Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com LIFE INSURANCE CORPORATION OF INDIA CLASS I OFFICERS REVISION OF TERMS AND CONDITIONS OF SERVICE) RULES, 1985 CONTENTS 1. Short title, commencement and application 2. Definitions 3. Conditions of Service of Class I Officer 4. Scales of pay of Class I Officers 5. Dearness allowance 6. House Rent Allowance 7. City Compensatory Allowance 8. Provident Fund 9. Gratuity 10. Interpretation LIFE INSURANCE CORPORATION OF INDIA CLASS I OFFICERS REVISION OF TERMS AND CONDITIONS OF SERVICE) RULES, 1985 G.S.R. 794 (E), dated 11th October, 19851-In exercise of the powers conferred Cl. (cc) of sub-section (2) of Sec. 48 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Central Government hereby makes the following rules regulating certain terms and conditions of service of Class I officers (other than the Managing Directors) of the Life Insurance Corporation of India, namely : 1. Short title, commencement and application :- (1) These rules ay be called the Life Insurance Corporation of India, Class I Officers (Revision of Terms and Conditions of Service) Rules, 1985. (2) They shall be deemed to have come into force on the 1st day of October, 1983. (3) They shall apply to every whole-time (salaried) Class I Officer of the corporation in India unless otherwise provided by the terms of any contract. (4) Notwithstanding anything contained in sub-rule (2), where any Class I Officer gives a notice in writing to the Corporation, within thirty days of the date of publication of these rules in the official Gazette, expressing his option to be governed by the provisions of these rules with effect from the date of such publication, the Corporation may, by order, permit such officer to be governed by the said rules with effect from the said date. 2. Definitions :- In these rules, unless the context otherwise requires,- (a) "Act" means the Life Insurance Corporation Act, 1956 (31 of 1956); (b) "Class I Officers" means an employee of the Life Insurance Corporation of India (other than the Managing Directors) working in Class I post and indudes any person who became anemployee of Corporation on the appointed day under the Act and is so working ; (c) "Staff Rules" means the Life Insurance Corporation of India (Staff) Regulations, 1960; (d) words and expressions used in these rules and not defined herein but defined in the Staff Rules, shall have the meanings respectively assigned to them in the Staff Rules. 3. Conditions of Service of Class I Officer :- Notwithstanding anything contained in the Staff Rules, the terms and conditions of service of Class I Officers relating to matters covered by these rules shall be regulated in accordance with the provisions hereinafter contained in these rules. 4. Scales of pay of Class I Officers :- The scales of pay of Class I Officers shall be as under : Class I Officers : 1. (i) Zonal (a) Ordianary Scale : Managers/ Rs. 3725- 125-4350 Chief of Departments at Central Office (ii) Chief Engineer/ (b) Selection Scale : Chief Architect. Rs. 4100-125-4600 Notes.- (1) Oficers in selection scale posted In-charge of a Department at the Central Office will be designated as Executive Directors. (2) While Chief of Departments at Central Office would normally be drawn from the cadres of Zonal Managers, where suitable officers for filling up these posts are not available from this cadre they may be drawn from the cadre of Deputy Zonal Managers/Senior Divisional Managers/Secretaries/Actuaries/ Accountants at Central Office and they will be designated as Chief- i n Charge. 2. (i) \Deputy Zonal Manager \ \/Senior Divisional Managers \ \and Sccretaries/Actuaries/ \ \Accountants at the Central \ \Office \Rs. 3245-110-3685-115-3800 (ii) \Deputy Chief Engineers/ \ \Deputy Chief Architects. \ 3. (i) \Divisional Managers and \ \Secretaries/Actuaries/Accou- \ \ntants at the Zonal 0ffices/ \ \Deputy Secretaries (A and 1) \ \Deputy Secretatries Deputy \ \Actruaries Deputy Account- \ \ants at the Central Office. \Rs. 2715-105-3 (ii) \Superintending \ \Engineers/Senior Surveyors \ \of Works/Senior Architects. \ 4. (i) \Assistant Divisional \ \Managers/Senior Branch \ \Managers and Assitant \ \Actuaries/Assistant Account- \ \ant at the Central and Zonal \ \Office \ (ii) \Executive \ \Engineers/Surveyors of \ \Works/Deputy Senior \ \Architects. \ 5. (i) \Branch M a nagers/ \ \Administrative Officers. \Rs. 1621 (ii) \Assistant Executive \ \Engineers/Assistant \ \Surveyors of Works/ \ \Architects. \ 6. (1) \Assistant Branch \ \Managers/Assistant \ \Administrative Officers. \Rs. 1175-75-14 (ii) \Assistant \ \Engineers/Assistant \ \Architects. \ Note: A separate seniority list shall be maintained in respect of Officer's appointed to posts specified in entry (ii) under various serial numbers. 5. Dearness allowance :- (1) The scales of dearness allowance applicable to Class I Officers shall be determined as under : (a) Index : All India Working Class Consumer Price Index (hereinafter referred to as the "Index") (b) Base : Index No. 332 in the series 1960-100 ; (c) Rate : 2 per cent. of the basic pay for every eight points in the quarterly average of the Index above 332 points, subject to a maximum of Rs. 31.60 for every 8 points (hereinafter referred to as the "specified rate"). (2) There shall be an upward revision of the dearness allowance payable at specified rate- (i) for every eight points rise in the quarterly average of the Index above 332 points in the sequence 332-340-348-356-364-372- 380- 388-396-404 and so on, for Class I Officers drawing a basic pay of not more than Rs. 1600 ; (ii) for the first sixteen points rise in the quarterly average of the Index in a cycle of 24 points rise above 332 points and for the next eight points rise in the quarterly average of the Index in the sequence 332-348-356-372-380-396-404 and so on, for Class I Officers drawing a basic pay of Rs. 1601 and above but not more than Rs. 2445; and (iii) for every twenty-four points rise in the quarterly average in the Index above 332 points in the sequence 332-356-380-404 and so on, for those Class I Officers drawing a basic pay of Rs. 2426 and above. (3) Notwithstanding anything contained in sub-rule (1) or sub-rule (2),- (a) the dearness allowance payable at any stage of basic pay for each cycle of 24 points rise in the quarterly average of the Index shall not be less than the dearness allowance payable at the rate of 3.9 per cent. of the basic pay or Rs. 150 whichever is less ; and (b) if at any time the dearness allowance payable in accordance with sub-rule (2) at any stage of basic pay is less than that admissible for a lower basic pay, the dearness allowance payable at the relevant higher stage shall be equal to that payable for the lower basic pay. (4) (a) There shall be downward revision of the dearness allowance payable to Class I Officers in the respective ranges of basic pay if the quarterly average of the Index (hereinafter referred to as the "current average figure") falls below the index figure in the respective sequences referred to in sub-rule (2) with reference to which the dearness allowance has been paid for the last preceding quarter. (b) 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 relevant sequence ; and the dearness allowance payable shall correspond to the figure in the relevant sequence next preceding the current average figure if such current average figure is not a figure in the sequence. 6. House Rent Allowance :- (1) The scales of house rent allowance applicable to Class I Officers, except those who have been allotted staff quarters, shall be at the rate of 15 per cent. of the basic pay, subject to a minimum of Rs. 200 and a maximum of Rs. 400. (2) Class I Officers who are allotted staff quarters, shall not be entitled to house-rent allowance but they shall pay an amount equivalent to 10 per cent. of the basic pay or the appropriate licence fee, whichever is less, for the staff quarters allotted to them. 7. City Compensatory Allowance :- The scales of City Compensatory Allowance payable to Class I Officers shall be as under ; (a) Class I Officers posted in cities with population exceeding 12 lakhs and 1 any city in the State of Goa], 10 per cent. of basic pay, subject a maximum of Rs. 200 per month ; and (b) Class I Officers posted in cities with a population of 5 lakhs and above but not exceeding 12 lakhs, State Capitals with population not exceeding 12 lakhs and Chandigarh, Pondicherry and Port Blair- 6 per cent. of basic pay, subject to a maximum of Rs. 120 per month. Explanation.-For the purposes of this rule, the population figures as reported in 1981 Census Report shall be taken into account. 1. Subs. by G.S.R. 872 (E), dated 22nd August, 1988 (w.e.f. 19th May, 1988), for the words "Urben Agglomeration of Panaji and Mormugoa". 8. Provident Fund :- (1) Every Class I Officer of the Corporation other than an Officer on probation or an officer appointed on temporary basis or an officer who is contributing' to an approved Superannuation Fund, shall contribute to the Provident Fund established by the Corporation at the rate of 8.33 per cent. of his basic pay and the Corporation shall also contribute to the Provident Fund every month an amount equal to the actual contribution of each such officer subject to a maximum of 8.33 per cent. of the basic pay of each such officer. (2) Class I Officers who are transferred employees the Oriental Government Security Life Assurance Company Ltd., and who are contributing to the Pension Fund of that Company, which is being continued with modifications as a separate Fund for such employees only, shall be entitled to pension according to the rules of that fund. (3) Class I Officers referred to in sub-rule (2) may, however, be permitted to contribute to the Provident Fund established by the Corporation but the Corporation shall not be required to make any contribution to the Provident Fund in respect of such officers. 9. Gratuity :- (1) (a) A permanent Class I Officer who has been in continuous service of the Corporation (including regular salaried service with the insurer for not less than 15 years (excluding period of probation or temporary service in respect of employees recruited on or after the 1st September, 1956); and- (i) whose service are terminated by the Corporation for any reason whatsoever; or (ii) who voluntarily resigns from the service of the Corporation ; or (b) A permanent Class I Officer- (i) who dies while in the service of the Corporation ; or (ii) who retires from the service of the Corporation ; or (iii) whose service are determined either due to continued illness or accident incapacitating him from the proper discharge of his duties ; or (iv) whose services are dispensed with owing to reduction of staff or reorganisation of establishment; shall be eligible for the payment of gratuity. (2) The gratuity admissible to a Class I Officer under sub-rule (1) shall be at the rate of one month's terminal basic pay for each completed year of continuous service or part thereof in excess of six months (inclusive or regular salaried service with the insurer) subject to a maximum of 15 month's basic pay (3) In the case of Class I Officer who has been promoted from Class II cadre on or after the 1st day of April, 1973 and who dies or retires after promotion, the gratuity payable to him shall not be less than the gratuity that would have been payable to him if his services had been terminated while he was in Class III cadre. (4) Subject to any lien the Corporation may have on the amount of gratuity admissible to a Class I Officer, the Corporation shall pay the Officer or his nominee or nominees or if no nomination is made or is subsisting, his heirs, the amount of gratuity admissible under this rule. (5) Notwithstanding anything in the foregoing sub-rules- (i) where the penalty of dismissal is imposed on a Class I Officer for any act involving violence against the management or other employees or any riotous or disorderly behaviour-in or near the place of employment, the gratuity payable to him shall stand wholly forfeited; and (ii) where the penalty of compulsory retirement, removal from service or dismissal is imposed on a Class I Officer for any act involving the Corporation in financial loss, the gratuity payable to him shall stand forfeited to the extent of such loss. 10. Interpretation :- Where any doubt or difficulty arises as to the interpretation of these rules, it shall be referred to the Central Government for its decision.