day of
leave. In case of two wheelers, reduction will be 2 litre per day.
For example if an officer had availed 10 days EL in a particular
month the maximum limit of reimbursement of petrol on 80 %
basis shall be reduced to 70 litres (100-30 = 70) of petrol for that
particular month. However such reduction will apply to leave for a
part of month. When the leave is taken for full month, no running
expenses may be allowed.
b. Sick Leave:
i). Upto 15 days for each sickness no adjustment.
ii)Sick leave exceeding 15 days reduction in reimbursement
of petrol as in the case of privilege leave but starting from
16th day of leave.
3. Leave Period exceeding 30 days but not exceeding 120 days:

i) Chief Managers and above and Officers incharge of Divisions:
Running expenses shall not be allowed from 31st day. All
other benefits shall continue to be allowed.
ii) Officers with Development functions [Under Scheme 9A (iii)] :
No running expenses and components towards cleaning, servicing, minor repairs, etc., shall be permissible from 31st day.
4. Leave Period exceeding 120 days:
i. Chief Manager and above and Officers-in-charge of Divisions:
No benefits will be allowed from 121st day onwards. Recovery
of monthly loan instalments will continue.
ii. Officers with development functions:
265

No benefit. The taxes and the cost of insurance shall be
recovered proportionately from the officers.
5. AOs and Supervisory and Clerical Staff assigned with
outdoor I field duties:
No 'deduction shall be made In Conveyance Allowance in case of
Casual Leave.
However, in case of long leave such as Earned Leave, Sick leave
etc., deduction for the days of leave may be made from the Conveyance Allowance payable to the employees.
6. Period of Training:
a) Where the Officers use car while imparting or undergoing
training e.g. when the training is at the headquarters of the
Officers of nearby, all benefits may continue to be allowed.
b) Where the training is at the outstation or at the same station
and the car is not used, the training period may be treated on
the same basis as in case of leave other than casual leave.
7. Period of Suspension:
a) During period of suspension, the benefits of conveyance facilities would not be allowed from the first day of suspension.
b) If the officer is suspended, then the following provisions will
be applicable:
i) When an employee is placed under suspension, it is not
necessary in every case to take over vehicle purchased under
H.P. Scheme. However, the CMD may in appropriate cases, order to take back the vehicle purchased under the said scheme
depending upon facts and circumstances of each case and especially when security of the vehicles for the loan is likely to be
endangered.
ii) As regards recovery of loan, the loan repayment may be recovered from the Subsistence Allowance payable to the employee
placed under suspension. This, of course, is subject to other
existing provisions and deductions from salary.
8. When the cars are stolen or meet with an accident causing
total damage:
In case of officers assigned with development functions who are
given loan for purchasing of the car, all benefits will stop temporarily and each case will be
266

decided on the individual merits depending upon the actual recovery of a stolen car or
chances of repairs to the damaged car.
Note:
When the cars are stolen or meet with an accident making them
unusable, the concerned officer may be allowed reimbursement of
actual conveyance expenses not exceeding the amount of running
expenses that would have been allowable to him for such a period
computed on the basis of money equivalent of the permissible
petrol budget. However, such reimbursement shall be allowed only
if the car is out of operation/not available for a minimum period of
10 days.
This facility will be available to Officers covered by Schemes of
Company car as well as hire-purchase scheme including officers
opting for two wheelers under regulation 9A (i ii).
9. Permission to take Car out of Duty Station:
No permission is required to be obtained for taking cars/two wheelers out of headquarters / station in all such cases where the vehicles are provided under the loan schemes. It is clarified that the
concerned employee shall bear the entire running expenses of each
private outstation trips.
,.
10. GENERAL
1. Replacement of Car:
i ) The car may be replaced after a period of 10 years.
In exceptional circumstances, (Applicable for New Conveyance
Scheme only) CMD may permit premature replacement and
grant of second loan on the basis of certification from an
Automobile Engineer to the effect that it is uneconomical to
continue with the existing car for reasons to be recorded. The
following guidelines are issued in this regard :
a) The concerned officer shall be required to settle the full outstanding loan.
b) Even if the sale proceeds from disposal of the old car are not
adequate to meet the outstanding loan liability, no relief can
be granted on this account.
ii)
As not more than two loans are permissible during the entire service period, second loan will automatically complete the two entitle-
267

ments of loan and the officer shall not be eligible for any further
loans.
iii) In case the car in question was purchased through second loan, the
question of making a fresh loan does not arise.
iv)
Not more than two loans are permissible during the entire service
period of an officer, treating the vehicle in use as on the relevant
dates specified earlier, as the first vehicle, for this purpose.
v) Even after the concerned officer has repaid, in normal course, the
entire loan amount extended to him for purchase of the vehicle, he
should continue to use his existing vehicle and second loan should
not be sought as a matter of right. If, however, it is found absolutely necessary to apply for the second loan because existing vehicle becomes unusable on account of heavy repairs cost etc., grant of
second loan may be considered. The procedure explained in the
preceding paras may be followed in these cases also. Since the authority of sanction second loan in the type of cases explained above
is CMD, ROs should refer all such cases to Marketing Dept., HO.
2. Treatment of cases of major accident:
Where the car meets with major accident during the currency of 10
years loan period and the insurer decides to settle the claim on Total Loss basis the officer
would have the following alternatives:
i) He could utilise the claim money received to settle the outstanding loan amount and apply for the second loan to purchase the new vehicle. This loan
would be counted as second loan within the limit of two loans permitted during service career.
(or)
ii) If he does not want to exhaust the two loans limit, he could utilise
the money, he received, to purchase a second hand car. In such
a case, the repair charges and other reimbursements would be
allowed at the scale applicable for vehicles of that particular
age. However, the total disbursements towards repair and
other cost should not exceed reimbursement allowable over
the 10 years period under the original loan agreement.
3. Treatment of cases of officers granted conveyance facilities
and transferred on overseas assignment out of India
In such cases, the motor car may be taken over by the company at a
price equal to the outstanding loan amount. The loan arrangement
for his vehicle would not be counted for the limit of two car loan in
the entire service period. The officer, on his return, can be granted
a fresh loan for purchase of new car.
4. Treatment of conveyance facilities of Development Officers
on promotion to AO (D)
Consequent upon promotion to AO (D), the officer becomes
entitled to conveyance facilities under the Scheme 9A (iii ). In such
268

cases, the existing car shall continue to be used with continuance of
the operation of the existing HPA but the recovery of loan and payment of allowance shall be regulated in the following manner :i. Recovery of loan :
The balance loan against the existing car outstanding on the date
of taking charge as AO (D) on promotion is to be recovered in
equal monthly instalments, equal to 120 (84 in case of second hand
vehicle) less the number of instalments already paid.
ii. Fixed monthly allowance:
a)Depreciation: 80% of the revised monthly instalment as
worked out under (i ) above.
b. Cleaning Servicing etc., 80% of Rs. 50/- i.e., Rs. 40/c. Minor repairs, replacements etc., 80% of Rs. 50/- i.e., Rs. 40/iii) In case a Development Officer is promoted to AO (D) and
posted as Incharge of a branch or as AO(D) in a Divisional office
and is having two-wheeler/car as per his entitlement in his previous cadre and a request is received for conversion of the vehicle
under scheme 9A(iii) of the conveyance facility, then the Regional
IIC, is delegated the authority to deal with the conversions of the vehicle under Scheme 9A (i
ii)of the Non-core Benefits in accordance with the rules on the subject.
Newly promoted AO (D) from Development Officer may have a
two-wheeler previously although he was entitled for car facility but
did not opt for it whilst in Development Officer cadre and if his
request is received for sanction of car to him under Scheme 9A(iii)
on posting as Incharge of a branch or as AO (D) in DOs, in such
cases since sanction of car under Scheme 9A (i ii ) vests only with
Head Office, Regional Incharge should continue to send the
recommendations on performance, i.e, covering premium,
documentation, claims as well as over-all working over a period of 3
months in the prescribed format to the Marketing Department at
Head Office for their consideration of such conveyance facility.
Withdrawal of conveyance facilities to officers assigned development functions on their ceasing to perform development functions:
Officers of the rank of Manager, Deputy Manager, Assistant Manager and Admn. Officer
assigned Marketing functions and allowed conveyance facilities, may be transferred to posts
which do not carry conveyance facilities, for example, transferred
to Administrative side. In their cases, the withdrawal of conveyance facilities shall be on the following basis:
269

a) The Officer concerned be allowed to continue repayment of the
loan granted for purchase of car as per the agreement if the
officer desires to retain the car.
b) The fixed cash allowance as also reimbursement of running
and any other expenses hitherto allowed in the scheme of con
veyance facilities to the officer shall cease from 1st day of the
month following the date of withdrawal of the development
functions.
c) The Officer may repay the entire outstanding loan in one
lumpsum and dispose off the car in any manner he feels fit.
d) he facility of reimbursement of insurance premium and road
taxes will continue until the loan amount is repaid in full to the
officers under 9A(iii) loan basis scheme who become disentitled to
conveyance facility.
Conveyance facilities to officiating Divisional Incharge I

Branch Incharge :
The officer who is officiating as Incharge of a Divisional Office may
be allowed reimbursement of actual conveyance expenses not
exceeding an amount of Rs.525/- per month or pro-rata for a part of
the month. Officiating Branch Incharge shall be reimbursed actual
conveyance expenses not exceeding an amount of Rs.400/- per.
month or pro-rata for the part of the month.
The above facility shall be allowed only if the officiating period
exceeds 30 days and also if such officer is not already entitled to
conveyance facility under the Scheme available lo officers with
marketing functions. The Regional Incharge is delegated the
authority to reimburse the actual conveyance expenses not
exceeding Rs.400/- per month to officers posted as Branch lIC till
conveyance facility under Scheme 9A (i ii ) is sanctioned to them.
This would apply irrespective of the fact whether such officers have
their own conveyance and the reimbursement would be on actual
basis against vouchers subject to the limit of Rs.400/- per month.
7. Treatment of out-station tours by Company cars:
For out-station tours on duty undertaken by the officers provided
with Company owned cars, only the cost of petrol and oil will be
reimbursed by the company provided consumption of such petrol is
outside the prescribed monthly/quarterly limits, and no mileage
allowance shall be payable
8. Treatment of Out-station tours in own vehicles:
When the officer is undertaking official tour in his own vehicles is
accompanied by other officer(s), the mileage allowance shall be
granted to only one of the officer whose vehicle is used for the tour.
270

9. Loan instalments for officers due to retire:
When the officer granted loan for purchase of a car is due to retire
within a period of 10 years, i.e., the maximum period of repayment,
the amount of loan may be spread over a period of 10 years so that
the outstanding loan amount as on the date of retirement may be
recovered in lumpsum from the retiral dues.
10. Hypothecation Deed on grant of Loans for purchase of Motor
Cars / Motor Cycles and Scooters to Officers:
Various Schemes provide for grant of interest free loan for purchase of car/motor cycle/scooter to officers assigned Marketing
functions and AO and Supervisory and Clerical Staff assigned
with field duties. Since the vehicle will be purchased and registered in the name of employee, a letter has to be obtained from the
concerned employee creating first charge and included in the deed
of hypothecation which is to be executed by all the employees who
have been sanctioned interest free loan for purchase of motor carl
motor cycle/scooter.
Besides the collateral security of PF/Gratuity, the vehicle registered in the employee's own name, will also be a collateral. Hence,
notice of hypothecation shall be given in the R.C. Book and an endorsement to this effect is to be made by the Registering Authority.
11. Treatment of Salvage for reimbursement of cost of replacement of Tyres, Tubes and Battery.
The following amounts should be deducted from the cost of replacement towards the old parts (Tyres, Tubes and Battery) which will
be retained by concerned employee.
a) Four Wheeler
i) Tyres / Tubes
ii) Battery
: Rs. 300/- per set of tyre/tube.

: Rs. 150/-
b) Two Wheeler
Tyre /Tube
:Rs. 25/- per set of tyre/tube.
Reimbursement will be on the basis of 80% of the net amount.

12. No pro-rata recovery of insurance premium/registration charges /
road taxes is required to be made for the balance period in the
event of exit of the Officer from the Company during the year due
to retirement / death or any other reason, except as mentioned under New Conveyance Scheme 9A (iii) Scheme.
271
CHAPTER 41
TELEPHONE FACILITIES
Telephone at the residence of Officers
a) Officers of the rank of Chief Managers and above and Officers Incharge of Divisions shall
be provided with a telephone at their residence.
b) Wherever feasible, Officers Incharge of Branches shall be provided at their residences an
extension from Branch Office telephone. Where, however, it is not possible to get an
extension from Branch Office telephone and there is definite need, the Regional Chief may
consider providing telephones at the residence of such Officers-in-charge of branch offices.
c) The Regional-in-charge in RO at his discretion may allot 5 (including 2 nos. in the Region)
telephone lines to non-entitled Officers depending upon functions. Similarly in HO, CMD under
his discretion may allot 10 lines to Officers in HO depending on functions.
f) Except on account of exigencies of business, STD facility shall be barred in case of Officers
below the rank of Chief Manager.
g) The Officer shall maintain a Trunk-call Register wherein all trunk-calls, STD calls,
Phonograms/Telegrams shall be entered. The cost of private trunk-calls, STD calls and
Phonograms put through the residential telephone shall be borne by the Officer concerned.
iii) The Officers now having at their residences telephones rented by the Company but
become dis-entitled to the same may be permitted to retain the telephone provided
272

sufficient telephone lines are available with the Company to meet the demands of the
eligible Officers. However, in such an event, expenses including rental beyond 90
days shall be borne by the Officers.
The telephone facility to officers has been revised on a calendar year basis with effect from
1.2.2008 as follows :
Details
Scale VI/CRM
Other Scale V
Scale IV Admn Officers i/c of

BO/DO in
Scale IV,III,II
&Scale IV &
III officer with
marketing
function at
RO/HO
Other Scale
II&I officers
with marketing
assignment
Land line
connection.
Actuals
Rent-Economy Rent-Economy Rent-Economy Rent-Economy

+ charges for
+ charges for
+ charges for
+ charges for
3150 calls.
2750 calls.
2750 calls.
2750 calls.
Broad Band
connection
Actuals
Rs. 250/pm+ST
Rs. 250/pm+ST
Rs. 250/pm+ST
Rs. 250/pm+ST
Mobile facility
Actuals
Rs. 1000/-+ST
Nil
Rs. 600/-pm +
ST *
Rs. 500/-pm
+ST *
(* Reimbursement of mobile expenses is allowed without cost of instrument for these officers)
The above approval is subject to the following conditions:
1. Reimbursement of rental/usage charges of mobile phones is applicable in respect of post
paid mobile connections only except as provided in point No. 4.
2. In few cases where branches are headed by ABMs, telephone facilities are permitted to the
said ABMs on par with BMs as per limits mentioned above.
3. There is no revision in respect of reimbursement of mobile cost for officers in Scale V and
VI which is Rs. 7000/- and 8000/- respectively (inclusive of all taxes).
4. In case of pre-paid mobile facility already availed on annual basis for year 2008, such
reimbursement will restricted to maximum of Rs. 7200/- pm for DMs and BMs plus applicable
service taxes.
Reimbursement on declaration basis :
1. With effect from 1st January 2009 reimbursement of telephone for the officers upto Scale
V may be made on quarterly basis (first Jan, first Apr, first July and first October) against
submission of requisite declaration up to the monitory limit mentioned above for respective
cadre of officers (including monitory equivalent of entitlement specified at present in terms
of number of calls wherever applicable).
2. For officers in the cadre of Scale VI and VII, reimbursement is on actual basis on
production of bills.
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CHAPTER 42
REVISION IN MAXIMUM AGE OF RETIREMENT FROM 58 YEARS TO 60 YEARS.
The Central Government has notified on 27.5.98 the following two Amendment Schemes
enhancing the age of retirement of employees of the Industry from 58 years to 60 years, in
cases where the retirement age was prescribed as 58 years.
1. General Insurance ( Rationalisation and Revision of Pay Scales and Other Conditions of
Service of Supervisory, Clerical and Subordinate Staff) Amendment Scheme, 1998 in respect
of class III/IV employees and
2. General Insurance (Termination, Superannuation and Retirement of Officers and
Development Staff) Amendment Scheme, 1998 in respect of Class I Officers and Development
Staff (Class II).
274
In terms of General Insurance ( Rationalisation and Revision of Pay Scales and Other
Conditions of Service of Supervisory, Clerical and Subordinate Staff) Amendment Scheme,
1998, the Class III/IV employees who joined the service of the Corporation or a Company on
or after 21.9.1984, shall hereafter retire from service on the afternoon of the last day of the
month in which they attain the age of 60 years.
All other provisions regarding retirement as per paragraph 12 of the Rationalisation Scheme,
1974 remain unaltered.
In terms of the General Insurance ( Termination, Superannuation and Retirement of Officers
and Development Staff) Amendment Scheme, 1998 in respect of Class I Officers and
Development Staff ( Class II), an Officer or a person of the Development Staff appointed on
or after the first day of January 1973, shall hereafter retire on the afternoon of the last day of
the month in which he attains the age 60 years.
All other provisions regarding superannuation, retirement as per paragraph 4 of the General
Insurance ( Termination, Superannuation and Retirement of Officers and Development Staff)
Scheme, 1976 remain unaltered.
The above Amendment Schemes are effective from 27.5.1998.
REIMBURSEMENT OF NEWS PAPER AND PERIODICAL EXPENSES :

With effect from 1.1.2009 reimbursement of above expenses may be made to officers on halfyearly basis (first January, first July in respect of first and second half year respectively of the
calendar year) against submission of requite declaration for the following monitory limits :
For Officers upto
Scale III
For Officers in Scale IV and V
- Rs. 200/- per month

- Rs. 400/- per month
For officers in Scale VI and VII Rs. 500/- per month
275
The existing instructions on the type of news paper for the respective cadres of officer shall
remain unaltered (i.e financial daily for Manager and Deputy Manager and General daily for
AM and AO) . In addition cost of periodical of the same nature of that of the news paper
applicable for the respective cadre shall be allowed within the above monitory limits.
44. Unisurge Initiatives

What is UNISURGE?
November, 2007 marked a significant event in the history of United India. Our top leadership
came together in Hyderabad to frame the vision of our company and determine the path that
we should take in shaping our future. We resolved to transform our company to be able to
take the challenge posed by competition head on, and continue to be a leading player in the
General Insurance Industry. Since then, our company has embarked upon an ambitious
enterprise-level transformation project, UNISURGE.
United Indias vision statement
We.,United India ,will be
(2) The most preferred Insurer in India, with global footprint & recognition
276

(3) A trusted brand admired by all stakeholders
(4) The best-in-class customer service provider leveraging technology & multiple
channels
(5) The provider of a broad range of innovative products to meet the needs of all
customer segments
(6) A great place to work with highly motivated and empowered employees
(7) Recognized for its contribution to the society
The Main Initiative in UNISURGE
Growth
Customer
Service and
Profitability
Organizational
rejuvenation
Efficiency in
financial
operations
: Large Corporate & Broker Initiative

: UMEX Agency initiative
: UMEX Bancassurance initiative
: UMEX Motor Dealer initiative
: Product initiative
: UMEX SME Broker initiative
: Service hubs and BPR
: TP hubs
: TPA Management
(ID card, TPA monitoring)
: HR Organization structure & PMS
: CMS
: Investments
Large Corporate and broker (LCB) Initiative

Key constructs
of the LCB
initiative
Focused and differentiated approach to Large Corporate accounts through:

a. Dedicated offices in all major metros
b. Well-trained, dedicated Relationship Managers
c. Dedicated underwriting and claims teams
d. Dedicated Relationships with Brokers
Organization structure:
The LCB vertical would be headed by a GM Large Corporates and be accountable for profitability and
growth of Large Corporate & Large Broker business. Large Corporate cells were set up in Mumbai,
,Chennai, Kolkata, Bangalore, Hyderabad & Pune.
The LCBs would get the status of a Region and report directly to HO. All LCBs headed by Scale V and
shall have a LCC equivalent to RCC in line with the financial Standing Order of the Company. At other
centers LCC shall have Financial Authority equivalent to DCCs headed by a Senior Divisional
Manager.
Along with the GM (LCBs) ,a National Coordinator in DGM cadre shall supervise the activities of LCBs. A
central LCB support cell at Head Office will be constituted by Scale V officer reporting to National
Coordinator.
277
The LCBs will have front end and back end roles. In the front end there are Relationship Managers
(RMs) responsible for organization and growth of business (Some RMs handling Corporates and some
RMs dedicated to Brokers).The RMs team, will be supported by back office team organized by functions
Underwriting, claims, Administration & Accounts.
Relationship Managers will be responsible for managing a portfolio of Corporate /Broker accounts and be
primary point of contact for such Corporates and Brokers.Each RM will be assigned growth and profit
targets for his /her set of existing or new target customers.
The Corporate RM should be allotted 10-15 accounts and the Broker RM should be given 6-8 broker
accounts to allow marketing focus. RMs of LCBs are trained in customer need analysis and proactive
customer pitching and use specific tools to help in marketing effort.
-Customer/broker level forward looking account plan.
-Customer/broker level call reports.
-MIS to ensure regular tracking and process discipline.
ROLES AND RESPONSIBILITIES OF RELATIONSHIP MANAGERS IN LCB

4.
5.
6.
7.
8.
9.
10.
11.
Client visits and calls

Manage key decision makers
Negotiate with clients
Create sales opportunities
Maintain customer broker a/c plan
Coordination with u/w and claims teams
Monitor account activities
Liaise to ensure quick settlement of claims and policy issuance
Perks & perquisites for Relationship Managers in LCB
It is proposed to extend all the perks like telephone charges, mobile charges, internet data card
charges and any other perquisite associated with the function as applicable to
BMs/SBMs/DMs/SDMs.
Those officers posted to LCB as Relationship Managers (who are not presently enjoying
Development functions) are to be provided with Development functions on par with the
BMs/SBMs/DMs/SDMs as per their respective scales.
UMEX-Bancassurance:
Key constructs
of the UMEX
BA initiative
Dedicated offices for bancassurance with focus on:
3
4
Organizational structure: 5
Well trained BA Channel Manager to service bank branches and act

as single point of contact
Frequent visits to each bank branch; Leads collated in structured
manner
Proactive management and liaison with bank zonal management
Dedicated offices with focus only on Bancassurance, located in major cities where
bancassurancee gets deprioritised compared to other business.
Our Company created a separate business vertical to deal exclusively with BA channel along with other
channels like Rural Insurance & Micro Finance .BA vertical is headed by GM and supported by DGM
(BA, Micro Finance & Rural Insurance) shall be accountable for profitability and growth of BA, Rural
Insurance and Micro finance business.
Each RO will have a Nodal officer reporting to Regional chief as well as have a dotted line relationship
with DGM (BA, Micro Fianance & Rural Insurance) at HO. The Nodal officer shall be responsible for the
growth and profitability of the entire Bancassurance business of the Region , including the business
278
conducted through BA offices as well as BA business conducted by other BOs & DOs.. The Nodal officer
shall be responsible for building relationships with the Regional counterparts of the various Banks,
organizing sales campaigns art Regional level and monitoring BA business of the RO.
BA office will have well defined front end and back end roles .In the front end there are Channel
Managers (BACM) responsible for origination and growth of business. Each Channel Manager will be
responsible for the sales and service of a pre-assigned set of Bank Branches (15-25 Bank Branches
depending upon the distance and business potential.).
Being a single point of contact for the Bank branches, the Channel Manager will be responsible for
ensuing the timely collection and delivery of proposal forms and policy documents ,speedy claims
settlement, providing monthly renewal notices and timely payment of commission.
The Channel Managers are supported by a Customer service representative who will help the Channel
Manager to follow up the leads generated, ensure policy documents and ID cards are delivered on time
and support queries on claims settlement. The customer service representative will also support the
Channel Managers in organizing sales campaigns and preparing marketing material(Pamphlets,
brochures etc.,)
The relationship management and customer service team shall be supported by a back office team. The
back office team shall be organized by function-underwriting, claims, administration & accounts.
The Channel Managers are trained in customer need analysis and proactive customer pitching and use
specific tools to help in the marketing effort.
-weekly visit planner
-Lead Management Book
-MIS to ensure regular tracking and process discipline.
ROLES & RESPONSIBILITIES OF NODAL OFFICERS BANCASSURANCE
Daily/ongoing activities:
(d)
(e)
(f)
(g)
(h)
(i)
Responsible for overall Bancassurance business target for the RO

Develop & Strengthen relationship with Bank Managers & Regional Officials
Monitor growth & profitability of Bancassurance business across the RO
Identify strategic focus areas for Bancassurance in Region
Develop plans for setting up Bancassurance offices after assessing business potentials in that
area & execute against plans
Develop and ensure implementation of marketing initiatives across RO focused at growing
Bancassurance business
Co-ordinate with Bank Regional Officials to organize sales campaigns to target retail customers
Co-ordinate with operating offices to tap banks SME customer base
Co-ordinate with bank to promote display of posters and other publicity activities
Co-ordinate with bank to address issues, including non-performing Bank branches
Ensure service issues of bank are addressed
Co-ordinate with HO Bancassurance department to develop Bancassurance bussimess.
(j)
(k)
(l)
(m)
(n)
(o)
(p)
Monthly activities:
(m)
(n)
(o)
(p)
Monitor Bancassurance business of every operating office including Bancassurance office (by bank
branch)
Provide banks regional management with MIS on performance of all bank branches
Organise meeting with bank regional officials to address specific issues, identify futuristic thrust
areas
Ensure product training sessions to bank branch staff are organized,
ROLES & RESPONSIBILITIES OF BA CHANNEL MANAGERS

Daily/Ongoing activities
(f)
(g)
(h)
(i)
(j)
Visit allotted bank branches, build relationship with bank Managers & loan officer
Study insurance register (expiry register) at bank branch to note non-UIIC policies.
Note leads (SMEs/individual)in Lead Management Book
Follow up on leads update Lead Management book
Visit SMEs (joint visit with bank official/direct visit)
279

(k)
(l)
(m)
(n)
(o)
(p)
(q)
Conduct sales campaigns to target retail customers

Collect premium deliver policies
Provide Bank officials with product information
Ensure posters, brochures available and on display within bank branches
Ensure Proposal forms available at Bank Branches
Address service issues of bank(policy delivery, ID Card delivery, Claims etc.,
Support bank branch in updating insurance register.
Weekly activities
3. Prepare weekly visit plan, discuss with office in-charge
4. Prepare weekly report, discuss with office in-charge
Monthly activities
(5)
Provide Bank branches with consolidated renewal notice statement
(6)
Provide bank branches with commission statement and cheque
Quarterly activities
(c) Conduct product training sessions for bank branch staff.
Perks & Perquisites :
A) Reimbursement of Mobile phone expenses up to Rs.1,000 per month, inclusive of call
rentals additional features fees, service tax etc.
A) Reimbursement of out of pocket expenses on a flat basis on the following scales.
Gross premium up to Rs.6,00,000 per quarter
Rs.1,500
(Minimum amount Payable per month from inception)
Gross premium from Rs.6,00,000 to 12,00,000
Rs.2,000
Gross premium from 12,00,000 to 18,00,000
Rs.2,500
Gross premium from 18,00,000 to 24,00,000
Rs.3,000
Gross premium above Rs.24,00,000 per quarter
Rs.3,500
charges,
UMEX-Motor Dealer Initiative:

Key constructs of
the Motor Dealer
Initiative
Focused and differentiated approach to motor dealers & financiers through

1. Specialized motor dealer offices in big cities and motor dealer cells in towns
2. Well-trained, dedicated Marketing managers
3. Monitoring of surveyors and provision of cashless facility for claims settlement
4. Provision of web cover note facility to motor dealers
Organizational structure:
The Motor dealer offices are headed by scale-III officer. There are primarily 3 teams under office In
charge.
-Motor Marketing team: 2-3 marketing managers who solicit business from Motor dealers, fleet owners
and Financiers.
-Underwriting team: 1 officer ,1-2 Assistants to ensure timely issuance and dispatch of policies
-Claims and administration team:1-3 officers(depending on the volume of business & claims) ,1-2
Assistants & a cashier for faster claims processing
A nodal officer at regional office in scale-V or scale-IV oversees the functioning of Motor Dealer offices
under their Region and coordinate between the Motor dealer office(s),RO and HO and a DGM/CM is the
overall in charge of all Motor offices/Cells all over the country.
Role & responsibilities of Motor Dealer office in charge:
Annual:
f. Map Dealer market and assess potential
g. Lead negotiations with dealers
h. Formulate the annual business plan and set targets by MM for total sales
Ongoing:
280

2.
3.
4.
5.
Act as point of escalation for all Dealer issues

Visit Dealer owner twice a month and maintain relations with dealer principles
Monitor share within each Dealer
Track and improve turnaround times for underwriting and claims
Key metrics:
Premium garnered and growth rate
-# of new dealers signed
-Dealer attrition
Share by OEM in location
Share in city by 2W,4W in location
Average turnaround time for claims
Secondary: claims ratio
Roles & Responsibilities of Motor Dealer Nodal Officers
i.
j.
k.
l.
m.
n.
o.
p.
q.
r.
Provide Marketing support to dealer management offices

Co-ordinate processing and approval of proposals
Liaison with HO for National tie-ups and joint marketing efforts and provide statistics
Co-ordinate with UNISURGE project of Head Office for various requirements
Keep track of the operating offices relationship with Motor Vehicle dealers
Keep track of the market practices like facilities and payments made to Motor Vehicle dealers
Patterns in cash less settlement and other innovations brought in by competitors like way side assistance, free
alternate car etc.
Try to get more & more business relationships with dealers who are not engaged with UIIC currently. Coordinate the efforts of operating offices on this and also to keep Head Office informed.
Keep tract of business statement on premium arising out of such tie-ups and summation and submission to
Head Office
Call on Snior Marketing Officials of Automobile Manufacturers when they come to visit dealers in the
respective places.
Keep watch on any issues in Genisys or any other impediments in smooth running of the Motor business
Keep track of any discounts or freebies that are being offered by our competitors in this business segment.
s.
t.
u.
Ongoing activities
(8)
Conduct dealer feedback surveys across all tie-up dealers
(9)
Visit all major dealerships (once in a quarter where share of business is higher than 30%)
(10) Review the turnaround time for underwriting
(11) Review claims turnaround times and number of pending claims
(12) Liaison with HO for national tie-ups and joint marketing efforts as required.
(13)
Annual activities
4.
5.
6.
7.
8.
Map dealer market and assess potential for all locations in the RO
Map total RO Footprint in dealers including business brought in by the Branch
Review annual business plan
Set target for Motor dealer offices in consultation with the CRM
Lead negotiations in the RO
Key Matrix:
Primary:
4. Premium garnered and Growth rate for RO
-No of New Dealers signed
-Dealer attrition
5. Share by OEM in RO
6. Share in city by 2W,4W in RO
7. Average TAT for claims
J.
Secondary:
Claims ratio
The Nodal Officers should also submit the monthly MIS report (mailed separately) or the
performance of the Motor Dealer Offices to National co-ordinator on the last day of the month.
Roles & Responsibilities of MD Marketing Managers:
Annual
Approach Dealers and Fleets for
tie-ups:
(3)
Dealer
to
be
split
Ongoing
Act as single point of contact
for dealers
(7) each MM expected to handle
281
Key Metrics
f.
Premium
garnered
growth rate
&

geographically
among
MMs
(4) Small sized two wheeler
dealers to be approached
in the first week to allow
refinement in dealer pitch.
(5) Four wheeler dealers to
be
approached
from
second week onwards
(6) Dealers to be prioritized
on the basis of OMs
national tie-ups OEMs to
be approached first.
Negotiate and finalize MOU
Track
new
dealerships
opening
and
approach
periodically for new business.
a
maximum
of
15
relationships.
Visit dealer regularly and
maintain
relationships
with
dealer sales manager, F & I
Manager and dealer principle.
- dealer attrition
-Share
within
each
dealer
- Claims TAT for each
dealer
Ensure presence of cover notes

at Dealer premises.
Ensure presence of marketing
materials at dealer premises
Train dealer staff on UIIC
products (once a month)
Track
at
dealerships
and
negotiate greater share over
time.
Perks & Perquisites

Reimbursement of mobile phone expenses up to Rs, 600 per month, inclusive of call charges, rentals,
additional features fees, service tax etc.
Reimbursement of conveyance and out of pocket expenses on a flat basis on the following scales.
Payable only in case of growth in business for each quarter, compared to each the previous year.
Accretion of business upto Rs. 3,00,000 for the quarter from
the corresponding quarter previous year
(Minimum amount payable per month if there is growth}
3,00,000 to Rs.9,00,000
9,00,000 to 15,00,000
15,00,000 to 21,00,000
More than 21,00,000
Rs. 1,000/Rs.1,500
Rs.2,000
Rs.2,500
Rs.3,000
Roles & Responsibilities of Agency Nodal Officer:

At Launch of UMEX
3.
4.
5.
6.
7.
Identify offices and Unit Managers

Ensure office incharge and Unit Managers are provided letters, informing them about UMEX
Conduct meeting of all office staff to explain UMEX to them.
Ensure adequate number of sale kit, pamphlets provided for agents
Ensure premium and commission details of all active agents selected to prepare the baseline
information.
Daily/ongoing activities
12.
13.
14.
15.
16.
17.
18.
19.
Ensure Unit Managers perform all the activities required to develop agency business.
Ensure Unit mangers conduct agents reviews, product training and monthly meetings
Review performance of Unit Managers and agents assigned to the Unit Managers
Organise sale campaigns to provide specific products
Co-ordinate display of posters and other publicity activities.
Ensure proposal forms, claims forms, pamphlets, sales kits available for agents
Ensure service issues of agents are addressed.
Co-ordinate recruitment of agents\co-ordinate all other activities aimed at growing agency
business in the region.
Weekly/fortnightly activities
(g)
(h)
(i)
(j)
Ensure Unit Managers submit progress reports

Attend product training sessions conducted by Unit Managers
Review performance of Unit Managers at their offices
Conduct Unit Managers review meeting at RO
Monthly activities
3.
Ensure agents receive renewal notices
282

4.
5.
6.
Ensure agents receive commission on time

Ensure monthly review meeting conducted at all offices by Unit Managers
Provide Regional Chief and HO with consolidated monthly performance report
Quarterly activities
(e)
(f)
Ensure Unit Managers provide claims report, and take corrective actions for agents with high
claims ratio.
Conduct Regional Meetings/training sessions for top performing agents and Unit Managers.
Roles & Responsibilities of Unit Managers

At launch of UMEX
9. Note names of all agents who are active (not dummies)
10. Note premium and commission earned by the agent each month, for the previous year to prepare
profile sheet for each agent
11. Provide kits to selected agents
12. Discuss business plan with agents
Daily/ongoing activities
B) Conduct one on one review sessions with agent to review his/her progress
C) Conduct joint sales call meetings with agent to clients
D) Ensure Agents Bay is well equipped for use by agents
E) Support agents in providing quotations to clients
F) Support agents in providing necessary help to clients in case of claims
G) Co-ordinate specific product sales campaigns in that area
H) Support agents with providing banner, posters, display boards and other selling tools
I)
Ensure sufficient no. of proposal forms, claim forms available for agents
J)
Ensure whiteboard in office updated to reflect performance of agents
K) Co-ordinate agent recruitment activities, including scouting for good candidate
Weekly/fortnightly activities:
(i) Discuss weekly sales call plan with agent
(j) Conduct product training
(k) Prepare weekly/fortnightly progress report of agents
Monthly activities:
II.
Conduct monthly agents meeting to felicitate top performers
III.
Ensure renewal notices provided to agents on time
IV.
Ensure commission disbursed to agents on time
V.
Review business plans with agents.
Quarterly activities:
7.
Prepare and submit claims ratio report for agents, take corrective action as required.
UMEX SME Broker Initiative:
Key constructs of
the SME Broker
initiative
Service hubs and BPR:
Improved SME segment targeting through:

a. RO Driven lead generation initiatives
b. Training DMs/BMs to convert leads into relationships and for
crosselling
c. Specific focus on small brokers through designated office to each
broker
d. Periodic review meetings at ROs on lead conversions
Key constructs
of the service
hub BPR
initiative
Redesign and centralization of key processes such as claims,

underwriting
1. Re-design and centralize process for better customer service and lower
cost
2. Eliminate unnecessary steps and documents
3. Leverage IT to improve process efficiency
TPA Management (ID card
Issuance):
4. Put
in place rigorous tracking system
283

Key constructs
of the TPA ID
card issuance
initiative
Improve TPA customer service through ID card issuance:

1. Enable soft copy of data transfer to TPAs after underwriting
2.
3.
Ensure all TPAs facilitate direct import of electronic data for speedy
issuance
Institute rigorous tracking
TPA Management (monitoring):

Key constructs of
the TPA monitoring
initiatives
Improve ICR, customer service and ensure effective monitoring

of TPAs
III.
HO driven screening of claims using databased excel
tool
IV.
Spot check of cashless patients
Product initiative, Health: V.
Selective audit of paid claim files at RO
Key constructs of the
product initiative
Ensuring health products are priced appropriate and

designated for customer and profitability
(a) Re- drawing of product-level exclusions based on
benchmarking with competition
HR Organization structure and PMS:

Align HR structure with overall corporate objectives, increase accountability
(a) Focussed verticals created at HO and ROs
(b) Performance Management system (PMS) set up with aim to align Key Result
Area (KRAs) of all operating groups with corporate objectives
(c) KRSa to be objective, simple and no more than 58 for each group
Key constructs
of the HR & PMS
initiative
Cash Management system (CMS) initiative:

Key constructs
A comprehensive and best-in-class CMS that ensures the following
of the CMS
1.
Minimum idle cash held at the bank accounts
initiative
2.
Minimum charges paid to banks
3.
Quick and detailed MIS to ensure easy monitoring and reconciliation

at central level
Investment Initiative:
Two key objectives
To adopt best-in-class investment practices from asset management
houses and insurers
To ensure process adherence to the IRDAs (latest amendment)
regulatory guidelines
Key constructs
1.
of the
investment
2.
initiative
Product initiative- Motor:
Key constructs
of the product
initiative
Ensuring United has the most innovative, competitive and profitable

motor product portfolio
(11) Identification of key product innovation opportunities in Motor
(12) Scoping, pricing and regulatory filing of add on covers
(13) Negotiating with vendor (road side assistance)
284

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Personnel Manual Part II

United India Insurance Co. Ltd.

Scales of Pay and Allowances Class I

Scales of Pay and Allowances Class III & IV

Special Area Allowance

Conveyance Allowance for Physically Handicapped employees

Ex-Servicemen Salary Fitment

Leave Rules & Miscellaneous Provisions

Travels Rules & Regulations

Leave Travel Subsidy

Ex-gratia in lieu of Bonus

Personnel Manual Part II

United India Insurance Co. Ltd.

Lumpsum Payment for Domiciliary Treatment to Class I Officers 142

Medical Benefit for Clerical and Subordinate Staff (Lumpsum 143

Group Mediclaim Policy

Group Mediclaim Policy for Part-Time Employees

Medical Benefit for Retired Employees

Facility of general medical check-up

Ex-gratia reimbursement of medical expenses to employees for 171-176

Benefits for employees meeting with accident whilst on duty

Incentives for Family Planning

Group Savings Linked Insurance

Group Term Insurance Scheme

Matters relating to GI(CDA) Rules,1975 (Chapter is included

Guidelines governing Resignation/Retirement of Officers

Honouring of employees on retirement

General Insurance Executives (Acceptance of Commercial 204-206

Personnel Manual Part II

United India Insurance Co. Ltd.

Revision in maximum age of retirement from 58 years to 60 years 277

Reimbursement for News Paper

Personnel Manual Part II

United India Insurance Co. Ltd.

United India Insurance Co. Ltd.

Rate per month

Personnel Manual Part II

United India Insurance Co. Ltd.

2.5% of pay subject to

(iii) Posted at places situated at a 2% of Basic Salary subject to maximum of

United India Insurance Co. Ltd.

Personnel Manual Part II

Personnel Manual Part II

United India Insurance Co. Ltd.

FIXED PERSONAL ALLOWANCE PAYABLE TO OFFICERS IN REVISED SCALE OF PAY

S.NO. Officers in the scale of Fixed Personal

A Senior Assistant was granted FPA of Rs.276.28 per month as on

United India Insurance Co. Ltd.

Increment portion (col 4) and

(b) Officers in Vigilance Department who are in the main

Personnel Manual Part II

United India Insurance Co. Ltd.

10. Entertainment Allowance :

Stages in revised scales of pay : (w.e.f. 01.08.2007)

Personnel Manual Part II

United India Insurance Co. Ltd.

Personnel Manual Part II

United India Insurance Co. Ltd.

(3) Assistant, Typist, Telephone Operator, Telex Operator,

United India Insurance Co. Ltd.

The revision in dearness allowance corresponding to the changes in the current

Rate per month

Personnel Manual Part II