GENERAL INSURANCE (RATIONALISATION OF PAY SCALES AND OTHER CONDITIONS OF SERVICE OF OFFICERS) SCHEME, 1975

PREAMBLE

WHEREAS the Central Government is of opinion that for the more efficient carrying on of general insurance business it is necessary so to do;

[1]Now, therefore, in exercise of the powers conferred by clause (g) of sub-section (1) of section 16 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the Central Government hereby frames the following Scheme to provide for the rationalisation of pay scales and other terms and conditions of service of Officers serving under insurers, namely:-

Scheme - 1. Short Title and Commencement.

(1)     This Scheme may be called the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Scheme, 1975.

(2)     It shall come into force on the 1st day of October, 1975.

Explanation: While the Principal Scheme of 1975 was framed in terms of Section 16 (1)(g) of General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), the further amendments to the Scheme were made in terms of powers vested in Central Government under newly inserted Section 17A of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) by Amendment Act, 1985.

A statement showing the S.O. Nos. and date of commencement of all the amendment notifications are given in the statement attached,

Scheme - 2. Application.

[2]The provisions herein contained shall apply to all Officers (Other than the [3]Chairman-cum-Managing Director):

(i)       who are whole-time Officers of the Corporation or of the Company on the date of commencement of this Scheme; and

(ii)      who are appointed as such by the Corporation or the Company after the date of commencement of this Scheme,  but shall not apply to persons-

(a)      who are employed under specific contracts of employment; or

 

(b)      who hold part-time employment; or

 

(c)      whose resignation had been accepted or whose services had been terminated before the date of publication of this Scheme in the Official Gazette.

[4]Application of Amendment Scheme, 2000 notified vide S.O. 587(E) dated 22nd June, 2000:

(1)     This Scheme may be called the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Amendment Scheme, 2000.

(2)     Save as otherwise provided hereinafter, the provisions of this scheme shall be deemed to have come into force from 1st day of August, 1997.

The provisions of this (Amendment) scheme shall be applicable to those officers who were in the service of the Corporation or Company as on 1.8.1997:

Provided that the Officers whose resignation had been accepted or whose services had been terminated during the period from 1.8.1997 and the date of publication of this scheme in the Official Gazette shall not be eligible for the arrears on account of revision.

Scheme - 3. Definitions.

In this Scheme, unless the context otherwise requires-

(a)      "Act" means the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

 

(b)      "basic pay" means the basic pay referred to in the First Schedule, or the Second Schedule, or the Third Schedule, as the case may be;

 

(c)      "Board" means the Board of Directors of the Corporation;

 

(d)      "Chairman" means-

[5](i) in relation to the Corporation, the Chairman-cum-Managing Director;

(ii) in relation to the Company, the Chairman-cum-Managing Director;

(e)      "Company" means the National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Fire & General Insurance Company Limited or the United India Fire & General Insurance Company Limited;

(f)       "Corporation" means the General Insurance Corporation of India formed under Section 9 of the Act;

(g)      "existing insurer" means an insurer other than an Indian Insurance Company whose officers have become Officers of an Indian Insurance Company in which the undertaking of that insurer or that part of the undertaking to which the officers relate has vested under sub-section (1) of Section 7 of the Act;

(h)     "existing scale" means the scale in which pay was drawn by an Officer before the fixation of his pay in the new scale;

(i)       "gross emoluments" means the aggregate of basic pay, dearness allowance, house rent allowance, and city compensatory allowance;

(j)       "new scale" means the scale of pay given in the First, Second and Third Schedule;

(k)      "new terms" means-

(i)       the scale of pay and other allowances as set out in the First Schedule, in respect of an officer appointed by the Central Government as Chairman or Managing Director or Chairman-cum-Managing Director;

 

(ii)      the scale of pay, dearness allowance and other allowances as set out-

(a)      in the Second Schedule, in respect of Officers categorised as General Managers or Assistant General Managers or Managers or Deputy Managers or Assistant Managers or Administrative Officers or Assistant Administrative Officers;

(b)      in the Third Schedule, in respect of Officers categorised as Junior Officers;

(l)       "Officer" means an employee appointed in India before the commencement of this Scheme and serving whether in India or outside India, in a position other than supervisory, clerical or subordinate position, and categorised as holding any of the posts referred to in the Schedules but does not include an employee declared as a member of the development staff by the Committee appointed by the Board;

(m)    "present gross emoluments" means the gross emoluments drawn by an officer in the existing scale, on the date opted by him under sub-paragraph [6](2) of Paragraph 4, comprising of the present gross salary, house rent allowance, city compensatory allowance, qualification pay, [7]lunch allowance paid in cash and development allowance and includes other fixed cash allowances payable as on the 1st day of January, 1973, and any other allowance which the Board may, with the previous approval of the Central Government, determine;

(n)     "present gross salary" means the gross salary drawn by an officer in the existing scale, on the date opted by him under sub-paragraph [8](2) of paragraph 4, comprising of the basic pay, ad hoc special pay, personal pay, deputation allowance, dearness allowance or any other allowance which is in the nature of dearness allowance, and interim relief allowance;

[9](na) "revised terms", in relation to Officers, other than the [10]Chairman-cum-Managing Director, means the scales of pay and allowances as specified in the [11]Eleventh Schedule; [12] and in relation to the [13]Chairman-cum-Managing Director, means the scales of pay and allowances as specified in the [14]Twelfth Schedule;

[15](nb) "revised scales of pay", in relation to Officers, other than the [16]Chairman-cum-Managing Director, means the revised scales of pay as specified in the [17]Eleventh Schedule; [18]and in relation to the [19]Chairman-cum-Managing Director, means the revised scales of pay and allowances as specified in the [20]Twelfth Schedule;

(o)      "Schedule" means a Schedule appended in this Scheme;

(p)      "Special pay" means an addition of the nature of pay to the emoluments of a post or of an employee in consideration of-

(i)       the specially arduous nature of duties; or

(ii)      a specific addition to the work or responsibility.

Scheme - 4. Pay and Allowances of Officers.

(1)     The scales of pay and other allowances shall be as given in the first, second or the third schedule.

(2)     Every Chairman and every officer other than the Chairman shall, within ninety days from the date of commencement of this Scheme, by notice in writing addressed to the Central Government, or, as the case may be, the Chairman, through the head of his office, specify the date from which the new terms shall be made applicable to him;

Provided that-

(a)      in the case of an Officer referred to in clause (i) of paragraph 2, the date shall be either from the 1st day of January, 1973, or any later date being a date not later than the date of the commencement of this Scheme;

(b)      in the case of any officer referred to in clauses (ii) of that paragraph, the date shall be either the date of confirmation, or the date of absorption, of such Officer.

(3)     (a) Where the date specified by an Officer under sub-paragraph [21](2) is a date earlier than the date of commencement of this Scheme, such Officer shall be paid for the period commencing from such date and ending with the day preceding the date of commencement of this Scheme, the difference between the new terms and the present gross emoluments;

(b) Where any portion of leave had been encashed by such Officer during the period referred to in clause (a), such Officer shall not be required to refund any amount realised by him by way of such encashment;

(c) Where during the period referred to in clause (a), such Officer was holding a post other than the one on which he was normally employed, or was in receipt of any allowance of a transient nature, 'the present gross emoluments', which he would have drawn in the post on which he was normally employed shall alone be taken into account for the purpose of this paragraph and paragraph 6;

[22](4) With effect from the date of commencement of the General Insurance (Rationalisation of Pay Scales and Other conditions of Service of Officers) Amendment Scheme 1985 (hereinafter referred to as "the Amendment Scheme"), the pay and allowances of every Officer shall be in accordance with the "revised terms" and the basic pay of every Officer in service as on that date shall be fixed in revised scales of pay in accordance with the provisions of paragraph 6A;

[23](5) Every Officer whose basic pay is fixed in the revised scales of pay in accordance with the provisions of paragraph 6A shall be paid for the period commencing on and from the 1st day of October, 1983 or the date of his appointment, whichever is later, the difference of [24]basic pay, personal pay, dearness allowance and other allowances (after deducting the Officer's compulsory contribution to the provident fund) between the "revised terms" and the "new terms" (hereinafter referred to as "existing terms") applicable to him immediately before the date of commencement of the Amendment Scheme.

Provided that the mode, manner and time of payment of difference as aforesaid, either in cash or otherwise, shall be as may be decided by the Central Government.

Provided further that:-

(i)       an Officer who had retired [25]or resigned from service after the 1st day of October, 1983 shall be paid the difference in amount as aforesaid for the period upto the date of his retirement [26]or resignation along with the difference in the amount of gratuity, if any, arising out of the Amendment Scheme; and

(ii)      in the case of an officer who had died whilst in service after the 1st day of October, 1983 the difference in amounts as aforesaid for the period upto the date of his death shall be paid to the person to whom his Provident Fund was to be paid and the difference in amount of gratuity, if any, arising out of the Amendment Scheme shall be paid to the person to whom his gratuity was to be paid.

Explanation: For the purpose of Sub-paragraph (5), the expression 'other allowances' means house rent allowance and city compensatory allowance as admissible to an officer.

[27](6) With effect from 1st day of August, 1987, the pay and allowances of every Officer shall be in accordance with the Seventh Schedule.

Provided that the Officer may choose that his basic pay may be fixed in terms of Seventh Schedule with effect from any date which shall not be earlier than the 1st day of August, 1987 and later than the date of publication of this Scheme; in which case he shall intimate such choice in writing to the Corporation or Company within thirty days of publication of this Scheme.

Provided further that no arrears for the period prior to the date so chosen shall be payable to such Officer.

Provided also that where, as a result of the fixation of basic pay in the relevant scale of pay the basic pay of Officers at two consecutive stages secure fixation at the same stage, the date of first increment after fixation in respect of Officers who were at higher existing basic pay stage shall be the 1st day of August, 1987 and subsequent increments shall fall due on the first day of August every year.

[28](7) The pay and allowances of every officer shall be in accordance with the Eighth Schedule, and from a date not earlier than the date mentioned below against each of the items:-

Provided that the Officer may choose that his basic pay may be fixed in terms of the Eighth Schedule with effect from any date which shall not be earlier than the 1st day of August, 1992 and later than the date of publication of this Scheme, in which case he shall intimate such choice in writing to the Corporation or Company within thirty days of publication of this Scheme or such further period as may be allowed by the Managing Director of the Corporation or Chairman-cum-Managing Director of the Company.

Provided further that no arrears for the period prior to the date so chosen shall be payable to such officer.

Provided also that no arrears for the period from 1st day of August, 1992 to the 31st day of March, 1993 shall be payable to the Officer in respect of Basic Pay and Dearness Allowance.

[29](8) (With effect from 1.8.1997) The pay and allowances of every officer shall be in accordance with the Tenth Schedule:

Provided that the Officer may choose that his Basic Pay may be fixed in terms of the Tenth Schedule with effect from any date not earlier than the date on which the said scheme comes into force and not later than the date of publication of this scheme in the Official Gazette, in which case he shall intimate such choice in writing to the Corporation or Company within such period as may be prescribed by the Managing Director of the Corporation or Chairman-cum-Managing Director of the Company:

Provided further that no arrears for the period prior to the date chosen shall be payable to such officer.

[30](9) With effect from the 1st day of August, 2002, the pay and allowances of every officer shall be in accordance with the Eleventh Schedule appended to this Scheme:

Provided that the officer may choose that his basic pay may be fixed in terms of the Eleventh Schedule with effect from any date not earlier than the date on which the said Scheme comes into force and not later than the date of publication of this Scheme, in which case he shall intimate such choice in writing to the Corporation or Company within such period as may be prescribed by the Chairman-cum-Managing Director of the Corporation or Company, as the case may be:

Provided further that no arrears for the period prior to the date so chosen shall be payable to such officer.

Scheme - 5. Categorisation of CertainOfficers.

(1)   If any Officers have not been categorised so far, the Committee appointed by the Head shall within 2 months from the date of commencement of this Scheme complete assessment of the suitability of such Officers, being categorised as Assistant Administrative Officers within the authorised cadre strength and categorise [31]such Officers as Assistant Administrative Officers;

(2)   Where an Officer is not categorised as Assistant Administrative Officer under sub-paragraph (1), he shall be categorised as Junior Officer.

[32](3) With effect from the date of publication of this Scheme, officers in the Corporation or Company hitherto categorized as shown in column (b) of the Table below shall be re-categorized respectively as shown in column (c) of the Table given below:-

TABLE

Provided that the Board of the Corporation or Company, having regard to the nature of duties and functions performed by officers of various Scales posted in the offices of different denominations of the Corporation or Company, may prescribe suitable designations to them so as to appropriately reflect their nature of duties and functions.

Scheme - 6. Method ofFixation.

(1)     The pay of every officer relating to the category in which he is initially placed shall be fixed in the new scale at a stage at which the total of the basic pay and dearness allowance admissible at that pay is equivalent to the total of the present gross salary drawn by such Officer on the date of fixation plus an amount of Rs. 50/- and if the amount so determined is not equivalent to the stage in the relevant scale, at the stage next above in the said relevant scale;

(2)     If in determining the basic pay of an Officer under sub-paragraph (1), the amount exceeds the maximum of the scale of pay, the pay shall be fixed at the maximum, or if the amount is less than the minimum of the scale of pay, the pay shall be fixed at the minimum;

(3)     (a) Where in respect of an Officer, the gross emoluments determined as on the date of fixation are less than the present gross emoluments, he shall be paid as personal pay the lowest of the three alternatives specified below, namely:-

(i)       the amount by which his present gross emoluments exceed the gross emoluments so determined; or

(ii)      the amount by which the sum of Rs. 4,000 exceeds the gross emoluments so determined; or

(iii)     the amount of maximum personal pay for the appropriate category as specified in Item IV of the First Schedule or Item V of the Second Schedule or Item V of the Third Schedule.

(b) The personal pay shall not be reduced as and when increases in basic pay are granted after the date of fixation, but shall be subject to the condition that the total of basic pay, dearness allowance, house rent allowance, city compensatory allowance and personal pay of such an officer shall, at no stage, exceed Rs. 4,000 per month. The personal pay shall be appropriately reduced, where necessary, to keep such total emoluments not to exceed Rs. 4,000 per month.

Scheme - 6A. Fixation ofBasicPay in the Revised Scale of Pay.

[33](1) The basic pay of every officer in service as on the 30th day of September, 1983, shall be fixed at a corresponding stage in the relevant revised scale of pay with effect from the 1st day of October, 1983, as specified in the Fifth Schedule.

Provided that where an annual increment is due to such an Officer on the 1st day of October, 1983, he shall be granted such an increment in the revised scale of pay immediately after such fixation of basic pay;

Provided further that where the basic pay of such an Officer is fixed at the maximum of the relevant scale of pay, no such increment shall be granted.

(2)   The basic pay of every officer appointed on or after the 1st day of October, 1983, but before the publication of the Amendment Scheme in the official Gazette, shall be fixed at a corresponding stage in the relevant revised scale of pay, as specified in the Fifth Schedule, with effect from the date of his appointment.

(3)   (a) Notwithstanding anything contained in sub-paragraphs (1) and (2), an officer may choose that his basic pay shall be fixed in the revised scale of pay with effect from the date of publication of the Amendment Scheme in the Official Gazette in which case he shall intimate this fact in writing to the Corporation or the Company within 30 days of such publication of the Amendment Scheme or such further period as may be allowed by the [34]Chairman-cum-Managing Director of the Corporation or the Chairman-cum-Managing Director of the Company.

[35](aa) Notwithstanding anything contained in sub-paragraphs (1) and (2), the Officer who had resigned from service after the 1st day of October 1983 may choose that his basic pay shall be fixed in the revised scales of pay with effect from the date of resignation in which case he shall intimate this fact in writing to the Corporation or Company within 30 days of publication of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Amendment Scheme, 1987 or within such further period as may be allowed by the [36]Chairman-cum-Managing Director of the Corporation or the Chairman-cum-Managing Director of the Company.

(b) Where the officer opts for the fixation of his basic pay from the date of such publication of the Amendment Scheme, such fixation in the "revised terms" shall be effected on the basis of his basic pay under the "existing terms" on the date immediately prior to the date of such publication of the Amendment Scheme and no arrears for the period prior to the date of such publication of the Amendment Scheme will be payable to him;

Provided that where, as a result of the fixation of basic pay in the relevant revised scale of pay the basic pay of the officer at two or more consecutive stages in the relevant scale of pay under the "existing terms" secures fixation at the same stage in the relevant revised scale of pay, the [37]Chairman-cum-Managing Director of the Corporation may provide appropriate relief by granting an additional increment earlier than the date of his normal grade increment, to the officer who is at the higher stage in the pay scale under the existing terms.

Scheme - 6B. Fixation of Basic Pay of the Chairman, Managing Director and the Chairman-cum-Managing Director in the Revised Scales of Pay.

[38]Notwithstanding anything contained in sub-paragraph (4) and (5) of paragraph 4 or paragraph 6A, the basic pay of the Chairman, Managing Director and the Chairman-cum-Managing Director shall be fixed in the manner specified in the Sixth Schedule.

[39]Provided that with effect from 1st January, 1996, the basic pay of Chairman, Managing Director and the Chairman-cum-Managing Director shall be fixed in the manner specified in the Nineth Schedule.

[40]Provided further that w.e.f. 1.4.2004, Dearness Allowance equal to 50% of basic pay shall be merged with the basic pay of the Chairman or Managing Director, as the case may be, and shown distinctly as Dearness Pay.

[41]"Provided also that with effect from 1st January, 2006, the basic pay of the Chairman-cum-Managing Director shall be fixed in the manner specified in the Twelfth Schedule".

Note: The Dearness Pay shall be counted for the purposes like payment of allowances, transfer grant, retirement benefits, contribution to general provident fund, licence fee, monthly contribution for Central Govt. Health Scheme, various advances, etc. However, the entitlements for Leave Travel Concession, Travelling Allowance or Daily Allowance while on tour and transfer and Govt. accommodation shall continue to be governed on the basis of the basic pay alone without taking into account the Dearness Pay.

Scheme - 6C. The Other Conditions of Service.

[42]The other terms and conditions of service specified in paragraphs 9, 10 and 11 as amended from time to time, shall apply in relation to the Chairman-cum-Managing Director with effect from the 1st day of January, 2006."

Scheme - 7. Fixation of pay on promotion.

[43]Where an Officer whose pay has been fixed under the Amendment Scheme had been promoted before its publication in the official Gazette or is promoted after "such publication" to a higher post and his basic pay in such higher post is the same as the basic pay in the post held by him before promotion, the basic pay in "such higher" post shall be fixed at the next higher stage in the relevant revised scale of pay:

Provided that where the basic pay in the said higher post is different from the basic pay in the post held by him before promotion, the basic pay in the said higher post shall be fixed at a stage higher than the next higher stage in the relevant revised scale.

Scheme - 8. Increments.

[44]An increment to an Officer in the scale of pay applicable to him shall be due every year on the 1st day of the month in which the last increment was drawn or on the 1st day of the month in which he completes twelve months of continuous service.

Provided that no such increment shall be granted if the concerned Officer has reached the maximum of the scale of pay applicable to him.

Explanation:- For the purposes of this paragraph, "twelve months of continuous service" means a period of duty equal to twelve months excluding period of extraordinary leave.

Scheme - 8A. Subject to the work record being found satisfactory.

[45](a) an Officer in Scale I, who has reached the maximum of the scale of pay applicable to him, may be granted for every three completed years of service after reaching such maximum, an additional increment (called 'Stagnation Increment') equal to the last increment drawn by him in the scale of pay subject to a maximum of two such increments:

Provided that an officer, who has already been granted, as on the 31st day of July, 2002, one Stagnation Increment in the scale of pay as per the Tenth Schedule, his basic pay in the relevant scale of pay as per the Eleventh Schedule shall be fixed at the corresponding one stage above the maximum of the scale of pay as per Table B, in Item II of the Eleventh Schedule:

Provided further that the second Stagnation Increment shall be granted to an officer, after the completion of three years from the date of receipt of first Stagnation Increment or, from the 1st day of the month following the date of publication of this Scheme, whichever is later;

(b)   an Officer in Scale II, who has reached the maximum of the scale of pay applicable to him, may be granted for every three completed years of service after reaching such maximum, an additional increment (called 'Stagnation Increment') equal to the last increment drawn by him in the scale of pay, subject to the maximum of four such increments:

Provided that no officer, who has already been granted, as on the 31st day of July, 2002, one, or two, or three Stagnation Increment or Increments in the scale of pay as per the Tenth Schedule, his basic pay in the relevant scale of pay as per the Eleventh Schedule shall be fixed at the corresponding one, or two, or three stage or stages above the maximum of the scale of pay as per Table B, in Item II of the Eleventh Schedule:

Provided further that the fourth Stagnation Increment shall be granted to an officer, after the completion of three years from the date of receipt of the third stagnation increment or, from the 1st day of the month following the date of publication of this Scheme, whichever is later;

(c)   an Officer in Scale III, who has reached the maximum of the scale of pay applicable to him, may be granted for every three completed years of service after reaching such maximum, an additional increment (called 'Stagnation Increment') equal to the last increment drawn by him in the scale of pay, subject to the maximum of two such increments:

Provided that an officer, who has already been granted, as on the 31st day of July, 2002, one Stagnation Increment in the scale of pay as per the Tenth Schedule, his basic pay in the relevant scale of pay as per the Eleventh Schedule shall be fixed at the corresponding one stage above the maximum of the scale of pay as per Table B, in Item II of the Eleventh Schedule:

Provided further that the second Stagnation Increment shall be granted to an officer, after the completion of three years from the date of receipt of the first Stagnation Increment or, from the 1st day of the month following the date of publication of this Scheme, whichever is later.

Explanation: For the purpose of this paragraph, 'service' means the period of duty excluding period or periods of extraordinary leave.

Scheme - 9. Provident Fund.

[46]Contribution to the Provident Fund shall be made-

(i)       at 10% of basic pay plus personal pay, if any, in case of every officer other than the [47]Chairman-cum-Managing Director;

(ii)      at 10% of basic pay plus personal pay, if any, and Dearness Pay, in case of the [48]Chairman-cum-Managing Director, with an equal contribution by the Corporation or the Company, as the case may be.

[49]Provided that the Corporation or a Company shall not contribute to the Provident Fund every month an amount of its contribution specified in this paragraph in respect of each such officer who,

(a)      opts for pension under the General Insurance (Employees') Pension Scheme, 1995; or

(b)      joins the service of the Corporation or the Company on or after 28.6.1995;

Provided further that the trustees of the Provident Fund of the Corporation or a Company, as the case may be, shall transfer, within six months after the publication of this Scheme, the accumulated balance of the Corporation's contribution or a Company's contribution, as the case may be, together with the interest accrued thereon in respect of each such officer who opts for pension under the General Insurance (Employees') Pension Scheme, 1995, to the respective Fund specified under column (2) in the Table in sub-paragraph (1) in paragraph 5 of the General Insurance (Employees') Pension Scheme, 1995.

[50]Explanation- For the purposes of this paragraph the expression "basic pay plus personal pay, if any" shall be computed:

(i)       for the period commencing on 1st day of August, 1992 and ending with 31st day of October, 1993 as per Seventh Schedule; and

(ii)      for the period commencing on 1st day of November, 1993 as per Eighth Schedule.

[51](iii) (a) in the case of [52]Chairman-cum-Managing Director of the Corporation and Chairman-cum-Managing Director of the Company, for the period commencing on 1st day of January, 1996, as per Ninth Schedule.

[53](aa) In the case of Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company, as the case may be, for the period commencing on the 1st day of January, 2006, as per the Twelfth Schedule."

(b) in the case of officers other than [54]Chairman-cum-Managing Director of the Corporation and Chairman-cum-Managing Director of the Company, for the period commencing on 1st day of August, 1997, as per Tenth Schedule.

[55](bb) In the case of officers other than the Chairman-cum-Managing Director, for the period commencing on the 1st day of August, 2002, as per Eleventh Schedule.

Scheme - 10. Payment of Gratuity.

(1)     (a) Gratuity shall be payable to an officer on the termination of his employment after he has rendered to the Corporation or the Company, or to both, continuous service (including continuous service with the insurer or the previous employer in whose service the officer was working on the 31st day of December, 1972) for not less than five years-

(i)       on his superannuation; or

 

(ii)      on his retirement or resignation; or

 

(iii)     on his death or disablement due to accident or diseases; or

 

(iv)    on termination of his service by the Corporation, or the Company; or

 

(v)      on his services being dispensed with owing to reduction of staff or reorganisation of establishment;

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any Officer is due to death or disablement.

Explanation:- For the purposes of this paragraph "disablement" means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

(b) For every completed year of service or part thereof in excess of six months, the Officer shall be paid gratuity at the rates specified below, namely:-

Provided 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 the 1st day of January, 1973, he shall not be paid gratuity at a sum less than that admissible to him under the said Scheme.

[56](bb) Notwithstanding anything contained in clause (a) relating to qualifying period of five years for admissibility of gratuity and Clause (b), gratuity shall be payable to every Officer who has been in continuous service of the Corporation or the Company, or both for not less than fifteen years, for each completed year of service or part thereof in excess of six months, at the rate of one month's basic pay, subject to a maximum of 15 months basic pay for service upto 30 years, and for service over 30 years, an additional gratuity shall be payable at the rate of half a month's basic pay for each completed year of service or part thereof in excess of six months.

Provided 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 1st day of January, 1973, he shall not be paid gratuity at a sum less than that admissible to him under the above Scheme.

[57]Provided further that the amount of gratuity payable to an officer shall be as determined in accordance with the above provisions or as calculated under the Payment of Gratuity Act, 1972(39 of 1972), whichever is more favourable to him.

[58](c) Notwithstanding the terms of any contract, agreement or letter of appointment, where any [59]Chairman-cum-Managing Director of the Corporation or the Chairman-cum-Managing Director of a Company, was an employee of the Corporation or the Company, immediately preceding his appointment to the post of [60]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company, as the case may be, then such a [61]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company shall be paid the gratuity which shall not be less than the amount which he would have been entitled to, had he continued in the scale of pay of General Manager, when the gratuity becomes due and payable to him.

[62]Provided that gratuity to [63]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company who was in service on or after 1st January 1996, shall be payable in accordance with the provisions contained in the Central Civil Services (Pension) Rules, 1972 as applicable to Central Government servants and in accordance with the instructions issued thereunder by the Central Government from time to time:

Provided further that the above proviso shall not apply in case of:

(i)       [64]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company who is governed by the General Insurance (Employees') Pension Scheme, 1995 and has retired on or after 1.1.1996 but before the date of publication of this Scheme in the Official Gazette or the family in the event of death of such [65]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company, who exercise an option not to be governed by the provisions of paragraph 54 B of the General Insurance (Employees') Pension Scheme, 1995, within 90 days of the publication of the General Insurance (Employees') Pension (Amendment) Scheme, 2001 in the official gazette,

(ii)      [66]Chairman-cum-Managing Director of the Corporation or Chairman-cum-Managing Director of the Company who is not governed by the General Insurance (Employees') Pension Scheme, 1995.

[67](2) deleted.

[68](3) deleted.

(4) Notwithstanding anything stated above the amount of gratuity payable under this paragraph shall in no case be less than that to which the officer had become entitled [69]under the conditions of service applicable to him and in force till the date on which the new terms are made applicable to him.

(5) Subject to any lien the Corporation or the Company may have on the amount of gratuity admissible to an Officer, the Corporation or the Company, as the case may be, shall pay the Officer or his nominee or nominees or if no nomination is made or is subsisting, his heirs, the amount of gratuity admissible under this paragraph.

(6) Notwithstanding anything contained in the foregoing sub-paragraphs-

(a)      where the penalty of dismissal is imposed on an Officer:-

(i)       who has been convicted of an offence, committed in the course of his employment and which offence, in the opinion of the Corporation or the Company, as the case may be, involves moral turpitude, or

(ii)      for any act involving violence against the management or other Officers or employees, or any riotous or disorderly behaviour in or near the place of employment, the gratuity payable to him shall stand wholly forfeited; and

(b)      where the penalty of compulsory retirement, removal from service or dismissal is imposed on an Officer for any act involving the Corporation or the Company, or both, in financial loss, the gratuity payable to him shall stand forfeited to the extent of such loss.

[70]Explanation: Omitted

Scheme - 11. Protection of Accrued Pension.

(1) Nothing contained in this Scheme shall affect the payment of any pension including family pension or superannuation benefits accrued to any Officer in accordance with the pension or superannuation Scheme as in force [71]on the date on which the new terms are made applicable to him.

[72](2)  (a) The amount payable under sub-paragraph (1) shall be determined on the pay in the existing scale drawn on the date on which the new terms are made applicable to him and on the basis of the number of years of the continuous service rendered as if he had retired on the date on which the new terms are made applicable to him.

[73]Explanation:- The term "Salary" referred to in sub-paragraph 2(a) above shall include all those components of pay as are taken for computation of pension in terms of the provisions in the concerned pension scheme of the erstwhile unit Company.

(b) The amount determined under clause (a) shall be payable to the Officer on his retirement or on his ceasing to be in service, pension to commence with effect from the date from which it would have ordinarily commenced in accordance with the relevant pension or superannuation scheme.

Scheme - 12. Transfers.

The Chairman-cum-Managing Director of a Company [74]or any other Officer authorised in this behalf by the Chairman-cum-Managing Director may at any time transfer any Officer from one department of the Company to another Department of that Company or from one Office of the Company to another office of that Company in the same place or any other place.

[75]The Chairman-cum-Managing Director of the Corporation [76]or any other Officer authorised in this behalf by the Chairman-cum-Managing Director may at any time transfer any Officer from one department of the Corporation to another Department of the Corporation or from one Office of the Corporation to another office of the Corporation in the same place or any other place.

Scheme - 13.

[77][Deleted].

Scheme - 14.Interpretation.

Where any doubt or difficulty arises as to the interpretation of any of the provisions of this Scheme, it shall be referred to [78]the Central Government for its decision.

Scheme - 15. Power to Relax.

Where the Board is satisfied that the operation of any of the provisions of the Scheme will cause undue hardship in any particular case, it may, by order and for reasons to be recorded in writing, dispense with or relax the requirements of that provision to such extent and subject to such exceptions and conditions as it may consider necessary for dealing with the case in a just and equitable manner.

Scheme - 16. Other Benefits.

No Officer shall be entitled to any benefit not arising out of this Scheme, or any Scheme which may be framed by the Corporation or a Company.

Scheme - 17. Overriding Effect.

The provisions of this Scheme shall have effect notwithstanding anything to the contrary contained in any terms of appointment, agreement, award or other instrument for the time being in force.

FIRST SCHEDULE

(See Paragraph 3 and 6)

I.         Pay Scales (Basic Pay)-

(1)     Chairman

Rs. 3500-125-4000.

(2)     Managing Director or Chairman-cum-Managing Director.

Rs. 3000-125-3500.

II.       [79]House Rent Allowance-

Rs. 350/- per month.

[80]Note: Any Officer who desires to be governed by the above rates till the commencement of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Fourth Amendment Scheme, 1978, may opt for the said rates of House Rent Allowance with effect from the 1st day of April, 1977 and such option shall be exercised within two months from the date of publication of this Notification in the official gazette.

III.     City Compensatory Allowance-

Rs. 75/- per month.

IV.      Maximum Personal Pay-

Rs. 700 per month.

SECOND SCHEDULE

(See Paragraphs 4, 6 and 13)

I.         Pay Scales (Basic Pay)-

(1)     General Manager

Rs. 2500-125-3000.

(2)     Assistant General Manager

Rs. 2000-125-2500.

(3)     Manager

Rs. 1600-100-2000-125-2250.

(4)     Deputy Manager

Rs. 1250-50-1300-75-1600-100-2000.

(5)     Assistant Manager

Rs. 1000-50-1300-75-1675.

(6)     Administrative Officer

Rs. 770-40-1050-50-1300.

(7)     Assistant Administrative Officer

Rs. 530-40-1050.

II.       Dearness Allowance-

The Dearness allowance payable to an officer under this Schedule shall be as given in the Table below.

THE TABLE

 

III.     [82]House Rent Allowance-

The House Rent Allowance shall be payable at the rate of 15% of basic pay per month subject to a minimum of Rs. 75/- per month and a maximum of Rs. 350/- per month.

Note: Any Officer who desires to be governed by the above rates till the commencement of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Second Amendment Scheme, 1978, may opt for the said rates of House Rent Allowance with effect from the 1st April, 1977 and such option shall be exercised within two months from the date of publication of this Notification in the Official Gazette.

IV.      City Compensatory Allowance-

The City Compensatory Allowance shall be payable at the following rates:

V.        Maximum Personal Pay-

The personal pay referred to in sub-clause (iii) of clause (a) of sub-paragraph (3) of paragraph 6 shall be limited to a maximum amount as under:-

THIRD SCHEDULE

[85](See Paragraphs 3, 6 & 13)

I.         Pay Scales (Basic Pay)-

Junior Officers-Rs. 460-35-530-40-890.

II.       [86]Dearness Allowance-

The Dearness Allowance payable under this Schedule shall be as given in the Table below:-

THE TABLE

 

Provided, however, that the maximum house rent allowance payable to any Officers shall not exceed Rs. 300/- per month.

III.     [87]House Rent Allowance-

The House Rent Allowance shall be payable at the rate of 15 per cent of basic pay per month subject to a minimum of Rs. 75/- per month and a maximum of Rs. 350/- per month.

[88]Note: Any Officer who desires to be governed by the above rates till the commencement of the General Insurance (Rationalisation of Pay Scales and Other Conditions of Service of Officers) Second amendment Scheme, 1978, may opt for the said rates of House Rent Allowance with effect from the 1st April, 1977 and such option shall be exercised within two months from the date of publication of this Notification in the Official Gazette.

IV.      City Compensatory Allowance-

The City Compensatory Allowance shall be payable at the following rates:-

V.        Maximum Personal Pay-

The personal pay referred to in sub-clause (iii) of clause (a) of sub-paragraph 3 of paragraph 6 shall be limited to a maximum amount as under:-

FOURTH SCHEDULE

[89][See Paragraph 3 (na) and (nb)]

I.         Pay Scales (Basic Pay)-

(1)     General Manager

Rs. 4100-125-4600.

(2)     Assistant General Manager

Rs. 3725-125-4350.

(3)     Manager

Rs. 3245-110-3685-115-3800.

(4)     Deputy Manager

Rs. 2715-105-3450.

(5)     Assistant Manager

Rs. 2250-100-3250.

(6)     Administrative Officer

Rs. 1625-100-2925.

(7)     Assistant Administrative Officer

Rs. 1175-75-1440-85-2675.

II.       Dearness Allowance:

The Dearness Allowance will be linked to All India Average Consumer Price Index Number for Industrial Workers (Base 1960 = 100) and shall be payable only when the average All India Consumer Price Index Number for Industrial Workers is above CPI 332, on the following lines; namely:-

(i)       For the purpose of payment of D.A., one cycle would consist of 24 points rise or fall in CPI. Each cycle would consist of 3 stages, viz. 1st stage at 8 points rise, 2nd stage at 16 points rise and 3rd stage at 24 points rise;

 

(ii)      Officers drawing pay upto Rs. 1600/- p.m. will be eligible to get quarterly adjustment in D.A. at the first stage viz. for every rise or fall of 8 points above 332 in the quarterly average of the AIACPI (1960 = 100);

 

(iii)     For Officers in the pay range of Rs. 1601-2425 p.m., the first adjustment will be at the 2nd stage only viz. for every block of 16 points (when the quarterly index reaches the level of 348) and the subsequent adjustment will be for the next block of 8 points (when the average index reaches 356). The cycle of adjustment will be repeated thereafter;

 

(iv)    For Officers drawing more than Rs. 2425/- p.m. the adjustment of D.A. will be for every cycle of 24 points above CPI 332;

 

(v)      The rate of adjustment will be 2 per cent of the basic pay for every change of 8 points (subject to what is stated in (iii) and (iv) above) in the quarterly average of the Index subject to ceiling of Rs. 31.60;

 

(vi)    The ceiling of Rs. 31.60 will be relaxed to ensure that the D.A. payable at any stage is not less than the D.A. payable at the rate of 3.9 per cent of the basic pay for each cycle of 24 points (3 stages of 8 points) over 332 points subject to a further ceiling of Rs. 150/- for every 24 points rise;

 

(vii)   Marginal adjustments wherever necessary shall be made to ensure that amount of D.A. payable at a higher level is not less than the amount of D.A. payable at a lower level.

III.     House Rent Allowance:-

The House Rent Allowance shall payable at the rate of 15 per cent of basic pay:

Provided that the house rent allowance payable to any Officer shall not exceed Rs. 400/- per month and the minimum house rent allowance payable to any Officer shall not be less than Rs. 200/- per month.

Provided further that Officers who are allotted accommodation by the Corporation or the company shall not be entitled to any house rent allowance and they shall pay as compensation for the use of accommodation allotted to them, an amount equivalent to 10 per cent of the basic pay or the licence fees, whichever is less.

IV.      City Compensatory Allowance:-

The City Compensatory Allowance shall be payable at the following rates:-

Note: For the purpose of City Compensatory Allowance the population figures shall be those as in the [91]1991 Census Report.

FIFTH SCHEDULE

[92][See Paragraph (6A)]

 

Note: "Existing basic pay" means the basic pay under the "existing terms".

SIXTH SCHEDULE

[93][see paragraphs 3(na), (nb) and 6B)]

I.         Pay Scales (Basic Pay)-

(1)     Chairman

Rs. 8000 per month.

(2)     Managing Director or Chairman-cum-Managing Director

Rs. 7500-125-8000.

II.       Manner of fixation of basic pay in the revised scales of pay:

(i)       The basic pay of Chairman shall be fixed at Rs. 8000.

(ii)      The basic pay of Managing Directors or Chairman-cum-Managing Directors shall be fixed at a corresponding stage in the revised scales of pay as specified in the Table below:

TABLE

Managing Director/Chairman-cum-Managing Director

(iii)     The Chairman, Managing Directors or Chairman-cum-Managing Director, as the case may be, whose basic pay is fixed in the revised scale of pay under item (ii) above shall be paid the difference of basic pay and dearness allowance (after deducting the Officer's compulsory contribution to the Provident Fund) between the 'revised terms' and 'New terms'.

III.     Dearness Allowance:

(i)       The dearness allowance payable to the Chairman, Managing Director or the Chairman-cum-Managing Directors shall be as under:

(ii)      Notwithstanding anything contained in sub-item (i), the Central Government may by order vary the amount of Dearness Allowance from time to time.

IV.      House Rent Allowance:

With effect from the 1st day of October, 1986, every Chairman, Managing Director and Chairman-cum-Managing Director shall be provided by the Corporation, a rent free unfurnished residential accommodation:

Provided that a Chairman, the Managing Director and the Chairman-cum-Managing Director who has not been provided with such accommodation, shall be paid a house rent allowance at the rate of 10 per cent of his pay plus an additional house rent allowance of Rs. 1000 per month.

V.        City Compensatory Allowance:

With effect from the 1st day of October 1986, the Chairman, the Managing Director and the Chairman-cum-Managing Director shall be entitled to city compensatory allowance at the rate of Rs. 100 per month.

SEVENTH SCHEDULE

[94][See Paragraphs 4]

I.         Pay Scales (Basic Pay)-

(1)     General Manager

Rs. 6400-150-7000.

(2)     Assistant General Manager

Rs. 5950-150-6550.

(3)     Manager

Rs. 5350-150-5950.

(4)     Manager

Rs. 5350-150-5950.

(5)     Deputy Manager

Rs. 4520-130-4910-140-5050-150-5350.

(6)     Assistant Manager

Rs. 3660-120-4260-130-4910-140-5050.

(7)     Administrative Officer

Rs. 2940-120-4260-130-4520.

(8)     Assistant Administrative Officer

Rs. 2100-120-4260.

II.       Fixation of the Basic Pay

TABLE

Note: The term "Existing Basic Pay" in the above Table shall mean the basic pay as applicable in accordance with the Fourth Schedule.

III.     Dearness Allowance:

[95](1) The scale of dearness allowance applicable to the Officers shall be determined as under:-

Index: All India Average Consumer Price Index Number for Industrial Workers.

Base Year: 1960 = 100.

Revision of Dearness Allowance: Revision of Dearness Allowance may be made on quarterly basis for every 4 points rise or fall.

Rate of Dearness Allowance: For every 4 points in the quarterly average over 600 points, the dearness allowance shall be calculated at the following rates:-

(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 600 points in the sequence 600-604-608-612 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 the dearness allowance payable shall correspond to the figure in the above sequence next preceding the current average figure if such current average figure is not a figure in the above sequence.

(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.

IV.      House Rent Allowance:

(1)     Save as otherwise provided in sub-item (2) the house rent allowance payable to Officers shall be at the rate of 12.5 per cent of basic pay, subject to a maximum of Rs. 500/- per month.

(2)     In case of Officers posted at Ahmedabad, Bangalore, Bombay, Calcutta, Delhi, Hyderabad, Kanpur, Madras Nagpur, Pune, Panaji, or Marmugao, the house rent allowance, payable shall be the least of the following, namely:-

(a)      an amount equivalent to 12.5 per cent of the basic pay; or

(b)      an amount equal to the difference between 6 per cent of the basic pay at the minimum of the scale of pay applicable to the officer and the actual rent paid by him or 12 per cent of his investment together with outgoings by way of taxes where the residential accommodation is owned by the officer:

Provided that the amount payable shall not be less than the house rent allowance prescribed under sub-item (1) and not more than Rs. 600 per month.

(3)     Officers who are allotted residential accommodation by the Corporation or Company, shall pay for such accommodation, the appropriate licence fee as may be decided by the Corporation from time to time and shall not be entitled to any house rent allowance in terms of either sub-item (1) or sub-item (2).

V.        City Compensatory Allowance:

(1)     The scale of City Compensatory Allowance payable to Officers shall be as under:

Note: For the purpose of this paragraph, the population figures shall be those in the 1981 Census Report.

VI.      Hill Station Allowance:

(1)     The scale of Hill Station Allowance payable to Officers shall be as follows:

VII.    Kit Allowance:

Every Officer on his transfer to any of the hill stations at which hill station allowance is payable in terms of Item VI of this Schedule shall be paid a Kit Allowance of Rs. 2000/-.

Provided that no kit allowance shall be payable if such Officer has drawn such allowance at any time earlier.

EIGHTH SCHEDULE

[97](See Paragraph 4)

I.         Pay Scales (Basic Pay)-

(1)     General Manager

Rs. 12650-300-13250-350-13600-400-14000

(2)     Assistant General Manager

Rs. 11450-300-12650

(3)     Manager

Rs. 10450-250-11450

(4)     Deputy Manager

Rs. 8970-230-9200-250-10450

(5)     Assistant Manager

Rs. 7360-230-9200-250-9950

(6)     Administrative Officer

Rs. 5980-230-8970

(7)     Assistant Administrative Officer

Rs. 4250-230-4940-350-5290-230-8510

II.       Fixation of the Basic Pay-

TABLE

Note: The term existing basic pay in the above table shall mean the basic pay as applicable in accordance with the Seventh Schedule.

III.     Dearness Allowance:

(1)     The scale of dearness allowance applicable to the Officers shall be determined as under:-

Index: All India Consumer Price Index for Industrial Workers.

Base Year: 1960 = 100.

Revision of Dearness Allowance:-Revision of Dearness Allowance may be made on quarterly basis for every 4 points rise or fall.

Rate of Dearness Allowance:-For every 4 points in the quarterly average over 1148 points, the dearness allowance shall be calculated at the following rates:-

(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 1148 points in the sequence 1148-1152-1156-1160 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 the dearness allowance payable shall correspond to the figure in the above sequence next preceding the current average figure if such current average figure is not a figure in the above sequence.

(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.

IV.      House Rent Allowance:

(1)     The House Rent Allowance payable to Officers shall be at the rate of 12.5 per cent of the basic pay, subject to a maximum of Rs. 875/- per month.

(2)     Officers who are allotted residential accommodation by the Corporation or Company shall pay for such accommodation appropriate licence fee as may be decided by the Corporation or the Company from time to time and shall not be entitled to House Rent Allowance in terms of sub-item (1) of item above.

V.        City Compensatory Allowance:

During the period from 1.8.1992 to 31.7.1993 the scales of City Compensatory Allowance payable to Officers shall be payable in the same manner and to the same extent as per the Seventh Schedule.

With effect from 1.8.1993, the scales of City Compensatory Allowance payable to Officers shall be as under:

Note: (1) For the purpose of this item, the population figures shall be those in the 1991 Census Report.

(2) Cities shall include their urban agglomeration

VI.      Hill Station Allowance:

The scale of Hill Station Allowance payable to Officers shall be as follows:

VII.    Kit Allowance:

Every Officer on his transfer to any of the hill stations at which hill station allowance is payable in terms of item VI of this Schedule shall be paid a Kit Allowance of Rs. 2,000/-:

Provided no kit allowance shall be payable if such Officer has drawn such allowance at any time earlier.

VIII.  Computer Increment/Fixed Personal Allowance:

(1)     An Officer other than the officer mentioned below:

(i)       who is on probation on first appointment as on 1st day of November, 1993; or

 

(ii)      who has reached the maximum of the scale of pay applicable to him as on 1st day of November, 1993; or

 

(iii)     who has been in receipt of one or more additional increments referred to in paragraph 8A on the 1st day of November, 1993, shall be paid, on account of computerisation, one increment in the scale of pay applicable to him on the 1st day of November, 1993:

Provided that an Officer who on his first appointment in the service of the Corporation or Company was on probation on the 1st day of November, 1993 shall be paid one increment on completion of one year of service after the date of his confirmation.

(2)     An officer

(i)       who has reached the maximum of the scale of pay applicable to him on the 1st day of November, 1993; or

(ii)      who has been in receipt of one or more additional increments referred to in paragraph 8A on the 1st day of November, 1993, shall be paid, a Fixed Personal Allowance on account of computerisation equivalent to the aggregate of the amount of the last increment in the scale of pay applicable to him on the 1st day of November, 1993, the dearness allowance thereon as on the 1st day of November, 1993 and the difference in House Rent Allowance, if any.

(3)     An officer who is in receipt of an increment on account of computerisation and who subsequently reached the maximum of the scale of pay applicable to him, shall be paid the fixed personal allowance referred to in sub-paragraph (2) above, on the expiry of a period of one year of reaching the maximum of the scale of pay.

(4)     Fixed personal allowance, to the extent it does not exceed the amount of the last increment in the scale of pay applicable to him on the 1st day of November, 1993, shall count for the purposes of provident fund and gratuity and for the purpose of pension payable under the General Insurance (Employees') Pension Scheme, 1995.

IX.      Conveyance Allowance:

With effect from the 1st day of August, 1994, every Officer, who is not in receipt of any Conveyance Allowance under any of the Conveyance Schemes shall be paid Conveyance Allowance of Rs. 100/- per month.

X.        [98]Special Allowance:

(1)     With effect form 1st day of July, 1996 every Officer shall be paid 'Special Allowance' of Rs. 195/- per month.

(2)     The special allowance shall not be treated as part of basic pay. However, the said 'Special Allowance' shall count for the purpose of dearness allowance, house rent allowance, city compensatory allowance, provident fund, pension, gratuity and encashment of earned leave.

NINETH SCHEDULE

[99](see paragraphs 3(na), (nb) and 6B)

I.         Pay Scales (Basic Pay)-

(i)       Chairman

Rs. 26000/- per month.

(ii)      [100]Chairman-cum-Managing Director

Rs. 24050-650-26000/-.

II.       Manner of fixation of basic pay in the revised scales of pay:

(i)       The basic pay of Chairman shall be fixed at Rs. 26000.

(ii)      With effect from 1st day of January, 1996 the basic pay of [101]Chairman-cum-Managing Director as per Sixth Schedule to said Scheme, shall be fixed as specified in the Table below:

TABLE

[102]Chairman-cum-Managing Director

(iii)     [103]Chairman-cum-Managing Director, as the case may be, whose basic pay is fixed in the revised scale of pay under item (ii) above shall be paid the difference of basic pay and dearness allowance (after deducting the Officer's compulsory contribution to the Provident Fund) between the 'Pre-revised terms', as per Sixth Schedule to the said Scheme and 'Revised Terms'.

(iv)    [104]w.e.f. 1st day of April, 2004, Dearness Allowance equal to fifty percent of the basic pay shall be merged with the basic pay in case of the [105]Chairman-cum-Managing Director, as the case may be.

III.     Dearness Allowance:

(i)       The dearness allowance payable to [106]Chairman-cum-Managing Director shall be as under:-

[107]Provided that w.e.f. 1st day of April, 2004, the dearness allowance payable to the [108]Chairman-cum-Managing Director shall be 11 per cent of his basic pay including dearness pay.

(ii)      Notwithstanding anything contained in sub-item (i), the Central Government may, by order, vary the amount of Dearness Allowance from time to time.

IV.      House Rent Allowance:

Every [109]Chairman-cum-Managing Director shall be provided by the Corporation, a rent free unfurnished residential accommodation:

Provided that the [110]Chairman-cum-Managing Director who has not been provided with such accommodation, shall be paid a house rent allowance as under:

(i)       for the period between 1.1.1996 and 31.7.1997, as per item IV of the Sixth Schedule to the said Scheme; and

(ii)      with effect from 1st day of August, 1997, at the following rate:

(a)      at Mumbai and New Delhi, 30 per cent of basic pay in the revised scale, drawn per month; and

(b)      at Calcutta and Chennai, 15 per cent of basic pay in the revised scale, drawn per month.

[111]Provided further that w.e.f. 1st day of April, 2004, the [112]Chairman-cum-Managing Director, who has not been provided with such accommodation, shall be paid a house rent allowance at the following rate:

(a)      at Mumbai and New Delhi, 30% of basic pay and dearness pay drawn per month; and

(b)      at Calcutta and Chennai, 15% of basic pay and dearness pay drawn per month.

V.        City Compensatory Allowance:

[113]Chairman-cum-Managing Director shall be entitled to City Compensatory Allowance as under:

(a)      for the period between 1.1.1996 and 31.7.1997, as per item V of the Sixth Schedule to the said Scheme; and

(b)      with effect from 1st day of August, 1997, at the rate of Rs. 300/- per month.

Note: The fixation of pay in the revised scale has been done on the basis of the Central Civil Services (Revised Pay) Rules, 1997.

TENTH SCHEDULE

[114][See paragraph 4 sub-paragraph (8)]

I.         Pay Scales (Basic Pay)-

(1)     General Manager

Rs. 21200-550 (2)-22300-600(1)-22900-700(1)-23600

(2)     Assistant General Manager

Rs. 19000-550(4)-21200

(3)     Manager

Rs. 17150-450(3)-18500-500(1)-19000

(4)     Deputy Manager

Rs. 14735-360(1)-15095-385(3)-16250-450(2)17150

(5)     Assistant Manager

Rs. 12215-360(8)-15095-385(3)16250

(6)     Administrative Officer

Rs. 10055-360(13)-14735

(7)     Assistant Administrative Officer

Rs. 7535-360(18)-14015

II.       Fixation of the Basic Pay-

TABLE

Note: The term existing Basic Pay in the above table shall mean the Basic Pay as applicable in accordance with the Eighth Schedule.

III.     Dearness Allowance:

(1)     The scale of dearness allowance applicable to the Officers shall be determined as under:-

Index: All India Average Consumer Price Index for Industrial Workers.

Base: Index No. 1740 in the series 1960 = 100.

Rate of dearness allowance:- For every 4 points in the quarterly average over 1740 points, the dearness allowance shall be calculated at the rate of 0.23% of Basic Pay.

Revision of dearness allowance:- Revision of dearness allowance may be made on quarterly basis for every 4 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 1740 points in the sequence 1740-1744-1748-1752 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)     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.

(4)     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.

IV.      House Rent Allowance

(1)     MWith effect from 1st day of August, 1997, the House Rent Allowance payable to Officers shall be as shown in the Table below:

TABLE

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 additional increments as per paragraph 8A.

(2)     Officers who are allotted residential accommodation by the Corporation or Company shall pay for such accommodation, appropriate licence fee as may be decided by the Corporation or the Company from time to time and shall not be entitled to House Rent Allowance in terms of sub-item (1) of this item.

V.        City Compensatory Allowance:

With effect from 1st day of August, 1997, the City Compensatory Allowance payable to Officers shall be as under:

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 additional increments as per paragraph 8A

VI.      Hill Station Allowance:

With effect from 1st day of the month following the date of publication of this scheme in the Official Gazette, Hill Station Allowance payable to Officers shall be as follows:

VII.    Kit Allowance:

Every Officer on his transfer to any of the hill stations at which hill station allowance is payable in terms of item VI of this Schedule shall be paid a Kit Allowance of Rs. 2,000/-:

Provided that no kit allowance shall be payable if such Officer has drawn such allowance at any time earlier.

VIII.  Fixed Personal Allowance to employees who have received increment on account of computerization effective from 1.11.1993:

With effect from 1st August, 1997, the Fixed Personal Allowance payable to Officers as per item VIII of the Eighth Schedule shall stand revised as shown in the Table below:

TABLE

The revised Fixed Personal Allowance shall not qualify for DA and HRA. However, the pre-revised increment component of Fixed Personal Allowance mentioned in column (2) of the above table shall rank for Provident Fund and Pension and the said increment component along with dearness allowance thereon as on 1.11.1993 shall rank for Gratuity and encashment of earned leave.

IX.      Additional increment for computerisation/Fixed Personal Allowance to officers who have joined service of the Corporation or Company after 1.11.1993 but before the date of publication of this Scheme.

(1)     All confirmed officers who have joined the services of the Corporation or Company after 1.11.1993 but before the date of publication of this scheme, shall be paid, with effect from the 1st day of the month following the date of publication of this scheme, on account of computerisation, one increment in the scale of pay as may be applicable to the concerned officer on the date of publication of this scheme:

Provided that an officer who, on his first appointment in the service of the Corporation or Company, was on probation on or before the date of publication of this scheme shall be paid one increment on completion of 365 days of service after the date of confirmation:

Provided further that no such increment shall be payable to the officers joining the services of the Corporation or Company on or after the date of publication of this scheme.

(2)     An officer who is in receipt of an increment on account of computerisation as per sub-item (1) of this item and who subsequently reaches the maximum of the scale of pay applicable to him, shall be paid, on the expiry of a period of one year of reaching the maximum of the scale of pay, Fixed Personal Allowance equivalent to the amount of last increment in the scale of pay applicable to him on the date of publication of this scheme:

Provided that the Fixed Personal Allowance shall not qualify for payment of dearness allowance or house rent allowance:

Provided further that from out of the Fixed Personal Allowance, the amount as specified in column(2) of the Table below, in respect of each scale of pay, shall rank for Provident Fund and Pension and the said amount along with dearness allowance thereon as on 1.11.1993 shall rank for Gratuity and encashment of earned leave.

TABLE

X.        Conveyance Allowance:

With effect from the 1st day of August, 1997, every Officer, who is not in receipt of any Conveyance Allowance under any of the Conveyance Schemes shall be paid Conveyance Allowance of Rs. 150/- (Rupees One hundred and fifty) per month.

XI.      One time lumpsum payment in lieu of Productivity Linked Lumpsum Incentive(PLLI):

In lieu of PLLI, officers will be paid for the period from 1.8.1997 to 31.3.1999, one time lumpsum payment of 1.67% of the Wage Bill of the General Insurance Industry for Officers as on 1.8.1997 (pre-revised).

XII.    Productivity Linked Lumpsum Incentive (PLLI) Scheme:

For the period 1.4.1999 to 31.3.2002, PLLI shall be payable as per Appendix.

APPENDIX

PRODUCTIVITY LINKED LUMPSUM INCENTIVE (PLLI) SCHEME

(See item XII)

1.        PLLI would be based on the Wage Bill of the General Insurance Industry or Company or Corporation, as the case may be, for Officers as on 1.8.1997(pre-revised).

2.        Eligibility:

Grant of PLLI would be measured on the basis of following parameters:

(a)      Issue of renewal notices-pre-requisite for eligibility

Issuance of renewal notices in time limit shall be mandatory i.e. to issue the Renewal Notices in respect of policies expiring in a particular month by the 15th of the previous month.

(b)      Claim settlement ratio

Claim settlement ratio means the ratio arrived at by the following formula, (rounded off to the number leaving decimals), namely:-

(c)      Documentation ratio

Documentation ratio means the ratio arrived at by the following formula (rounded off to the number leaving decimals), namely:-

(d)      Control of Management Expenses Ratio (MER)

PLLI would be payable in the event the Management Expenses Ratio for the individual Company is within the limits prescribed in the Insurance Act/Insurance Rules.

Explanation: 1. Parameters mentioned in sub-paragraph (a), (b) and (c) will be applicable for grant of PLLI as per clause (a) of Part A of paragraph 4.1;

2. Parameter (d) will be applicable for grant of PLLI as per clause (b) of Part A of paragraph 4.1;

3.        Parameters (Threshold level and Benchmark level of performance):

The PLLI would depend on performance levels in defined parameters. The performance level in each of the parameters would consist of two elements (a) Threshold level and (b) Benchmark levels.

Threshold level of performance will be the actual levels of performance of the respective Companies in the preceding year.

Benchmark level shall be 1% increase over Threshold Level:

Provided that where 99% documentation is already achieved, Benchmark will be fixed at 0.5% increase over Threshold level recorded:

Provided further that a marginal shortfall in any of the parameters may be condoned by the Board.

Whereas the benchmark standards would be uniform for all the Companies, the levels of Performance would be evaluated on Company-wise basis for Part A and Industry as a whole for Part B of the PLLI scheme.

4.        PLLI payment Scale:

4.1 The PLLI payable would reckon under two parts-Part A and Part B as under:

Part (A): On Company-wise performance basis:

PLLI upto a maximum of 2% would be payable for achievement of benchmark levels in Customer Service parameters given below and 1% PLLI would be payable in the event the Management Expenses Ratio (MER) for the individual Company is within the limits prescribed in the Insurance Act, 1938/Insurance Rules.

4.1.1 For the Officers of the Corporation:

2% PLLI would be payable provided the industry average on customer service parameters conform to the benchmark prescribed above. 1% incentive would be payable if at least one Company in the industry conform to the MER parameter indicated above.

4.1.2 Payment of PLLI under Part A would be subject to Gross Profit earned by the Company for the year of performance.

4.2 Part (B): On Industry Average Basis

PLLI upto 3% would be payable for reduction of Management Expenses ratio (MER) on the following scale:-

4.2.1 Payment of PLLI under Part B would be subject to Gross Profit earned by the General Insurance Industry for the year of performance.

4.3 The maximum amount of PLLI payable shall be at 6% of the wage bill as on 1.8.1997 (pre-revised).

Explanation: 1. At stage I, the scale of payment of PLLI would be proportionate to reduction in MER. e.g. in case the MER is reduced by 0.5%, PLLI payable would be 0.5% of wage bill as on 1.8.1997(pre-revised).

2. At stage II, the scale of payment of PLLI would be in the ratio of 1:2 corresponding to the reduction in MER. e.g. for every 0.10% reduction in the MER below 19.5%, PLLI payable would be 0.2% of wage bill as on 1.8.1997(pre-revised).

3. MER calculation would include PLLI paid in the year of payment.

5.        Payment of PLLI:

The PLLI will be payable after the achievement of the performance with reference to the prescribed benchmark based on the audited accounts for the relevant accounting year.

The PLLI will be distributed as a lumpsum annually after 1st August each year, after the audited figures are available.

6.        Suitable Monitoring and Reporting System would be devised by the Corporation or Company to measure the performance level of the Corporation or Company under each parameter.

ELEVENTH SCHEDULE

[116][See paragraph 4 sub-paragraph (9)]

I.         Pay Scales (Basic Pay):

(1)     Scale VII

Rs. 31745-785(2)-33315-850(1)-34165-940(1)-35105-995(1)-36100

(2)     Scale VI

Rs. 28605-785(5)-32530

(3)     Scale V

Rs. 25930-650(3)-27880-725(2)-29330

(4)     Scale IV

Rs. 22030-650(7)-26580

(5)     Scale III

Rs. 18130-540(1)-18670-560(6)-22030-650(4)-24630

(6)     Scale II

Rs. 14890-540(7)-18670-560(6)-22030

(7)     Scale I

Rs. 11110-540(14)-18670-560(4)-20910

II.       Fixation of the Basic Pay and Stagnation Stages:

TABLE-A

 

 

Note: The term 'Existing Basic Pay' in the above tables shall mean the basic pay as applicable in accordance with the Tenth Schedule.

III.     Dearness Allowance:

(1)     The scale of dearness allowance applicable to the officers shall be determined as under:-

Index: All India Average Consumer Price Index for Industrial Workers

Base: Index No. 2328 in the series 1960 = 100

Rate of dearness allowance:- For every four points in the quarterly average over 2328 points, the dearness allowance shall be calculated at the rate of 0.18 per cent of Basic Pay.

Revision of dearness allowance:- 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 2328 points in the sequence 2328-2332-2336-2340 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)     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.

(4)     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.

IV.      House Rent Allowance:

(1)     With effect from the 1st day of August, 2002, the House Rent Allowance payable to officers shall be as shown in the Table below:

TABLE

Note: (1) For the purposes 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 as per paragraph 8A.

(2)     Officers who are allotted residential accommodation by the Corporation or Company shall pay for such accommodation, appropriate licence fee as may be decided by the Corporation or the Company from time to time and shall not be entitled to House Rent Allowance in terms of sub-item (1) of this item.

V.        City Compensatory Allowance:

With effect from the 1st day of August, 2002, the City Compensatory Allowance payable to officers shall be as shown in the Table below:-

TABLE

Note: (1) For the purposes 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 as per paragraph 8A.

VI.      Hill Station Allowance:

With effect from the 1st day of the month following the date of publication of this Scheme, Hill Station Allowance payable to officers shall be as shown in the Table below:-

TABLE

VII.    Kit Allowance:

Every officer on his transfer to any of the hill stations at which hill station allowance is payable in terms of item VI of this Schedule, shall be paid a Kit Allowance of Rs. 2,000/-:

Provided that no Kit Allowance shall be payable if such officer has drawn such allowance at any time earlier.

VIII.  Fixed Personal Allowance:

With effect from the 1st day of August, 2002, the Fixed Personal Allowance payable to officers shall be as shown in column (2) of the Table below:-

TABLE

Note: The revised Fixed Personal Allowance (FPA) as shown in column (2) above shall not qualify for any allowance or for any service or terminal benefits. However, the Increment Portion of FPA as per the Eighth Schedule as shown in column (3) 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 (4) above shall rank for Gratuity and Encashment of Earned Leave.

IX.      Transport Allowance:

With effect from the 1st day of August, 2002, the Conveyance Allowance payable to officers at the rate of Rupees one hundred and fifty per month as per Item X of the Tenth Schedule shall stand revised to Rupees Five Hundred per month and shall be renamed as 'Transport Allowance'.

X.        Paradeep Port Allowance:

With effect from the 1st day of the month following the date of publication of this Scheme or the date of appointment, whichever is later, every confirmed officer posted in the office of the Company in Paradeep Port shall be paid an allowance of Rupees Seventy Five per month so long as he is posted in that office. This allowance shall not be treated as Basic Pay for any purpose.

TWELFTH SCHEDULE

[117](see paragraphs 3(na), (nb) and 6B)

I.         Pay Scales (Basic Pay)-

Chairman-cum-Managing Director

HAG + Pay Scale of Rs. 75,500/- (annual increment @ 3%) 80,000/-

Note: The grant of annual increment in the revised scale shall be governed by the provisions of the Central Civil Services (Revised Pay) Rules, 2008.

II.       Manner of fixation of basic pay in the revised scales of pay:

(1)     With effect from 1st day of January, 2006, the basic pay of Chairman-cum-Managing Director shall be fixed as per Twelfth Schedule as specified in the Table below:

TABLE

Note: The fixation of pay in the revised scale has been done on the basis of the Central Civil Services (Revised Pay) Rules, 2008.

(2)     Chairman-cum-Managing Director, whose basic pay is fixed in the revised scale of pay under item (1) above shall be paid the difference of basic pay and dearness allowance (after deducting the Officer's compulsory contribution to the Provident Fund) between the Pre-revised terms, as per Ninth Schedule to the said Scheme and revised terms, as under:

40% of such difference in current financial year, viz., 2008-09; and

60% of such difference in 2009-10.

III.     Dearness Allowance:

(1)     The Dearness Allowance payable to Chairman-cum-Managing Director shall be as under:-

(2)     Notwithstanding anything contained in sub-item (1), the Central Government may, by order, vary the amount of Dearness Allowance from time to time.

IV.      House Rent Allowance:

Every Chairman-cum-Managing Director shall be provided by the Corporation, or the Company, as the case may be, a rent free residential accommodation:

Provided that the Chairman-cum-Managing Director who has not been provided with such accommodation, shall be paid a house rent allowance as under:

(i)       for the period between 1.1.2006 and 31.8.2008, as per item IV of the Ninth Schedule; and

(ii)      with effect from 1st day of September, 2008, at the rate of 30 per cent of basic pay in the revised scale, drawn per month.

V.        City Compensatory Allowance:

Chairman-cum-Managing Director shall be entitled to get City Compensatory Allowance as per item V of the Ninth Schedule for the period upto 31.8.2008, with effect from 1st day of September, 2008, there shall be no City Compensatory Allowance.

VI.      Transport Allowance:

With effect from 1st September, 2008, the Chairman-cum-Managing Director, who is otherwise entitled to the use of official car for travel between residence and office, shall have an option to draw transport allowance at the rate of Rs. 7000 p.m. plus dearness allowance thereon provided he does not use official car for travel between residence and office.

VII.    Children Education Allowance:

With effect from 1st September, 2008, Children Education Allowance shall be reimbursed to the Chairman-cum-Managing Director upto the maximum of Rs. 1000 per child per month subject to a maximum of two children and, in case of the child residing in Hostel, Hostel Subsidy shall be reimbursed upto the maximum limit of Rs. 3000 per child per month subject to a maximum of two children. The limits would be automatically raised by 25% every time the Dearness Allowance on the revised Basic Pay goes up by 50%.

VIII.  Other allowances not specifically included in this Schedule:

The payment of Other allowances to the Chairman-cum-Managing Director, not specifically mentioned in this Schedule, shall be done as in the case of officers in Higher Administrative Grade on the basis of the Central Civil Services (Revised Pay) Rules, 2008."