FOREWORD

Office Services Department provides varied services to its customers. Accurate and timely
execution of the job benefits both the customer and the department. While providing services,
every employee of the OS department should be aware of the rules and regulations prevailing
so that one can provide qualitative service. The revised OS Manual is an attempt to reflect
the changes in rules and regulations and to equip the OS personnel with up-to-date knowledge.

The recent wage revision brought about many changes in the employee benefits. The limits of
re-imbursements and various advances have been enhanced. Due to inflation, prices of all
consumable items procured by the Organization have gone up and hence it was felt necessary
to amend the provisions of existing Stores Code. All these changes have been incorporated in
this revised manual.

In recent years, security measures have become the main area of focus for OS department.
Proper security of its people and its properties is the prime responsibility of every organization.
In providing security to men and material, OS Department plays a pivotal role. Fire incidences,
thefts, short circuits, arranging police bandobast, installation of various security gadgets etc.
are the major areas of concern for OS Personnel. Hence, it becomes necessary to lay down
comprehensive guidelines for tackling such eventualities. Detailed guidelines are given in
the Chapter on Security and Fire Fighting Measures in this regard.

In September 2010, a new concept of Employee Benefit was introduced- Meal Vouchers to
every employee of the Corporation. Time and again, various circulars were issued to solve
various problems encountered during the course of administration of Meal Voucher. It is
therefore necessary for the dealing personnel to be aware of all the circulars and instructions
issued by Central Office from time to time. A new topic on Meal Voucher administration has
been introduced in this revised manual.

I take this opportunity to express my appreciation to the teams of Zones and also the OS team
of Central Office for compiling all the required information and making this Manual a fruitful
one.

I hope all the offices of the Corporation will benefit from this revised manual and follow the
provisions of the Manual in good spirit.

RAJESH KANDW
KANDWALAL
EXECUTIVE DIRECTOR
(E&OS/SBU-ESTATES)
dfdf
 INDEX
CHAPTER TITLE PAGE No.
No.
1 OFFICE DISCIPLINE .......................................................................... 1
2 STAFF RECORD SHEET .................................................................... 13
3 SALARY ADMINISTRATION .............................................................. 15
4 SALARY ATTACHMENTS ................................................................... 48
5 INCREMENTS ...................................................................................... 54
6 INCENTIVES ........................................................................................ 61
7 ADVANCES ........................................................................................... 66
8 MEDICAL BENEFITS ......................................................................... 79
9 MEDICLAIM SCHEME ....................................................................... 82
10 SCHEME OF EX-GRATIA REIMBURSEMENT ............................... 99
OF MEDICAL EXPENSES FOR HIGH COST /
PROTRACTED TREATMENT FOR SPECIFIED
MAJOR DISEASES
11 EMERGENCY MEDICAL AID/ACCIDENT ...................................... 113
WHILE ON DUTY
12 GROUP INSURANCE .......................................................................... 117
13 EMPLOYEE BENEFITS...................................................................... 127
14 LEAVE TRAVEL CONCESSION ........................................................ 132
15 PENSION MATTERS ........................................................................... 159
16 TERMINAL BENEFITS ....................................................................... 202
17 LEAVE RULES ...................................................................................... 247
18 T.E. RULES ............................................................................................ 265
19 OFFICIATING ARRANGEMENTS ..................................................... 291
20 PART TIME STUDIES ......................................................................... 294
21 PART TIME WORKMEN ..................................................................... 297
22 EMPLOYER CERTIFICATE ............................................................... 300
23 STRIKE .................................................................................................. 303
24 WOMEN’S CELL ................................................................................... 310
25 GUEST HOUSE RULES ...................................................................... 312
26 IDENTITY CARDS FOR RETIRED EMPLOYEES.......................... 315
27 CORPORATE IDENTITY .................................................................... 317
28 OFFICE UPKEEP AND BEAUTIFICATION .................................... 329
CHAPTER TITLE PAGE No.
No.

29 SECURITY AND FIRE FIGHTING MEASURES ............................. 332

30 INSTRUCTIONS REGARDING .......................................................... 352
PROVISION OF CARPET,ETC.
31 STORES CODE ..................................................................................... 354
32 FURNITURE AND FITTINGS ............................................................ 369
33 DEPRECIATION ON CAPITAL ITEMS ............................................ 373
34 STATIONERY AND PRINTED FORMS ............................................. 376
35 MAIL ...................................................................................................... 379
36 TELEPHONES ...................................................................................... 384
37 STAFF CAR ........................................................................................... 389
38 LIBRARY ............................................................................................... 391
39 PERIODIC STATEMENTS .................................................................. 395
40 DESTRUCTION OF OLD RECORDS. ............................................... 401
41 MEAL VOUCHER SCHEME .............................................................. 406
 CHAPTER 1
OFFICE DISCIPLINE
Rules regarding Office Discipline, the various kinds of leave available to the employees and
the conditions governing their grant are set out in the (Staff) Regulations,1960 and
Establishment Manual. Apart from this, Central Office/Zonal Office have issued various
instructions in those matters from time to time. Some of the instructions issued from time to
time are enumerated below for proper maintenance of Attendance Register and Leave Records.
I. Devotion to duty :
All employees of the Corporation shall, at all times maintain absolute integrity and
devotion to duty and so conduct themselves as to maintain full and proper discipline,
promote efficiency and in all ways contribute towards making the Corporation the
pride of the Public Sector.
II. Punctual attendance and the grace period of 10 minutes :
(1) All employees must make it a point always to reach the office and start their
work at the appointed time. It should be remembered that 9.30 A.M./10.00 A.M./
10.30 A.M. as the case may be, is the appointed time to start work and not
necessarily to reach office. The Officers and the supervisory staff, in particular,
should set an example in regular and punctual attendance to other employees
by themselves doing so without fail.
(2) A ‘grace period’ of 10 minutes is permitted only in deserving cases, so that failure
to attend the office at the appointed opening hour by that period of time is excused
in such cases. The utilization of the grace period should be an exception rather
than a rule. Its existence is not to be looked upon as a licence to attend office
late every day by ten minutes. Similarly, the employees who attend the office on
appointed time must begin work without any delay and not wait for the grace
period to end before starting work.
III. Late-attendance :
1. An employee who attends the office after the expiry of the grace period will be
marked late if he attends the office within 1 hour from the commencement of
the office hours.
2. An employee late by more than 1 hour, but not beyond first half day, shall be
treated as on half day casual leave and such casual leave shall be duly sanctioned
to him if there is sufficient leave to his credit. If he has no casual leave to his
credit he shall be treated as on extraordinary leave for half day. If however, the
late attendance of more than one hour is on a Saturday or a half holiday, the
employee is to be sanctioned one day Casual Leave or is to be treated on
Extraordinary-Leave for one day.
3. No employee should be allowed to attend the office late by more than 3 1/2 hours
from commencement of the office hours.
4. (a) Sub-Regulation 3 of Regulation 30 of the (Staff) Regulations, 1960,
empowers the competent authority to condone late attendance by an
employee for 2 days in a month. Such condonation, however, is intended
only for delay in attendance merited by circumstances of the case. The

1
 power to condone is to be exercised at the discretion of the competent
authority and it would be in order for the competent authority not to
condone the late attendance if it is not satisfied that the late attendance
was justified by the circumstances prevailing. Such condonation of late
attendance can be done only if there is a written request of the employee
along with valid reasons for late coming. Also condonation of late
attendance should not be done for employees who are habitually late in
attendance. It will not be in order therefore to condone late attendance
every month. The provision for condoning the late attendance on two
days in a month is, in fact, quite liberal and no further condonation is to
be granted.
(b) In terms of the same Sub-Regulation 3 of Regulation 30 of the (Staff)
Regulations, 1960, if an employee is habitually late in attendance, he
forfeits one day’s Casual Leave for every 3 days he is late in a month.
Some employees take undue advantage of this provision by coming late
to the office by 1 hour for two days every month from the commencement
of office hours. It should be realised that the provision regarding late
attendance is intended to cover late attendance in exceptional
circumstances only. An abuse of this provision would not be conducive to
office discipline and, therefore, should be actively discouraged. Where
an employee is found to be making it a practice habitually to come late on
2 days every month and thereby avail himself of the maximum concession
permissible under the Regulation, he should be cautioned, in the first
instance, to desist from such practice. If no improvement is noticed, even
after a warning is issued, suitable disciplinary action should be taken
against him.
5. A closely connected question is the one where an employee attends the office
late with prior permission of the competent authority. In such cases, the time
limit for coming late to the office should be the same as for coming late without
prior permission, viz., by 1 hour. Even though an employee who attends the
office late with prior permission of the competent authority stands on a different
footing from an employee attending the office late without prior permission,
special sanction should not ordinarily be given more than once in a
month and, of course, it cannot be given each month. In any event, such special
sanction should not be given for more than two times in a month.
IV
V.. Proper utilizations of working hours for office work, etc. :
1. As stated in II(1) above, all employees must commence their work exactly at the
opening hours of work of the establishment. The work should continue till the
lunch break. Similarly, employee should restart their work punctually after the
lunch break and continue to work till the closing time of the establishment.
2. All the employees should be in their seats and should not move away from their
place of work unnecessarily, or create disturbance and distraction to other
employees. The supervisory staff and Officers-in-charge of the Departments
have a special responsibility in this behalf. They should ensure that proper work

2
 habits, conduct and discipline are maintained in their Departments. Occasional
personal visits to the Departments by the Officers-in-Charge and other higher
Officers would materially contribute to the better supervision and
enforcement of discipline in the Office and in imparting healthy tone to it.
3. The work in the Department should be carried on quietly and diligently.
Employees should not engage in unnecessary conversation or loud talk amongst
themselves. Even when an employee finds it necessary to hold discussion/
consultation in regard to Office matters with another member of the staff or his
superior, he should go to the other employee/superior and discuss the matter
in as short a time as possible without disturbing the other employees.
V. V isitors :
1. Normally, personal visitors should not be permitted during office hours, except
in emergencies or unavoidable circumstances.
2. Personal visitors should not be allowed to be received in the Departments, but
the employee desirous of attending to his personal visitor should make use of
the Reception Counter or some other suitable place. This, however, should be
done only with the prior permission of the Officer or Supervisor in-charge of
the Department. The absence of the employee from his department on such an
errand, must not exceed 15 minutes on any one occasion.
VI. Lunch Intervals and the Canteen Service :
1. As far as possible, there should be a common lunch interval for all the employees
in an office. If, for want of sufficient accommodation in the Canteen or for any
other reason, it becomes necessary to stagger the lunch interval, it should be
done either Department-wise or floor-wise, so that all the employees, working
in a particular Department or on a particular floor, will have the same lunch
interval. As far as may be possible, there should not be different timings for the
employees working in the same Department or floor, as that would make
supervision difficult.
2. Except during the lunch intervals and outside Office hours, no employee is
allowed to avail of any Canteen service in the Canteen area. Strict instructions
should be given to the Canteen management to observe the prescribed timings
for service in the Canteen. During the working hours, however, the Canteen
may be allowed to serve tea, coffee and cold-drinks at the employee’s table.
Specific instructions should be issued regulating the Canteen service. Provision
normally exists in all the contracts for running of the Canteens for regulating
the hours of service in the Canteen. These should be drawn up to conform to the
above requirement and should be strictly adhered to and implemented. The
Officersin-Charge of the Office should, at odd intervals, check that these
instructions are faithfully adhered to both by the Canteen Managers and the
members of the staff.
VII. Permission to leave office early :
This is withdrawn vide item 3(5) of circular ref: ZD/1158/ASP/2010 dated 01/09/2010.

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VIII. Application for leave :
1. Normally no leave should be availed of without prior sanction. However, in case
of unforeseen emergency, if an employee avails of one day casual leave, such
leave should be granted, provided the office is promptly advised of the
circumstances in which prior sanction could not be obtained.
2. The same would apply to sick leave also. If an employee has to remain absent on
grounds of illness, he should advise the office within 3 days and apply for the
leave with medical certificate.
3. When an employee remains absent for one day without prior sanction or notice
and submits his leave application immediately on resumption of his duties, he
may be granted casual leave, provided the competent authority is satisfied that
the absence was due to unforeseen cause or emergency. If, however, the cause of
absence is such as could have been foreseen by the employee, an explanation
should be called for from the employee for not intimating the Office sufficiently
early in time and securing permission therefor. If the explanation is satisfactory,
the leave asked to cover the absence may be sanctioned, unless the employee is
found to remain habitually absent without prior permission.
4. It is observed that a fairly large number of employees avail of half day’s casual
leave. While there should be no objection to grant half day’s casual leave in
appropriate circumstances, it will be realised that an employee who avails of
half day’s casual leave puts the Office administration under a strain for having
to make alternative arrangements for allocation of the work given to the
employee taking half day’s leave. This affects the smooth functioning of the Office
and, as such, before sanctioning half day’s casual leave, the competent authority
should satisfy itself that the half day’s casual leave is applied for a valid reason.
5. It is observed that a large number of employees apply for privilege leave in the
months of April to June with the result the Office is constrained to refuse such
leave to many employees. It would be a good plan if an advance programme of
privilege leave for a whole year in each Department is drawn up in consultation
with the employees concerned and they are allowed to avail of privilege leave
according to the programme as far as may be possible. If such advance programme
is drawn up, it will obviate the need for granting privilege leave to any employee
out of the programme except in exceptional circumstances when the competent
authority should consider each application on merits.
IX. Overstayal of Leave :
1. It is found that some employees apply for extension of privilege leave after
availing of the privilege leave already sanctioned to them. Some do not even
apply for extension in time, but submit application for extension only after
resuming duty. In all such cases, unless the reasons for extension are found to
be such as would have prevented the employee from applying for extension in
time, no extension of leave should be sanctioned and the overstayal should be
treated as extraordinary leave on loss of pay.
2. If it is found that the privilege leave originally applied for and duly sanctioned
by the competent authority was taken under false pretexts and was utilized for
purposes other than those for which it was asked and/or followed by an over-

4
 stayal even under the pretext of illness, the competent authority should reopen
the entire leave including the leave already sanctioned, and might, in his
discretion, treat the entire period or any portion thereof as extraordinary leave
on loss of pay. Such a treatment of leave originally sanctioned would, of course,
be preceded by the full procedure of a show cause notice, giving a reasonable
opportunity to the employee concerned to explain etc. If the competent authority
comes to the conclusion of treating the entire or a portion of such absence as
extraordinary leave on loss of pay, he may do so only after providing the
employee with a second opportunity of showing cause against the proposed
treatment. In such cases, it should be emphasized that the fact that, by doing so,
the nature of leave once duly sanctioned may get altered or that such treatment
may tantamount to a punishment which is not contemplated under Regulation
39 of the (Staff) Regulations, 1960, would be of no avail to the employee concerned.
It would not be unreasonable to accord such treatment to leave taken on false
pretext and/or followed by overstayal.
X. Use of Office Telephone :
Telephone
Ordinarily, employees are not entitled to make use of the Office Telephone/s for personal
purposes. In an emergency, however, with the prior permission of supervisory personnel
of the cadre of Superintendent and above, Office Telephone/scan be made use of for
personal purposes.
XI. General :
1. While leaving the Office at the close of the working hours, all employees must
store away their files and registers and see that they are properly secured and
switch off personal computers from main switch. All pending papers should be
kept in their table drawers.
2. It is essential that duplicate keys of all the tables, almirahs and filing cabinets
are maintained with the head of the Department, so that, in the event of an
employee remaining absent, his pending papers could be removed from the
drawers of his table/almirah/filing cabinet, etc., for being attended to.
3. Cleanliness and neatness of the Office premises must be maintained
scrupulously. A neat, tidy and well-kept Office is essential for creating a valuable
good impression in the minds of the public and to lend an air of dignity and
efficiency to the manner in which we work. Every employee must ever be alert
in this duty of his and contribute to the maintenance of a spick and span condition
of the Office premises. Spitting, littering the areas with paper, cigarette butts,
etc., or spoiling or covering the walls, etc., with posters, hand-bills, etc. should
be avoided at all costs. For instance, for disposal of waste paper, waste paper
baskets are provided and, they must be used for that purpose.
Cir
Cir.. Ref: Personnel/A dated October 31, 1968.
Re: Late Attendance
We invite a reference to our Circular No.3369/ASP/66 dated the 16th May’66, paras 4 and 5 of
which deal with late attendance. A query has now been raised whether late attendance by an
employee with prior permission of the Competent Authority should be treated as late
attendance condoned or should be treated differently.

5
Sub-Regulation (3) of Regulation 30 of Staff Regulations 1960 lays down that the competent
authority can condone late attendance only upto two times in a month. It does not distinguish
between late attendance “with permission” and “without permission”. However, as stated in
para 5 of our above circular, late attendance with prior permission stands on a different footing
in-as-much as the competent authority having exercised his discretion and allowed the
employee to attend late must necessarily condone such late attendance whereas in a case
where an employee attends office late without prior permission, the competent authority
may or may not condone the same, depending upon the circumstances. Late attendance with
prior permission should not, therefore, be considered as an additional privilege and in terms
of Regulation 30(3), the competent authority cannot condone late attendance either with or
without prior permission for more than two times in a month.
3. In so far as forfeiture of leave is concerned, if an employee attends office late for 3 days
(other than those which have been condoned or for which prior permission has been granted),
he will forfeit a day’s casual leave or privilege leave as the case may be. For instance, if an
employee attends office late in a month twice with prior permission and on two more occasions
without prior permission, the late attendance without prior permission cannot be condoned
since the competent authority has already condoned the late attendance twice. However, this
late attendance will not have the effect of forfeiting a day’s leave since the number of days on
which the employee was late other than those which have been condoned is less than 3. On
the other hand, if the total number of days on which an employee attends office late other
than those for which prior permission has been obtained or which have been condoned
happens to be 3 or more, the employee will forfeit a day’s leave for every 3 such late attendances
(other than those condoned).
Maintenance of Office Discipline:
The employees of the Corporation organize meetings/demonstration in front of our office
either to press their demands or as a protest against the various policies of the Corporation.
The following administrative instructions are being issued on various matters with a view to
securing effective control of the staff and to carry out the provisions of the various rules and
regulations.
01. Demonstrations and Gate Meetings :
So long as demonstrations and/or gate meetings are held peacefully by the employees
outside the office premises (including compound)) and outside the office hours, no action
is ordinarily called for, if meetings are not banned by the local authorities. It is, however,
necessary to keep the Central Office as also the local authorities informed about such
happenings immediately.
02. Holding of meetings within office premises :
No meeting can be held by the employees within the office premises. It will not be open
to any employee or any office-bearer of a Union to claim that no permission is necessary
to hold a meeting within the office premises. If, in spite of this, any employee or an
office-bearer of a Union holds a meeting without the prior sanction of the competent
authority within the office premises, he will be liable for disciplinary action under the
(Staff)) Regulations. However, to avoid such a situation, an advance warning may be
given to the concerned employees as to the consequences of holding such a meeting
within the office premises.

6
03. Maintenance of Discipline :
It is also stressed that all the measures introduced so far for improving discipline and
productivity shall continue and there shall be no relaxation in these matters. Circular
No.ZD/454/ASP/78 dated January 18, 1978.
Re: Maintenance of office discipline and productivity.
1. As you are aware, instructions have been issued by the Central Office from time to
time in the matter of maintenance of office discipline and the measures to be taken for
improving productivity. Despite these instructions, a number of instances have come
to light recently indicating a gradual deterioration in office discipline and non-
maintenance of work record by the employees. Some of our offices have generally
displayed an attitude of helplessness in taking timely action to control the situation.
Consequently, the office administration and service to policyholders and other clients
have received a set back.
2. It has also come to our notice that the office-bearers of the various employees’
Associations in particular have begun indulging in activities which are subversive of
office discipline. All these have generated a feeling that the instructions issued by the
Central Office during the period covered by the emergency need not be observed
although these have nothing to do with the emergency. If this situation is allowed to
continue unchecked, it would not only aggravate matters, but would also render it
difficult for our offices to maintain discipline and normal out-put. In order, therefore,
to avoid further erosion of authority, the matter has been reviewed carefully and it has
been decided to issue guidelines to our offices to take firm decisions and actions on a
uniform basis whenever employees resort to any forms of indiscipline. It has also been
decided that the work record system introduced earlier shall be implemented without
any deviation and that punctuality of attendance of employees shall be scrupulously
observed. Annexure-I attached hereto gives the guidelines in all these matters to be
followed and implemented by our offices.
3. Detailed circulars were issued in the past to deal with the situation arising out of the
employees resorting to strike, demonstration, dharna, etc., involving ‘no work’ situations
in our offices. From our experience it was found that such instructions by the Central
Office could not be issued on each and every occasion particularly when employees
resort to lightning strike at short notice. Since the instructions already issued cover
all the points in dealing with such situations, it is not necessary for our offices to wait
for any further instructions from the Central Office in order to deal with such matters.
Actions may, therefore, be taken in the light of the instructions already in force such as
displaying notice to the employees on the Notice Boards, deduction of wages of the
employees who have participated in strike, dharna, etc., furnishing of statistical
information to the Central Office with a detailed report about the general discipline of
the employees who resorted to strike, dharna, etc. in the prescribed manner. In ordinary
course, therefore, no instructions would be issued on such matters hereafter and our
offices are required to act as aforesaid. It shall be the responsibility of the Head of the
Office to ensure that the instructions issued by the Central Office on all these matters
are strictly enforced and no local understanding or departure is allowed to take root.
Similarly, the accountability of the operating offices will have to be insisted upon in

7
 such matters. Likewise, it is essential to fix the responsibility on the Head of each
Department or Section, as the case may be, to ensure that:-
i) All the sub-staff members put on their full uniforms when they are on duty;
ii) All the members of the staff attend the office at the appointed hours and mark
their attendance accordingly.
iii) All the members of the staff and officers do not waste time during office hours;
iv) All the staff members leave the office at the appointed time.
v) Officers themselves will set an example of punctual attendance by attending
the office a few minutes early and leaving the office a few minutes late after
office hours.
4. You are requested to give proper directions to all the departmental heads in these
matters as also to the subordinate offices under your control.
GUIDELINES IN THE MATTER OF MAINTENANACE OF DISCIPLINE, WORK RECORD
AND PRODUCTIVITY IN THE OFFICES OF THE CORPORATION
ACTS OF INDISCIPLINE PROPOSED MEASURES TO DEAL WITH
ACTS OF INDISCIPLINE
I. A TTENDANCE
a) Attending office within the grace period The employees should attend office at the
appointed hours and start their work. The
permission for ten minutes grace time for
attending the office is not to be looked upon
as a matter of right and should be availed only
in exceptional circumstances. Employees
habitually availing of grace period
should be warned at the first instance and if
no improvement is noticed over a period of
time, disciplinary action should be
initiated.
b) Resuming duties after a lunch hour and The employees should make it a point to
leaving office at close of office hours. resume their duties at the appointed time
after lunch interval and start their work.
Similarly, nobody should leave office earlier
than the appointed hours.
c) Visits to canteen during office hours Not Allowed.

d) Leave of absence for short duration
I I . MAINTENANCE OF DIARIES :
Except with the prior permission of the
competent authority, no one should leave office
even for short duration.
i) It is essential to maintain daily work
report by all concerned irrespective of the
position whether it was being maintained
in the past or not so that accurate record
of the disposal of work is available at all

8
 times. Refusal to follow the office
instructions in this behalf should be
considered as breach of office discipline
and disciplinary action taken against
all concerned.
ii) It is the responsibility of the supervisory
staff to see that everybody is kept busy
with a fair day’s work. It is also expected
of every employee that he puts in a honest
day’s work without of course, affecting the
quality of the work. If an employee is found
to be lagging on this count, necessary steps
should be taken to bring the output to the
expected standard in a time bound
programme. In case of failure to bring in
the desired results within a reasonable
period, the employee may be warned in
the first instance and then appropriate
disciplinary action taken.
III. UNION ACTIVITIES:
a) i) Within Office building during or Not to be allowed. Breach of this will warrant
after office hours action against the organizers of such
demonstrations, including suspension of the
ring leaders.
ii) Outside office building during the No action will normally be called for when such
office hours demonstrations are held outside office building
and outside office hours. If, however
demonstration outside office building is
organised during office hours, the office should
ascertain that no employee on duty takes part
in it. In case it is found that an employee who
is on duty has participated in such
demonstrations, disciplinary action should be
initiated against such employee. Shouting of
slogans at the residence of the Officers will also
be construed as misconduct inviting
disciplinary proceedings.
iii) Shouting of slogans with personal Shouting of slogans with personal vilification
vilification or passing derogatory and passing derogatory remarks against any
remarks in the speeches against of the Officers will be construed as misconduct.
Officers Disciplinary action against the concerned
employees and/or office bearers of the
Association should be initiated immediately.

9
b) Holding of Meetings :
i) Outside office building after office hours No action need be taken if the meeting is held
outside the office building but within the office
premises (compound wall) provided the
proceedings are carried on peacefully.
ii) Inside office building within office hours Strictly prohibited. If held, the organisers will
be liable for disciplinary action including
immediate suspension.
iii) Inside office building after office hours Normally no permission should be granted.
However, after scrutinising the agenda, the
officer- in-charge may consider granting
permission for such meetings in the Canteen
hall subject to the condition that no slogans
will be shouted and no posters or buntings
will be displayed. If the meeting is held
without prior permission immediate action
should be taken against the organisers.
c) Deputation The Employees’ representatives are free to
call on the officers-in-charge in deputation
(i.e. Deputation consisting of more than
provided they have some genuine grievances.
the number of persons say 2 to 3, who
However, they should observe the following
have been permitted by the Competent
guidelines.
Authority)
i) Prior permission is necessary.
ii) Deputation should not consist of more
than three representatives.
iii) No slogans should be shouted.
iv) No outsiders will be allowed.
v) No meetings will be addressed.
Breach of these guidelines would call for
disciplinary action against the deputationists.
d) Gherao This is a serious breach of office discipline.
The matter should immediately be reported
to the police and disciplinary action against
the concerned employees, especially the ring
leaders, be initiated forthwith after placing
the leaders under suspension. If advance
information is received or if gherao is
anticipated, then the office bearers should be
cautioned against such a course of action and
warned in advance of the consequences. Action
as above should follow. Any commitment made
or understanding reached as a result of gherao
will be null and void and it will not be binding.

10
e) Display of Notice Boards at the main
gates of the office, pasting of posters
outside the walls of the office buildings
or inside the office premises
f) Trade Union work during office hours No office-bearer of Unions should be allowed
and movement of office-bearers at to carry on trade union work during office
Unions hours.
g) Dharna or squatting outside the office i)
premises (not amounting to gherao)
h) Strike
Token strike of one day,
Indefinite strike, Strike on short
duration such as walk out strike for a few
hours, hunger strike
No Union is allowed to display Notice Boards
at the main gates of the office buildings or
anywhere within the office premises except
where the space has been allowed officially.
Similarly, no Union should paste posters and/
or buntings anywhere inside the office
buildings or on the outside walls of the office
buildings. Violation of this would be considered
as serious breach of office discipline. The
office-bearers of the concerned Union should
be advised to remove the same immediately,
failing which the office-bearers of the
concerned Union will be liable for disciplinary
action. In case they do not do so, the office
should arrange to remove all such posters etc.
Any repetition of such action on the part of
the Unions should be visited with stern
disciplinary action against office-bearers and
the concerned Union should be derecognised
for any official dealings. Watch and Ward Staff
should be directed to prevent the pasting of
posters etc. within the office premises.
Failure to observe this direction will entail
disciplinary action
It is a concerted action and amounts to
‘strike’ if held during office hours;
ii) No leave of any kind be granted to
participate in such actions
iii) Absence of employees be treated as extra-
ordinary leave, and
iv) Wages be deducted on the principle of ‘no
work, no pay.
i) Absence of employees will be treated as
unauthorised at the first instance.
ii) Wage-cut will be imposed on the principle
of ‘no work, no pay’.
iii) On consideration, absence may be treated
as EOL and may be condoned for the
purpose of grant of normal grade
increment.
11
 iv) No leave in the normal course be granted
unless the competent authority is satisfied
about the genuineness of the
reason
v) Probationers will have their probationary
period extended to the extent of the strike
period if the strike is of the duration of a
day or more.
i) Work-to-rule, Non-co- operation, and Employees will be liable for disciplinary action
Go-slow for insubordination or defiance of office
instructions

12
 CHAPTER 2
STAFF RECORD SHEET
STAFF
IMPORT ANT CONTENTS OF ST
IMPORTANT AFF RECORD SHEET
STAFF
As per Regulation 85 of the Staff Regulation (before amendment) it is mandatory for all our
offices to maintain “Service Record” of every employee in the form prescribed in Schedule III.
The Staff Record Sheet has provision for recording the following important data of an employee:
● Name of the Employee
● S.R. No
● Sex
● Father’s Name /Husband’s Name
● Signature of the Employee
● Date of Appointment
● Date of Confirmation
● Date of Birth : The date of birth of every employee of the Corporation shall be entered
in the staff record sheet by an order duly made in accordance with the Life Insurance
Corporation of India (verification of date of birth of employees) Instructions, 1970.
● Place of Birth
● Proof of Age, Date of Acceptance
● Date of Retirement
● Home Town
● Local Address
● Permanent Address
● Mother Tongue
● Nominee to receive P.F,Gratuity,Addl Gratuity ( for Cl I & II )/Term Assurance (for Cl
III&IV), Group Savings linked Insurance,GTIS,Group Personal Accident Policy, Group
Insurance (wef 01.12.2004) and the relationship
● Pension / GTIS Option
● Category
● Religion
● Marital Status
● Languages known
● Teritorial Army,Emergency/Short Service Commission etc
● Spouse employement particulars
● Academic Qualifications
● Professional Qualifications

13
● Details of Ex-gratia payments for major Disease /treatments
● Particulars of Dies-non
● Details of Housing loan availed / repaid
● Details of Conveyance loan / facility provided
● Details of Disciplinary actions
● Promotions/Transfers
● Salary Records
● Details of reimbursement made towards purchase of brief case.
● Details of reimbursement made towards preventive health checkup
● Details of reimbursement of fee for the Certification Examination of Energy Auditors
/ Energy Manager.
● Details of category change under GSLI Scheme.
Utmost care should be taken to record all the relevant / applicable details in the S.R. Sheet
whithout fail. As and when change in personal details are informed by the employee, the
same should be updated in the S.R. sheet. While recording the details, the following points
may be noted:
a) While recording the Salary details, date of NGI/Stagnation increment and Basic pay
are to be noted without fail every year. Details of reduction in basic pay, withholding
of increment because of disciplinary action are to be recorded along with the date of
final order.
b) Since most of the pre-printed stationery forms used do not have provision for recording
nomination particulars in respect of all the group insurance benefit, care should be
taken to note the nominee name & relationship in respect of all the Group Insurance
Schemes i.e., GSLI, GTIS, GPAI, new GI w.e.f. 1.12.2004 and Term insurance. As and
when change in nomination is effected the same should also be recorded in the S.R.
Sheet.
c) Whenever more corrections are involved, a new sheet with all details may be prepared
and duly certified by the officer of the P&IR Dept and the old S.R. sheet may be put in
the personal file maintained by P&IR Dept.
d) While recording details of technical qualification, the details of membership of the
respective institute may also be noted.
e) As an employee is eligible for ex-gratia relief under High Cost / Protracted Scheme
only twice in the service, such reimbursements should be noted in the S.R. Sheet without
fail.
f) Reimbursement given for purchase of brief case, reimbursement towards preventive
health checkup, advance granted for the purchase of two wheeler/four wheeler and
personal computer shall be entered in the Staff Record Sheet.
g) In case of transfer, the S.R. Sheet is to be sent along with the personal file of the employee
to the transferee office. All the details recorded should be certified by an officer of the
P&IR Dept after verification.

14
 CHAPTER 3
SALARY ADMINISTRA
SALARY TION
ADMINISTRATION
1. SCALE OF PAY
PA
The scales of pay for various classes of employees are as detailed below:
Class I Officers (w.e.f. 1.8.2007):
(w.e.f.
1 Zonal Managers / Chief Engineers / Chief ` 52210-1400(2)-55010-1500(1)-56510-1640(1)-
Architects (Selection Scale) 58150-1700(1)-59850

2 Zonal Managers / Chief Engineers / Chief `46610-1400(5)-53610

Architects (Ordinary Scale)
3 Deputy Zonal Managers / Senior `41660-1200(3)-45260-1350(2)-47960
Divisional Managers / Deputy Chief
Engineers / Deputy Chief Architects

4 Divisional Managers / Superintendent ` 34460-1200(7))-42860

Engineers / Senior Surveyor of Works /
Senior Architects
5 Assistant Divisional Managers / Senior ` 28160-840(1)-29000-910(6)-34460-1200(4)-
Branch Managers / Executive Engineers / 39260
Surveyor of Works / Deputy Senior
Architect
6 Administrative Officers / Branch ` 23120-840(7)-29000-910(6)-34460
Managers / Assistant Executive Engineers
/ Assistant Surveyor of Works / Architects

7 Assistant Administrative Officers / `17240-840(14)-29000-910(4)-32640

Assistant Branch Managers / Assistant
Engineers / Assistant Architects

Class II (Development) Officers (w.e.f. 1.8.2007):

(w.e.f.
` 11535 - 700(2) - 12935 -825 (2) - 14585 - 840 (17) - 28865
Class III Employees (w.e.f. 1.8.2007):
(w.e.f.

1 Higher Grade Assistants ` 11425-755(3)-13690-840(15)-26290

2 Section Head ` 9965-630(7)-14375-840(12)-24455
3 Stenographers ` 9580-540(4)-11740-625(2)-12990-760(3)-
15270-790(2)-16850-840(8)-23570
4 Assistant / Cashiers / Typists / ` 7640-440(1)-8080-480(2)-9040-540(5)-
Projectionists/Micro Processor 11740-625(2)-12990-760(3)-15270-790(2)-
Operators, etc 16850-840(5)-21050
5 Record Clerks ` 7085-250(4)-8085-390(3)-9255-440(2)-
10135-445(6)-12805-480(6)-15685

15
Class IV Employees (w.e.f. 1.8.2007
(w.e.f. 1.8.2007)) :
1 Drivers ` 7085-315(6)-8975-325(1)-9300-390(12)-13980
2 Sepoys / Hamal / Head / Peons/Liftman/ ` 6180-250(5)-7430-265(8)-9550-315(1)-9865-
Watchman /Caretaker 325(2)- 10515-390(3)-11685
3 Sweepers/Cleaners ` 5865-250(5)-7115-265(8)-9235-315(6)-11125
2. ADDITION TO THE BASIC PAY AFTER REACHING MAXIMUM OF THE SCALE
PA
Class I Officers:
Rule 4A of the Class-I Officers Revision Rules, 1985 provides for the additions to the basic pay
after reaching maximum of the scale of pay to AAO, AO and ADM. This rule has been amended
to provide for one more addition to their basic pay. The amended rule w.e.f. 01.08.2007 is as
follows:
Addition to basic pay after reaching maximum of scale:
Subject to the work record being found satisfactory,
(a) An Officer in the scale of pay of Assistant Administrative Officer 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 addition to the basic pay equal to the
last increment drawn by him in the scale of pay, subject to the maximum of three such
additions:
Provided that no officer shall be entitled to such addition to the basic pay before the
first day of the month following completion of three years after reaching maximum of
the scale of pay or after drawing such additions, as the case may be.
(b) An officer in the scale of pay of Administrative Officer 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 addition to the basic pay equal to the last
increment drawn by him in the scale of pay, subject to the maximum of five such additions:
Provided that no officer shall be entitled to such addition to the basic pay before the
first day of the month following completion of three years after reaching maximum of
the scale of pay or after drawing such additions, as the case may be.
(c) An officer in the scale of pay of Assistant Divisional Manager 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 addition to the basic pay equal to the
last increment drawn by him in the scale of pay, subject to the maximum of two such
additions:
Provided that no officer shall be entitled to such addition to the basic pay before the
first day of the month following completion of three years after reaching maximum of
the scale of pay or after drawing such additions, as the case may be.
Provided that where an Officer is not granted such addition to the basic pay referred
to in clause (a) or clause (b) or clause (c) on first day of the month following completion
of three years of service from the date of reaching maximum of the scale of pay applicable
to him or from the last such addition to the basic pay (such first day of the month
following completion of three years of service from the date of reaching maximum of
scale of pay or the last such addition to the basic pay being hereinafter referred to as

16
 “the relevant date”, as the case may be), his case shall fall due for review in each calendar
year in the month following that in which he completes twelve months of service as
reckoned from the relevant date, or from the date of such review, so long as he has not
been allowed such addition to the basic pay, and if it is decided to allow such addition
subsequently, it shall take effect from the first of the month in which the review has
fallen due in the calendar year in which the decision is taken.
Explanation .- For the purposes of this rule, ‘calendar year’ means the period from the
1st day of January to the 31st day of December
Competent Authorities:
1. Zonal Manager-Incharge of the Zone in case of officers working in the offices coming
under the Zone.
2. Executive Director (Personnel) in case of officers working in Central Office and Zonal
Inspection Centres.
3. Executive Director (Audit) in case of officers working in Audit Department including
Zonal Audit Centres.
Note: As stated above, the grant of addition to the basic pay to the officers in the above
cadre is subject to the work record being found satisfactory as per the guidelines issued
by the Personnel Administration Department in this matter.
Class II Officers:
The rule 4(3) of the Development Officers Revision Rules, 2007 provides for the addition to
the basic pay after reaching of the maximum of the scale of pay of Development Officers. The
amended rule applicable w.e.f 01.08.2007 is as follows:
Addition to the Basic Pay after reaching maximum of the scales:-
Subject to the work record being found satisfactory, a Development Officer who has reached
the maximum of the scale of pay, may be granted an addition to the basic pay equal to the last
increment drawn by him, on first day of the month following completion of every three
completed years of service after reaching such a maximum or on the first day of the month
following the completion of his appraisal year subject to the maximum of four such additions:
Provided that no Development Officer shall be entitled to the fourth such addition to the
basic pay before completion of three years after drawing the third such addition:
Provided further that where a Development Officer is not granted such addition to the basic
pay on first day of the month following completion of three years of service or after drawing
such additions, (such first day of the month following completion of three years of service
from the date of reaching maximum of the scale of pay or after drawing of such additions
referred to as “the relevant date”), his case shall fall due for review in each appraisal year in
the month following that in which he completes twelve months of service as reckoned from
the relevant date, so long as he has not been allowed such addition to the basic pay, and if it is
decided to allow such addition subsequently, it shall take effect from the first of the month in
which the review has fallen due in the appraisal year in which the decision is taken.
Explanation .- For the purposes of this rule ‘calendar year’ means the period from the 1st day
of January to the 31st day of December;

17
Competent authority:
Senior Divisional Manager-In charge of the Division in case of Development Officers working
in the offices coming under the Division.
Note: As stated above, the grant of addition to the basic pay to the officers in the above cadre
is subject to the work record being found satisfactory and also as per the other guidelines
issued by the Marketing Department in this regard.
Class III, Class IV Employees
Employees::
The Rule 7 of the Revision Rules, 1985 provides for the additions to the basic pay after reaching
maximum of the scale of pay to Class-III and Class-IV employees. This rule has been amended
to provide for one more addition to the basic pay. The amended rule applicable w.e.f 01.08.2007
is as follows:
Addition to the Basic Pay after reaching maximum of the scales: Subject to the work record
being found satisfactory,-
(a) an employee,-
(i) in the scale of Record Clerk or Assistant or Stenographer or Typist in Class III;
or
(ii) in any of the scales in Class-IV
who has reached the maximum of the scale of pay applicable to him may be
granted for every two completed years of service after reaching such maximum,
an addition to the basic pay equal to the last increment drawn by him in the
scale of pay, subject to a maximum of seven such additions:
Provided that no employee shall be entitled to such addition to the basic pay
before the first day of the month following completion of two years after reaching
maximum of the scale of pay or after drawing such additions, as the case may be.
(b) an employee in the scale of pay of Section Head or Higher Grade Assistant who has
reached the maximum of the scale, may be granted for every three completed years of
service after reaching such maximum, an addition to the basic pay equal to the last
increment drawn by him in the scale of pay, subject to the maximum of six such additions.
Provided that no employee shall be entitled to such addition to the basic pay before the
first day of the month following completion of three years after reaching maximum of
the scale of pay or after drawing such additions, as the case may be.
Provided further that where an employee is not granted such addition to the basic pay
referred to in clause (a) or clause (b) on first day of the month following completion of
two years or three years of service, as the case may be, from the date of reaching
maximum of the scale of pay applicable to him or from the last such addition to the
basic pay (such first day of the month following completion of two or three years of
service from the date of reaching maximum of the scale of pay or the last such addition
to the basic pay being hereinafter referred to as “the relevant date”, as the case may
be), his case shall fall due for review in each calendar year in the month following that
in which he completes twelve months of service as reckoned from the relevant date, or
from the date of such review, so long as he has not been allowed such addition to the
basic pay, and if it is decided to allow such addition subsequently, it shall take effect

18
 from the first of the month in which the review has fallen due in the calendar year in
which the decision is taken.
Explanation. - For the purposes of this rule ‘calendar year’ means the year from Ist day
of January to 31st day of December.
Note: As stated above, the grant of addition to the basic pay to the employees in the
above cadre is subject to the work record being found satisfactory and also as per the
other guidelines issued by the Personnel Administration Department in this matter.
3. DEARNESS ALLOWANCE:
ALLOWANCE:
(a) With effect from 1.8.2007, the scale of dearness allowance of all Class of employees
shall be determined as Under:-
Index: All India Average Consumer Price Index Number for Industrial Workers. Base:
Index No.2944 in the series 1960 = 100
Rate: For every four points in the quarterly average of the All India Consumer Price
index above 2944 points, an employee shall be paid dearness allowance at the rate of
0.15% of Pay.
(b) There shall be an upward revision of the dearness allowance payable for every four
points rise in the quarterly average (hereinafter referred to as the “current average
figure”) of the All India Consumer Price Index above 2944 points in the sequence 2944-
2948-2952-2956 and so on and there shall be a downward revision of the dearness
allowance payable if 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 is not a figure in the above sequence. For this purpose, quarter shall
mean a period of three months ending on the last day of March, June, September or
December. The final Index Figure 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.
(c) For the purpose of calculating dearness allowance for a particular month, the quarterly
average for the last quarter for which the final index figures are available on the 15th
day of that month shall be taken. Actual payment of this revised dearness allowance
shall be made in the month following that in which the relevant index figures are
available.
(d) Pay means Basic Pay including additions to Basic Pay after reaching maximum
(Stagnation Increments), Graduation Allowance payable to Class III employees in the
scale of pay of Assistants and Stenographers, Special Allowance for passing examinations
payable to Class III employees under Life Insurance Corporation of India Class-III
Employees (Special Allowance for Passing Examinations) Rules, 1988 and Special
Allowance payable to Class IV Employees posted in the grade of Head Peons, Liftman
& Watchman.
Dearness allowance will not include Special allowance payable to Cashiers, Internal
Audit Assistants

19
4. HOUSE RENT ALLOWANCE:
ALLOWANCE:
(a) All employees/ Officers except those who are allotted Staff Quarters/leased
accommodation are eligible for HRA at the following rates w.e.f. 01.08.2007.
Place of Posting Rate of House Rent Allowance
HRA Class I Class II ClassIII/IV
MAX MAX MAX MIN
i. Cities of Mumbai, Kolkata,
Chennai, Delhi, Noida, Faridabad,
Ghaziabad, Gurgaon, Navi
Mumbai, Hyderabad, Bengaluru
and other cities with population
of 45 lakhs and above 10% `3200 `3200 `3200 `700
ii. Cities with population exceeding
12 lakhs, but less than 45 lakhs
and except those mentioned at (i)
and any city in the State of Goa. 8% `2700 `2700 `2700 `600
iii. Other places 7% `2600 `2600 `2600 `570
(b) The population figures for the above purpose shall be as per the latest Census Report.
Further, the cities shall also include their urban agglomeration.
(c) Pay for the purpose of House Rent Allowance shall include basic pay, additions to basic
pay and Fixed Personal Allowance for all class of employees. Pay also includes Special
allowance payable to Head Peon/Liftman/Watchman, graduation allowance payable to
Assistants and Stenographers, special allowance for passing examinations under Life
Insurance Corporation of India Class-III Employees (Special Allowance for Passing
Examinations) Rules, 1988.
It may be noted that Special allowance payable to Cashiers / IAAs are specifically
excluded from the purview of computation of HRA wef 1.8.2007.
(d) House Rent Allowance is not payable to any employee occupying staff quarters/leased
accommodation. However, in the cases of those class III &IV employees who were
allotted staff quarters prior to 1.4.1983 the House Rent Allowance which was being
paid to them on the day immediately preceding 1.4.1983 shall be paid so long as they
are in occupation of the staff quarters.
(e) Officers / Employees who are allotted staff quarters/leased accommodation are required
to pay such licence fee as may be decided by the Corporation from time to time. The
prescribed rate of deduction is 1.2% of the minimum of the scale with effect from
01.11.2010.
It may be noted that additional licence fee for furnished accommodation is to be charged
at 0.40 % of the minimum of scale. It is also clarified that Licence fee to be charged in
case of promotion to the higher cadre is to be revised with effect from the date of
fixation in the higher cadre and not from the date he takes charge.When an employee
having leased accommodation is transferred to another place like Mumbai where he is
again allotted a staff quarter, double licence fee is to be recovered from his salary and
remitted to the appropriate Office till date of vacation of the leased accommodation.

20
(f) Where the husband and wife are employee(s)/officer(s), whether posted at the same
station or not, House Rent Allowance may be paid to both of them, if they are not in
staff quarters or leased accommodation.
(g) If husband and wife are employee(s) / officer(s) at the same station, they shall be allotted
only one staff quarter and the licence fee shall be recovered at the appropriate rate
from the employee to whom the staff quarter is allotted but his/her spouse may be
paid the House Rent Allowance.
(h) If any officer/employee has been allowed, as a matter of concession, to retain or have
any staff quarter at his / her previous place of posting or elsewhere, HRA will not be
admissible to him/her and the licence fee payable by him/her in respect of the staff
quarter which he/she has been allowed to retain or to have at any other place as a
matter of concession shall be determined in accordance with such instructions as may
be issued by the Corporation from time to time in this regard.
(i) The chart showing the classification of cities for the purpose of payment of HRA is
given below. The cities shall include their urban agglomerations.
CLASSIFICA TION
CLASSIFICATION OF CITIES FOR THE PURPOSE OF HOUSE RENT
ALLOW
WAANCE

CATEGORY I CATEGORY II CA TEGOR

CATEGOR
TEGORYY III
KOLKA
KOLKAT TT A
TA Agra, Bhopal, All other places
(including municipal areas comprising city Coimbatore (including
of Kolkata (including Behala, Alipore, Sulur), Goa (Entire
Cossipur, Tollygunge), Howrah, Barrackpore State) Indore Jaipur
(including, N.Barrackpore), Garden Reach Kanpur Kochi
(including Baranagore, South Suburban Lucknow Ludhiana
Muncipal Area, Dum Dum (including South Madurai (including
Dum Dum), Kamarhatti, Panihati, Kharda, Tirunagar) Meerut,
Titagarh, Garulia, Bhatpara, Naihati, Bally, Nagpur Patna Pune
Uttarpara, Konnagar, Rishra, Serampore, (including Pimpri
Baidyabati, Champdani, Bhadreshwar, &Chinchwad) Surat,
Chandannagar, Hoogly, Chinsura, Budge, Vadodara, Varanasi,
Habra, Baruipur, Barasat and Uluberia Visakhapatnam
CHENNAI (Including Gajuvaka)
MUMBAI
including areas comprising within the limits
of the Mumbai Municipal Corporation
(Greater Mumbai), Dombivli, Kalyan, Thane,
Bhiwandi, Ulhasnagar and Bassein
Municipalities, Navi Mumbai
NEW DELHI
Faridabad, Ghaziabad, Gurgaon, Noida
HYDERABAD
BENGALURU,
AHMEDABAD
AHMEDABAD,, GANDHINAGAR

21
5. CITY COMPENSA TOR
COMPENSATOR
TORYY ALLOWANCE:
ALLOWANCE:
(a) The city compensatory allowance payable to all class of employees w.e.f. 01.08.2007 is
as detailed below:
Place of Posting Rate of City Compensatory Allowance
CCA Class I Class II ClassIII/IV
MAX MAX MAX MIN
i. Cities of Mumbai, Kolkata,
Chennai, Delhi, Noida, Faridabad,
Ghaziabad, Gurgaon, Navi
Mumbai, Hyderabad, Bengaluru
and other cities with population
of 45 lakhs and above 3% `800 `675 `635 `205
ii. Cities with population exceeding
12 lakhs, but less than 45 lakhs
and except those mentioned at (i)
and any city in the State of Goa. 2.5% `760 `625 `595 `170
iii. Cities with population of 5 lakhs
and above but not exceeding
12 lakhs, State Capitals with
population not exceeding 12 lakhs,
Chandigarh, Mohali, Pondicherry,
Port Blair and Panchkula. 2% `590 `545 `510 `125
(b) The population figures for the above purpose shall be as per the latest Census Report.
Further, the cities shall also include their urban agglomeration.
(c) Pay for the purpose of City Compensatory Allowance shall be the basic pay plus addition
to basic pay, and Special Allowance payable to Head Peons, Liftmen and Watchmen.
(d) CCA of ` 20/- p.m. wherever being paid to any Class III or Class IV employee in
accordance with sub-rule(2) of Rule 10 of the 1985 Revision Rules may continue to be
paid as long as the employee continues to be posted at that centre.
(e) The chart showing the classification of cities for the purpose of payment of CCA is
given below. The cities shall include their urban agglomerations.
CLASSIFICA TION OF CITIES FOR THE PURPOSE OF CITY COMPENSA
CLASSIFICATION TOR
COMPENSATOR
TORYY
ALLOW
WAANCE
CA TEGOR
CATEGOR
TEGORYY I CA TEGOR
CATEGOR
TEGORYY II CA TEGOR
CATEGOR
TEGORYY III
KOLKA TT
AT A
TA Agra, Bhopal, Agartala,
(including municipal areas comprising city Coimbatore (including Kozhikode,
of Kolkata (including Behala, Alipore, Sulur), Goa (Entire Amravati, Aizwal,
Cossipur, Tollygunge), Howrah, Barrackpore State) Indore Jaipur Mohali, Aligarh,
(including, N.Barrackpore), Garden Reach Kanpur Kochi Mangalore,
(including Baranagore, South Suburban Lucknow Ludhiana Allahabad,
Muncipal Area, Dum Dum (including South Madurai (including Moradabad,
Dum Dum), Kamarhatti, Panihati, Kharda, Tirunagar) Meerut, Amritsar, Mysore,

22
Titagarh, Garulia, Bhatpara, Naihati, Bally, Nagpur Patna Pune Asansol, Nashik,
Uttarpara, Konnagar, Rishra, Serampore, (including Pimpri Aurangabad,
Baidyabati, Champdani, Bhadreshwar, &Chinchwad) Surat, Panchkula,
Chandannagar, Hoogly, Chinsura, Budge, Vadodara, Varanasi, Bareilly,
Habra, Baruipur, Barasat and Uluberia Visakhapatnam Pondicherry,
(Including Gajuvaka) Belgaum, Port
CHENNAI
Blair, Bhavnagar,
MUMBAI
Raipur,
including areas comprising within the limits
Bhubaneshwar,
of the Mumbai Municipal Corporation
Rajkot, Ranchi,
(Greater Mumbai), Dombivli, Kalyan, Thane,
Bikaner, Salem,
Bhiwandi, Ulhasnagar and Bassein
Shimla,
Municipalities, Navi Mumbai
Chandigarh,
NEW DELHI Shillong, Cuttack,
Faridabad, Ghaziabad, Gurgaon, Noida Sholapur,
HYDERABAD Dehradun,
BENGALURU, Srinagar, Dhanbad
AHMEDABAD,Gandhinagar (including Sindri
and Katras),
Thiruvananthapuram,
Tiruchirappalli,
Tirupur, Durg-
Bhilai,
Vijayawada,
Gangtok,
Warangal,
Guwahati,
Gorakhpur,
Guntur, Gwalior,
Hubli, Dharwad,
Imphal, Itanagar,
Jabalpur,
Jalandhar,
Jamnagar,
Jamshedpur,
Jammu, Jodhpur,
Kohima,
Kolhapur, Kota

23
6. HILL ALLOWANCE:
ALLOWANCE:
The hill allowance payable to all class of employees’ w.e.f. 01.08.2007 is as detailed below:
Place of Posting Rate of Hill Class I Class II Class III & IV
Allowance
payable Max Max Max
Posted at places situated at 2.5% of pay 460 370 370
a height of level 1500 metres
and over above mean sea level
Posted at places situated at a 2% of pay 370 290 290
height of level 1000 metres
and over but less than 1500
metres above mean sea level
at Mercara and at places
which are specifically declared
as “Hill Stations’ by Central /
State Government for their
employees
Posted at places situated at a 2% of pay 370 290 290
height of level 750 metres and
over above mean sea level
which are surrounded by and
accessible only through hills
with a height of 1000 metres
over mean sea level
Pay for purpose of grant of Hill Allowance shall include basic pay and additions to the basic
pay referred to in Rule 4A of 1985 in respect of Class I and Rule 7 in respect of Class III/IV of
the Revision Rules, 1985 and the Special Allowance payable to Head Peons, Liftmen and
Watchmen.
7. FUNCTIONAL ALLOWANCE AND SPECIAL ALLOW
ALLOWANCE ANCE
ANCE::
ALLOWANCE
i) Class I Officers:
(a) Programmers or System Analysts or Programmers-cum-System Analysts in the scale
of pay of AAO, AO or ADM are eligible for functional Allowance of ` 680/- per month.
(Revised w.e.f 01.08.2007)
(b) Officers who are posted to Audit or Inspection Department and entrusted with touring
duties are paid Audit / Inspection Allowance of ` 850/- p.m.( revised w.e.f 01.08.2007)
ii) Class III & Class IV employees:
(1) Special Allowance:
With effect from 1.8.2007 the rates of Special Allowances payable to Class-III and Class-
IV employees are as under:
A) Higher Grade Assistants appointed as Internal Audit/Inspection Assistants
a) For the first five years - ` 650/- per month

24
 b) For the next five years - ` 740/- per month
c) For the subsequent years - `800/- per month
B) Assistants appointed as receiving and paying Cashiers -` 1500/- per month
C) Head Peons, Liftmen and Watchmen - ` 520/- per month.
The Special Allowance payable to Head Peons, Liftmen and Watchmen shall count for
all the purposes.
Special allowance payable to Class III employees posted as Internal Audit / Inspection
Assistants and Cashier shall not count for dearness allowance, house rent allowance,
provident fund, gratuity, pension, and encashment of privilege leave and fixation of salary on
promotion with effect from 01.08.2007. Also in case of promotee, this allowance shall
cease from the date of taking charge irrespective of the option for fixation exercised
by the employee
employee.
(2) Functional Allowance:
The revised rates of Functional Allowance w.e.f. 1.8.2007 are as follows:
Class III Employees:
Banda, Duplicating and Xerox Machine Operators in the scale of ` 90/- p.m
Pay of Record Clerks:
Microprocessor Operators in the scale of Assistants ` 170 p.m
Officiating Cashier allowance:
This is payable at the following rate as per CO/ERA/cashier/L028 dated 02.04.2011
(a) At ` 45/- per day if basic pay is equal to or less than ` 20210/-
(b) At ` 55/- per day if basic pay is more than ` 20210/-
(c) Officers in satellite Office handling cash will draw cash handling allowance at the rate
of ` 70/- per day (Ref: CO Circular Per/ER/A/G 18 dated 22.07.2008)
Programmers in the scale of pay of Higher Grade Assistants: ` 540/- per month
Class-IV Employees
Employees:
Franking Machine Operators in the scale of Sepoy shall be paid a Functional Allowance of
` 70/- per month.
The Allowances under Clause 7 (ii) 1 (A) (B) and 7 (ii) (2) above shall not count for the purpose
of Dearness Allowance, House Rent Allowance, Gratuity, Provident Fund, Pension, Encashment
of privilege leave and fixation of salary on promotion.
8. NORTH EASTERN ST
STAATES EDUCA TION ALLOW
EDUCATION ANCE:
ALLOWANCE:
Class-I Officer posted in Assam, Meghalaya, Manipur, Tripura, Arunachal Pradesh, Nagaland
or Mizoram are eligible for an allowance of ` 300/- per month (revised w.e.f. 01.08.2007) for the
period of their posting in the State from the date of taking charge as long as the child of such
officer is prosecuting study requiring regular attendance in a recognised school, college or
university situated outside any of the aforesaid States.

25
9. GRADUA TION INCREMENTS AND GRADUA
GRADUATION TION ALLOW
GRADUATION ANCE FOR CLASS
ALLOWANCE
III EMPLOYEES
EMPLOYEES::
(a) Graduation Increments:
An employee in the scale of Assistant and Stenographer, who is a graduate from
therecognised university, is eligible for two graduation increments in the scale of pay
applicable to him. If such employee is a graduate at the time of appointment, he iseligible
for the said increments from the date of his appointment. If he becomes a g r a d u a t e
after appointment, he is eligible for the said increments on first day of the
monthfollowing the month in which the result of the examination is declared.
(b) Graduation Allowance:
The revised rates of Graduation Allowance applicable w.e.f. 01.08.2007 are as under:
Record clerks - ` 320/- per month.
The Graduation Allowance shall be released from the first day of the month following
the month in which result of the examination is declared. Where a graduate Sub-staff
is promoted as Record Clerk, he shall draw the Graduation Allowance from the date of
fixation of his salary in the scale of Record Clerk. The Graduation Allowance payable
to the Record Clerks shall not count for any purpose.
It may be noted that Record Clerks who become Graduates after 31.07.2007 shall also
be eligible for Graduation Allowance payable to Record Clerk.
Employees in the scale of pay of Assistant and Stenographer:
(1) An employee who becomes graduate of a recognised - ` 530/- per month
University after reaching maximum of the scale of pay
The Graduation Allowance shall be released from the first day of the month following
the month in which result of the examination is declared.
(2) An employee who has received Graduation Increment and reaches maximum of the
scale of pay shall be granted Graduation Allowance as under:
a) From the first day of the month following completion - ` 270/- per month
of one year of service commencing from the date of
reaching such maximum
b) From the first day of the month following completion - ` 530/- per month
of two years of service commencing from the date of
reaching such maximum
The Graduation Allowance payable to the employees in the scale of Assistants and
Stenographers shall count for the purpose of Dearness Allowance, HRA, Provident
Fund, Pension, Gratuity, Encashment of Privilege Leave and Fixation of salary on
promotion.
Provided however that all those employees in the scale of pay of Assistant and
Stenographer who become Graduates after 31st July, 2007 shall not be eligible for
Graduation Allowance.
10. TRANSPORT ALLOWANCE:
ALLOWANCE:
Class-I Officer, other than an Officer who is in receipt of any Conveyance Allowance under
any of the Schemes of the Corporation are eligible for transport allowance at the rate of
` 800/- per month (revised with effect from 1.8.2007).
26
Class III & Class IV employees are eligible for transport allowance at the rate of ` 275/- per
month (revised with effect from 1.8.2007).
A class III employee promoted as Class I officer, opting for fixation in AAO scale w.e.f. next
NGI in the lower scale will continue to draw the salary corresponding to the lower scale
including the transport allowance, Viz., Transport allowance in such cases at the rate of
` 800/- p.m. cannot be paid wef. the date of taking charge as AAO.
11. CONVEYANCE ALLOW
CONVEYANCE ANC FOR PHYSICALL
ALLOWANC Y HANDICAPPED EMPLOYEES
PHYSICALLY EMPLOYEES::
Physically handicapped employees are eligible for conveyance allowance in addition to the
transport allowance at the rate of 2.5 % of the basic pay subject to a maximum of ` 400/- per
month (revised w.e.f. 01.03.2011). Proportionate recovery of the allowance is to be made for all
kinds of leave availed by the employee other than Casual Leave.
The conditions for grant of this special conveyance allowance are detailed below:
(a) If a physically handicapped person gets appointment under the posts reserved for the
purpose and if he produces at the time of such appointment a certificate from proper
authority that he is physically handicapped and if such certificate conforms to the
contents of the Annexure I of the C.O. Circular No. ZD/516/ASP/80 dated 9.10.1980, no
fresh certificate need be called for and Special Conveyance Allowance shall be paid
from the date of appointment or from 1.4.80 whichever is later.
(b) If the certificate produced at the time of appointment is not from the proper authority
or if the contents of the certificate is not comprehensive as aforesaid or if the
appointment itself is not under the reserved category for physically handicapped but
the employee is/or becomes physically handicapped to the extent prescribed and
produces a certificate as prescribed, Special Conveyance Allowance becomes payable
from the first of the month immediately following the date of submission of such
prescribed certificate.
12. CASH MEDICAL BENEFIT
BENEFIT::
The Cash Medical Benefit is payable at the revised rates with effect from 1.8.2007 for all
confirmed Class I officers at the following rates:
i) The officer drawing basic pay upto ` 31,655/- ` 8,000/- per annum;
ii) The officer drawing basic pay beyond ` 31,655/- ` 12,000/- per annum
The Cash Medical Benefit is payable along with July salary every year.
All the confirmed Class-III and Class-IV employees shall be paid Cash Medical Benefit at the
revised rate of ` 4000/- p.a. with effect from 1.08.2007. The same is payable along with January
salary every year.
Basic Pay for the purpose of determining the quantum of Cash Medical Benefit in case of
Class I is Basic and Fixed Personal Allowance.
In case of promotee officers from Class III to Class I, proportionate Cash Medical Benefit
applicable to Class I shall be paid from the month of taking charge (irrespective of the date of
fixation opted) i.e. in case date of taking charge is 14th October 2011, he/she will be paid Cash
Medical Benefit applicable to Class I cadre for the full month of October 2011 upto next June
2012. In case date of taking charge is 16th or later, Cash Medical Benefit shall be paid from
November 2011 to next June.2012 Medical Benefit paid for Class III cadre will be recovered

27
from September 2011 to December 2011or October 2011to December 2011 respectively in the
above cases.
(Read with Chapter 8 for other details)
13. WASHING ALLOWANCE P
ALLOWANCE AYABLE TO CLASS IV EMPLOYEES :
PA
Class-IV employees are eligible for washing allowance of ` 150/- per month (revised with
effect from 1.8.2007). Where any employee remains absent and/or avails of leave or does not
attend office for whole of the calendar month, no Washing Allowance shall be paid in respect
of that month. The payment of Washing Allowance shall be subject to the employee wearing
clean/washed uniform.
14. FIXED PERSONAL ALLOWANCE:
ALLOWANCE:
(a) All officers / employees who were in the service of the Corporation as on 01.11.1993
and were either at the maximum of the scale of pay on 01.11.1993 or reached the
maximum of the scale of pay after receiving the additional increment for computerization
are eligible for grant of FPA on completion of one year from the date of reaching
maximum of the scale of pay. The FPA shall be equal to the last increment drawn in the
scale of pay applicable to the employee as on 01.11.1993.
(b) Confirmed officers / employees who have joined the service of the Corporation after
01.11.1993 but before 22.06.2000 (date of Wage Revision Notification 2000) are eligible
for an additional increment for computerization w.e.f. 01.07.2000. Those on probation
on first appointment as on 22.06.2000 are eligible for the increment on completion of
365 days of service from the date of confirmation. Such officers /employees as and when
they reach maximum of the scale of pay applicable to them are eligible for FPA, which
shall be equal to the last increment in the scale of pay applicable to them as on 22.06.2000.
(c) Officers / employees who have joined the service of the Corporation after 22.06.2000
are not eligible for additional increment for computerization and FPA.
(d) FPA shall count for the purpose of HRA, PF , Gratuity, Pension and Encashment of PL.
The penalty of reduction in basic pay in terms of Regulation (39) is to be imposed in the
time scale only and therefore the stagnation increments, graduation allowance, fixed
personal allowance once granted need not be withdrawn to give effect to the penalty
imposed under Regulation (39). (Ref: CO Circular letter PER / ER / A / G / 364 dated
26.08.1997)
(e) The revised rates of FPA w.e.f . 01.08.2007 are shown below:
Category FPA ((` ) C a t e g o r y
FPA FPA ((` )
FPA
Class I Class III
ZM (S) 1700 Assistant / Steno / HGA 840
ZM (O) 1400 RC 480
SDM 1350 Class IVDriver / Peon 390
DM / ADM 1200 Sweeper 315
AO / AAO 910

28
15. PARADEEP PORT ALLOWANCE:
ALLOWANCE:
Officers / employees posted at office(s) in Paradeep shall be paid “Paradeep Port Allowance”
at the increased rate of ` 110/- p.m. from 1.11.2010, which shall not rank for any purposes. This
allowance shall be paid as long as the officer/employee is posted in Paradeep and shall be
discontinued on his transfer to another place.
16. PROVIDENT FUND:
The rate of provident fund recovery from salary is at 10% of pay. Pay for the purpose of
provident fund shall include basic pay, additions to basic pay, Fixed Personal Allowance (FPA),
Graduation allowance payable to Assistants/Stenographers, Special allowance payable for
passing examinations under LIC of India Class III Employees (Payment of Special Allowance
for Passing Examinations) Rules, 1988 and Special allowance payable to Head Peon/Liftman/
Watchman.
For Officers/Employees who are not governed by the Life Insurance Corporation of India
(Employees)Pension Rules, 1995, the employer’s contribution to provident fund at 10 % of pay
has to be remitted to the provident fund authorities.
For Officers/Employees who are governed by the Life Insurance Corporation of India
(Employees) Pension Rules, 1995, the employer’s contribution at 10 % of the pay is to be credited
to the Life Insurance Corporation of India (Employees) Pension Fund.
Provided that these rules shall not be applicable to the officers/employees joining the service
of the corporation on or after 01.04.2010 and they shall be covered by a Defined contribution
Pension Scheme.
Defined contribution Pension Scheme (REF:CO/ER/Pen/10-11/L002 DT.08.03.2011:
1. All new whole-time (salaried) employees of the corporation and regular part-time time
employees on permanent basis joining the services of the corporation on or after
01.04.2010 are to be covered by Defined contribution Pension Scheme.
2. The deductions of contribution for the Defined contribution Pension Scheme is to be made
from salary at the rate of 10% of Basic Pay plus Dearness Allowance for these employees.
3. An equal contribution will be made by the corporation for this purpose.
4. In respect of employees/officers on probation upon their initial appointment in the
services of the corporation, the deduction of contribution at the above rate is to be
made from their date of confirmation.
5. Since, these employees/officers are covered by Defined contribution Pension Scheme;
they will cease to be governed by LIC of India (Employees) Pension Rules, 1995 and
LIC of India Provident Fund No.1 Rules. Therefore, no deduction from salary against
Employees Contribution to Provident Fund is to be made in respect of such employees.
6. The employees covered by the Defined Contribution Pension Scheme will not be covered
by the existing GTIS scheme.
17. PROJECT ALLOWANCE:
Officers / Employees in the Class I / Class III cadre attached to the Engineering Department,
if posted to project sites are eligible for Project Allowance at the following rates (revised w.e.f
01.08.2007)
Class I - ` 240/- p.m
Class III - ` 170/- p.m.
The above said Project Allowance does not count for any purpose.

29
18. SPECIAL ALLOW ANCE FOR P
ALLOWANCE ASSING EXAMINA
PASSING TIONS UNDER LIFE
EXAMINATIONS
INSURANCE CORPORA TION OF INDIA CLASS III EMPLOYEES (SPECIAL
CORPORATION
ALLOW ANCE FOR P
ALLOWANCE ASSING EXAMINA
PASSING TIONS) RULE 1988, -FOR CLASS III
EXAMINATIONS)
EMPLOYEES
ELIGIBILITY CONDITIONS :
 All Confirmed Class III Employees passing prescribed Professional/Technical
Examinations, subject to their satisfying other eligibility conditions are eligible for
receipt of Special Allowance.
 Both Life and Non-Life Branch papers completed by the employee can be
considered.
 No time limit is prescribed for passing the Professional or Technical Examinations.
 Allowance is payable from the first of the month following the date of publication of
the result or from 1st April of the year in which they have renewed the membership and
diploma in case of Associates and Fellows, whichever is later.
 Administrative Officer/ Sr.Branch Manager of the Branch are competent to sanction
the special Allowance in the Branches.
QUALIFICA TIONS AND SPECIAL ALLOW
QUALIFICATIONS ANCE P
ALLOWANCE PAAYABLE :
Professional / Technical Allowance
Technical Special Allowance payable per month
Examination of Insurance Institute of India:
1. Licentiate ` 180/- p.m
2. Associateship ` 490/- p.m
3. Fellowship ` 840/- p.m
Examination of Institute of Actuaries, ` 180/- p.m on passing each paper
London / Examination of Actuarial
Society of India, Mumbai
Examination of the Institute of Chartered
Accountants of India and Institute of Cost
and Works Accountants of India
1. Intermediate ` 350/- p.m
2. Final Group A or B ` 600/- p.m
3. Final Group A and B ` 840/- p.m
Master of Business Administration of a ` 840/- p.m
recognized University / Institution
On passing Final Examination of the ` 840/- p.m
Institute of Company Secretaries of India
SPECIAL NOTES :
1. Special Allowance may be paid as long as he/she continues to be a member of the
concerned Institute. In case of Associateship and Fellowship, the employee should have
renewed the Diploma also.
2. Further the Special Allowance for passing the Intermediate Examination of ICWAI
shall discontinue if the employee does not

30
 a) pass the final examination within 7 years from the date of registration.
b) further register himself as a De-novo registered student without a gap.
It is also clarified that these Class III employees who have passed the Intermediate
Examination of the Institute of Cost and Works Accountants of India will not be allotted
marks for passing the said examination if they do not fulfil the condition (a) or (b)
mentioned above for the purpose of arriving at qualification marks for promotion.
3. Only one Special Allowance, whichever is more favourable, shall be paid to the employee.
4. If an employee renews his/her membership with retrospective effect, Special Allowance
is to be paid from the first of April of the year in which membership is renewed
irrespective of whether the renewal is on an yearly basis or life membership of the
renewal is by paying the arrears of the previous years also.( CO Circular ZD/776/ASP/
92 dated 29.09.1992).
5. Special Allowance should not be paid from the date on which the Class III employees
becomes Class I Officer, but he will continue to draw such allowance if he has not taken
fixation of Class I immediately and opted for fixation at a later date i.e. Date of NGI.
6. Special Allowance shall be counted for the purposes of calculation of DA, HRA, PF,
Gratuity ,PL encashment and for fixation of salary on promotion of a Class III employee
as a Class I Officer.
7. The Special Allowance for passing the prescribed examinations will be in addition to
the Graduation Allowance paid to the eligible employees after reaching the maximum
of the scale of pay applicable to them.
8. Employees, who have drawn one or more special increments for passing the prescribed
Professional/Technical Examinations prior to 30.9.1981 are eligible for Special Allowance
for passing these examinations on reaching the maximum of the scale of pay applicable
to them. Branch Offices are instructed to send such cases to Divisional Office for
sanction.
9. Prescribed “Technical Examination”/”Professional Examination” referred to hereinabove
means the following: Licenciate, Associateship, Fellowship (both Life and Non-Life) of
Examination of the Insurance Institute of India, Mumbai; Examination of the Institute
of Actuaries, London; Examination of the Actuarial Society of India, Examination of
the Institute of Chartered Accountants of India, Institute of Cost and Works Accountants
of India and the Master of Business Administration of a recognised University/
Institution only.
10. A register with details of Name, SR.No, Designation, Name of Exam passed, Name of
the Institute, Date of publication of results, Amount of Spl allowance sanctioned,
Membership renewed on / valid upto , Diploma renewed on / valid upto, Initial of AAO/
AO/BM is to be maintained.
11. A copy of the letter informing sanction of the said allowance is to be kept in the Personal
file (A –file) of the employee maintained in the P&IR Department.
12. Regarding recognition of various degrees, MBA Courses, PG Diplomas / Computer
Courses etc., which our officers / employees obtain while in service, the authentic source
of confirming whether an institution or a course is recognised or not, is to check if it is
recognised by the Association of India Universities. Only if the course is recognized by

31
 AIU, special allowance is to be paid and marks for qualification to be awarded for the
purpose of promotion. (Ref: C. O letter PER ADMN/SS dated 27.07.2004)
Life Insurance Corporation of India (Special Allowance for In-House Development
of Actuarial Capability) Amendment Rules, 2010
(Ref: CO Circular Zd/1155/ASP/2010 dated 14.06.2010)
Special Allowance:
a. Amount of special allowance:
In terms of Rule 2 of the Life Insurance Corporation of India ( Special Allowance for in-
house Development of Actuarial Capability) Rules 2002 as amended from time to time,
a confirmed employee of the Corporation who has passed the examination of the
Institute of Actuaries, India or the Institute of Actuaries, London shall be paid a special
allowance subject to the conditions specified in (b) below. The amount of Special
allowance shall depend on the number of papers passed as well as being in the specified
core group.
(i) The employees posted in the Core Group shall be eligible for special allowance
at the following rates:
No. Of papers passed Revised Rate of Revised Rate of
Special Allowance Special Allowance
per month Per month
(CO Core Group) (ZO Core Group)
` `
Six Papers 4000/- 3200/-
Seven Papers 5000/- 4000/-
Eight Papers 9000/- 7200/-
Nine papers 10000/- 8000/
Ten papers 12000/- 9600/-
Eleven Papers 15000/- 12000/-
Twelve Papers 18000/- 14400/-
Thirteen papers 21000/- 16800/-
Fourteen papers 25000/- 20000/-
Fifteen papers 30000/- 24000/-
Fellow 50000/- 24000/-
It may be noted that an employee who is a Fellow of institute of Actuaries India/
Institute of actuaries, London shall be inducted into Central Office Core Group
subject to the selection Process.

32
(ii) All other employees having eligibility to qualify for special Allowance and not
in core Group shall be eligible for special Allowance at the following rates:
No. of Papers cleared Special Allowance per month
`
Upto 3 300 per paper
4 to 6 500 per paper
7 to 9 800 per paper
10 to 12 900 per paper
13 to 15 1000 per paper
Conditions of payment of Special Allowance:
i. The special Allowance shall cease to be payable if
the employee does not keep alive his/her
membership of the Institute of Actuaries, India/or
Institute of Actuaries, London as the case may be.
Upon renewal of membership of the concerned
Institute, the special allowance if otherwise payable
shall be paid for the relevant subscription year.
ii. The special Allowance shall cease to be payable to
an employee who has given a notice of resignation
or voluntary retirement under the Life Insurance
Corporation of India(Staff) Rules, 1960 or the Life
Insurance Corporation of India( Employees) Pension
Rules, 1995 from the date of such notice. However,
subject to the rules in this regard if an employee is
allowed to withdraw the notice of resignation or
voluntary retirement. The special allowance may be
paid if otherwise payable to such an employee as if
the notice was not given at all.
iii. Restrictive Clause
An employee who has passed one or more papers
but less than three papers shall be eligible for
allowance only if he/she passes/gets exemption for
at least one paper during the next one year from the
date of passing the last papers or the date of circular
whichever is later.
An employee who has passed more than three papers
but less than six papers shall be eligible for allowance
only if he/she passes gets exemption for at least one
paper during the next two years from the date of
passing the last papers or the date of the circular
whichever is later.
Provided however that those employees who are
already under the restrictive clause in accordance

33
 with the provisions of the Life Insurance Corporation
of India (Special Allowance for in-house
Development of Actuarial Capability) Amendment
Rules 2005, will necessarily have to pass one more
paper to become eligible again for receipt of the
allowance.
There shall be no restrictive clause once an employee
passes six papers.
iv. This special allowance shall not count as a part of
basic pay for any purpose such as HRA,CCA and
Dearness Allowance, Gratuity etc.,
(c) Appointed Actuary:
In terms of rule 4(1) of Actuary Incentive Rules, an employee appointed as “Appointed
Actuary” shall be entitled for a fixed Allowance of ` 25,000/- per month in addition to
the special allowance based on his qualification, at the rate specified under clause 5(a)
(i) above.
Option for Allowance:
1. All class III employees who have passed one or more papers and are eligible for
payment of special allowance shall have the option to either opt for allowance
under Life Insurance Corporation of India special Allowance for in-house
Development of Actuarial Capability Amendment Rules 2010 OR Life Insurance
Corporation of India Class III ( Special Allowance for passing examination) Rules
1988 but not both. The option should be exercised within one month from the
date of this circular. The option once exercised shall be final.
2. Provided however, that those who at any time before have been governed by
Life Insurance Corporation of India(Special Allowance for in-house Development
of Actuarial Capability) Rules 2002 or Life Insurance Corporation of India(Special
Allowance for in-house Development of Actuarial Capability) Amendment Rules
2005 shall have no option to be governed by Life Insurance Corporation of India
class III Employees( special Allowance for passing Examinations Rules,1988.
Provided further that those who had earlier opted to be governed by the Life
Insurance Corporation of India Class III Employees( Special Allowance for
Passing examinations) Rules 1988, shall be allowed another option to be governed
by the Life Insurance Corporation of India( Special Allowance for in-house
Development of Actuarial Capability) Amendment Rules,2010. The option
exercised once shall be final.
3. A class III employee pursuing actuarial studies after promotion to the cadre of
class I shall necessarily be governed by the provisions of Actuarial Incentive
Rules, 2010 irrespective of the option exercised by the employee as mentioned
earlier.
Applicability of the Life Insurance Corporation of India class III Employees (Special
Allowance for passing Examination) Rules 1988.
1. Class III employees who do not exercise the option given under clause 8(1) shall

34
 be governed by the provisions of Life Insurance Corporation of India (Special
Allowance for in –house Development of Actuarial Capability) Amendment Rules
2010.
2. Class III Employees who are covered under Actuarial Incentive Rules, 2002 as
amended from time to time for passing Actuarial Papers and who have also
passed other examinations prescribed in the Life Insurance Corporation of India
Class III Employees( Special Allowance for passing Examination) Rules 1988
for which special allowance is payable will be paid any one of these allowance.
(20) KIT ALLOWANCE:
ALLOWANCE:
Class –I officers on transfer to any of the hill stations at which hill allowance is payable are
eligible for kit allowance of ` 2,000/-. Provided that no kit allowance is payable if such officer
has drawn such allowance at any time earlier.
(21) PRODUCTIVITY LINKED LUMP-SUM INCENTIVE
INCENTIVE::
P.L.L.I declared by the Corporation from 01.08.1997 for the various periods are detailed below:
YEAR CLASS I

DM & UPTO CLASS II CLASS III/IV

ABOVE ADM (` ) ((`
` )
((`
` ) ((`
` )
01.08.1997-31.03.1998 1975 1220 640 635
1998-1999 2355 1680 990 965
1999-2000 2360 1635 925 1005
2000-2001 8145 4905 2790 3100
2001-2002 14505 9400 5655 6360
2002-2003 7222 4517 2771 3275
2003-2005 2620 1905 1750
2005-2006 12558 9715 8943
2006-2007 14821 10313 11068
2007-2008 14134 9547 11443
2008-2009 10732 7327 9992
2009-2010 Pre-revised BP,DA,FPA*12*3% (CO CIR NO.ZD/1166/ASP/2010
DT.02.11.2010)
2010-11 Pre-revised BP,DA,FPA*12* - % (CO CIR NO.ZD/1192/ASP/2011
DT.22.11.2011)
Special Notes applicable for payment of PLLI :
 In case of officers /employees who have retired or expired while in service shall get
proportionate amount of one time Lumpsum cash incentive / Productivity Linked
Lumpsum Incentive.

35
 The officers /employees who have resigned or who shall resign or whose services are
terminated under Rule 39 of LIC of India (Staff) Rules, 1960, shall not be eligible for
this benefit for the financial year in which they resign.
 The officers/employees who have joined in middle of the year will be eligible for
proportionate benefit of One-time Lumpsum Cash Incentive/Productivity Linked
Lumpsum Incentive
 An employee who is placed under suspension or whose absence is treated as EOL/
Dies-non etc. shall not be eligible for the One-time Lumpsum Cash Incentive/Productivity
Linked Lumpsum Incentive benefit in full. The incentive in such cases will stand reduced
proportionately. For this purpose, the days of suspension, EOL/ Dies-non during the
entire period shall be clubbed. After clubbing, any fraction of less than and up to 15
days shall be ignored and fraction of more than 15 days shall be rounded off to the next
month.
 The officers who have been appointed on contractual basis, viz. Medical Officers,
Assistant Medical Officers, Security Officers, Legal Advisers and other officers
appointed likewise to whom the provisions of the LIC of India (Staff) Rules, 1960 do
not apply shall not be eligible for the above benefit.
 Where a Class-III employee or Class-II Development Officer is promoted to the post of
Class-I Officer during the financial year, he shall get proportionate benefit of PLLI.
 Officers/employees on deputation to LIC HFL, LIC MF and Insurance Ombudsman
Office are eligible for PLLI for the period of deputation and PLLI has to be paid by
their office.
 Officers on deputation to GIC companies as C.V.O are eligible for PLLI for the deputation
period and PLLI has to be paid by the respective GIC company and not by LIC.
 Officers on deputation to our subsidiaries / other companies in foreign countries are
not eligible for PLLI
(22) MID ACADEMIC YEAR TRANSFER ALLOWANCE TO CLASS -I OFFICERS:
ALLOWANCE
(C.O. Circular Ref: Per/S/ZD 439 dated 27.8.1980 & Ref: Per /B/ZD/623 dated 27.1.1987)
(a) If an officer is transferred from one place to another in the middle of an academic year
and if he has one or more children studying in a course requiring regular attendance in
a recognized school /college/university in the former place, mid-academic year transfer
allowance of ` 700/- p.m (revised w.e.f. 08.10.2010 i.e. date of notification of wage revision
instructions) will be payable (irrespective of the number of children) from the date he/
she reports for duty to the latter place upto the end of the academic year ,provided
that such allowance shall cease if all the children cease studying at the former place
before the expiry of the academic year.
(b) Child / children normally mean legitimate child / children including step child / children
and legally adopted child /children, residing with and wholly dependent on the officer.
Earning children with an income exceeding ` 2,550/ -p.m shall not be deemed to be
dependent on the officer. A stipend or scholarship granted by college / university /
educational institution shall not be treated as income for this purpose.
(c) The officer will be required to submit a declaration showing the details of the name/
names of the child / children and the class of study, institution, period of academic year

36
 stating also the reason for which they are left at the former station. A further declaration
will be required at the end of the academic year to the effect that the child / children
have continued the studies at the old headquarters.
(d) The allowance shall be sanctioned at the new headquarters / controlling DO by an
officer not below the rank of ADM duly authorized by the head of the office.
(23) SALAR
SALARYY PAYABLE TO EMPLOYEES RECRUITED UNDER LIC OF INDIA
PA
(EMPLOYMENT OF TEMPORAR Y ST
TEMPORARY AFF) INSTRUCTIONS 1993:
STAFF)
A person employed on a temporary basis recruited under the above instruction for a month or
more shall be paid the wages as are drawn by a regular employee at the minimum of the scale
applicable to the post on which temporary employment is made. If the employment period is
less than a month, wages for each day at the rate of 1/26 of the minimum monthly wages in the
scale of pay applicable to the said post is payable subject to that the wages does not exceed
one month salary. Such temporary employees are not eligible for payment of transport
allowance, washing allowance, graduation increment, etc,
(24) SPECIAL AREA ALLOWANCE:
ALLOWANCE:
The revised rates (w.e.f. 01.08.2007) of special area allowance payable are given in table shown
in Appendix I.
(25) INFORMA TION TECHNOLOGY SPECIALIST GROUP (SELECTION, TERMS
INFORMATION
AND CONDITIONS OF SER VICE AND P
SERVICE AYMENT OF ALLOW
PA ANCE), RULES, 2007:
ALLOWANCE),
In addition to the salary and other benefits applicable to the cadre, the selected personnel on
joining the Information Technology Specialist Group and till the period he remains there,
shall be paid a fixed allowance as under, which shall not count as basic pay for any purpose:
(a) Developer ` 10,000/-
(b) Business System Analyst (BSAs) ` 15,000/-
(c) Project Leader ` 20,000/-
For further details refer Compendium.
IMPORT ANT GUIDELINES ON P
IMPORTANT AYMENT OF SALAR
PA SALARYY / ADVANCE SALAR
ADVANCE Y/
SALARY/
FIXA TION OF SALAR
FIXATION SALARYY ON PROMOTION:
SALARY DISBURSEMENT DATE
1. Salary will be disbursed each month (except in the month of March) on the last but one
working day. If the last but one working day happens to be Saturday or a holiday, Salary
shall be disbursed on the previous working day.
LAST WORKING DAY
DAY SALAR
SALARYY PAYMENT
PA
Monday Friday
Saturday Friday
Saturday but Friday holiday Thursday

2. In case of bank credit of the salary, the salary is to be credited on the salary day only
and not on the date of which individual salary cheques are drawn.

37
3. Since our Accounts are closed as at 31st March of each year, salary for the month of
March will be disbursed earlier i.e. on 23rd of March each year, or on the previous day
(if 23rd March is Saturday or a Holiday)
4. Salary cheques shall bear the date one day prior to the date of salary disbursement.
These cheques shall be prepared and handed over to the employees two days prior to
salary date.
Salary date/day Cheque date Handing over of chq
date/day
29th of a month 28th of that month 27th of that month
Monday Friday (since there is Thursday
no Banker’s clearance
on Saturday)
29th Wednesday 27th i.e. Monday 24th Friday, the previous
(if Tuesday, 28th is a holiday) day being not a full
working day.
5. Salary disbursement date will NOT undergo any change due to Strikes, Bandh, etc.,
unless and until it is specifically intimated by Central Office.
6. If Gross Salary of an employee exceeds ` 5,000/- payment of salary by cash cannot be
effected. Payment is to be made by NEFT/ECS/Bank credit.
7. Payment is to be rounded off to the nearest rupee. Fifty paise is to be rounded off to the
next rupee.
8. As regards payment of salary to Probationary Staff, payment of salary may be made
along with the regular staff, except for the month of March. In the month of March, the
salary to Probationary Staff may be paid on the last working day of the Month.
9. Payment towards Sundry Advances, Advances against TE, Transfer Traveling Expenses,
Leave Travel Concession and Advance Salary may be paid in cash.
10. Any changes in the salary sheets are to be supported by Proper Authority to effect the
change. E.g., when the employees are to be granted Increments, Increment sanctioning
Memos are to be prepared and got sanctioned by the Competent Authority. Inclusion of
a new employee can be only on the basis of Transfer Form Certificate/ Appointment
Letter and Joining Report.
11. In case of retirements, salary payable to the employee for the month in which he retires
is to be drawn on 1st of the month itself and PF etc., transferred immediately. The
balance is to be credited to Unpaid Salary Account and net salary due to the employee
for the month is to be paid only on the last working day of the month.
ADVANCE SALAR
ADVANCE SALARYY IN CASE OF LEAVE
VE::
LEAVE
a) In case of employees proceeding on Privilege Leave/ Maternity Leave, Advance Salary
is to be paid to him/her on the last working day, he/she attends the Office i.e., If the
employees proceeding on PL/ML from 08.05.2006 onwards and will not be returning on
the salary disbursement date, Advance Salary is to be paid on the last working day, he/
she attends Office i.e. 07.05.2006. In case the last working day happens to be Saturday,
Advance Salary is to be paid to the employees on Friday, since Saturday happens to be

38
 half-holiday.
b) If an employee’s leave period is spread over two months or more and if his leave period
extends beyond the salary disbursement date in more than one month, he may be paid
in advance, the salary due for the month in which he proceeds on leave i.e., the month
in which the leave commences. If however, the employee does not avail of the benefit in
time as stated above, he cannot be allowed to enjoy the privilege later.
c) The Cheque shall be drawn bearing the date of one full working day prior to the
commencement of the leave (in case payment by Cheque is insisted) and handed over
two full working days prior to the commencement of the leave.
d) An employee on Casual Leave shall be treated as on duty, for the purpose of Leave
Salary.
ADVANCE SALAR
ADVANCE SALARYY IN CASE OF TOUR:
1. In case of employees going on tour for training, Advance Salary may be paid on the last
working day before proceeding on tour provided the employee does not return to
Headquarters before the salary disbursement date. In case he is to return to
Headquarters on the salary disbursement day, Advance Salary is not to be paid to him.
For example, Salary Disbursement date 29th
TOUR DA TE
DATE ADVANCE SALAR
ADVANCE SALARYY DA TE
DATE
Employee going on tour from 26th to 28th Not payable
Employee going on tour from 25th to 31st Payable on 24th. (If 24th is
Saturday, then Payment on 23rd )
2. The Cheque shall be drawn bearing the date of one full working day prior to the
commencement of the tour (in case payment by Cheque is insisted) and handed over
two full working days prior to the commencement of the tour.
ANCE SALAR
ADVANCE
ADV SALARYY IN CASE OF TRANSFER:
In case of employees proceeding on transfers, advance salary is to be paid in case he is relieved
from the Office after 20th of the month. For persons, relieved on or before 20th of the month,
salary is to be paid by the transferee Office. The Advance Salary paid is to be intimated
immediately to the transferee Office. If an employee on transfer is relieved on or before the
20th of the month, and has been granted Privilege Leave by the transferor Office and he is not
resuming duties at the transferee office before the salary date, then salary for that month
shall be paid in advance by the transferor office.
CCA/HRA/HILL ALLOWANCE IN CASE OF TRANSFER
ALLOWANCE TRANSFER::
1. When an employee is transferred (whether on promotion or otherwise) from a non-
CCA centre to a CCA centre, he shall be eligible for CCA only from the date of taking
charge at the CCA centre. Similarly, when an employee is transferred (whether on
promotion or otherwise) from CCA Centre to a non-CCA Centre, CCA shall be payable
only till the date of his relief.
2. However, if a person is relieved from a CCA centre and avails of either joining time or
sanctioned leave, CCA shall be paid till the date of taking charge.
Illustration: Employee is relieved on 15th from CCA centre and joins on the 23rd to a

39
 non-CCA centre (after availing joining time/sanctioned leave) CCA shall be paid till
the 22nd of the month.
Illustration: When an employee is relieved on 15th from Kozhikode and reports for
duty on 20th at Taliparamba CCA shall be payable till the 19th.
Illustration: When an employee is relieved from Mattanur on 15th and reports for duty
at Kozhikode on 22nd, he is entitled to CCA from 22nd only. The same principle is to be
followed in the case of transfer from higher CCA Centre to a lower Centre:
Illustration: When an employee is relieved from Chennai on the 15th and reports for
duty at Kozhikode on the 22nd,, he is entitled to CCA applicable to Chennai till the 21st
and from the 22nd onwards Kozhikode CCA is payable.
Illustration: When an employee relieved from Kozhikode and reports duty at Chennai,
Chennai CCA is payable to him from the date he reports for duty at Chennai. In the
case of Hill Allowance the same principle is to be followed.
3. In case of CCA, it is paid on the basis of population of the city where the employee is
posted and is payable to him only so long as he is posted at the Centre where the said
allowance is admissible. The CCA has relevance only to the place of work and not to
the post or the date of fixation of salary. The CCA ceases to be payable as and when the
employee is transferred out of such CCA Centre.
4. Therefore, the payment of CCA to an employee transferred on promotion from a CCA
Centre to a non-CCA Centre till the date of fixation of his salary is not in order.
5. The same principle is applicable in case of Hill allowance/HRA/Special Area Allowance.
EOL AND SALARY PAYMENT:
No salary is admissible during the period of Extra-ordinary Leave. The period spent on such
leave shall not count for increment purposes - Staff Regulation 69 (4).
When EOL is granted, the employee is not entitled to payment of salary for the day/s and
therefore, only proportionate salary for the rest of the days may be paid.
For convenience, when EOL is granted due to Strike, Bandh etc., to a number of employees,
the day wages are shown as deduction ‘Wage Cut’ in the Salary sheet. However, in such months,
PF for the whole month is to be deducted. Proportionate PF for strike days and Walk-Out
Strike should not be cut unless otherwise instructed by ZO (ZO Accounts/PF Circular dated
25.3.85)
Sick Leave and Salary payment:
When SL is on full pay, SL Account is debited with double no. of days SL availed. In such case
salary recovery need not be made.
When SL on half-pay is granted: An employee on half-pay sick leave shall draw half of the
aggregate of Basic Pay, Special allowance, and Functional Allowance, if any. In addition, he
shall also draw Dearness Allowance, House Rent Allowance, City Compensatory Allowance,
and Hill Allowance appropriate to half of the aggregate of Basic Pay. [Staff Regulation 69 (3)].

40
ILLUSTRATION:
An employee is on 15 days S.L. on half pay in the month of April 2011. Basic Pay ` 32,640.00.
Full Salary Payable is:
BASIC PAY 32640.00
D.A. 14981.76
H.R.A. 3200.00
C.C.A. 800.00
TRANSPORT ALLOWANCE 800.00
TOTAL 52421.76
Salary payable for S.L. on H.P. for the month of April, 2011
BASIC PAY 16320.00 (32640/2)
D.A. 7490.88 (16320*0.15%*306)
H.R.A. 1632.00 (16320*10%)
C.C.A. 489.60 (16320*3%)
TRANSPORT ALLOWANCE 400.00 (800/2)
TOTAL 26332.48
Salary payable for 30 days SL on Half pay = ` 26332.48
Salary payable for 15 days SL on Half pay = ` 26332.48*15/30= ` 13166.24  (A)
Salary payable for remaining 15 days = ` 5421.76*15/30 = ` 26210.88  (B)
Total salary payable for April 2011 = (A) + (B) = 16166.24+26210.88 = ` 39377.12

41
Effect of functional/Special allowance on fixation of salary on promotion, when
the employee opts for fixation w .e.f the date of next NGI and not immediate
w.e.f
fixation:
Sl. Description Payment of allowance and effect on fixation
No w.e.f. next NGI
1. Officer in Audit or Inspection Function allowance to continue till fixation, even
drawing functional allowance. when posted out of Audit/Inspection Depts.
2. Internal Audit Assistant promoted Function allowance to continue till fixation and
as AAO and posted outside Audit will not qualify for fixation.
3. Internal Audit Assistant promotedAAO functional allowance payable and IAA
as AAO and posted to Audit or allowance to cease, but IAA allowance will not
Inspection qualify for fixation.
4. Assistant promoted and posted as IAA allowance payable on joining Audit Dept
IAA
5. AAO (P) promoted as AO (Admn) Programmer allowance to continue till fixation,
but will not qualify for fixation.
6. HGA (P) promoted as AAO (P) AAO (P) allowance payable with effect from taking
charge and HGA (P) allowance to cease - but will
not qualify for fixation.
7. HGA (P) promoted as AAO (Admn) Programmer allowance to continue till fixation,
but will not qualify for fixation.
8. HGA (P) or AAO (P) promoted and Audit / Inspection functional allowance payable
posted to Audit / Inspection Dept and programmer allowance to cease - Programmer
allowance will not qualify for fixation.
9. Cashier promoted as HGA Ceases with effect from taking over charge as HGA
and will not qualify for fixation.
10. Cashier promoted as HGA (P) Cashier allowance to cease with effect from taking
over charge as HGA (P) and will draw functional
allowance payable to HGA (P) with effect from
taking over charge. Cashier allowance will not
qualify for fixation.
11. Cashier promoted and posted as IAA allowance payable with effect from date of
IAA joining Audit Dept and cashier allowance ceases.
Cashier allowance will not qualify for fixation.
12. RC receiving Duplicating/ Xerox Allowance to continue till fixation, but will not
machine operator allowance count for fixation
13. Watchman / liftman promoted as Special allowance to continue till fixation and the
RC /Assistant allowance also counts for fixation
14. Assistant drawing Graduation Graduation Allowance to continue till fixation and
Allowance promoted as HGA / AAO also counts for fixation
15. Graduated sub staff promoted as Graduation allowance payable to RC with effect
RC from the date of fixation
16. Sub staff promoted as RC Washing allowance Ceases with effect from taking
over charge as RC

42
Ref: CO Circular letter Per / IR / 517.A (II) dated 26.09.1991 and Wage Revision 2010
instructions.
General points:
1. In case of fixation of salary on promotion, the employee cannot be fixed in the stagnation
stage in the higher scale and if employee is fixed at the maximum of the higher scale
which is less than the basic pay drawn by him prior to promotion, in such cases to
protect the salary personal allowance is payable. The PA shall be the difference between
the salary, which the employee would have received had he continued in the pre-
promoted cadre, and the salary payable in the promoted cadre. There shall be periodical
change in the PA due to release of D.A. The terminal dues (Pension) are also protected
in such cases. (Ref: C.O clarification letter Ref: P/ER/A/G/364/Anomaly/MKK dated
27.03.2001.)
2. The penalty of reduction in basic pay in terms of Regulation (39) is to be imposed in the
time scale only and therefore the stagnation increments, graduation allowance, fixed
personal allowance once granted need not be withdrawn to give effect to the penalty
imposed under Regulation (39). (Ref: CO Circular letter PER / ER / A / G / 364 dated
26.08.1997)
3. The contribution to the Pension fund is to be made at 10% of the monthly rate of the
Basic pay (including allowances, which rank for contributions to the Provident Fund)
and not on the actual Basic Pay drawn, for EOL/SL on Half pay cases. (Ref: CO Circular
Per/ER/G/345 (XVII) dated March 1997
4. When guest house attendant or caretaker is required to stay in the guest house or
office premises, only a nominal licence fee of ` 1 /- p.m. is charged. (Ref: Per/A/ZD/613/
ASP/86 dated 09.04.1986)
5. While calculating the strike recovery in case of hourly strikes, for Class I / III employees
the number of working hours per day is taken as 6 hours 15 minutes , for class IV sub-
staff , it is 7 hours 15 minutes and for Class IV Building staff (liftman, watchman,
sweeper )and Drivers it is 8 hours
6. A Class III employee promoted as Class I officer, opting for fixation in AAO scale w.e.f.
next NGI in the lower scale will continue to draw the salary corresponding to the
lower scale including the transport allowance, viz., Transport allowance in such cases
at the rate of ` 800/- p.m cannot be paid w.e.f. the date of taking charge as AAO
7. An employee who is asked to act as cashier from Monday and who takes charge of the
cash keys on the preceding Saturday is entitled for proportionate allowance for the
Sunday which precedes the Monday. Ref: CO Circular letter Per/A/G/18 dated 14.10.1986
8. During the period of suspension, Income Tax and Licence Fees should be recovered
from the subsistence allowance payable. PF Loan and Interest, Insurance Premium,
Cooperative Bank deduction, deductions towards advances may be recovered at the
option of the suspended employee. PF deductions under Additional Emoluments Act
are not be recovered.(Ref: CO letter P/IR/G/27 (ii) dated 12.10.1991

43
 APPENDIX – I
NAME OF THE SPECIAL AREA Rate of Special Area
Allowance for
employees drawing
Basic Pay *
UPTO ABOVE
` 13700/- ` 13700/-
( 1 ) MIZORAM
(a) Chimptuipui District of Mizoram and areas
beyond 25 kms. From Lungeli Town in Lungeli
District of Mizoram 2000 2600
(b) Throughout Lungeli District excluding areas
beyond 25 kms.From Lungeli town of Mizoram 1600 2100
(c) Throughout Aizawal District of Mizoram 1200 1500
(2) NAGALAND 1600 2100
( 3 ) THE ANDAMAN AND NICOBAR ISLANDS
(a) South Andaman 1600 2100
(including Port Blair)
(b) North and Middle Andaman, Little Andaman,
Nicobar and Narcondum Islands 2000 2600
( 4 ) SIKKIM 2000 2600
(5) LAKSHADWEEP 2000 2600
( 6 ) ASSAM 320 400
(7) MEGHALA
AYYA 320 400
8) TRIPURA
(8)
(a) Difficult area of Tripura as notified by State 1600 2100
Government from time to time
(b) Throughout Tripura except Difficult Areas 1200 1500
( 9 ) MANIPUR 1200 1500
(10) ARUNACHAL PRADESH
(a) Difficult areas of Arunachal Pradesh as notified
by the State Government from time to time 2000 2600
(b) Throughout Arunachal Pradesh except Difficult Areas 1600 2100
(1 1) JAMMU AND KASHMIR
(11)
(i) Kathua District 2000 2600
(a) Niabat Bani
(b) Lohi

44
 (c) Malhar
(d) Machodi
(ii) Udhampur District 2000 2600
(a) Dudu Basantgarh
(b) Lender Bhamag Illaca
(c) Thakrakote
(d) Nagote
Tehsil Mahone
(i) For areas upto Gool from Kamban side and areas 1600 2100
Upto Arnas from Kesai Side:
(ii) For the rest of the areas 2000 2600
(iii) Doda District 2000 2600
(a) Illaquas of Padder in Kishtwar Tehsil
(b) Niabar Nowgam in Kishtwar Tehsil
(iv) Leh District
(a) Zanskar, Noyama and Nobre 2000 2600
(b) All other places in the District 2000 2600
v) Baramulla District
(a) Entire Gurez Niabat, Tangdar Sub-Division 2000 2600
and Keran Illaqua
(b) Matchill 1600 2100
vi) Poonch and Rajouri District Areas in Poonch and 1200 1500
Rajouri Districts excluding the towns of Poonch and
Rajouri and Sunderbani and other Urban areas in the
two Districts
(vii) Areas not included in (i) to (vi) above, but which are 1200 1500
within the distance of 8 kms. from the line of Actual
Control or at places which may be declared as
qualifying for border allowance from time to time
by the State Government for their own staff
(12) HIMACHAL PRADESH
(1) (a) Pangi Sub-Division of Chamba District 2000 2600
(b) Bharmour Sub-Division of Chamba District 2000 2600
(c) Lahaul and Spiti District 2000 2600
(d) Kinnaur District 2000 2600
(e) Dodratawar Tehsil and Parganas of Chaibis, 2000 2600
Pandrabis Gram Panchayats of Munish Darkali

45
 and Kashapat of Rampur Tehsil of Simla
District
(f) Pargana of Pandrabis of Kulu District 2000 2600
(g) Chhota Bhangal and Bara Bhangal area of 2000 2600
Palampur Sub-Division of Kangra District
(h) Jhandru Panchayat area of Bhatiyat Tehsil of 2000 2600
Chamba District
(i) Mahog, Sarhan, Gopalpur, Teban, Pokhi, Nauj, 2000 2600
Khanoj, Bagra, Sainj Mahudi and Balidhar
Panchayats of Kersog Tehsil
(j) Simla Town and its Suburbs (Mashobra, Dhalli, 2000 2600
Taradevi, Kasumbpti, Jatog and Tutu)
(k) Gram Panchayat Deothi (Taklech areas) and 2000 2600
Parganas of Naubis Sarhan and Barabis of
Rampur Tehsil of Simla District
(l) Chhuhar Valley of Jogindernagar Tehsil, 2000 2600
Panchayats of Gatto, Bagraa, Chhatri,
Thachadhar Garagus Hain, Kalhani, Thama,
Silibagi Chhetdhar, Chanvar, Tachi, Johar
Kholanal, Somachan Loth Jaryar, Janjheli and
Kalwanr of Thunag Tehsil of Mandi District
(m) Mangal Panchayat area of Solan District 2000 2600
(n) Outer-Saraj and Malana Panchayat area of
Kulu District 2000 2600
(o) Trans-Giri Tract of Sirmur District 2000 2600
(2) (a) Janjehli Block (excluding area covered in 1200 1500
(1)(l) above Chachoit Tehsil of Mandi District
(b) Trah Chopal Tehsil of Simla District 1200 1500
(c) Churah Tehsil of Chamba District 1200 1500
(d) Munr Panchayat and Balaj Paryana of 1200 1500
Chamba District
(e) Dalhousie Town 1200 1500
(f) Rampur Tehsil 1200 1500
(g) Karsog Tehsil Minus the Panchayat indicated 1200 1500
under (1) (i) above
(h) Dharamshala Town of Kangra District and the 1200 1500
following Offices located outside its Municipal
limits but included in Dharamshala Town
- Women’s ITI Dari

46
 - Mechanical Workshop, Ramnagar
- Child Welfare and Town and Country
Planning Offices, Sakoh
- CRSF Office at lower Sakoh
- Kangra Milk Supply Scheme, Dugiar
- HRTC Workshop, Sadher
- Zonal Malaria Office, Dari
- Forest Corporation Office, Shamnagar
- Tea Factory, Dari
- I.P.H. Sub-divison, Dan
- Settlement Office, Shamnagar
- Binwa Project, Shamnagar
(i) Palanpur Town of Kangra District including 1200 1500
HPKVV Campus at
Palanpur and the following Offices located
outside its Municipal
limits but included in Palanpur Town-
H.P. Krishi Vishvavidyalay Campus
Cattle Development Office/Jersey
Farm, Banuri,
Sericulture Office / Indo-German Agriculture
Workshop /HPPWD Division, Bundla
Electrical sub-Division, Lohna, D.P.O.
Corporation, Bundla Electrical HPSEE
Division, Ghuggar
(3) Manali-Ujhi areas, Parvati and Lagg, Valley and 320 400
Banjar
(4) Remianing parts of Himachal Pradesh not included 320 400
in (1) to (3) above
(13) UTT
UTTAA T AKHAND
Areas under Chamoli, Pithoragarh, Uttarkashi 2000 2600
Rudraprayag and Champavat Districts
(including area of Lohaghat)

* Including Stagnation Increments

47
 CHAPTER 4
SALARY ATT
SALARY ACHMENTS
TTACHMENTS
Moiety means half especially in legal use (loosely) - One of two parts into which a thing is
divided. This arises in cases where a portion of the salary of an employee has to be set apart
for meeting with attachment in court cases. Where after calculation of the payment to the
court, there remains a balance or insufficient balance for the employee to eke out the livelihood,
the following procedure should be adopted.
CIRCUMST ANCES
CIRCUMSTANCES
Under the following circumstances an advocate must be engaged to represent us and submit
the position to court by filing an affidavit:
1. When the employee is under loss of pay and no remuneration is payable, or when he is
under suspension, as the subsistence allowance is exempt from attachment;
2. When the salary is already under attachment and no moiety is being recovered and
remitted to the court;
3. When deductions towards I.T., P.F. ,P.F.Loan and interest which take precedence over
others are recovered, no moiety is available for attachment or less amount is available.
COURT ATT ACHMENTS
TTACHMENTS
1. Attachment can be made in a suit at two stages.
2. First one is, before the suit results in a decree. This is called Attachment before
judgement or in short, ABJ.
3. In case the plaintiff who files a suit is apprehensive that the defendant may alienate
his assets thereby affecting the chance of recovery, he can file a petition seeking ABJ.
4. In case of petition for ABJ of salary, the courts will issue notice to the employers to
show cause why ABJ should not be issued.
5. Immediately on receipt of notice, the salary particulars of the employee concerned
should be called for and examined to see whether moiety is available for attachment.
6. If moiety is available, it may not be necessary to engage an advocate in as much as the
court will order the attachment before judgement and a copy will be served on us when
one moiety should be recovered every month until total amount specified is recovered
and the amounts recovered should be kept in suspense account. When ultimately the
suit is decreed, the ABJ will be made absolute and the court will call for the amounts.
Then the amounts kept in the suspense account must be withdrawn and deposited in
court.
7. However, if no moiety is available, such as in the following cases,
a) When the employee is under loss of pay leave and no remuneration is payable to
him, or when he is under suspension, as the subsistence allowance is exempt
from attachment.
b) When the salary of the employee concerned is already under attachment and
moiety is being recovered and remitted to court.

48
 c) When deductions towards I.T., P.F. and P.F. Loan and interest which take
precedence over others are recovered, no moiety amount is available for
attachment or less amount is available, then an advocate must be engaged to
represent us and submit the position to court by filing an affidavit.
Unless this is done, ultimately when the suit is decreed and ABJ is made absolute, the
court will call for the attached amount and we will be stopped from raising any objection
at that stage.
8. If the suit has already been decreed, the Decree Holder will file an Execution Petition
seeking attachment of salary.
9. In such cases, the court may order notice to show cause why attachment should not be
made or it may straightway order the attachment of salary.
10. In both cases, the salary particulars of employee concerned should be called for and
examined. Action similar to those suggested in para 6 and 7 should be taken with the
difference, that is, if amounts are available, recoveries must be made every month and
the amount deposited in court.
11. Recoveries must continue until the total amount specified in the attachment order is
fully recovered. (There are certain restrictions regarding the period over which
recoveries could be made and these are detailed later in this note).
12. Section 60(1) of the Civil Procedure Code authorises the attachment and sale of property
of the judgement debtor. But this is subject to certain exceptions. These exceptions are
enumerated in proviso to Sub-Sec(1) of Sec.60 and these are exempt from attachment.
13. Clause (i) contains the provision relating to exemption of salary from attachment.
According to this provision FIRST ` 1000/- AND Second, 2/3rd OF THE REMAINDER
are exempt from attachment. That is to say Total Salary reduced by ` 1000/- and the
balance thereof divided by 3 will be the attachable.
Salary - 1000 = Amount attachable ( called otherwise as one moiety)
3
For example, if an employee’s salary is ` 7000/-,
the amount attachable will be {` 7000 (-) ` 1000}/3 = ` 6000/3 = ` 2,000/- (Moiety)
14. This is further subject to certain restrictions:
(i) If the salary of an employee has been under attachment for a total period of 24
months it shall not be liable for attachment during the next 12 months in respect
of any decree.
(ii) If the attachment for 24 months was in respect of decree the salary shall not be
liable to attachment in respect of that particular decree, for ever.
15. The following are some of the important points to note:
(i) Explanation II to Sec.60 (1) defines salary as “Total Salary” which means that it
includes Basic Pay as well as allowances. Overtime would form part of the salary
while executing Court Orders.
(ii) Any money payable under policy/ies of insurance on the life of the judgement
debtor is not liable for attachment.

49
 (iii) In case attachment is in execution of decree for maintenance, the moiety will be
1\3rd of the total salary and not 1\3rd after deduction of ` 1000/- as in case of
money decrees.
(iv) Under Sec.60 (1) (g) gratuity is not liable for attachment. Therefore if a notice to
show cause or an order of attachment is sought, the statutory provision may be
brought to the notice of the Court by us.
(v) Regarding Provident Fund, the correct course for the petitioner would be to
implead the Trustees and serve the notice on them at Mumbai. But somehow if
the notice is sought to be served on us, we have to engage counsel and submit
the correct position to the court.
16. Attachment of Agency Commission is possible, if Commission has already accrued and
is payable. In that case entire amount is liable for attachment and not merely moiety.
Future Agency Commission is not attachable.
17. Similarly if any amounts are payable to any others by the Corporation, such as to building
contractors or suppliers of stationery or other material, such amounts are debits payable
by the LIC and are liable for attachment in full and not moiety.
18. In all cases of attachment the crucial test is availability of amount for attachment. In
case no amount is available, or lesser amount is available then necessarily we must
engage advocate to submit the position to Court, lest we will be called upon to deposit
the attached amount in Court.
19. Suitable fee in consultation with Z.O. is paid to advocate so engaged.
Sub: Prohibitory Orders, Garnishee Notices served on Corporation.
Provisions have been made under Code of Civil Procedure 1908 for attaching the
property of the judgement debtor in execution of the decrees and orders of the Court
by Order 21 of the said Code. These provisions become more prominent when the
Corporation comes into picture as garnishee and the attachment/s of the debt not in
the possession of the judgement debtor but in possession of the Corporation. Under
Rule 46 of the said Order the action is taken by the Court against the judgement debtor
who happens to be Corporation’s employees. The rule 46 is for attachment of a single
amount such as bonus etc. in the case of the Garnishee whereas rule 48 of the said
order the action is taken by the court when the attachment is continuous as in case of
monthly salary etc. When such attachment orders and garnishee notices are received
by the Corporation attaching salary and other dues payable to the employee who is
the judgement debtor under such court orders, lying in the hands of the Corporation,
the Corporation has to resort to Sec.60 of the said code which provides for execution of
recovery from the salary as under:
SECTION 60: (a) to (h)
(i) Salary to the extent of (one thousand rupees and two third of the remainder) in execution
of any decree other than a decree for maintenance.
Provided that where any part of such portion of the salary as is liable to attachment
has been under attachment, whether continuously or intermittently, for a total period
of twenty four months, such portion shall be exempt from attachment until the expiry
of a further period of twelve months, and, where such attachment has been made in

50
execution of one and the same decree, shall after the attachment has continued for a
total period of twenty-four months, be finally exempt from attachment in execution of
that decree.
It has been the experience of the dealing office that in view of the various deductions
already effected or in force against the salary of the judgement debtor being in the
service of the Corporation, difficulties arise for giving effect to such prohibitory orders
received from the Court either singly or in quick succession or in bunches or from 2
different courts from different courts from different judgement creditors against one
and the same judgement debtor, as the said section has restricted the permissible
portion of the salary that could be attached at particular point of time only to the
extent of remainder of the employees’ salary after an amount of ` 1000/- and 2/3rd of
the salary is deducted therefrom.
The proper procedure as laid down in the said Section is not, therefore, followed by
the dealing offices with the result avoidable complications are created by the dealing
offices which at times are difficult to tackle in the advanced stage of execution of the
decrees. The main points therefore, to be borne in mind by the dealing offices at the
time of taking action on such attachment orders are briefly discussed herein below:
i) When the prohibitory order is received, the dealing office is supposed to specify
the time and date of receipt and if possible to give serial numbers to decide the
priority of such prohibitory orders and to verify the particulars of the employee,
the amount attached by the prohibitory order and to see whether such an amount
is actually due or will fall due to be paid by the Corporation to the said employee
and whether such an amount is not already under attachment under another
prohibitory order, and from which courts, whether the dealing office is in a
position to take the necessary action, as directed by the court, in the relevant
prohibitory order. If, for any reason, the dealing office is not in a position to act
upon the relevant prohibitory order, the dealing office may return such
prohibitory order to the court concerned stating the reasons for not honouring
the relevant prohibitory order or in case the prohibitory order is retained by
the dealing office, the dealing office may file the necessary affidavit when the
garnishee notice is received in respect of such prohibitory orders.
ii) Whenever the prohibitory order is returned to the court, it is essential that the
dealing office should keep the copy thereof on their record for future reference.
iii) The dealing office should open a register for the employees whose salary and
other dues are under attachment and should make necessary entries therein
whenever the prohibitory order is served, honoured and acted upon. The dealing
office should also take entries in such register whenever the attachable portion
from the dues, payable to the employee concerned, is deducted and remitted to
the court in pursuance of the relevant prohibitory order.
iv) The dealing office should stop the action on the prohibitory order immediately
on receipt of the withdrawal order pertaining to relevant prohibitory order or
upon the completion of the period of instalments whichever is earlier instead of
referring the matter to the Legal Department.
v) The Garnishee Notice, when served, should promptly forwarded to Legal Dept.
with full details of the action taken on the relevant prohibitory order or with

51
 the facts of the case, as they may be, so as to enable the Legal Dept. to take
necessary action required under the Garnishee Notice.
In order to follow the above procedure it is necessary for the dealing offices to note the following
few points:
1) Prohibitory Orders are to be given effect in order of the receipt thereof by the receiving
office meaning that the prohibitory order received first in point of time should be given
effect first over the subsequent prohibitory orders so received.
2) If the prohibitory orders received in respect of the salary of the judgement debtors in
Corporation’s service are received from 2 different courts, care should be taken to give
priority for the prohibitory order received from the upper court over the prohibitory
order received from the lower court.
3) Where the prohibitory order from the lower court is already in operation and a
prohibitory order from higher court is received,
The operation of prohibitory order of lower court should be stayed forthwith and the
prohibitory order received from upper court would take immediate effect for the rest
of the period prescribed in sec.60 for such attachment from the salary. In such cases
the prohibitory order of lower court shall be returned immediately to the court issuing
it with necessary explanations.
4) Any attachment against salary of judgement debtor in Corporation’s service either
under single prohibitory order or under various attachment orders one after another
will be operative against salary of the employee for the maximum period of 24 months
i.e. 24 instalments either continuously or intermittently and after that period the salary
of such employee will be free from any attachment for the period of following 12 months.
5) After the said period of 12 months is over the attachment order which was in operation
against the salary of the judgement debtor for a period of 24 months will cease to be
operative finally and no attachment can be effective thereunder after the period of 24
months in respect of that particular decree.
6) Where the salary of employee is under attachment normal deductions will have to be
recovered from the NON-ATTACHABLE PORTION of the salary namely a sum of
` 1000/- and 2/3rds of the gross salary, in the following order or preference:-
i) Deductions towards claims of Societies and Bank if made under Sec.49 of the
Co-op. Societies Act. Same is the case with recovery of dues towards service
charges of Co-op. Housing Societies if the same is sought to be made under Sec.49
of Co-op. Societies Act, not otherwise.
ii) Provident Fund Contribution under LIC P.F. Rules and Staff Regulations.
iii) Professional tax.
iv) Insurance Premium under Staff S.S.S. Policies.
v) Income tax liabilities.
vi) Recovery of P.F. Loans with interest.
As far as the rest of the items are concerned the order of priority will be at the discretion
of the Corporation. The Corporation may recover the same in order of priority decided

52
by the Corporation or may recover the same on pro rata basis depending upon the
circumstances of each case.
The reason for giving priority to deductions such as P.F. contribution and Insurance
premium under S.S.S. Scheme, over deductions of income tax is that the taxable income
is arrived at after deducting the abovementioned items i.e. contribution towards
Provident Fund and Insurance Premium paid under S.S.S., from the salary of an
employee.
The Gratuity amount and P.F. amount are not attachable except under certain
circumstances explained under Gratuity Act and Regulation 77 and L.I.C P.F. Rules.

53
 CHAPTER 5
INCREMENTS
I. NORMAL GRADE INCREMENTS
1. Employees of the Corporation in Class I, III & IV other than work-charged and
temporary employees will be granted normal grade increments as per Regulation 56 of
the Staff Regulations. Normal Grade Increments shall always fall due on the first day
of the month following that on which the employee completes 12 months of service
from the date of appointment or the date on which his last annual increment accrued
or the date of promotion (except in cases where no change in scale of pay is involved) as
the case may be.
2. The date of normal grade increment in the case of an employee promoted to higher
grade will be the first day of the month following that in which the employee completes
12 months of service from the date of fixation of salary in the higher grade.
3. Normal grade increment would be granted during the period of probation also in the
case of Class I Officers even if their probationary period is extended.
4. Dies-non means “the day that does not count”. The period of Dies-non is not treated as
service and is excluded from the period elapsed for considering the grant of normal
grade increment.
5. a) Effect of E.O.L: Extra-ordinary Leave granted to an employee, unless otherwise
directed by the Competent Authority [Regn.69(4)] shall not count as service for
the purpose of increment.
b) On specific application in writing requesting the Competent Authority to count
the period of E.O.L. for the purpose of increment, the Competent Authority may
allow the period of E.O.L. to count for increment provided such E.O.L has been
availed on account of employee’s own sickness.
c) In no case should EOL exceeding 365 days granted during the entire service
period be allowed to be counted as service for the purpose of granting normal
grade increment.
d) The Competent Authority for condonation of EOL for increments is the Officer-
in-charge of the Division not below the rank of DM /Zonal Manager in Zonal
Office /Secretary (OS) in Central Office /for Audit Dept., Secretary (Audit) in
Central Office, for Class III & IV employees and officers in the cadre of AAO.
For Officers in the cadre of AO, ADM, DM, SDM, competent authority is Zonal
Manager/ Executive Director (E&OS) in Central Office. For Officers in the cadre
of Zonal Manager and above, competent authority is Managing Director. (CO
Circular 3796/ASP/91 dated 06.07.1991).
e) Competent Authority to sanction normal grade increments in Branch Office is
AAO duly authorised by the Officer-in-charge of the Branch Office.
II. ST AGNA
STAGNA TION INCREMENTS:
AGNATION
1) Sanction of stagnation increment on reaching maximum of the scale or from the grant
of last stagnation increment is subject to the condition that the employee is not under
suspension, work record being satisfactory for the relevant period and active service

54
 of at least one or two years for every two or three years service as applicable to the
scale of pay taking into effect the period of Dies-non also. As per LIC of India Class I
Officers / Class III& IV employees (Revision of Terms and Conditions of Service)
Amendments Rules, 2010 the number of such increments and relevant period in various
scales are as follows:
a. Sweepers, Peons, Drivers, Record Clerks, Assistants and Stenographers are
eligible for stagnation increments after every two years of service on reaching
the maximum of the scale or the grant of last stagnation increment, as the case
may be, subject to a maximum of seven such increments.
b. Employees in the scale of pay of Higher Grade Assistants are eligible for
stagnation increments after every three years of service on reaching the
maximum of the scale or the grant of last stagnation increment, as the case may
be, subject to a maximum of six such increments.
c. Employees in the scale of pay of AAO are eligible for one stagnation increment
after three years of service on reaching maximum of scale of pay or the grant of
last stagnation increment, as the case may be, subject to a maximum of three
such increments.
d. Employees in the scale of pay of AO are eligible for one stagnation increment
after three years of service on reaching maximum of scale or grant of last
stagnation increment as the case may be subject to a maximum of five such
increments.
e. Employees in the scale of pay of ADM are eligible for one stagnation increment
after three years of service on reaching maximum of scale of pay or the grant of
last stagnation increment, as the case may be, subject to a maximum of two such
increments.
2.. Active Service:
Service An employee has to put in an active service of at least one year or two
years ( ie., 365 days or 730 days) during the relevant two years or three years period .
Active service means period spent on duty including the period of casual leave and
quarantine leave but excluding the period of any other kind of leave such as privilege
leave, sick leave, maternity leave, EOL, etc. If active service falls short, the consideration
of grant of addition to basic pay shall be deferred by one full year.
3. Effect of Dies-non
Dies-non: Any period which is treated as dies non will be excluded from the
period elapsed from the date of reaching maximum or the grant of addition to the basic
pay on reaching maximum, as the case may be while computing the two or three years
(or one year in case of deferment) and the due date of addition to basic pay arrived at
accordingly. Thereafter the effect of leave of any kind has to be taken into account.
4. Average CR rating for the relevant periodperiod: A special confidential report in the
prescribed form is to obtained as on the due date. The special CR in addition to the
calendar CRs for the relevant two or three years has to be taken into account for arriving
at the average CR rating for sanction of stagnation increment.
a) For a Class I Officer, the average CR rating shall be at least “C” unaccompanied
by any specific adverse comments.

55
 b) For a Class III employee the average CR rating shall be at least 24 out of 40.
c) For a Class IV employee the average CR rating shall be at least 15 out of 40 even
if the rating is below average or unsatisfactory in respect of any of the traits and
EOL for participation in strike may not be taken into account while giving rating
for the trait attendance in the CR.
5. Employee under suspension: Where an employee is under suspension, the
consideration of sanction of stagnation increment should be deferred.
6. Postponement of release of stagnation increment
increment: Where the competent authority
decides to postpone the release of stagnation increment on the basis of CRs or leave
particulars, it shall be postponed by one full year.
7. Release of stagnation increment to the employees who become eligible for
stagnation increment after imposition of penalty
penalty..
(CO Circular Ref: ZD/987/ASP/2001dated 01.11.2001)
As per the above quoted C.O Circular, it is decided to give credit for the service which
the employee puts in after reaching maximum of the scale of pay or after receipt of
stagnation increment as the case may be, prior to imposition of the penalty, while
considering release of the next stagnation increment as and when it falls due again,
subsequent to the imposition of the penalty, of course subject to the condition that the
work record of such employee during the said period is satisfactory as per the norms.
According to the earlier instructions when penalty is imposed on the employee during
the review period of 2 / 3 years, stagnation increment is not released on the due date
and the same is deferred for a period of one year. There is no change in this instruction.
Therefore, even after allowing credit for such service, no stagnation increment shall
be released to the employee at least for a period of one year from the date of penalty or
original due date, whichever is later. Also, in such a situation, if, when credit for past
service is given, the employee completes 2/3 years immediately on reaching the
maximum, the release of stagnation increment will be considered only after 1 year
from reaching the maximum again. In other words, while giving credit for the period of
service put in by the employee before imposition of penalty, credit should not be given
for the period for which Stagnation Increment was / should have been deferred due to
imposition of penalty.
The revised instructions are effective from 1.11.2001.
If such an employee has been promoted to the higher post and desires to re-exercise
the option to have fixation from the date of release of such stagnation increment, they
may be allowed to re-exercise such option under Regulation 52(2) of the LIC of India
(Staff) Regulations, 1960, provided the date of option falls within 365 days from taking
charge of the promoted post.
Some examples are given below:
1. Mr. ‘A’, HGA had reached maximum of the scale on 1.11.2007. Stagnation
increment is due on 1.11.2010. The Disciplinary Authority had imposed a penalty
of reduction in Basic Pay by one stage w.e.f. 1.11.2009. His work records for the
period after reaching maximum of the scale continued to be satisfactory. The

56
 progression of his salary as per the revised instructions shall be as under:
Date Basic Pay changes as per revised instructions
1.11.2007 26290(max.)
1.11.2008 26290(max)
1.11.2009 25450 (1 stage down)
1.11.2010 26290 NGI & (max.)
1.11.2011 27130 (1st Stagn. Incr.)

Remarks
On the date of imposition of penalty, the employee had already completed 2
years after reaching maximum. According to the revised instructions, his case
can be considered for release of stagnation increment on 1.11.2011 itself (giving
credit of two years service from 1.11.2007 to 1.11.2009).
2. Mr. ‘B’, HGA had reached maximum of the scale on 1.8.2007 and his stagnation
increment would have been due on 1.8.2010. The Disciplinary Authority had
imposed a penalty of reduction in Basic Pay by one stage w.e.f. 1.5.2010. His
work records for the period after reaching maximum of the scale continued to
be satisfactory. The progression of his salary as per the revised instructions
shall be as under:
3. Date Basic Pay changes as per revised instructions
1.08.2007 26290 (max)
1.08.2008 26290 (max)
1.08.2009 26290 (max)
1.05.2010 25450 (one stage down)
1.05.2011 26290 (max.)
1.05.2012 27130 (1st Stagn. Incr.)
Remarks
On the date of imposition of penalty, the employee had already completed 2
years 8 months after reaching maximum.
According to the revised instructions, his case can be considered for release of
stagnation increment on 1.5.2012 after 1 year of reaching maximum thereby giving
credit for the period of service prior to penalty.
4. Mr. C, an HGA had drawn 2 stagnation increments and completed 1 ½ years of
service after receipt of 2nd stagnation increment. He was visited with a penalty
of reversion to the lower scale (Assistants Scale). His performance during the
period of 1 ½ year after receipt of 2nd stagnation stage as HGA was satisfactory.
The employee had already drawn 2 stagnation increments as HGA. His Basic
Pay on imposing penalty shall be (Max of Assistant) + 2 stagnation increment.
The employee had already completed 1 ½ years of service with satisfactory record
after release of 2nd stagnation increment as HGA.

57
 Since no stagnation increment can be granted at least for a period of one year
from the date of imposition of penalty, his case cannot be considered for release
of stagnation increment in the Assistants scale at least for a period of one year.
His case for stagnation increment as an Assistant shall be considered after a
period of one year from the date of imposition of the penalty. While considering
the same, his service of 1 ½ years which he had put in after receipt of 2nd
Stagnation Increment in HGA’s grade shall be taken into account (service in the
higher scale can be taken into account while releasing increments in the lower
scale). His total stagnation increments (including those released in HGA’s grade)
however, shall not be more than seven, if he remains as an Assistant.
5. Mr. D, an Assistant had reached maximum of the scale on 1.8.2007. His 1st SI
was due on 1.8.2009. He was imposed the penalty of ‘censure’ on 1.7.2009. In
view of the revised instructions, his case for release of 1st stagnation increment
shall be considered on 1.8.2010 i.e. one year from 1.8.2009 the original date of
release of first stagnation increment.
6. Mr. E, a R.C. had reached maximum of the scale on 1.7.2008. His 1st stagnation
increment was due for consideration on 1.7.2010. Since Disciplinary action was
initiated against him, his stagnation increment has been deferred by a period of
one year i.e. upto 1.7.2011. The penalty of ‘censure’ was imposed on him on
16.8.2010. His case for release of stagnation increment shall fall due for
consideration on 1.9.2011 (i.e. one year from the date of imposition of the penalty).
7. Mr. M, an Assistant had reached maximum of the scale on 1.9.2007. His 1st
stagnation increment was due for consideration on 1.9.2009. In view of
disciplinary proceedings the same was deferred up to 1.9.2010. He was imposed
the penalty of reduction in the basic pay by one stage on 15.10.2009. The
progression of his salary shall be as under:-
Date Basic pay changes
1.09.2007 21050 (max)
1.09.2008 21050 (max)
1.09.2009 21050 (max) (stagn. Increment deferred
by one year.)
15.10.2009 20210 (one stage down)
1.11.2010 21050 one NGI & (max.).
1.11.2011 21890 (1st stagnation increment)
In this case, when the employee reached maximum again on 1.11.2010, he was
having to his credit the period of 2year and 1 ½ months service which he has put
in after reaching maximum of the scale prior to imposition of the penalty. In this
case, although the employee is having to his credit the service of more than 2
years service, we cannot release the stagnation increment on the same day on
which he reaches maximum again. The stagnation increment after imposition of
the penalty shall be released after a period of one year from the date on which
he reaches maximum again.

58
8. RELEASE OF STAGNA
STAGNA TION
AGNATION INCREMENT WHERE DISCIPLINAR
DISCIPLINARYY
PROCEEDINGS IS PENDING AGAINST THE OFFICER:
(C.O Circular PER.ADMN/ZD/104 dated 30.07.2002)
Following procedure is to be adopted in cases where Vigilance / Disciplinary proceedings
remain beyond one year as on the date of release of SI. These instructions are effective
from 01.05.2002.:
1. In case where any disciplinary proceeding has been initiated by issuance of a
charge-sheet and the same is pending against the officer as on the due date of
SI. The consideration of SI should be deferred by one year from the due date.
The officer concerned may be informed accordingly. If the Vigilance/Disciplinary
proceedings are prolonged beyond a period of one year, the case may be reviewed
on the deferred date and if it is found that on the basis of the Confidential
Reports etc., for the relevant period, the SI can be released the same will be
released from the deferred date.
2. On conclusion of the Vigilance/Disciplinary proceedings (where SI has already
been deferred due to pending Vigilance/Disciplinary Cases)
a) In case where the officer is exonerated, the SI may be released from the
original due date if otherwise found eligible.
b) In case penalty is imposed on the officer under Rule 39 of (Staff) Rules,1960
the SI will not be deferred further only due to penalty imposed, as the SI
due to the officer has already been deferred by one year in view of the
pending Vigilance/Disciplinary proceedings as on the original date of SI.
Provided further, cases which are concluded with a penalty of reduction in Basic Pay,
credit for the period covered in the maximum of scale before and after imposition of
penalty is to be given and the SI due date thus arrived at, after completing three years
in the maximum of the scale, will be deferred further by one year from such date and
not from the date of imposition of penalty.
III. GRADUA TION INCREMENT TO EMPLOYEES
GRADUATION IN THE SCALE OF
ASSIST
ASSISTANT OR STENOGRAPHER.
ANT
With effect from 1.7.1990, employees in the scale of pay of Assistant and Stenographer are
eligible for two increments for passing any first degree examination on the following condition:
(a) If he is a graduate at the time of his appointment on or after 1.7.1990, then from the
date of his appointment.
(b) If he is not a graduate at the time of his appointment but becomes a graduate on or
after 1.7.1990, then from the first day of the month following the month in which the
results of the graduation examination is declared.
(c) There will be no change in the date of Normal Grade Increment in such cases.

59
IV
IV.. GRADUA TION ALLOW
GRADUATION ANCE
ALLOWANCE
(A) TO EMPLOYEES IN THE SCALE OF ASSIST ANT OR STENOGRAPHER:
ASSISTANT
An employee who becomes graduate of a recognized
University after reaching maximum of the scale of pay- ` 530/- per month
The Graduation Allowance shall be released from the first day of the month following the
month in which results of the examination is declared.
(2) An employee who has received Graduation Increment and reaches maximum of the scale
of pay shall be granted Graduation Allowance as under:
a) From the first day of the month following completion
of one year of service commencing from the date of
reaching such maximum ` 270/- per month
b) From the first day of the month following completion
of two years of service commencing from the date
of reaching such maximum - ` 530/- per month
The Graduation Allowance payable to the employees in the scale of Assistants and
Stenographers shall count for the purpose of Dearness Allowance, HRA, Provident Fund,
Pension, Gratuity, Encashment of Privilege Leave and Fixation of salary on promotion.
Provided however that all those employees in the scale of Assistant and Stenographer who
become Graduates after 31st July, 2007 shall not be eligible for Graduation Allowance.
(B) TO RECORD CLERKS:
The Graduation Allowance of ` 320/- per month shall be released from the first day of the
month following the month in which result of the examination is declared. Where a graduate
Sub-staff is promoted as Record Clerk, he shall draw the Graduation Allowance from the date
of fixation of his salary in the scale of Record Clerk. The Graduation Allowance payable to the
Record Clerks shall not count for any purpose.
It may be noted that Record Clerks who become Graduates after 31st July, 2007 shall also be
eligible for Graduation Allowance.

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 CHAPTER 6
INCENTIVES
I INCENTIVES PAYABLE ON P
PA ASSING HINDI EXAMINA
PASSING TIONS
EXAMINATIONS
1. In order to make progressive use of Hindi, Life Insurance Corporation of India provides
monetary incentives to all Non-Hindi speaking employees in Class-I, Class-II and Class
III cadre in the form of cash award on their passing the following Hindi examinations
through in-service training, privately and through Correspondence Course.( As per
C.O. Circular Ref: OLI/ABC/Region/ZD/07/2002 dated 26.10.2002).
Sl. Hindi Amount of Cash Award (Rs)
No Examination
Through Corporation Through Private
Correspondence Course
“A” “B” “C” “A” “B” “C”
Region Region Region Region Region Region
1. Prabodh 1000 1100 1200 2000 2200 2400
2. Praveen 1100 1200 1300 2200 2400 2600
3. Pragya 1200 1300 1400 2400 2600 2800
4. Hindi Typing 1200 1300 1400 2400 2600 2800
5. Hindi
Stenography 1300 1400 1500 2600 2800 3000
Tuition fees, Examination fees will be reimbursed by the Corporation.
2. A lumpsum Cash award mentioned as above will be granted to an existing Typist upon
his passing Hindi Typing Test with the minimum speed of 25 words per minute conducted
by the Directorate of Education, Delhi under the Hindi Teaching Scheme or any of the
Typewriting Institutes recognized by the Central or State Governments.
3. A lumpsum cash award mentioned as above will be granted to an existing Stenographer
upon his passing Hindi Stenography Test with the minimum speed of 80 words per
minute in shorthand and 25 words per minute in typewriting conducted by the
Directorate of Education, Delhi under the Hindi Teaching Scheme by an Institute
recognized by the Central/State Governments.
II INCENTIVE FOR SPORTS ACTIVITIES
Development Officers and Class I Officers are not recruited under Sports Quota. As such,
they are not entitled for time-off concession on account of their performance in sports. No
relaxation in the business performance in case of Development Officers can be allowed. Where
employees have subsequently been promoted to class I cadre, they may be permitted time –off
concession if by virtue of their performance satisfy condition laid down on this behalf.
Time-off concession can be granted to the employees only on his/her attending the duties in
the forenoon session.

61
III MONET AR
MONETAR
ARYY INCENTIVE EXTENDED TO EMPLOYEES FOR F AMIL
FAMIL Y
AMILY
PLANNING PROGRAMME
Conditions:
1. Reimbursement of surgical fees in respect of vasectomy subject to a maximum of
` 100/-
2. Reimbursement of surgical fees in respect of tubectomy performed on female employees
or the wives of male employees upto a maximum of ` 200/-
3. In respect of employees or their spouse with not more than two children, who undergo
vasectomy/tubectomy operations, a cash incentive of ` 250/- shall be paid.
IV MONET AR
MONETAR
ARYY INCENTIVES TO SC/ST EMPLOYEES
Ref Central Office Circular Nos:
1. 3567 / ASP / 77 dated 01.08.1977
2. 3572 / ASP / 77 dated 24.01.1977
3. 3586 / ASP / 78 dated 21.12.1978
4. Per / ER / SC-ST dated 2.6.2000
The following are the incentives allowed to all confirmed Scheduled Caste/Scheduled Tribe
employees in all classes who take up studies for the Life Branch Examinations conducted by
the Federation of Insurance Institute, Mumbai.
a. Reimbursement of the examination fee in full subject to a maximum of two consecutive
attempts for each examination. However, depending upon the performance of the
candidate at the examinations, Zonal Manager may allow further reimbursement of
fees upto a maximum of four consecutive attempts in all. Requests for reimbursement
of examination fees for the third or fourth attempt, as the case may be , shall be referred
to Zonal office together with full details about the employee’s performance at the
examination on the previous two/three consecutive attempts duly supported with the
result intimation cards issued by the Federation.
b. Reimbursement of tuition fees in full for each course shall be made to an employee
once only for each course.
c. The cost of text books shall be reimbursed once. Whenever there is change in syllabus,
the cost of new books shall be reimbursed and the employees shall have to return the
old text books.
V REIMBURSEMENT OF FEE FOR THE CERTIFICA TION EXAMINA
CERTIFICATION TION OF
EXAMINATION
ENERGY AUDITORS/ENERGY MANAGER
CIRCULAR REF NO ZD/1059 /ASP / 25 DATED 15/7/2005
DATED
The Energy Conservation Act makes it mandatory for all the designated energy consumers to
get the energy audit conducted periodically by the accredited energy auditors and to designate
or appoint an Energy Manager as per the provisions of the Act.
Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power, Government of
India, has specified the passing of the National level certification examination as the
qualification for a Certified Energy Manager and Certified Energy Auditor. National

62
Productivity Council (NPC) has been retained as the National Certifying Agency to conduct
and administer the National Certification Examination for Energy Managers and Energy
Auditors.
To encourage our engineers to pass the above examination and to designate them as Energy
Managers/Energy Auditors in order to satisfy the provisions of above Act, it has been decided
to reimburse the fees for the Certification Examination of Energy Auditors/Energy Manager
held in the year 2005 and onwards, subject to the following conditions.
Conditions for reimbursement of Examination fees:
1. Candidates appearing for certification from 2005 examination onwards may be allowed
reimbursement of Certification Fee i.e. ` 10000/- for self sponsoring.
2. Supplementary Examination Fee of ` 2000/- for each paper shall be reimbursed for
maximum of two times.
3. Supplementary Examination Fee of ` 1000/- per paper for viva-voce shall be reimbursed
for maximum of two times.
A bond of suitable value for a period of 5 years should be obtained from the date of getting
certification/attending refresher training.
Senior Divisional Manager in the case of engineers working in the Division, Regional Manager
(E&OS) in the case of engineers working in the Zonal Office and Chief (E&OS) in the case of
engineers working in Central Office can sanction the reimbursement.
Suitable entries may be made in the Staff Record sheet for control purpose.
VI INCENTIVES IN RESPECT OF ACTUARIAL STUDIES:
In addition to the payment of special allowance reimbursible for employees/Officers who pass
Actuarial subjects under the Life Insurance Corporation of India (Special Allowance for In-
House Development of Actuarial Capability) Amendment Instructions, 2005, they are also
eligible for the following benefits subject to certain conditions as spelt out in ZD/1062/ASP/05
dated September 10, 2005.
i. The yearly subscription paid by the employee to the Actuarial Society of India/Institute
of Actuaries London shall be reimbursed in full. In case of Fellow members the
reimbursement will be made to the Institute of Actuaries, India or Institute of Actuaries
London but not for both.
ii. The Tuition Course fee paid by the employee to the Actuarial society of India shall be
reimbursed in full either for soft copy or hard copy.
iii. The examination fee paid to the Actuarial Society of India by the employee shall be
reimbursed in full. (the revised instruction issued vide circular ZD/1133/ASP/2009, in
respect of maximum number of times reimbursement of examination fee can be made,
reads as : “Reimbursement of examination fee shall be granted only once for each paper
on passing up to six papers and twice for each paper thereafter for the remaining
papers on or after 01.06.2009.The second time reimbursement will be made only on
passing the papers.”)
iv. The cost of Actuarial table may be reimbursed in full on production of original receipt,
in the manner similar to reimbursement of the tuition fee paid.

63
VII REIMBURSEMENT OF SUBSCRIPTION AND EXAMINA TION FEES P
EXAMINATION AID BY
PAID
THE EMPLOYEES TO THE INSTITUTE OF CHARTERED ACCOUNT ANTS OF
ACCOUNTANTS
INDIA
The Corporation reimburses in part the subscription fees paid to the Institute of Chartered
Accountants of India as under:
Basic Pay of the Employee Amount to be borne by the employee
` 36861 and above and ` 125/-
` 26291 to 36860 ` 100/-
` 26290 and below ` 75/-
VIII INCENTIVE FOR COMPLETING PGEP:
CO Circular: ZD/1139/ASP/2009 dated 7.10.2009
All officers who successfully complete the One Year Post Graduate Executive Programme are
to be granted a one-time Lump sum Incentive of ` 50000/- which is Taxable.
IX CONTINUED PROFESSIONAL DEVELOPMENT (CPD) SCHEME FOR THE
EMPLOYEES WORKING IN INVESTMENT DEPARTMENT
ARTMENT::
DEPARTMENT
Ref: CO Circular ZD / 1140 / ASP / 09 dated 09.10.2009 and CO Circular ZD / 1112 / ASP / 07
dated 05.11.2007
The detail of the NSE’s modules in which the employee should appear to become entitled for
the benefits under the scheme is given below:
S l Name of the To t a l Te s t No. of Maximum P a s s Certificate
N o module Module Duration Questions Marks M a r k s Va l i d i t y
Fees (in (%) (in Years)
(` ) minutes)
1 Financial 500 60 50 100 50 5
Markets:
(A Beginners
Module)
2 Derivatives 1000 120 60 100 60 3
Market
(Dealers
Module)
3 Capital 1000 105 60 100 50 5
Market
(Dealers
Module)
4 Securities 1000 105 60 100 60 5
Market
(Basic)
Module

64
S Name of the To t a l Te s t No. of Maximum P a s s Certificate
N o module Module Duration Questions Marks Marks Va l i d i t y
Fees (in (%) (in Years)
(` ) minutes)
5 Fixed Income 1000 120 60 100 60 5
Money Market
and Derivatives
Association-
NSE Debt
Market (Basic)
Module
6 Corporate 1000 90 100 100 60 5
Governance
Module
7 Compliance 1000 120 60 100 60 5
Officers
(Brokers)
Module
8 Compliance 1000 120 60 100 60 5
Officers
(Corporates)
Modules
GRAND TOTAL 7500
The Incentive per module payable has been revised to ` 5000/- per module vide CO Circular
ZD / 1140 / ASP / 09 dated 09.10.2009.
The Incentive shall be payable on passing of every two NSE’s modules (as detailed in Clause
(1) of Circular No. ZD/1112/ASP/07 dated 5.11.2007) at the rate of ` 5000/- per module, provided
they are cleared within two years from the date of registration.
The enhanced incentive will also be applicable to employees and officers who have already
passed the modules in terms of our circular No. ZD/1112/ASP/07 dated 5.11.2007.

65
 CHAPTER 7
ADVANCES
ADVANCES
ame of
Name Quantum Repayment Rate of Other Terms
Terms
Advance Te r m Interest & Conditions
1) Festival Class – I : Recovery in 10 Interest Free Payable for the
one month’s equal monthly festival earlier
salary or instalments availed or for
` 20000/- any other
whichever is festival after a
less. lapse of 12
months.
Class – II / III
/ IV : one
month’s salary
or
` 17000/-
whichever is
Less.
RPT W orkmen:
Workmen:
` 8500/- (or) One
m o n t h ’ s
Salary(Basic+DA)
being received by
them on pro-rata
basis, whichever
is less.
2) Cycle Advance ` 1600/- or the Recovery in Interest Free 1. Advance is
actual cost of not more than payable to
cycle, whichever 15 equal confirmed
is less m o n t h l y Cl. III & IV
instalments employees
only & for
purchase of
a new cycle
only.
2. Maximum
thrice in
service once
in seven
years.

66
3) Cycle Advance ` 2500/- or actual 30 Equated Interest free Advance is
(Three Wheel cost of 3-wheel monthly insta- payable to
Chair) for chair, whichever lments c o n f i r m e d
orthopaedically is less orthopaedically
handicapped handicapped
employees employees whose
movements are
greatly affected
by their physical
disability

4) Car Advance Full purchase 96 equated 5% p.a. 1. Insurance

allowed to price of car m o n t h l y (simple) Premium &
Officers of the instalments Road Tax will
rank of ADM & be reimbursed
DM on the Admn. by the
Side Corporation
in full during
the period of
repayment of
Loan.
2. Maximum
twice in
service with
8 years gap.
5) T w o - w h e e l e r Class I Officer : Recovery in 60 3% p.a. 1. Insurance
Advance Full purchase e q u a t e d (simple) premium &
price of two m o n t h l y Road Tax will
wheeler instalments be reimbursed
in full during
repayment
term
2. Maximum
twice in
service with
7 yrs. gap.
Class III & IV Recovery in 60 Upto ` 35000/- 1. Insurance
employees: Full e q u a t e d @ 5% p.a. and Premium &
purchase price of m o n t h l y @ 9% p.a. for Road Tax
the two wheeler instalments balance would be
borne by the
employee
2. Maximum
twice in
service with
7 yrs. gap
67
6) Car Advance
allowed to
officers of the
rank of
a) AAO & AO Maximum of 96 equated 5% p.a. I n s u r a n c e
with less ` 1,00,000/- or m o n t h l y (simple) Premium &
than 3 yrs purchase price, instalments Road Tax would
service whichever is less be borne by the
employee
b) AAO & AO Full purchase 96 equated 5% p.a. upto I n s u r a n c e
with more price. m o n t h l y ` 1 lac & 9% Premium &
than 3 yrs instalments p.a. for the Road Tax would
service balance be borne by the
employee
7) Flood Advance Extent of damage Recoverable Interest free
or ` 25000/- or in 36
three month’s instalments
basic pay,
whichever is less
8) Advance for ` 36000/- or 80% 36 equated 9% p.a. All classes of
purchase of of purchase price m o n t h l y (simple) employees
P e r s o n a l whichever is less installments h a v i n g
C o m p u t e r c o n f i r m e d
including Laptops service for
(Intel / AMD atleast five yrs
Mobile Processor shall be eligible.
Laptop) Thrice, once in
three years.

While sanctioning advance it should be noted that, the net salary after taking into
account the EMI for the advance under consideration should not be less than 25%
of the Gross salary
salary.. This condition is to be strictly followed for sanction of all
advances including advance against natural calamities.
VEHICLE ADVANCE
ADVANCE
(Ref. C.O.Cir.Ref:Per/IR/ZD/693/ASP/89 dt. 3.8.89 , C.O.Cir.Ref:ER/ZD/802/ASP/93 dt. 30.11.93,
C.O Cir Ref:ZD/956/ASP/2000 dt.31.05.2000)
1. Advance for Purchase of Four Wheeler to Class I Officers on the
Administrative Side in the cadre of Asst Divisional Managers and Divisional
Managers:
1) Eligibility: Officer in the grade of Assistant Divisional Manager and Divisional
Manager on Administrative side. Managers (Marketing or Sales or G&S), Senior
Branch Managers and Divisional Managers-in-charge of Divisions are not
covered by this Scheme.

68
 2) Quantum of Advance: Full purchase price of car.
3) Rate of Interest: 5% p.a. (simple) on the amount of advance.
4) Repayment Term: 96 equated monthly instalments. In case, the remaining service
of an Officer is less than 96 months as on the date of grant of advance, the balance
amount of advance as on the date of cessation of service will be recovered from
the retirement dues.
5) Insurance Premium and Road Taxes: These will be reimbursed by the Corporation
in full during the period of repayment of the loan. Insurance - Comprehensive
Insurance Policy.
6) Make of Car: As may be approved by the Central Office from time to time.
7) Advance towards Car is restricted to once in eight years and not more than two
advances will be granted to an Officer during his service.
8) Sanctioning Authority :
Divisional Office Officer-in-charge of the Division
Zonal Office Zonal Manager-in-charge of Zone(or)
Regional Manager (E&OS)
Central Office Executive Director/Chief of O.S. Department
2. Scheme of advance for purchase of vehicles to Class I Officers on
Administrative Side in the cadre of AO and AAO.
(CO Circular Ref:ZD/1047/ASP/2004 dated 10.05.2004)
1) a. All confirmed AAOs/AOs who have completed less than 3 years of service
in the Class-I cadre, including probationary period shall be eligible for
an advance up to a maximum of ` 1,00,000/- or the purchase price of the
Four-wheeler, whichever is less, with interest@5% p.a. for the purchase
of approved makes/models of Four-wheelers.
b. All AAOs/AOs who have completed 3 years of service in the Class-I cadre,
including probationary period, shall be eligible for advance @5% p.a. up
to ` 1,00,000/- and @9% p.a. for the quantum of advance over and above
` 1,00,000/- to the extent of full purchase price of approved makes/models
of Four-wheelers.
2) The advance shall be granted for purchase of only those models/makes which
are approved by the Marketing Department, Central Office for ABM(Sales)/ Sr./
Branch Manager/Manager (Sales) in the cadre of ADM, from time to time.
3) The advance shall be recoverable in 96 equal monthly instalments.
4) While calculating the EMI for the Four-wheeler advance, the net salary after
taking into account the EMI for the vehicle advance under consideration should
not be less than 25% of Gross Salary as per instructions contained in our circular
ZD/1006/ASP /02 dated 10/10/2002.
5) There shall be two Guarantors/Sureties from LIC employees who have remaining
service of 9 years or more, as on the date of sanction of advance.

69
 6) In case of used cars, the car should not be older than 10 years from the date of
its original registration.
7) Insurance Premium/Road Tax/Octroi etc. will be borne by the Officer and no
reimbursement of these expenses will be allowed.
8) Those who have availed two wheeler advance and would like to avail of the
advance for four wheeler under the scheme, may be allowed to avail of the same
even if five years have not expired from the earlier two wheeler advance
provided he repays the outstanding advance of the earlier Two wheeler Advance
(Cir.Ref:ZD/985/ASP/ 2001 dated 22.9.2001).
9) Advance for purchase of four wheeler including used cars will be allowed only
once during the service, under this Scheme.
10) Sanctioning Authority :
Divisional Office Officer-in-charge of the Division
Zonal Office Zonal Manager-in-charge of Zone (or)
Regional Manager (E&OS)
Central Office Executive Director/Chief of O.S. Department
11) Advance for purchase of CNG fitted four wheeler vehicle can be granted to
officers on the administrative side where no mileage is reimbursed. Further,
if such an officer is job rotated, advance granted for purchase of CNG cars will
be treated on the same basis as for two wheeler and the outstanding advance
has to be repaid with interest before being allotted a vehicle under Scheme VI
(Revised).
(Ref Circular CO/ERA/Veh_Adv/11-12/CL-001 dated 03.08.2011)
3. Two wheelers - (Moped/Scooters/Motor Cycles) to Class I Officers
1) Eligibility: Officers in the cadre of AAO, AO, ADM and DM who have not availed
of loan for purchase of car are eligible.
2) Quantum of Advance: Full purchase price of the Two wheeler.
3) Rate of Interest: 3% p.a. (simple) on the amount of advance.
4) Repayment term: Recovery in 60 equated monthly instalments. In case the
remaining service of an Officer is less than 60 months as on the date of grant of
advance, the balance amount of advance as on the date of cessation of service
will be recovered from the retirement dues.
5) Insurance Premium and Road Tax: These will be reimbursed by the Corporation
in full during the period of repayment of the loan. Insurance - Comprehensive
Insurance Policy.
6) Make: As approved by the Zonal Manager.
7) Sanctioning Authority: Same as for Car Advance.
General Conditions applicable for two wheeler / four wheeler advance to
officers:
i) The Officer buying a vehicle under the Scheme shall not alienate the same in

70
 any manner for 8 years for Car and 5 years for Two wheelers except in case of
retirement or except where the advance is repaid in full . Thereafter he is free
to sell, dispose of the vehicle and retain the sale proceeds.
ii) When a vehicle is purchased under the Scheme after the first day of the calendar
month, the instalments of the recovery of advance may commence from the month
following the month in which advance is sanctioned.
iii) In case, an Assistant Administrative Officer/Administrative Officer, who is having
outstanding advance for Two wheeler, is transferred as Assistant Branch
Manager (S)/Branch Manager, then he will have to repay the balance advance
with interest before he is granted fresh advance for purchase of car. In any case,
two advances for purchase of conveyance shall not remain outstanding in respect
of an Officer.
iv) In case one time Road Tax is payable on vehicle, the Corporation will bear only
proportionate tax. e.g. If one time tax is on the basis of 15 years, life of vehicle
and the amount of tax is ` 6,000/- the yearly instalment of tax will be
` 400/-. The Corporation pays the Road Tax, till the advance is repaid. If the
period of repayment is 96 months (car), then the Corporation will bear taxes of
400x8=` 3200/-. The balance of tax will have to be borne by the Officer.
v) Advance will be given only for new vehicle and on execution of Deed of
Hypothecation.
vi) Where the Officer has availed of advance for purchase of conveyance and the
advance is outstanding, the existing terms of the advance and other conditions
will remain unchanged. In other words, revised instructions, if any, in future do
not apply to outstanding advances (as on date of Circular) for purchase of
conveyance.
vii) As regards Two wheelers, advance may be granted once in 7 years and not more
than twice during the entire service.
viii) As regards promotee Officer from Class III to Class I during the period of
probation, his entitlement for two wheeler advance will be as per Class III
employees entitlement.
ix) As per CO circular provisions for sanction of two wheeler advance, Driving
Licence is not insisted upon. However, as a matter of caution we may advise
them to submit a copy of the licence.
x) For sanction of four wheeler advance, a valid driving licence/learning licence is
necessary. However, if an employee gives a declaration that he will engage and/
or has engaged the services of a driver, then driving license (photo copy) of the
driver may be submitted. The office shall have the right to verify it when found
necessary. A valid permanent license shall be required to be submitted within 3
months failing which, interest @12% shall be charged on the entire advance.
Waiver of licence condition can be considered in exceptional cases where the
officer is handicapped and cannot drive himself/herself. ( CO circular ZD/1020/
ASP/2003 dated 09.05.2003).
xi) Officers, who had availed of vehicle advance prior to promotion as Class I, would
become eligible for reimbursement of road tax and insurance cover from the

71
 date of promotion to Class I.(CO Clarification letter Ref:Per/ER dated
28.07.1994).
xii) a) If the officer is of the cadre of ADM and above, Road Tax/Insurance
Premium shall be reimbursed till the eighth year.
b) If an officer of the rank of ADM and above in Administrative side, has
availed the loan from office to purchase the four-wheeler and before the
end of the term for which he had taken loan repays the outstanding loan,
he shall continue to get the benefit of reimbursement of Road Tax/
Insurance Premium till the end of eight years term provided he owns the
vehicle and uses it.
c) If an officer of the rank of ADM and above purchases new four-wheeler in
his name without taking loan from the office, in such cases he may be
allowed reimbursement of Road Tax/Insurance Premium for a period of
eight years from the date of purchase of such new four-wheeler, provided
he owns the vehicle and uses it. It is issued by way of clarification that
officers who are already owning a new car as on 01/04/2003 and using it
may be allowed reimbursement of Road Tax/Insurance Premium only for
a maximum period of eight years. (CO circular ZD/1020/ASP/2003 dated
09.05.2003).
xiii) As GIC companies are charging vehicle insurance premium as per New Tariff
Control Act , we may reimburse the vehicle insurance premium in full in eligible
cases.
4. Advance to Class III & IV Employees for purchase of Mopeds/Motor Cycles/
Scooters
We have a scheme to grant an advance for purchase of Mopeds/Motor Cycles /Scooters
(two wheelers) to the confirmed employees in Class III & IV with a minimum of 5 years
of total service in the Corporation including the period spent on probation, subject to
the following terms and conditions.
1. Quantum of Advance: Full purchase price of the vehicle.
2. Rate of Interest: 5% per annum (simple) upto ` 35,000/- and 9 % per
annum(simple) for amount exceeding ` 35,000/.
3. Repayment term: Principal amount of the loan and the interest thereon shall be
recovered in 60 equal monthly instalments. In case the remaining service of the
employee is less than 60 months as on the date of grant of advance, the balance
amount of advance as on the date of cessation of service will be recovered from
the retirement dues.
4. The applications received from the eligible employees will be recorded date-
wise and they will be separated cadrewise amongst, the cadres from which they
are received on each date in the order of date on which they are received. After
this is done, applications on the basis of seniority in each cadre in the order of
date on which they are received would be considered for granting of advance
subject to availability of budget allocated. Consideration of sanction of advance
would be taken up only on receipt of budget sanction from Central Office.
5. Make: As approved by the Zonal manager
72
General Conditions
Conditions::
i) An employee buying a Two wheeler under this Scheme shall not alienate the same in
any manner for 5 years except in case of retirement. Thereafter he is free to sell/dispose
of the Two wheeler and retain the sale proceeds.
ii) When a Two Wheeler is purchased under this Scheme after the first day of the calendar
month, the instalment of the recovery of advance shall commence from the month
following the month in which advance is sanctioned.
iii) Advance will be given only for purchase of new Two wheeler and on execution of Deed
of hypothecation.
iv) Advance for the purchase of Two wheeler shall be granted once in 7 years and not more
than twice during the entire service.
v) Any expenses connected with running, maintenance, repairs etc. of the vehicle shall be
borne entirely by the employee buying Two wheeler under this scheme.
vi) The Insurance Premium, Road Tax etc. would be borne by the employee only.
vii) As per the provisions of CO circular, Driving Licence is not insisted upon for sanction
of two wheeler advance. However as a matter of caution we may advice them to submit
a copy of the same.
viii) To have control on the advance sanctioned ( First / Second) , an entry in the staff record
sheet may be made.
Other Conditions
(Vide C.O. Cir. ER/ZD/802/ASP/93 dt. 30.11.93)
i) The terms and conditions of Two Wheeler Advance granted to confirmed employees
will be those that are applicable at the time of sanction of loan and will remain unchanged
even if there is any change in the category of the employee including changes due to
promotion or reversion. The terms and conditions referred to here relate to the quantum
of loan and interest charged only. This does not cover Insurance Premium and Road
Tax, which are applicable only to Cl.I and II cadres.
ii) Subject what is stated in (i) above, henceforth only confirmed Cl.I Officers will be
eligible for Two wheeler advances on the terms and conditions applicable to Class I
cadre as enumerated in the C.O. circular dated 3.8.89.
iii) Consequently AAOs on probation, whether recruited directly or promoted from Class
III cadres are not to be allowed Two wheeler Advances during their probationary period.
However, probationary AAOs promoted from Class III cadre, may, if they so require
during their probationary period, apply for Two Wheeler Advance on the terms and
conditions applicable to Class III Cadre and be allowed the advance as detailed in
Circular Ref.ZD/702/ ASP/89 dated 12.10.89.
CYCLE ADVANCE:
ADVANCE:
(Ref:Per/A/3666/ASP/13.7.83 & IR/3751/ASP dt.11.5.89)
The limit of Cycle Advance is ` 1600 or the actual cost of cycle, whichever is less and the
advance shall not exceed the monthly salary of the employee. (Per/ER/3842/ASP/97 dt. 1.1.97)
The following are the relevant conditions:

73
1. It will be made only for new cycle and not for a second hand cycle.
2. The advance will be recovered in not more than 15 equal monthly instalments.
3. The advance will be free of interest and is payable to confirmed Class III & IV employees
only. The actual payment shall be made direct to the dealer after realising the difference
from the employee. The confirmed orthopaedically handicapped employee may be
granted interest-free advance of ` 2500/- or the actual purchase price whichever is less
for the purchase of 3 wheel chair, which will be recovered in 30 equal monthly
instalments. (Ref:P/ER/A/G/3 dated 28/5/1998)
4. Letter of authority is to be given by the employee for salary deduction of the instalments
of cycle advance. The second advance may be considered after 7 years from the first
advance without insisting on the disposal of the old cycle and deducting the re-sale
value from the fresh advance made and it is not necessary to insist on the inspection of
the old cycle. To ensure that the facility is not misused, an undertaking from the
employee concerned should be obtained that he shall keep the cycle for his use and
shall not dispose off the same till the advance is cleared.
5. A letter of authority authorising the Trustees of P.F. Account to deduct the outstanding
cycle advance from the terminal benefits of the employee shall be obtained and kept in
the personal file of the employee concerned at the time of sanction of advance.
FESTIVAL ADV
FESTIVAL ANCE
ADVANCE
It is an advance given to employees to celebrate some major festivals. The following are the
relevant conditions:
1. The advance may be paid to all confirmed employees. However, probationary employees
may also be granted festival advance provided they give a Promissory Note duly executed
by them and a surety executes a separate document to the effect that he/she has agreed
to remain a surety for the probationary employee. The document will have to be stamped
as an Agreement and the stamp duty will be borne by the probationary employee. (Per./
A/3443/ASP/71 dt. 31.12.71)
2. The quantum of advance is ` 17,000/- for Classes II, III & IV employees or one month’s
gross salary whichever is less. For Class I Officers it is ` 20,000/- or one month’s gross
salary (not merely Basic Pay) whichever is less. (Per/ZD/1167/ASP/2010 dt. 03.11.2010).
3. The Festival Advance to RPT workmen is ` 8,500/- (or) one month Salary (Basic + DA)
being received by them on Pro-rata basis; whichever is less (Cir.No. ZD/1168/ASP/2010
dt. 03.11.2010).
4. The advance shall be recovered in 10 equal monthly instalments, the first recovery
starting in the month following the month in which the advance is granted.
5. The gap between two festival advances should not be less than one year. However,
when a particular festival for which an employee has received the advance in the
previous year comes within one year, the advance may be paid for the same.
6. The advance shall be free of any interest.
7. The advance may be released 3 weeks in advance of the festival and if the 21st day
happens to be Saturday/Sunday, the advance may be released on the preceding full
working day.(C.O.Cir.Ref.Per./A/ZD/281 dt. 12.3.73)

74
8. The employees while availing the advance will have to give an undertaking in favour of
the P.F.Trustees at the time of settlement of terminal benefits for amounts of outstanding
festival advance. ( C.O.Cir.Ref.A/3608/ASP dt. 22.10.79).
FLOOD/DROUGHT/EARTHQUAKE/CYCLONE ADVANCE.
ADVANCE.
This advance is allowed to the confirmed employees of the Corporation who are affected by
natural calamities viz. flood, drought, earthquake and cyclone.
The maximum quantum of advance that can be sanctioned is ` 25,000
25,000/- or three month’s Basic
Pay, whichever is less.
I. General Conditions
Conditions:
A. The advance shall be granted if the areas are declared as affected by the above
mentioned natural calamities by the respective State/ Central Governments as
the case may be.
B. The quantum of advance shall be restricted to the extent of damage or ` 25,000/
- or three month’s basic pay, which ever is less.
C. Employees who have availed the advance earlier may be sanctioned further
advance against any of the above mentioned natural calamities, after adjusting
the previous outstanding advance.
D. The affected employees desirous of availing the advance against the calamity
shall have to submit the application to the concerned office.
II. Conditions for grant of Flood advance
A. The advance may be granted to those employees who have been directly and
actually affected by flood and have suffered loss on account of damage to their
property and who are in a position to substantiate it to the satisfaction of the
Competent Authority. The Competent Authority may, on being personally
satisfied of the bonafides of the claims, sanction flood advance also in the event
of loss or damage to some articles of moveable property arising due to floods.
The moveable articles covered under this provision should be consumer durables
like scooter, car, household furniture, refrigerator etc. If damage is caused to
the house property owned by an employee situated at a place other than the
present place of posting, granting of flood advance may be considered subject to
the following conditions:
i. Employee’s family or dependent parents stay therein and the property
and/or portion of the same is not given on rent and/ or is not being used
for any commercial purposes.
ii. Employee submits undertaking to this effect. (i.e.Sl.no.i above)
iii. The employee will not dispose off the property for at least 2 years after
the advance is taken for the repairs and if he wants to dispose off he shall
have to pay back the outstanding advance in lump sum plus interest @12%
from the date of advance till the date of repayment on reducing balance
basis.

75
 iv. It shall be subject to fulfillment/adherence to other conditions/criteria
applicable for granting Flood Advance as per circulars issued in this
connection from time to time.
B. Certificate regarding the loss or damage to the property should be obtained by
the employee from the local revenue authorities or the District Magistrate or
from an Officer of LIC not below the rank of AO/BM (who will issue the certificate
only after verification). The Corporation shall have the right to verify the loss
by deputing an officer to do so.
C. The onus of proving the loss or damage to the employee’s property caused by
floods and the extent of damage or loss lies not on the Corporation but on the
employee claiming the advance and for this purpose he is required to furnish
necessary certificate from the officials specified.
D. All confirmed whole time salaried employees of the Corporation irrespective of
salary limits and the class to which they belong, are eligible for flood advance,
provided they have not obtained any relief/advance/loan from any Government,
quasi-Government or benevolent body or organization in respect of the loss
suffered by them.
E. The advance shall be recoverable in 36 equal monthly instalments, the first
instalment to be recovered from the salary for the fourth month from the month
in which the advance is drawn. For instance if the advance is granted in the
month of January, recovery will start from the salary for the month of April.
F. The Competent Authority to sanction the advance shall be the Sr. /Divisional
Manager-in-charge of the Division in respect of employees in the Division and
Zonal Manager-in-charge of the Zone, in respect of employees working in the
Zonal Office.
III. Conditions for grant of Drought advance
A. The advance shall be granted to those employees who reside at the area declared
to be affected by drought by the State Government.
B. If there is a provision of granting drought advance to the State/Central
Government employees of the particular area the State/Central Government
should have granted /agreed to grant drought advance to their employees. If
there is no such provision, this condition may be relaxed.
C. The Advance shall be recoverable in 36 equal monthly instalments the first
such monthly instalment being recoverable from the salary for the month
following that in which the advance has been granted.
D. The Competent Authority to sanction the advance shall be the Zonal Manager-
in-charge of the Zones.
IV
V.. Cyclone and Earthquake
With regard to other natural calamities like Cyclone, Earthquake etc. the matter has
to be referred to Central Office for their decision.[Ref Circular No. ZD/1060/ASP/2005
dated 02/08/2005]

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ADVANCE FOR PURCHASE OF PERSONAL COMPUTER INCLUDING LAPTOPS:
ADVANCE
( C.O Circular Ref:: ZD/981/ASP/2001 Dtd.14/7/2001,ZD/1034/ASP/2003 Dtd.15/12/2003)
1. Quantum of Advance 80% of the purchase price or ` 36000/- whichever
is less.
2. Repayment Term 36 Equated Monthly Instalments
3. Conditions for eligibility Maximum three advances during the entire service.
Subsequent advance t be granted after 3 years and
after full recovery of the previous advance
4. Rate of Interest 9% per annum (simple)
5. Sanctioning Authority
D.O.(Including Branches Officer-in-charge of the Division.
under it)
Zonal Office Zonal Manager/Regional Manager (E&OS)
Central Office Executive Director (E&OS)
Audit Deptt Executive Director (Audit)/Chief (Audit)
6. Servicing Contract To be between the vendor and the loanee employee.
7. Eligibility All classes of employees having confirmed service
of at least five years shall be eligible for advance for
purchase of Personal Computers.
8. Configuration The minimum configuration of the Desktop
computers and Laptops (as laid down by IT Dept)
are given in the Annexure-I under the following
Categories:
1. Celeron D2. 4 PC
2. AMD Sampron PC
3. Pentium P IV PC
4. AMD Athion PC
5. Intel / AMD mobile Processor Laptop
Cost of printer may be considered subject to the
quantum of advance.
9. To have control on the advance (First / Second / Third ) , an entry in the staff record
sanctioned sheet may be made.
NOTE: Computer Advance includes Laptops and the configuration is revised and given in
the Annexure I of the C.O. Circular No. ZD/1103/ASP/2007 dt. 23.4.2007.

77
ADVANCE FOR PURCHASE OF MOBILE PHONE:
ADVANCE
1. Eligibility: :Class-I Officers in the cadre of AAO/AO/ADM/DM/SDM/DZM both on
administrative side as well as marketing side and BM/SBM posted in STC/ZTC or posted
as Sr/BM training are eligible for one-time interest free advance for purchase of mobile
phone handsets.
2. Quantum of advance :The amount of advance shall be equal to the purchase price of the
handset or ` 4,000/- whichever is less.
3. Repayment Term : The advance is recoverable in 10 monthly instalments.
4. Other conditions : There shall be no reimbursement of monthly mobile phone charges
except to those Officers who are otherwise eligible for reimbursement. One-time charges
such as SIM card charge, activation fee, security deposit etc. will have to be borne by
the officers. The officer shall undertake to keep the mobile phone for his/her own
personal use and also for enabling office to establish instant communication. The officer
should intimate to the office the mobile phone number and subsequent changes therein
if any.
[Ref: OS/OA/Mobile Phones/2003 dated 26/02/2003 & ZD/1046/ASP/2004 dated 10/05/
2004]
5. Purchase of Mobile Handsets for use of Sr/DM-in-charge of Divisions – The limit is
` 6,000/- w.e.f. 17.7.2010.
(Ref: CO/OS/Mobile-Phones/232-J dt. 17.7.2010)
6. Purchase of Mobile handsets for use of Officers in the rank of ZM (ordinary & Selection
Scale) – Revised limits w.e.f. 11.6.2010:
Limit is ` 12,500/- for ZM (Selection Scale)
Limit is ` 10,000/- for ZM (Ordinary Scale)
(Ref: CO/OS/Mobile-phones/232J – dt. 17.7.2010)

78
 CHAPTER 8
MEDICAL BENEFITS
I. CASH MEDICAL BENEFIT PAYABLE TO CLASS I , CLASS III AND CLASS IV
PA
EMPLOYEES :
1) The quantum of benefit payable is as detailed below:
Class Benefit payable Revised w.e.f Payable on
Class I
a) Basic pay upto ` 31655/- ` 8,000/-p.a. 01.08.2007 Along with salary
b) Basic pay beyond ` 12,000/-p.a. 01.08.2007 for the month of
` 31,655./- July every year
(Basic pay includes Fixed
Personal Allowance also)
Class III & Class IV ` 4,000/- p.a 01.01.2007 Along with salary
for the month of
January every
year.
2) The category in respect of Class I shall be decided based on the basic salary as on 1st
July every year after granting normal grade Increment, if any, due on that date.
3) The officers/ employees who have joined the regular service of the corporation and
have completed less than 12 months service in any year, will be entitled to proportionate
lumpsum benefit. The proportionate benefit will be calculated at the rate of 1/12th of
the full benefit for every completed month of service in the year. Those who join the
regular service of the corporation on the first working day of a month and continue in
service throughout that month will be deemed to have put in a completed month of
service. Officers /employees who leave the services of the corporation either by
retirement/resignation or whose services are terminated on account of disciplinary
action, will also be entitled on the basis of the total number of completed month of
service put in by them prior to such exit during the year. During the period of
suspension, the officer / employee will continue to get a lumpsum annual
benefit as Cash Medical Benefit. However, where the disciplinary action results into
termination, removal from service or dismissal, lumpsum medical benefit already paid
for the year shall be proportionately recovered, in respect of unexpired period.
4) Proportionate recovery of benefit in case of death of an employee / officer need not be
made in respect of the benefit already paid in advance along with January / July salary.
5) Every confirmed Class-I Officer is eligible for cash medical benefit irrespective of
whether he was a member of the RMES or not. In respect of newly recruited officers/
employees, though they are eligible for the benefit during their probation, the payment
shall be made to them only on confirmation.
6) This benefit is payable irrespective of whether the employee/officer is covered under
medical benefit scheme elsewhere if their spouse is employed in some other organisation
and also irrespective of whether the employee is covered under our Group Mediclaim
or not.

79
7) Where, both husband and wife are employees of the Corporation , both of them shall
get cash medical benefit as per their eligibility separately.
8) Where a Class-III employee is promoted as Class-I Officer during the year, the
proportionate benefit for the months spent as Class-III and Class-I shall be paid for
the period upto 30th June following the date of taking over charge as Class-I Officer.
From 1st July immediately following the date of taking over charge as Class-I, Cash
Medical Benfit applicable to the officer depending on his basic pay as on 1st July shall
be paid for next year (i.e. from 1st July to 30th June). For this purpose, if the date of
taking charge as Class I Officer is on or before 15th of the month , then benefit as Class
I for the month shall be paid.
In case such Class-I Officer seeks reversion to the post of class-III during the period of
probation the amount of cash medical benefit paid as Class-I Officer shall be recovered
and only the benefit as Class-III extended.
9) The proportionate amount should be recovered in case of those Officers/employees
whose exit is by way of retirement, resignation or disciplinary action unless satisfactory
evidence is produced to the office to show that they had actually spent the full amount
towards medical expenses for their own illnesses or their family before the date of
cessation of the service. This provision must be strictly adhered to.
10) In respect of period of absence treated as Dies-non , proportionate recovery of benefit
already paid in advance is to be made unless satisfactory evidence is produced to the
office to show that they had actually spent the full amount towards medical expenses
for their own illnesses or their family.
II. CASH MEDICAL BENEFIT TO DEVELOPMENT OFFICERS:
The Reimbursement of Medical Expenses Scheme, 2006 (RMES, 2006) for development officers
has been replaced with a lump sum annual payment as Cash Medical Benefit w.e.f. 01.07.2010.
Development Officers shall be paid lump sum Cash Medical Benefit at the rate of ` 5000/- p.a.
The Cash Medical Benefit paid to Development Officers will not form part of Annual
Remuneration under Special Rules, 2009.
1) The above annual lump sum payment is to be made along with the July salary every
year.
2) The Development Officers who have joined the regular service of the Corporation after
01.07.2010 and have completed less than 12 months service in any year, will be entitled
to a proportionate lump sum benefit. The proportionate benefit will be calculated at
the rate of 1/12th of the full benefit for every completed month of service in the year.
Those who join the regular service of the Corporation on the first working day of a
month and continue in service throughout that month will be deemed to have put in a
completed month of service.
3) Development Officers who leave the services of the Corporation either by retirement/
resignation or whose services are terminated on account of disciplinary action will
also be entitled on the basis of the total number of completed month of service put in by
them prior to such exit during the year. During the period of suspension, the
Development Officer will continue to get a lump sum annual benefit as Cash Medical
Benefit. However, where the disciplinary action results into termination, removal from
services or dismissal, lumpsum Medical Benefit already paid for the year shall be

80
 proportionately recovered, in respect of the unexpired period.
4) The Medical Benefit shall be payable to the Development Officer who dies during the
year irrespective of whether the Development Officer died before or after receipt of
the Medical Benefit along with July salary.
5) Cash Medical Benefit is payable to all confirmed Development Officer irrespective of
whether he was a member of the RMES, 2006 or not. The newly appointed Development
Officers will be eligible for the benefit during their probation. However, the payment
shall be made to them only on confirmation.
6) Where a Development Officer is promoted as Class I Officer during the year, the
proportionate benefit for the months spent as Development Officer and Class I shall
be paid for the period upto 30th June following the date of taking over charge as Class
I officer. From 1st July immediately following the date of taking over charge as Class I,
Cash Medical Benefit applicable to the officer depending on his basic pay as on 1st July
shall be paid for next year (i.e. from 1st July to 30th June). For this purpose, if the date
of taking charge as Class I Officer is on or before 15th of the month, then benefit as
Class I for the month shall be paid. In case such Class I Officer seeks reversion to the
post of Development Officer during the period of probation, the amount of cash medical
benefit paid as Class I Officer shall be recovered and only the benefit as Development
Officer extended.

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 CHAPTER 9
MEDICLAIM SCHEME
REIMBURSEMENT OF HOSPIT ALISA
HOSPITALISA TION EXPENSES SCHEME
ALISATION
The Corporation has an approved Contributory Scheme for Reimbursement of Hospitalisation
and Maternity Expenses to all classes of employees of the Corporation. The scheme is regulated
by the Group Mediclaim Policy issued by one of the four Nationalised General Insurance
Companies.
1) Date of commencement:
The Scheme came into effect from 1st January, 1988.
2) Coverage and entry into the Scheme:
I) The Scheme covers all existing confirmed employees of the Corporation as on 1-1-1988
except those who specifically opted not to join the scheme. Newly recruited employees
and the eligible dependents shall be covered from the due date of confirmation. In case
confirmation is postponed, the cover is available for the extended period of probation,
but Corporation contribution on premium shall not be allowed and the employee has
to pay the full premium.
II) All employees confirmed after 1-1-1988 are compulsorily included in the scheme from
the date of their confirmation.
III) (a) Officers/Employees serving abroad are not covered by this Scheme.
(b) Expatriate Officers posted abroad (except those on deputation abroad) shall
join the Scheme with effect from the date following the date of their
disembarkation in India on repatriation.
IV) (a) The family of an employee i.e., the spouse (wife or husband as the case may be)
of the employee and any two of his/her dependent children are eligible for
coverage under the scheme.
Provided, that if the employee has more than two dependent children, the Scheme
shall cover any two children to be specified by the employee with corporation
contribution and others without corporation contribution.
Provided further if an employee has more than one wife, only one wife as
specified by the employee at the time of his entry into the Scheme shall be treated
as a member of his family for the purpose of this Scheme and no change can be
effected by the employee in this regard except in the case of death or divorce. In
such a case, one of the other surviving wives to be nominated by the employee
will be eligible to be covered by the Scheme.
(b) “Dependent children” means,
i) Legitimate Children including legally adopted children.
ii) Children shall not have an earned income of over ` 3,500/- p.m. “Earned
Income” means income not being stipend or scholarship from a recognised
educational institution or any gift or income from a property or trust in
favour of the child. However, stipend to the M.B.B.S graduate during
internship in hospital will be treated as income.

82
 iii) Male children should not have completed 21 years of age or if he has
completed 21 years of age, he is prosecuting whole-time studies in a
recognised educational institution and has not completed 25 years of age.
Correspondence course is not considered as whole-time studies for this
purpose.
iv) Unmarried female children or if she has been widowed or divorced and
residing with and dependent on the employee.
v) There will be no Corporation’s Share of Premium for the coverage of
dependent parents and additional children and full Premium with a group
discount will be borne by the employee.
vi) Mentally retarded children fully dependent on the employee / retired
employee.
vii) Physically handicapped children fully dependent on the employee /
retired employee.
c) New born children shall be eligible from the date of birth on payment of
appropriate premium in our office and such confirmation is given to the insurer.
The office in such cases may accept premium in anticipation of delivery.
d) When one of the children specified by the employee goes out of the scheme, i.e.
when the child becomes “ineligible” to be covered under the Scheme the employee
may substitute the name of another dependent child in place of the child who
has gone out of the Scheme.
e) Dependent Parents/ Parent-in-laws of the employees with earned income not
exceeding ` 3,500/- p.m. were allowed inclusion into the scheme as on 01.05.2006
if opted for coverage before 30.04.2006. If option is not exercised they can not
join the scheme at a later date.
Dependent parents means those who are economically dependent on the
employee and who has earned income not exceeding ` 3,500/- per month. For
determining the eligibility of dependent parents, the combined income of father
and mother shall be taken into consideration and it should not exceed ` 3,500/-
per month. The same condition shall apply in case of dependent parents-in-law
also. For the purpose of coverage under the Scheme, the dependent parents/
parents-in-law may or may not be residing with the employee.
f) In case of those officers / employees who are posted abroad but whose family
remain in India, coverage under Group Mediclaim Scheme shall continue to be
available to the eligible family members provided the premium in respect of
such family members are paid to the office in lumpsum.
V) If both the husband and the wife are employees of the Corporation, the benefits under
the scheme and the premia shall be as applicable to the higher basic pay. The premium
is to be deducted from the salary of the employee drawing higher basic pay and no
separate deduction shall be made from the spouse.
VI) If the spouse of the employee is employed elsewhere and is entitled to medical benefits
by virtue of such employment, the benefit under the scheme shall be available only to
the employee concerned.

83
 Provided that if the employee gives an undertaking that his/her spouse shall not claim
medical benefit under the provisions applicable to her/him either in her/his own case
or in the case of their children or any of them, the benefit under the Scheme shall be
available in respect of such spouse and children or any of them as the case may be.
3) Entry into the Scheme:
i) Every employee/retired employee shall, before the date of his/her entry into the scheme
and thereafter on 1st April every year, furnish to the controlling Office a statement in
Form ‘A’ .
ii) Changes in the particulars of family: If any member of the family becomes ineligible to
be covered by the Scheme, the employee shall notify the same to his controlling Office
within 7 days of such ineligibility. If a member of the family becomes eligible to be
covered as “Additions” to the Scheme, the employee should notify as above within 6
months of such eligibility and coverage will be allowed from 1st of following month. If
he fails to do so, he can submit the forms before the next renewal date after the expiry
of six months period and the new additional eligible member will be covered from
renewal date, viz., 1 st April of the ensuing year. Premiums are to be recovered
accordingly. In case of marriage of an employee, the premium in respect of the spouse
may be accepted in the office before marriage to ensure mediclaim cover including the
maternity benefit from the date of marriage. Suitable advice of all such new entry
should go to the local servicing office of the insurer immediately
iii) Special Entry: Some employees might not have joined the scheme as they had been
member of some other medical scheme. On cessation of such membership they may
like to join the present scheme in LIC. Requests from such confirmed employees seeking
entry into the scheme for self or for the eligible members of their families will be
examined by the Head of the Division at D.O./Regional Manager (E&OS) at Z.O./
Executive Director (E&OS) at C.O./Secretary in-charge at Zonal Audit Centres/Executive
Director (A & I) at C.O.
1) Each such “special” entry will be examined on its merits.
2) If after examination, it is decided to allow the entry into the Scheme, such special
entries will be allowed only from the 1st April of the subsequent year.
3) All such “Special” entrants will be required to complete a health declaration
satisfactory to the Corporation.
4) Premiums for the month of entry i.e. for the month of April, will be recovered
from the salary of previous month (March).
5) The new entrants must not have coverage from any other Medical Scheme.
6) All disease that manifest during the first month after the date of entry into the
Scheme will be excluded from coverage.
iv) Newly recruited employees : The newly recruited Class-I,II,III & IV employees may be
given coverage under the Scheme for self and eligible family member/s from the due
date of their confirmation and accordingly appropriate premium should be deducted
from salary in advance, after obtaining the Form-A as required.

84
4) Classification of employees:
i) For the purpose of benefits under the Scheme and for payment of premium, the
employees shall be classified as follows:
Basic Pay Mediclaim Benefit Category
Upto ` 22,145/- III
Between ` 22146/- and ` 30,749/- II
` 30,750/- and above I

ii) In case of retired employees, the last basic pay drawn by them before retirement shall
be basis for determining the category.
ii) Members of the family covered by the Scheme shall belong to the same category as the
employee.
iii) If during the policy period an employee who is covered by the Scheme under a particular
category is to be placed under another category subsequently because of the change in
his basic pay (due to promotion orincrement), he shall be placed in the new category
both for premium and for benefits only from the next policy year i.e. from 1st April of
the following year. Premiums at the new rate shall have to be deducted from the previous
month i.e. March.
iv) No employee can opt to be covered under a lower category other than that applicable
to his basic pay.
5) Exits:
i) Exits by way of retirement/resignation/death/termination etc. of employees shall be
effective from the date of such exits. Exits of family members shall also be effective
from the date of such exits of the employee members. The same should be communicated
to the insurer immediately.
ii) However, retiring employees can continue membership of Scheme as indicated in para
15 herein below.
iii) If any member becomes ineligible to be covered by the Scheme, the employee shall
notify the same within 7 day of such ineligibility.
iv) Special Exits: If a newly recruited employee on confirmation, requests exemption from
compulsory coverage of the Scheme or if an employee who is a member of the Scheme
desires to withdraw from the Scheme for the reason that he/she is to be covered by any
medical Scheme applicable to his/her spouse, supported by documentary proof of such
proposed coverage elsewhere, he/she may be exempted/allowed to withdraw from the
Scheme by the Authorities mentioned in para 3(iii) after examining each case on its
merits. Such special exit of member of the Scheme will be allowed only from 1st April
following such request. Suitable advice of such exits should go to the insurer ,
immediately.
6) Benefits:
a) Employees were allowed to opt for increased sum insured wef 1.10.2002 or w.e.f 1st
April of the ensuing year subject to certain conditions detailed in para 8 herein below.

85
b) The benefits are allowed on the basis of sum insured. For the purpose of sum insured
the employee shall be classified as follows:
Basic Pay Sum Insured Optional Increased
Sum Insured
Upto ` 22,145/- ` 85,000/- ` 1,00,000/-
Between ` 22,146/- and ` 30,749/- ` 1,10,000/- ` 2,00,000/-
` 30,750/- and above ` 1,65,000/- ` 3,00,000/-
7) Premium:
i) Premium is based on the employees category, “claim experience”, age of the employee
and that of the eligible members of the family and as specified by the insurer.
ii) The Class- II, III and IV employees share premium in ratio of 1 : 4 whereas Class-I
Officers share premium in the ratio 1 : 3 for basic sum insured for self , spouse and
first two dependent children and there is no corporation contribution in respect of
optional increase in sum insured and additional dependent children , parents/parent-
in-laws .
iii) For retired employees, Corporation will bear 3/4th of the premium for the policy. The
Corporation contribution for mediclaim premium will be available only to retired
employee and his/her spouse.
Premium Table: (For policy year 201
Table: 1-2012)
2011-2012)
Sum Insured Annual Premium per person
in `
Age in completed years
00-35 36-45 46-55 56-65 66-70 71-75 76-90
85,000/- 1463 1606 2743 3170 3771 4060 5224
1,10,000/- 1893 2078 3550 4102 4880 5254 6761
1,65,000/- 2836 3114 5322 6153 7319 7880 10141
1,00,000/- 1720 1889 3227 3729 4436 4776 6146
2,00,000/- 3244 3555 6423 7410 8862 9543 12278
3,00,000/- 4523 4960 9164 10655 12758 13739 17675
iv) A member whose completed age is 35 years is to be taken in age group upto 35 years
and after completion of age 36, the member is to be considered in age group 36 to 45
years i.e. Age last birthday will be reckoned.
v) Existing employees have to bear full premium for dependent parents/ parents-in-law
and additional dependent children.
vi) Retired employees have to bear full premium for dependent children.
vii) Spouse and dependent children of the deceased employees have to bear full premium.
viii) In case of withdrawal of the employee/member of the family from the Scheme, monthly
contributions will cease from the month following the month of withdrawal.

86
ix) The first instalment of the premium shall be deducted from the salary for the month
preceding that in which the employee/eligible members enters the Scheme.
x) If an employee delays intimation of the exit from the Scheme of any family member, no
refund of past contributions shall be allowed.
xi) However, if it involves substitution by another child such contributions made within the
policy year shall be adjusted against the contributions due on account of the new
member. The newly substituted child shall be a member from the first of the month
following the date of intimating such substitution.
xii) The employee on EOL/suspension/dies-non etc. continues as a member of the Scheme
so long as he is in service. The Corporation shall advance for such employees, premiums
up to 6 months which shall subsequently be recovered from the salary or any dues
payable to such employee. However no interest is to be charged for such advance.
xiii) If both the husband and the wife are employees in the Corporation, the benefits under
the Scheme and the premium shall be applicable to the higher basic pay. The premium
is to be deducted from the salary of the employee drawing higher basic pay and no
separate deduction shall be made from the spouse.
xiv) The category of benefits for retired employees will be the same as that by which the
employee was covered on the date of retirement.
8) Important conditions applicable for optional increase in sum insured :
i) The increase in Sum Insured shall be allowed to the entire unit of family members of
the employee / retired employee.
ii) In case of change in existing basic Sum Insured of the in-service employees because of
change in their basic pay, the Optional Sum Insured corresponding to that changed
basic pay shall automatically be applicable from the subsequent renewal date and
accordingly the premiums stands revised.
iii) Once an employee /retired employee opts for higher Sum Insured, no lowering of sum
insured to basic level is allowed. However in exceptional cases Competent Authority
shall allow lowering of Sum Insured to basic level at the time of renewal date, but such
employees will never be allowed to opt for increase in future. The Competent Authority
for this purpose shall be the ZM-In-Charge for the employees/retired employees, within
the jurisdiction of Zonal Office, ED (E&OS), for Central Office, and ED (Audit) for
employees working under Audit Dept.
9) Important features of policy :
Hospital / Nursing Home means any institution in India established for indoor care treatment
of sickness and injuries and which either
A) has been registered either as a Hospital or Nursing Home with the local authorities
and is under the supervision of a registered and qualified Medical Practitioner.
Or
B) should comply with minimum criteria as under
i) it should have at least 15 in patient beds.
ii) fully equipped operation theatre of its own wherever surgical operations are
carried out.
87
iii) fully qualified nursing staff under its employment round the clock.
iv) fully qualified Doctor(s) should be in charge round the clock.
N.B. In class ‘C’ towns condition of number of beds are at least 10.
(a) Hospital / Nursing Home”
The term “Hospital Home shall not include an establishment which
is a place of rest, a place for the aged, a place for drug-addicts or place for
alcoholics, a hotel or a similar place.
(b) Surgical operation
“Surgical operation” means manual and/or operative procedures for correction
of deformities and defects, repair of injuries, diagnosis and cure of diseases,
relief of suffering and prolongation of life.
(c) Expenses on Hospitalization for minimum period of 24 hours are
admissible. However, this time limit is not applied to specific treatments i.e.
Dialysis, Chemotherapy, Radiotherapy, Eye Surgery, Dental Surgery, Lithotripsy
(Kidney stone removal), D&C, Tonsillectomy, Anti Rabies Vaccine (Rabies) if
taken in the Hospital/Nursing Home and the insured is discharged on the same
day; the treatment will be considered to be taken under Hospitalization Benefit.
However any treatment other than as mentioned above which requires
hospitalization for period of less than 24 hours are covered provided:
i. The treatment should be such that it necessitates hospitalization and
the procedure involved required specialized infrastructural facilities in
hospital
ii. Due to technological advances hospitalization required is less than 24
hours.
(d) Domiciliary Hospitalization Benefit means
means::
Medical treatment for a period exceeding three days for such illness/ disease/
injury which in the normal course would require care and treatment at the
hospital/nursing home but actually taken whilst confined at home in India under
any of the following circumstances namely:
i) The condition of the patient is such that he/she cannot be removed to the
hospital/nursing home or
ii) The patient cannot be removed to hospital/nursing home for want of
accommodation therein
Subject however that domiciliary hospitalization benefits shall not cover:
1. Expenses incurred for pre and post hospital treatment and
2. Expenses incurred for treatment for any of the following diseases:
i) Asthma
ii) Bronchitis
iii) Chronic Nephritis and Nephritic Syndrome
iv) Diarrohea and all type of Dysenteries including Gastro-enteritis
v) Diabetes Mellitus and Insipidus

88
 vi) Epilepsy
vii) Hypertension
viii) Influenza, cough and cold
ix) All Psychiatric or Psychosomatic disorders
x) Pyrexia of unknown origin for less than 10 days
xi) Tonsillitis and upper respiratory tract infection including
Laryngitis and pharingitis
xii) Arthritis, Gout and Rheumatism
Note: When treatment such as Dialysis, Chemotherapy, Radiotherapy, etc. is taken in
the Hospital/Nursing Home and the insured is discharged on the same day, the
treatment will be considered to be taken under Hospitalization Benefit section.
Liability of the Company under this clause is restricted.
(e) Any one illness : Deemed to mean continuous period of illness and it includes
relapses within 45 days from the date of last consultation. Occurrence of the
same illness after a lapse of 45 days will be considered as fresh illness.
(f) Pre-Hospitalization : Relevant medical expenses incurred during period up
to 30 days prior to hospitalization on disease/illness/injury sustained will be
considered as part of claim.
(g) Post-Hospitalization
Post-Hospitalization::
Relevant medical expenses incurred during period up to 60 days after
hospitalization on disease/illness/injury sustained will be considered as part of
claim.
(h) Maternity Expenses Benefit
Benefit::
Treatment taken in Hospital/Nursing Home arising from or traceable to
pregnancy,childbirth including Caesarian section.
i) The maximum benefit allowable under this clause will be up to
` 50,000/-.
ii) Special conditions applicable to Maternity Expenses benefit are as follows:
1. The waiting period of 9 months from the date of coverage is applicable
for payment of any claim under this benefit. However 9 months
waiting period clause is not applicable in case of pre-mature delivery
or medical emergency.
2. These benefits are admissible only if the expenses are incurred in
Hospital/Nursing Home as in-patients in India.
3. Claim in respect of delivery for only first two children and/or
operations associated therewith will be considered in respect of any
one insured person covered under the policy or any renewal thereof.
Those insured persons who are already having two or more living
children will not be eligible for this benefit.

89
 4. Expenses incurred in connection with voluntary medical termination
of pregnancy are not covered.
5. Pre-natal and post-natal expenses are not covered unless admitted
in Hospital and treatment is taken there.
6. If the child is shifted to a different hospital for treatment during the
confinement period, those expenses are covered under the mother’s
sum insured( Max ` 50,000 under this section)
7. New born child is covered under the policy for an additional sum
insured once the child is declared for insurance and premium is
received by LIC and confirmation is given to the insurer. This
however is applicable only after the mother and the child are
discharged from the hospital after delivery confinement period.
8. Congenital defects / diseases are covered. However, any cosmetic or
aesthetic procedure without present complaints necessitating the
treatment are not covered.
9. In case of marriage of an employee , the premium in respect of the
spouse may be accepted in the office before marriage to ensure
mediclaim cover including the maternity benefit from the date of
marriage.
(i) Coverage of Diagnostic Tests without hospitalisation
Tests hospitalisation::
For the Policy Year 2006-2007 an additional benefit in the form of coverage of
diagnostic tests without hospitalisation is introduced. The terms and conditions
of this benefit are as detailed below:
(I) Tests covered and amount reimbursable:
1) MRI Charges : ` 8,000/- each insured
2) CT Scan Charges : ` 5,000/- each insured.
3) Sonography chrages
(excluding maternity related ) : ` 2,000/- each insured
4) Biopsy (Internal) : ` 2,000/- each insured
5) Biopsy (External) :` 750/- each insured
(II) The charges as above for each of the tests shall be payable only once during
the policy period (the first such policy period being 2006-2007) for each of
the insured, subject to the maximum of ` 15,000/- per insured and
` 30,000/ - per insured family. The reimbursement as above shall be within
the limits of overall Sum Insured for the individual insured.
(III) The expenses are reimbursable even if the diagnostic tests do not show
presence of the ailment for which the test is carried out.
(IV) The claim under the above shall be payable only if the tests are carried
out on the recommendation of an MD Doctor supported by documents
evidencing present complaints necessitating the diagnostic tests.

90
 (V) Pre and post tests expenses without hospitalization are not payable.
Expenses only for the aforementioned tests are payable. Any expenses
incurred by way of treatment without hospitalization are not payable
unless otherwise the policy conditions allow these.
j) Reimbursement of Ambulance Charges
Charges::
Ambulance Charges shall be reimbursable under the policy subject to a maximum
limit of ` 1000/- per claim within the overall sum insured.
k) Cataract Operation
Operation::
There shall be a separate ceiling within the applicable sum insured on the amount
reimbursable for cataract operation which shall be ` 40,000/- in Class - A Cities
and ` 25,000/- in other places where the treatment is taken.
l) Maternity Benefit
Benefit::
Maternity Benefit shall be applicable upto the age of 45 years only and
accordingly maternity benefit loading is charged on premium applicable for the
age group 0 - 35 and 36 - 45 only.
10) General :
a) Notice of claim with full particulars shall be sent to the company within 7 days from
the date of hospitalization and claim must be filed within 20 days of discharge from
hospital.
b) The insured person shall obtain and furnish to the insurer with all original bills, receipts
and other documents upon which a claim is based and shall also give such additional
information and assistance as the insurer may require in dealing with the claim.
c) Any medical practitioner authorized by the company shall be allowed to examine the
insured person in case of any alleged injury or disease requiring hospitalization when
and as often as the same may reasonably be required on behalf of the insurer.
d) All medical/surgical treatments under this policy shall have to be taken in India and
admissible claims thereof shall be payable in Indian currency.
e) No employee who has joined the Scheme can go out of the Scheme except as special
exit. Also, no employee/family member who has not joined the Scheme can enter the
Scheme unless the case can be considered under the provisions of special entries.
1 1) Exclusions:
The company shall not be liable to make any payment under this policy in respect of
any expenses whatsoever incurred by any insured person in connection with or in
respect of
a) Injury/disease directly or indirectly caused by or arising from or attributable to War
invasion, Act of Foreign Enemy, Warlike operations (whether war be declared or not).
b) Circumcision unless necessary for treatment of a disease not excluded hereunder or as
may be necessitated due to an accident, vaccination or inoculation or change of life or
cosmetic or aesthetic treatment of any description, plastic surgery other than as may
be necessitated due to an accident or as a part of any illness.
c) The cost of spectacles, contact lenses and hearing aids.

91
d) Dental treatment or surgery which is corrective, cosmetic or aesthetic procedure
including wear and tear, tooth extraction, unless arising from disease or injury / accident
and when requires hospitalization for treatment.
e) Convalescence, general debility, Run-down condition or rest cure, Congenital, external
disease or defects or anomalies, sterility, venereal disease, intentional self injury and
use of intoxicating drugs/alcohol.
f) All expenses arising out of any condition directly or indirectly caused to or associated
with Human T-Cell Lymphotrophic Virus Type III (HTLB-III) or Lymphadinopathy
Associated Virus (LAV) or the Mutants Derivative or Variations Deficiency syndrome
or any Syndrome or condition of a similar kind commonly referred to as AIDS.
g) Charges incurred at Hospital or Nursing Home primarily for diagnostic, X-Ray or
Laboratory examinations or other diagnostic studies not consistent with or incidental
to the diagnosis and treatment of positive existence or presence of any ailment, sickness
or injury, for which confinement is required at a Hospital/Nursing Home. This means
diagnosis / investigation done in hospital should be followed by treatment required to
be taken in the hospital.
h) Expenses on vitamins and tonics unless forming part of treatment for injury or disease
as certified by the attending physician.
i) Injury or Disease directly or indirectly caused by or contributed to by nuclear weapons/
materials.
j) Naturopathy treatment, Acupuncture, Acupressure, Magnet Therapy.
k) Voluntary medical termination of pregnancy.
l) Genetic Disorder and Stem Cell Implantation / Surgery.
m) Massage, Steam Bath, Shirodhara, Panchkarma and similar Ayurvedic treatments.
n) Physiotherapy treatment at home not payable. Physiotherapy treatment taken at clinic
or at specialised physiotherapy treatment Centre are only payable.
12) Claims:
i) All claims shall be lodged by the employee with the designated servicing office of the
insurer, in the prescribed form through the OS Dept., of the Divisional Office/Zonal
Office/Central Office concerned.
ii) The employee shall submit the claim for medical expenses in accordance with the
conditions and within twenty days from the date of discharge from the hospital specified
in the Group Mediclaim Policy and alongwith relevant certificates, reports, receipts
etc.
(Note : For full details on the benefits , general conditions ,exclusions ,claim
procedure,etc., copy of the Policy document may be referred.)
13) Administration:
i) M/s. New India Assurance Co. Ltd. is servicing the claims with effect from 1/4/2004 on
a continuous basis. However the insurer is subject to change every year.
ii) When an employee is transferred, the transferor office of LIC will inform the designated
servicing office of the insurer all details of the employee transferred. For this purpose,

92
 the servicing Office will be maintaining a movement card giving all details including
claims made and settled for each employee and his/her family. An Intimation letter
from the transferor office to the servicing Office of the insurer will be sent with copy
to the transferee Office of LIC.
iii) Branch Offices, Divisional Offices and Zonal Offices are required to give the information
of confirmed employees and their families and the premia. Similarly, each Office is
required to provide the summary analysis. The above data and statement in respect of
retired employees should be prepared separately and submitted to the Zonal Office
concerned.
iv) At the end of every financial year, the Offices should prepare an analysis of premia
collected, in the following manner:
a. Premiums recovered from employees in service (Category-wise).
b. Premiums collected from retired employees (Category-wise)
v) The data and statements and as detailed in (iii) above as at 1st April every year should
be communicated by each D.O. in respect of the entire Division to the respective Zonal
Office, who in turn will complete the information of the entire Zone in the desired
manner and send to Central Office latest by 30th April each year. The Zonal Office
should also send the information in respect of Training Centres, Audit Centres and
CE’s Offices within their areas and in respect of employees deputed to Housing Finance
Offices, Mutual Fund. (The information in respect of CE’s office, Audit Centre, Housing
Finance & Mutual Fund employees should be shown separately)
vi) The annual lumpsum premium for all employees and members covered under the Scheme
will be paid by Central Office to the Policy issuing office of the Insurer. No other Office
of the Corporation is authorised to make any payment of premium.
vii) The premium collected from employees in service along with the Corporation
contribution of each controlling Office along with full premium received from the retired
employees should be transferred to C.O. as per separate instructions issued by the
Accounts Department of C.O. (Retired employees are not eligible for the contribution
of the Corporation).
viii) Mediclaim cheque in case of death of the employee may be issued in favour of the
nominee as mentioned in the pension file in case of pension optees and in favour of the
PF nominee in case of PF optees. If nomination has not been made or the nominee has
expired, before the death of the employee / retired employee, the payment may be
made to the Class I Legal heirs.
14) Advance against Reimbursement under Group Mediclaim Policy
It is observed that in many a case employees are required by the hospitals to pay some
amount as deposit before the commencement of treatment. As in the case of major
illness like Kidney Transplantation, By-Pass Surgery, Cancer, etc, the expenses to be
incurred are very heavy, which employees often find it difficult to arrange for such
deposits. In order to give succour to such persons, Corporation has decided to grant
advance to employees who are covered under the Group Mediclaim Scheme for
hospitalisation treatment of employees/eligible dependents, subject to the following
terms and conditions:-
1) The advance can be granted only in case of hospitalisation as defined in the
93
 mediclaim Scheme for treatment of any of the 30 major diseases/operations listed
in the Ex-gratia scheme for High cost / protracted treatments.
- (please refer to list given in scheme of Ex-Gratia reimbursement of Medical
Expenses).
2) The advance should be granted only on receipt of an application from the
employee. Alongwith the application the employee will be required to submit a
certificate from the hospital authorities indicating the diagnosis, the nature of
treatment that is proposed to be given and an estimate should contain details
such as room charges, operation charges, consultation charges, etc.
3) The amount of advance should not exceed 80% of the amount that the employee
would be entitled to under the Mediclaim Scheme and in no case the maximum
advance that is granted should exceed ` 50000/-. Before granting the advance,
the office should ascertain from the Insurer the balance amount available to the
credit of the employee. This is necessary because if the employee had already
preferred a claim with the Insurer. during the policy year, then he will not be
entitled to full amount reimbursable under the Scheme but only to the extent of
the balance amount available.
4) The employee should give a letter addressed to the Insurer authorising them to
draw the cheque in favour of LIC if and when his claim for reimbursement is
passed by them. Further, he should also give another authority letter authorising
the LIC to deduct from his salary and other dues, the amount if any, that may
still remain to be recovered from him even after the settlement of Mediclaim by
the Insurer.
5) The employee should submit the Mediclaim to the Insurer within 20 days from
the date of discharge from the hospital. While forwarding the Mediclaim
application to the Insurer the office should also enclose the authorisation letter
given by the employee and request the Office to prepare the cheque in favour of
LIC and send the same to our office after the claim is settled by them. The
proceeds of the cheque, when received from the insurer should first be adjusted
against the advance granted to the employee and the balance, if any, can be paid
to him. In case the amount of claim settled is not sufficient to cover the entire
advance, the balance amount outstanding should be recovered from the
employee’s salary.
6) These on account payments may be debited to Head of Account ‘Special Advance
to Employees’ (interest free).
At the time of receipt of cheque from the insurer the entire amount received
from them should be credited to this Head of Account and balance, if any, in the
account may be refunded to the employee immediately thereafter.
Needless to add, each office should maintain a separate sub-ledger to control
recovery of such advances.
7) The competent authority for granting such advance will be as under—
a) Senior/Divisional Manager- in respect of the officers and other employees
working in the Division.

94
 b) Zonal Manager- in respect of the officers-in-charge of the Divisions and
the officers and staff working in the Zonal office.
c) Executive Director (E&OS) - in respect of the officers and staff working
in Central Office upto the rank of Zonal Manager.
d) Chairman- in respect of the officers of the rank of Zonal Manager and
above.
e) In so far as the Audit Department is concerned, the Secretary (Audit))/
Deputy Secretary (Audit) in the Zones shall be the Competent Authority
for the staff working under them and the Chief Internal Auditor in respect
of the Secretary/Deputy Secretary (Audit) in the Zones and the officers
and staff working in the Audit Department of Central Office.
8) While sanctioning advance the competent authority has to satisfy himself that
all the necessary certificates have been received, the advance that is proposed
to be sanctioned is well within the limit mentioned earlier. Further, a record of
such advances should be made and necessary follow up action should be taken
by the office for its recovery.
15) Mediclaim Scheme for retired employees:
a) Employees retiring from the service of the Corporation are eligible to be covered as
members of the Scheme even after retirement. The retiring employee should intimate
his willingness for continuous coverage under the Scheme and submit family particulars
in Form A and deposit the proportionate premium in one lumpsum before the date of
retirement. Eligible spouse and dependant children will also be covered.
b) Dependent children covered under the Scheme will not be entitled to contribution
from the Corporation. They will be eligible only for the group discount allowed by the
Insurers.
c) The category of benefits will be the same as that by which the employee was covered
on the date of retirement.
There is no provision for change in the category of benefits.
d) If the retired employee who is covered by the Scheme requires continuation for
subsequent year, he should remit the yearly premium in one lumpsum and also submit
‘Form A’ before 31st March of every year to the Divisional /Zonal Office of the Corporation
having jurisdiction over the place of his residence.
e) In case such a retired employee who continues membership of the Scheme desires to
migrate and settle in a place falling under jurisdiction of another Divisional Office, the
Mediclaim file of the retired employee containing ‘Form A’, copy of miscellaneous
receipts and other papers should be sent to the other Divisional / Zonal office, if the
membership is in force.
f) Needless to add, proper identification should be made before the claims lodged by the
retired employees, if any, are received by our Office for certificate of membership before
the claims are forwarded to Insurer for settlement.
g) The Office which receives the premiums should prepare Data and statement as at 1st

95
 April every year in respect of such members separately. These statements should be
submitted to Zonal Office for consolidation at their end.
h) The Central Office will be remitting the premiums in respect of these retired employees
on the basis of consolidated Data and Statement No other Office of the Corporation
except the Central Office should remit the premiums in respect of any exisiting
employee nor the retired employee is required to pay any premium directly
to the Insurer.
Group Mediclaim Insurance Scheme for Regular Part-Time Employees
Employees:
The Corporation has approved a contributory scheme for reimbursement of Hospitalisation
and maternity expenses for the existing / retired regular part-time employees of the
Corporation w.e.f: 01/07/2009. The Scheme will be a Family Floater Scheme regulated by the
Group Mediclaim Policy. (Reference: Personnel ER/A deptt circular no: ZD/1134/ASP/2009 dt:
03/07/2009).
Applicability :
The Scheme is applicable to –
(a) All confirmed regular part-time employees of the Corporation serving anywhere in
India.
(b) Retired regular part-time employees who specifically opt to join the scheme and staying
in India.
Definitions :
a) Family – “Family” shall mean the existing regular part time / retired regular part-time
employee’s spouse, dependent partents, legitimate / legally adopted children or step-
children wholly dependent on the existing / retired regular part time employee.
PARENTS-IN-LA
ARENTS-IN-LAW W ARE NOT COVERED IN THIS SCHEME SCHEME.
b) Dependent parents means parents having earned income of not over ` 2550/- p.m.
Explanation : For determining the eligibility of dependent parents, the combined
income of father and mother shall be taken into consideration. In other words if the
income of the father or mother or both is in excess of ` 2550/- per month then both of
them shall not be considered as dependents of the employee. For the purpose of coverage
of parents under the scheme, they may or may not reside with the employee.
c) Dependent Children means :
Legitimate children including legally adopted children.
Explanation :
1. Male children upto 21 years of age (completed age) and upto 25 years of age if
they are pursuing whole time studies in a recognized educational institution
shall be included. Correspondence Courses are not considered as whole time
studies for this purpose.
2. Female children – Unmarried female children or widowed or divorced residing
with and dependent on the employee shall be included.
3. Mentally Retarded / Physically handicapped children fully dependent on the

96
 regular part time existing / retired employee shall be included.
4. Dependent children shall not have earned income of more than ` 2550/- p.m.
5. Earned Income of children means any income not being stipend or scholarship
from a recognized educational institution or any gift or income from property or
trust in favour of the child.
Coverage and entry into the Scheme :
The Scheme shall cover :-
i) All existing Regular part time employees and their families who have given their consent
to join the Scheme.
ii) Retired regular part time employee and their families excluding dependent parents
who have given their consent to join the Scheme.
iii) All regular part time employees appointed after the inception of the scheme shall
compulsorily join the scheme from the date of his / her confirmation.
iv) If both the employee and his / her spouse are working in the Corporation, it is clarified
that in such cases, the premium is to be deducted from the salary of the regular part-
time employee drawing higher basic pay and no separate deduction shall be made from
the other spouse.
v) If the spouse of the regular part-time employee is employed elsewhere and is entitled
to mediclaim benefits by virtue of such employment, the benefit under the scheme
shall be extended to such spouse, provided the regular part-time employee gives an
undertaking that the spouse shall not claim reimbursement for the hospitalization /
diagnostic tests in respect of which claim is being made under this policy.
vi) When one of the children specified by the employee becomes ineligible under the scheme,
the employee may substitute the name of another dependent child in place of the child
who has become ineligible only for the purpose of subsidy.
v) New born children shall be covered under the scheme provided the premium in respect
of the same is paid immediately after birth or remitted in advance in respect of the
expected newborn baby. The subsidy in premium will however be offered provided
there are less than 2 dependent children covered under the scheme.

97
Premium
The annual premium payable per member for his / her entire family for the current year is as
shown below.
Age No. of Family Members in the Family
Group
for the
highest
aged
individual
in the
family
1 2 3 4 5 6 7 8 9 10
0 – 35 1330 1463 1596 1729 1862 1995 2128 2261 2394 2527
36 – 45 1968 2165 2362 2559 2756 2953 3149 3346 3543 3740
46 – 55 2990 3289 3588 3887 4186 4485 4784 5083 5382 5681
56 – 65 3884 4272 4660 5049 5437 5825 6214 6602 6990 7379
66 – 70 4373 4810 5248 5685 6122 6560 6997 7434 7871 8309
71 – 75 4948 5442 5937 6432 6927 7421 7916 8411 8906 9400
76 – 90 8654 7320 7985 8651 9316 9981 10647 11312 11978 12643
1) Policy year is 1st July to 30th June. Employee has to submit “Form A” giving required
details in respect of self and members of his / her family every year before 30th June.
2) Yearly premium under the Scheme will depend on the age of the oldest person in the
family (completed age to be taken for the purpose of calculation) and on the number of
family members to be covered in the scheme.
3) The premium in respect of in-service regular part-time employee, spouse and two
dependent children shall be borne by the employee and the Corporation as below :-
Employee Employee’s Contribution Corporation Contribution
Regular Part-time 1/4th 3/4th
4) In respect of retired part-time employees, Corporation will bear 3/4th of the premium.
The subsidy will be applicable only to the retired regular part-time employee and his
spouse.
5) In case of death of existing as well as retired regular part time employees in the middle
of a policy year, spouse and dependent children of the deceased regular part-time
employee will be covered for that policy year only. (Circular reference – ZD/1134/ASP/
2009 dated 3rd July, 2009)
6) Retired regular part-time employee should remit the premium in one lumpsum and
also submit Form A before 30th June, every year.
7) The sharing of premium in respect of in-service regular part-time employee shall be
applicable to the employee, his/her spouse and two dependent children and in respect
of the retired regular part-time employee, it shall be applicable to the retired regular
part-time employee and his/her spouse only.
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 CHAPTER 10
SCHEME OF EX-GRA TIA REIMBURSEMENT OF MEDICAL EXPENSES TO
EX-GRATIA
EMPLOYEES IN CASE OF HIGH COST/PROTRACTED TREA TMENT FOR
TREATMENT
SPECIFIED MAJOR DISEASES (TO COVER EXPENSES OVER AND ABOVE
MEDICLAIM LIMITS)
A) Eligibility:
1. Confirmed whole time employees, their non-earning spouse and first two
dependent children who are covered under group mediclaim scheme are eligible
for reimbursement.
2. Expenses in respect of treatment of the earning spouse of our employee may be
considered subject to the following:
a) Spouse is covered under our group mediclaim, and
b) Spouse has not claimed and /or obtained reimbursement from his
employer. (Employer’s certificate is essential in this regard)
3. Retired employees & their dependents are not covered under this scheme
B) Specified Diseases / T
Trr eatments covered under this scheme for
reimbursement :
List of Diseases/Treatments covered under the Scheme of ex-gratia reimbursement of
medical expenses in case of high cost/protracted treatment are as follows:
1. Renal Diseases/Failures/Kidney Transplants/Dialysis.
2. Cerebro or Vascular Strokes/paralysis due to any cause.
3. Open and close Heart surgery including CABG.
4. Cardiac ailments necessitating:
a. Pacemakers (including biventricular Pacemakers.)
b. AICDs with or without biventricular Pacemakers.
c. Radiofrequency ablation
d. Device closures of ASD/VSD/PDA etc.
e. Valvuloplasties (BMV/BAV/BPU)
f. Valve Replacements.
5. Angioplasties:
Coronary and Peripheral (including carotid/Renal/Aorto-iliac) including Stent
Implantation (with drug-eluting stents)
6. Neuro surgery/Ailment requiring Brain Surgery.
7. Major operation of the spine and vertebrae including correction of congenital
spinal deformity.
8. Malignancy including Leukaemia
9. Poliomyletis

99
 10. T.B. including pulmonary T.B
11. Lung Surgery
a. Lobectomy
b. Pneumonectomy
c. Decortication
d. Removal of Mediastinal Tumors.
12. Meningomyelocele hydrocephalus complex
13. Ectopia Vesica
14. Encephaletis (Viral): Also to include Epilepsy, Sequelae like Visual/Hearing loss-
Inclusive of Hearing Aids & Cochleal implants.
15. Gall Bladder/Pancreatic Calculi or Nesidioblastosis
16. Diseases of the Liver leading to hepatic failure or transplantation
17. Surgery of portal hypertension.
18. Leprosy
19. Burns more than 20%
20. Cerebral Malaria leading to major complications
21. Total replacement of joints
22. Major accidents resulting in multiple fractures involving vital organs.
23. Amputation of limbs with Artificial Limbs
24. All Organ Transplants.
25. Unconsciousness of more than 24 hours excluding diabetes mellitus.
26. Thalassemia Major.
27. Paranoid Schizophrenia
28. Diseases needing artificial ventilation for more than 24 hours including
a. Trauma
b. Septicemia
c. Shock etc.
29. AIDS
30. Aplastic Anaemia
Post-hospitalisation expenses upto 180 days for all the above treatments and on
continuous basis upto the maximum limit in-respect of Cancer & Kidney
transplantation surgery are also covered.
C) How to apply ?
1. Employee claiming relief under the scheme can apply in the prescribed form

100
 given in Annexure. Application has two parts. Part-I is to be filled by the
employee and the same is to be certified by Branch Manager /officer
in-charge of the office in which employee is working Part-II is to be filled by
the office after verifying all bills/receipts and the same should be recommended
by the Senior Divisional Manager (I/C).
2. The employee has to give a declaration in the format given in Annexure along
with his application.
3. Since the scheme covers expenses over and above mediclaim limits, a certificate
from the Insurer showing the amount claimed under mediclaim, amount settled
and amount disallowed should be submitted. In case of treatments spread
over more than one financial year, mediclaim limits for individual years should
have been exhausted.
4. Attested photocopy of the following documents are to be submitted along with
application.
a) Discharge summary from the hospital for all relevant periods of treatment
for which claim is made.
b) Doctor’s prescription for medicines.
c) All laboratory reports.
d) In case of credit bills, cash paid receipts.
e) In case of consolidated bills from hospital, item wise break up is essential
i.e. for medicines supplied from pharmacy, lab investigation etc.,
f) In case of “package deal operation/treatment” detailed break-up from
hospital authorities.
g) Copies of mediclaim claim forms.
D) Quantum of relief:
1. The amount re-imbursable is as follows
follows::
i) 90% of the balance amount after settlement of mediclaim upto ` 3 lakhs.
ii) If uncovered expenses are beyond ` 3 lakhs, the same may be reimbursed
to the extent of 70% of the amount in excess of ` .3 lakhs, subject to
overall limit of ` 5 lakhs.
iii) The benefit is allowed twice during the entire service, the limit on each
occasion being ` 5 lakhs .
iv) The unutilized portion of maximum limit on one occasion cannot be used
for other occasion. But in respect of post hospitalisation expenses in
case of cancer and kidney transplant surgery there is no restriction of
time limit of 180 days. The expenses once in six months till the maximum
of ` 5 lakhs is available as reimbursement on one occasion. After receipt
of ` 5 lakhs (i.e. first occassion) if employee requests, the request shall
be treated as second and final relief upto ` 10 lakhs. In such cases no
further benefit will be available under this scheme.

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 2. Sanctioning authorities are as under:
i) Treatment in India & abroad - 90% ZM(I/C) /ED (E&OS)
of the balance after settlement of ED(Audit) as the case may be
Mediclaim upto ` 2 lakhs
ii) Amount in excess of (i) above. MD
E) Advance payable:
We may grant an advance to the extent of 80% of the estimated demand from the
hospital subject to a maximum of ` 3 lakhs (including maximum advance of ` 50,000/
- towards mediclaim advance) for the listed 30 illness/ treatments subject to the
following conditions:
a) The employee should obtain a certificate from the doctor of the hospital for the
estimated expenses for surgery/ treatment which should be acceptable to the
competent authority.
b) The cheque should be drawn in favour of the hospital named by the employee.
The employee shall be required to give an authority letter to the insurer to
draw the cheque towards mediclaim payment in favour of LIC.
c) The employee shall submit the mediclaim to the insurer and before reimbursing
the uncovered expenses under the High Cost Scheme, the amount deposited
into the hospital shall be deducted and balance amount shall be paid to employee.
d) The payment to the hospital may be debited to head of account “Special Advance
to employee”(interest free).After receipt of the cheque from the insurer the
amount outstanding under this head of a/c shall be adjusted first before making
ex-gratia payment under high cost and from ex-gratia amount payable under
high cost treatment, balance of advance outstanding shall be recovered so that
in the end it shows nil balance.
e) The competent authority for granting such advance will be the same as applicable
to sanction of advance against Group Mediclaim Scheme ie as follows.
● Senior / Divisional Manager - in respect of officers/employees working in
the Division
● Zonal Manager - in respect of officers-in-charge of the Divisions and the
officers/employees working in the Zonal Office.
● Executive Director (E&OS) - in respect of officers/ employees working in
the Central Office upto the rank of Zonal Manager.
● Chairman - in respect of officers in the rank of Zonal Manager and above.
● Secretary(Audit) - in respect of officers/employees in the Audit
Department,Z.O
● Chief(Audit) - in respect of Secretary(Audit) of the Zones and officers/
employees in the Audit Dept,C.O
f) At the end of every quarter each Divisional Office should send to the Zonal
Office a statement showing details of deposit to hospital made by them. The
Zonal Office in turn will consolidate all statements in divisions in their Zone

102
 and send a consolidated statement to ER dept of CO.
F) Other points to be noted by the DO /ZO :
a) Applications have to be forwarded to ZO/CO only after proper scrutiny and list
of expenses claimed giving details of bill number, date, description, amount ,etc
is to be certified by Manager(OS)/RM(E&OS) should be enclosed.
b) When payment of ex-gratia sanction is made to the employee , a stamped receipt
is to be obtained for the gross amount sanctioned and it should be kept in the
Personal file of the employee. Proper notings in this regard are
to be made in the Personal file ,Earning record and Staff Record sheet as this
benefit is availble only twice in the entire service of the employee.
c) Advance sanctioned should not be kept open for more than one year. The Zonal
& Divisional Offices should take necessary efforts to clear the advance within
the stipulated period of one year. DO/ZO take necessary efforts to clear the
advance within stipulated period of one year.
d) Employee claiming relief under the scheme shall normally be advised to submit
at the earliest the application and in any case within seven months from the
date of sanction of advance or date of discharge from the hospital
which ever is earlier.
e) In respect of claim by an employee towards post-hospitalisation expenses for
treatment of Cancer or for Kidney transplant surgery , he/ she shall submit the
application once in six months till the maximum benefit of ` 5.00
lacs is exhausted under the first chance .If the employee requests for further
reimbursement the same shall be considered under the second / final chance
upto the maximum benefit of ` 10.00 lacs. Once the claim has been
made upto a particular period , in subsequent claims unclaimed bills pertaining
to the previous period shall not be entertained. Thus any unclaimed bills with
date prior to the date of last submission of bills shall not be considered.
f) Competent Authority before sanction may refer the claim papers to ZMR for his
opinion. And all the claims forwarded to CO , claims in respect of continuous
treatment for Cancer or Kidney transplant surgery are to be first referred to
ZMR for verification of expenses. The ZMR may be requested to look into the
line of treatment and expenses incurred and confirm that the treatment and
expenses are in order vis-à-vis scheme and diseases covered.
g) All the 30 major diseases / treatments covered under the scheme for
reimbursement of post-hospitalisation expenses of 180 days. The employee can
apply for the same treatment for hospitalisation and post-hospitalisation
expenses for 180 days on more than one occasion and the same may be counted
as single claim under the scheme.
h) If there are more than one hospitalisations during the treatment, pre-
hospitalisation expenses upto 30 days prior to the date of admission in hospital
for first instance, expenses incurred during first hospitalisation period and post
hospitalisation expenses upto 180 days from the date of discharge in case of
first hospitalisation are covered. All subsequent hospitalisation expenses shall
be considered post-hospitalisation expenses only. Thus, the period of pre-

103
 hospitalisation & post-hospitalisation shall be calculated with reference to the
date of admission and discharge, respectively, from first hospitalisation.
i) While processing the request for sanction of advance, it should be ensured that
the treatment is for any one or more of the 30 diseases / treatments covered
under the scheme . D.Os are advised to forward the request along with full facts
to Zonal Office for getting the opinion of our ZMR and decide accordingly and if,
necessary may refer the case to C.O for clarification
j) In case the claim is for earning spouse covered under the group mediclaim
scheme, certificate from the employer that he/she is not covered under any other
scheme of reimbursement of medical expenses and that they have not settled
any amount towards the treatment for which ex-gratia is claimed.
k) While sanctioning advance in respect of continuous treatment for cancer or
kidney transplant surgery, if the employee by clubbing both the chances available
under the scheme request for sanction of advance in excess of ` 3.00 lacs the
same cannot be considered and in such cases also the advance payable is 80% of
the estimated expense or ` 3.00 lacs ,whichever is less ( including mediclaim
advance of ` 50,000/-).
l) Ex-gratia relief is available only in respect of medical treatments undergone in
Hospital/Nursing Home/Clinics defined under Mediclaim policy and in respect
of claims that have been settled under the Mediclaim scheme.
m) Zonal Office can sanction where reimbursable amount is ` 2 lacs or below. All
cases where the reimbursable amount exceeds ` 2.00 lacs should be referred to
Central Office for sanction. Competent Authority at ZO level in such cases shall
not sanction ` 2.00 lacs and then refer the case to C.O for sanction of balance
amount. Zonal Office should not sanction any amount in such cases.
n) The reimbursable amount is calculated as below:
A Total Expenses on the basis of Bills
B Reimbursement under Mediclaim
Scheme
C Other receipts/donations
D Amount Disallowed
E Uncovered Expenses A - [B+C+D]
F Reimbursable Amount-1 90% of (E) [Maximum ` 3,00,000/-]
G Expenses in excess of ` 333333/- (E) - 3,33,333/-
H Reimbursable Amount-2 70% of (G)
I Total Eligible Reimbursement F + H [Maximum ` 5,00,000/-]
J Previous Reimbursement, if any
K Net Payable I-J

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 o) The following documents should be sent along with the application to C.O for
sanction.
1. Application in the prescribed format, complete in all respects.(Refer
Annexure)
2. Copy of the Office Notes of the Zonal Office containing the
recommendations of the Zonal Manager in the format given below
3. Copy of the Mediclaim settlement letter(s) from the insurer.
4. Copy of the letter from the ZMR confirming the coverage of the disease
treatment under the Scheme, his opinion as to the line of treatment
followed and the expenses incurred.
5. Date-wise list of bills submitted showing Bill Number, Bill Date, Amount
and nature of expenses, certified by Manager (OS) / ADM/ AS
6. If any amount is disallowed, suitable remarks should be given against
such items.
7. Original/copies of bills, prescriptions etc should NOT be sent to C.O.,
unless specifically called for

Format of Application form for Ex-gratia claim under High Cost Scheme &
format of Office Note are annexed

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 Annexure
Application for Monetary Relief under the Scheme of Ex-gratia reimbursement
of Medical Expenses to employees in case of High Cost/protracted treatment
PAR T - I
1. Application for sickness of (a) employee :
*(b) Spouse, (c)* Dependent Child.
(Score off whichever is not applicable)
2. (a) Name of employee :
(b) SR No. :
(c) Designation :
(d) Date of birth :
(e) Date of application :
(f) Details of salary :
Basic: D.A. Gross :
(g) Mediclaim Category and Sum
insured :
(h) Name of the servicing division of
the Insurer servicing Mediclaim :
3. Cases where, Claim is for other than
employee
(a) Name and Age :
(b) Relationship to employee :
(c) Whether spouse/dependant
covered under any other Group
Mediclam Scheme
(d) If employed, the Annual Income :
4. Nature of illness :
(a) Nature of illness :
(Full Details)
(b) Surgical operation (if performed)
Date of operation
(c) Date of Admission :
(d) Date of Discharge :
(e) Name of Hospital /Nursing
Home/clinic (with full address)
(Please see Note 3)
5. Claim under Mediclaim :
(i) Total amount claimed :
(ii) Total amount received :
(Please see Note 4 & 5)
6. Monetary relief from other sources -
(i) Ex-gratia under LIC employees
Relief fund :
(ii) Interest Free Loan under LIC
Employees Relief Fund :
106
 (iii) Monetary Relief from Government :
(iv) Monetary Relief/Donation from any
other sources :
(v) Amount received if any under Amount received:
health insurance policy (eg.,Asha Policy Number :
Deep ) :
7. Advance against Mediclaim paid by
office -
(i) Amount paid :
(ii) Date of payment :
(iii) Date of repayment /adjustment :
8. Whether the employee received :
monetary Relief under this scheme
earlier. If so,
(i) the date of such payment :
(ii) the amount of payment :

Signature of employee/ claimant

Date :

Certified that the information furnished as above by the employee/claimant has been verified
with the relevant records.

Signature of the officer-in-charge of the

Office in which employee is working

Designation:

Date :

107
 PART-II
ART-II
(A)Certificate of total proved expenses after verifying all the bills/cash memo and receipts
submitted by the employee in support of medical expenses incurred by him/her. The break
up is as under:
Item payable Amount Amount not Amount
claimed payable under payable
under mediclaim under
mediclaim mediclaim

1. Hospital Charges at
` _______ per day for
__________ days from ______
to________________.
2. I.C. unit charges at ` _________
Per day for ___________ days
From ___________ to ____________
3. (a) Surgeon and Anaesthetist Fees.
(b) Anaesthesia, Blood Oxygen,
© Operation theatre, surgical appliances
Diagnostic Materials and X-ray.
Medical Practioners, consultants and
specialists fees for consultations/visits.
Medicines and Drugs -
(a) Supplied by Hospital
Purchased from Chemists.
NOTE: Expenses on food, tonic,
conveyance etc., and also expenses
incurred for travel and stay etc., in respect
of those who accompany the patient are
not to be taken into account.

TOTAL:

Recommendation and comments of the

Sr.Divl.Manager/ Divl.Manager-in-charge/
Zonal Managers/Chief (Audit & Inspection)
as the case may be.

(Signature of Sr.Divl.Manager/
Divisional Manager-in-charge/
Zonal Manager /Chief (A&I) as
the case may be.

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NOTE:
1. Application for ex-gratia relief relating to High Cost/protracted treatment cases may
be submitted in respect of the major diseases, major surgery as specified in C.O. Circular
No.ZD/1045/ASP 2004 dated 07.05.2004.
2. This scheme is applicable to all the confirmed employees and the non-earning spouse
and children of such employees covered under the mediclaim scheme.
3. The employee has to furnish certified xerox copy of the Doctor’s/hospital certificate
giving a detailed account of the nature of illness suffered and the line of treatment
given. Original bills/certified xerox copies of the bills/ vouchers/prescriptions for
expenses incurred must also be attached.
4. The employee should furnish a certified copy of the mediclaim form submitted to the
concerned office of the Insurer and a copy of the mediclaim particulars sheet received
from that office.
5. The employee should also obtain a letter from the office concerned of the insurer,
showing clearly the amount claimed from them, amount disallowed and amount allowed
by them.
6. If the claim is in-respect of treatment for earning spouse covered under the group
medicalim scheme, certificate from the employer that he/she has not availed any
reimbursement from the employer is also to be submitted.

DECLARA TION TO BE SUBMITTED ALONG WITH APLLICA

DECLARATION TION:
APLLICATION:
I hereby declare that I have not claimed reimbursement for the same disease/treatment from
any other source/ mediclaim policy except the mediclaim insurance policy covering our
employees.
I also declare that the expenditure incurred and the bills produced are genuine as I have
mentioned in the application form.

Date : Employees’ Signature

Designation, SR No.

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 LIFE INSURANCE CORPORA TION OF INDIA
CORPORATION
ZONAL OFFICE
NOTES & DECISIONS
Ref: _______________ Date: ____________

Re : SCHEME OF EX-GRA TIA REIMBURSEMENT OF MEDICAL EXPENSES TO

EX-GRATIA
EMPLOYEES UNDER HIGH COST / PROTRACTED TREA TMENT
TREATMENT
The details of the case are as under
under:
1) Name of the employee
& designation: _____________________________________________________________
2) S.R.No: ____________________________ 3) Office: _______________________________
4) Mobile no: __________________________ 5) Email ID:__________________________
6) Whether Exgratia claimed is under chance: One / Two / Both:
7) (a) Name of the person for whom relief is sought:_______________________
(b) Relationship with employee:_________________
(c) If the claim is in respect of spouse, whether employed: Yes / No
(d) If employed, whether any amount has been claimed / reimbursed from the spouse’s
employer: ` .
(e) Whether certificate to that effect has been obtained from spouse’s employer: Yes / No
8) (a) Nature of Disease / Illness: ______________________________________
(b) whether the opinion of ZMR has been taken: Yes / No
(c) whether the disease/ illness is covered under HCPT as per Per / ER deptt circular
dt: 05/10/2007: Yes/ No
(d) Sr. no of the illness/ disease as per ZMR: _______
9) Details of treatment taken:
Name of Hospital Date of Date of
Admission discharge
1) __________________________________ ________________ ________________
2) __________________________________ ________________ ________________
3) __________________________________ ________________ ________________

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10) (a) Details of settlement under Group Mediclaim Scheme:
Mediclaim Category
Sum Assured
Amount claimed from Insurer
Amount settled by insurer
Amount disallowed
(b) Whether certificate to that effect has been obtained from the New India Assurance
company Ltd: Yes / No
11) (a) Details of advance against HCPT:
Amount of advance granted
Amount of advance adjusted
Outstanding Advance
(b) Whether advance is outstanding for over a year. Yes / no
(c) If yes, kindly explain the reason thereof: __________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
12 (a) whether any monetary relief has been received under other sources: Yes /No
(b) If yes, amount of relief : ` ______________
(c) Brief description of the relief received:_____________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
13) Details of exgratia amounts claimed & reimbursable:
Sr no Total amount claimed under exgratia
a Total amount as per bills / receipts
b Whether date-wise summary of bills attested by
Manager (OS) enclosed Yes/ No
c Ex-gratia reimbursable (refer annexure)
d Exgratia paid earlier
e Exgratia payable under present application

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If the exgratia amount as shown at 10 (c) above, is less than 2
lakhs, The Zonal Manager is the Competent Authority to sanction
exgratia reimbursement.
If the exgratia amount as shown at 10 (c) above, is more than 2
lakhs, the Managing Director is the Competent Authority to
sanction the exgratia reimbursement. This case needs to be
forwarded to Central office for getting sanction of MD.
Put up for sanction / recommendation of Zonal Manager
(I/C):
Annexure
List of documents to be attached along with the exgratia claim:
Srno Particulars Re m a rk s
1 Whether ZMR’s opinion submitted in original Yes / No
2 Whether office note containing the Zonal Manager’s
recommendation submitted in original Yes / No
3 Whether date-wise summary of bills, attested by
Manager (OS) enclosed Yes / No
4 Whether certificate for insurer about exhaustion of sum
insured, attached Yes / No
5 If spouse is employed, whether certificatehas been
obtained from spouse’s employer Yes / No

112
 CHAPTER 11
11
EMERGENCY MEDICAL AID/ACCIDENT WHILE ON DUTY
EMERGENCY MEDICAL AID
Emergency Medical Aid is given to an employee falling seriously ill in the Office while on
duty (on account of some disease or weakness so that he gets immediate medical attention).
Towards this, the Corporation bears only the cost of summoning Doctor or taking the employee
to the hospital or Nursing Home or to his house. The cost of special reports or further treatment
on account of illness has to be borne by the employee himself and not by the Corporation.
It is necessary for all our Offices to maintain a standard first aid box.
Also it is desirable that each Office maintains a list of Doctors who are close to the Office and
will be available during office hours so that in case of emergency, the Office will be in a position
to contact them.
ACCIDENT WHILE ON DUTY
This is intended to cover only cases of accidents met with by an employee while on duty.
While considering the reimbursement, the Competent Authority should satisfy that the
expenses incurred by the employee were in connection with treatment on account of accident
met with by him while on duty. The accident should arise out of and in the course of duty and
should not be due to negligence on the part of the employee. The accident should have arisen
not merely out of duty but also in the course of duty. The employee’s presence in the Office at
the time of occurrence of the accident is not enough. The accident must have been met with
while the employee was performing official duties. It may be noted that an employee meeting
with an accident on the way to office from residence or from the office to residence can not be
considered as accident while on duty.
Reimbursement of medical expenses :
(CO Circular Ref:ZD/819/ASP/94 dated 27.09.1994)
FOR CADRES Authority Limit for medical
Expenses to be
reimbursed
1 Upto ABMs/AAO BM/SBM ` 250
2 Upto ADM DM/SDM ` 1000
3 Upto Officers in the rank of ZM ZM-in-charge Full
both ordinary and selection scale
4 Z.M.-in-charge Managing Director Full
For C.O. AND AUDIT:
1 Upto ADM Secretary(OS)/ ` 1000/-
Secretary(Audit)
2 Upto officers in the cadre of ZM (ordinary) ED(E&OS)/ED(P)/ Full
ED(Audit)
3 ZM (Selection scale) Managing Director Full

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General Conditions:
1. While reimbursing the medical expenses it should be ensured that wherever there
was hospitalisation the employee first claims the benefit under the Medicalim scheme
and the balance amount if any is reimbursed by LIC.In case of loss of hearing,loss of
fingers,loss of toes, partial disability,etc., employee may be asked to claim the benefit
under the 24 Hour Accident Insurance Policy. In such cases the reimbursement should
be made only after the employee claims the benefit under the Accident Insurance Policy
and the Mediclaim Policy.
2. Where the injury results in the death of the employee or permanent disablement, the
matter should be referred to Central Office to examine whether the provisions of
Workmen’s Compensation Act, 1923 will apply.
3. Care should be taken that the employee does not draw benefit both under this Scheme
and under any other medical scheme for the same accident.
4. Employee claiming benefit under the Scheme shall declare that he/she has not received
any benefit or contribution towards such expenses under a Personal Accident policy or
from any other source in respect of the accident. If any amount is received or claimed
from such a source towards accident while on duty, then the reimbursement admissible
shall be limited to the excess of the expenses over the amount received or claimed.
5. Where an employee has met with an accident and is admitted in a hospital, he must
within 3 days from the date of admission, send a certificate of the hospital about
admission as well as likely period of treatment.
6. Where an employee is not admitted in the hospital but treated as outdoor patient, he
should produce certificate from the hospital concerned as to the probable period of
treatment. In case the said period is more than 7 days, the Office should direct the
employee to appear before an authorised Medical Examiner of the Corporation to
ascertain the nature of injury and the probable period of treatment. Where the employee
is treated by the private medical practitioner, he must report the incident to the Office
immediately and if the employee asks for leave for more than 7 days he should be got
examined by an authorised medical practitioner as to the nature of injuries and the
probable period of treatment.
7. Where the employee sustains injury or an accident arising out of and in the course of
duty outside office premises, the following additional information should be obtained.
a) Whether the accident has been reported to the Police.
b) Whether a third party has been involved.
Sanction of special leave
leave::
(C.O Circular Ref:IR/3797/ASP/91 dated 06.07.1991)
The concerned authorities before sanction should ensure that
(1) The conditions for grant of such Special Leave as detailed in our various circulars and
other instructions are followed scrupulously and that they are satisfied that the accident
occurred while the employee was on duty and also in the course of duty.

114
(2) There was no negligence on the part of the concerned employee and
(3) Reports of eye-witnesses are obtained wherever possible.
Period of Employees in the Authority
Leave Cadre of
Upo 90 days Class-III & IV 1 Divl.Manager Sr. Divl.Manager
Employees, Class-II in charge.
(Dev.)Officers and 2. Zonal Manager in respect of
Class-I Officers upto employees in the Zonal Office.
the rank of ADM. 3. Secretary (Audit)/Secretary
(OS) in respect of employees in
Audit Centres and in Central
Office.
Upto 90 days Class-I Officers in the 1. Zonal Manager in the Zone.
rank of Divl.Manager, 2. Executive Director (Audit) in
Dy.Zonal Manager respect of Class-I Officers in
Audit Department, C.O.
3. Executive Director (E&OS) in
respect of Class-I Officers of C.O.
Over 90 days All Class-III & IV Zonal Manager in the Zone/Executive
Employees. Class-II Director (Audit) in respect of Audit
(Dev.) Officers & Centres and Audit Department of
Class-I Officers upto C.O./Executive Director (E&OS) in
the rank of Dy.Zonal respect of C.O.Officers.
Manager Zonal
Manager & above. Chairman
The office note put-up to the competent authority should clearly answer the following points:
a) Whether any negligence on the part of the employee contributed to the accident.
b) Whether there were any eyewitness to the accident and whether their statements about
the accident were recorded.
c) Who reported the accident to the office.Whether the employee was asked to appear
before our medical examiner.
d) Whether eligible for claim under Group Mediclaim Policy
e) Whether eligible for claim under the 24 Hr Group Accident Policy
f) Whether treated as outpatient or as in-patient and whether the employee be referred
to our Medical examiner as detailed in item (5) /(6).
g) Whether the accident took place outside the office premises.
At the end of the Financial Year, information relating to cases where reimbursement of
medical expenses has been granted under the Scheme should be sent to Central office
in the following proforma:-

115
Particulars of Special Leave sanctioned and reimbursement of medical expenses etc. in respect
of Accident on duty
(Period 01.04.20 to 31.03.20__)
S rr.. Name & C a t e g o r y Nature of Date of No. of Reimburs- Remarks
No S.R.No. Accident Accident days ement
while on Special of medical
duty Leave expenses
sanctioned
(1) (2) (3) (4) (5) (6) (7) (8)

Date: ____________ Zonal/Divisional Manager

116
 CHAPTER 12
GROUP INSURANCE
I. GROUP SAVINGS LINKED INSURANCE SCHEME (G.S.L.I.)
SAVINGS
This “Group Savings Linked Insurance Scheme” (G.S.L.I) which provides higher life
cover coupled with Savings Benefit came into existence with effect from 01.11.1987.
G.S.L.I. year
year:: The GSLI scheme year commences from 1st November of the year and
completes by 31st October of the following year. As the premiums are collected in
advance, recovery commences from the salary of October of an year and ends from the
salary of September of the following year.
Eligibility
Eligibility:: Members of the previous Group Insurance Scheme which was in existence
before the GSLI scheme came into being automatically became the members of GSLI
scheme w.e.f. 1.11.87 except the employees who specifically opted not to join the GSLI
scheme. Those confirmed employees who were not the members of the old
Scheme who wanted to join the GSLI Scheme were also allowed to join the Scheme on
written request before 15.11.87. All such members who were not members of the old
Scheme and have also not exercised their option to enter into GSLI scheme w.e.f. 1.11.87
were also allowed to join the GSLI Scheme, w.e.f. 1.11.88 if they opted to join the Scheme
before 30th September,1988.
The GSLI Scheme is compulsory for all employees who join the service of the Corporation
on or after 1.11.87 or were on probation in their cadre as on 1.11.87.
Withdrawal from the Scheme
Scheme:: No member shall withdraw from the Scheme while
he is still an eligible employee of the Corporation.
Contribution : Every member shall pay a monthly contribution to be decided by the
Corporation from time to time. The contribution will be revised by the Central Office
on review at periodical intervals. The monthly contribution consists of 2 components
(a) Risk component (b) Savings component. The risk component is fixed by the
Corporation on the basis of age distribution of members. This part of the contribution
will be utilised to provide for each member life guarantee benefit which becomes payable
on death of the member while in service.
The contribution towards savings will be accumulated at a rate of interest applicable
from time to time. It was 11% prior to 1.11.2000 and 10% prior to 01.11.2004. At present,
it is 8% compounding yearly. Approximately the risk component and the savings
component of the contribution will be in the ratio 18.75 : 81.25.
If there is a revision of salary scales, the categories will be reviewed. Revised categories
will be applicable w.e.f. 1st November following the actual date of revision and shall
not be back-dated.
For the purpose of the Scheme, the employees are divided into 6 (six) categories, based
on their basic salaries.
Consequent upon the revision of scales of pay of the Officers and employees of the
Corporation, the benefits under the GSLI scheme shall be available as per the revised

117
categories (based on the revised basic salaries) given below:-
C a t e g o r y Basic pay Life cover Monthly contribution e m p l o y e e s
towards by
(` ) (` )
Life (` ) Savings (` ) Total ((`
` )
I 50810 and above 700000 123.00 492.00 615.00
II 35300 to 50809 560000 98.25 393.00 491.25
III 24800 to 35299 420000 73.50 294.00 367.50
IV 12855 to 24799 280000 48.75 195.00 243.75
V 7115 to 12854 200000 35.25 141.00 176.25
VI Below 7115 110000 19.50 78.00 7.50
The revised categorisation as given above is effective from 01.11.2010.
Needless to add, the premium for life cover (OYRGTA Premium) will continue to be
shared between the LIC and the employees in the ratio of 1:3 in terms of the existing
instructions.
For new entrants
entrants:: The new entrants will get the benefit of life cover with effect from
the date on which they are on probation and the deduction of term assurance premium
(Risk component) will commence immediately with effect from the first salary paid
during probation period. Deduction of savings premium in such cases will commence
from the salary for the immediately following October.
Change of category due to change in basic salary : The basic salary of the employee
as on 1st November will be the basis for determining the GSLI premium for the next
year. Hence the basic salaries of the employees as on 1st November, taking into account
the increments to be sanctioned as on 1st November are to be reviewed to arrive at the
slabs and premium to be deducted for the year. As premiums are recoverable in advance
the revised premiums on change in category will be deductible w.e.f. deduction
pertaining to October salary.
Benefits
Benefits:: On death of the member while he is in service, the life cover together with
the returns of member’s savings accumulations will be paid to the beneficiary. On
retirement or leaving the service, member’s savings accumulations will be paid.
Beneficiaries
Beneficiaries:: Every member at the time of entry into the Scheme shall appoint one
or more beneficiaries in Form IV (wife/child/children/dependants). If a member does
not have a wife or child/children or dependants, then he shall appoint his legal
representative. In the event of death of the member, the benefits in respect of the
member will be paid to the beneficiary/beneficiaries appointed by him. The benefits
under this scheme are strictly personal and can not be assigned, charged, alienated in
any way.
Advancing of Premiums
Premiums:: Considering that there is a vital need to provide
continuation of the membership of an employee in the Scheme, it would not be proper

118
to have a situation where an employee’s membership of the scheme is terminated
whilst in service of the Corporation when he does not earn salary due to leave on loss
of pay on account of serious injury, major sickness, etc. In such instances, he should not
be treated as having gone out of the Scheme, provided the employee is continuing in
the service of the Corporation as per the service conditions of LIC. The Office may
advance the premiums under both risk and savings in respect of the employee so long
as the employee is on leave. The maximum amount that can be advanced including the
amount advanced under GTIS, GI Scheme 2004 if any, shall not be more than the
Provident Fund contribution of the employee (i.e. his own contribution).
If he has taken any loan, the amount towards loan will be deducted from such
contribution to arrive at the net amount available to the employee’s credit. The amount
of premium that can be advanced without interest is dependent
upon the length of service, viz. for employees with upto 5 years service,3 months
premium can be advanced and for employees with more than 5 years service, 6 months
premium can be advanced .Further on the amount so advanced for the period in excess
of three or six months, interest will be charged at the rate which is allowed by the
Provident Fund on the employee’s contribution towards Provident Fund. The employee
will have to give a consent-cum-authority letter as per Annexure I (Revised).
However, before advancing the premium as stated above, the employee may be given
an option to pay the appropriate premium (both towards risk and savings portion)
directly. The same can be accepted provided the Corporation retains him in its service
in terms of the service conditions.
Calculation of Interest on advanced G.S.L.I. Premium
The method of calculation of interest on the G.S.L.I. premium advanced by the
Corporation is as under. Contribution per month x i/100 x n(n+1)/24
Where ‘i’ is the rate of interest allowed by Provident Fund on the employees’ contribution
towards Provident Fund & ‘n’ represents the number of months in excess of six months
for which G.S.L.I. premium has been advanced.
Mode of Recovery of premiums advanced
advanced::
Where the premiums are advanced by the Corporation, the recovery of the same together
with interest as referred to earlier may be effected from the salary of the employee,
the number of instalments being equal to the number of months for which the premiums
were advanced. The first instalment is to be recovered from the first month’s salary
the employee receives on resumption of duty. Needless to add, the recovery on the
regular monthly premiums is also to be made as before.
In case of death of the employee, the outstanding amount due to the Corporation may
be recovered in a lump sum from the salary/terminal dues. Therefore, it is necessary
that an authority letter as per Annexure II be obtained from all such employees
authorising the Trustees of Provident Fund to deduct such outstanding GSLI premiums
with interest from the employee’s own contribution while settling the Provident Fund
dues.

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 Annexure I (Revised)
The LIC of India
———————— Office,
————————.
Dear Sir,
Re. : Advance of premium under GSLI Scheme in case of default due to leave on loss of
pay on account of serious injury, major sickness, etc.
I request the Corporation to advance premiums towards both risk and savings plans under
the GSLI scheme in case of leave on loss of pay on account of serious injury, major sickness
,etc. I hereby agree to the Corporation charging interest on the amount so advanced, in excess
of 3 months / 6 months, at the rate at which the regular interest is allowed by the Trustees of
the P.F on my P.F contribution. I hereby, further authorise you to deduct the premiums advanced
and the interest thereon along with my regular premium from my salary on resumption of my
duties.
This authorisation shall not be revoked by me during the period of my service in the corporation.

Yours faithfully,
Signature

Name :
SR.No :
Designation :
Department :
Place :
Date :

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 Annexure II (Revised)
The Trustees,
LIC of India,
Provident Fund No.1,
Dear Sir,
Re : Deduction of Premium under GSLI scheme in the case of default by way of
Extraordinary Leave on loss of pay/ Dies-non.
I hereby agree and authorise you to deduct from my contribution to Provident Fund and interest
thereon, the amount advanced by Life Insurance Corporation of India towards outstanding
amount of premium both for Life Cover and Savings in case of default due to my being on
Extra-ordinary Leave on loss of pay/Dies-non together with interest, if any, and pay such
amount to the Life Insurance Corporation of India towards settlement of their claim against
amount advanced. This authorisation shall not be revoked by me until the advanced premiums
are completely wiped out.

Yours faithfully,
Signature
Name
S.R.No.
Designation
Place
Department
Date
Office

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II. GROUP PERSONAL ACCIDENT INSURANCE
1. All confirmed whole time employees of the Corporation working in India are
covered against accidental injuries on a “24 hour cover” basis under a Group
Personal Accident Insurance Policy w.e.f 1.07.1989. The current policy is with
Oriental Insurance Co Ltd., Mumbai.
2. Those who are on Apprenticeship/Training/Probation in Class I/II/III and IV
cadres have also been covered under the policy with effect from 10.3.1992.
3. Benefits available under the Group Personal Accident Insurance Policy referred
to above are given below:
A Death Capital sum assured i.e. 36 times
the monthly basic pay of the
employee or ` 5,00,000/-
whichever is less.
B Loss of limbs, Two eyes or Capital sum assured (as above)
one limb and one eye
C Loss of one limb or one eye 50% of the Capital sum assured
(as above)
D Permanent total disablement Capital sum assured (as above)
from injuries other than those
named above
E Permanent partial disablement Specified percentage of capital
sum assured (as above)depending
on the extent of disablement.
4. In the case of Apprentice/Trainees, where stipend is given, the Basic Pay at the
minimum of the grade of Assistant or Development Officer will be taken into
account for calculation of Sum Assured. The premium for the Group Personal
Accident Insurance Policy is fully borne by the Corporation and no contribution
towards the premium is required to be made by the employees covered under
the Scheme.
5. All claims shall be submitted in the prescribed form by the employees/his legal
heirs through the Office in which he is/was employed, to the Oriental Insurance
Co Ltd., Mumbai City D.O.-XI, 7 J.Tata Road, Churchgate, Mumbai- 400 020.
6. In case of accidental injuries as stipulated in the Group Personal Accident
Insurance Policy and sustained by the employee in the course of and arising out
of duty, the reimbursement of medical, surgical and hospitalisation
expenses available under the scheme “Accident while on duty” administered by
LIC will be suitably adjusted taking into account the claim amount received/
receivable under the Group Personal Accident Insurance Policy.
7. In case of death due to accident while on duty, the compensation as per
Workmen’s Compensation Act, if applicable, is required to be deposited with
the concerned authorities specified in the Workmen’s Compensation Act and
the amount must not be paid directly by us to the legal heirs of the deceased. In
view of this, if an employee dies as a result of an accident while on duty, Officers

122
 are to ensure that claim amount under the twenty-four hours accident policy
received from the Oriental Insurance Co Ltd. is not paid to the legal heirs but
the same is kept with the Corporation and the matter has to be referred to the
Central Office for further advice.
(Ref.C.O.Cir.Per/IR Cir.No.ZD/691/ASP/89 dt. 17.7.89 ,C.O.Cir./ER Cir.No.ZD/765/
ASP/92 dt. 28.3.92, C.O.Cir.Per/ER/Cir.No.ZD/796/ASP/93dt.18.8.93, C.O.Cir.Per/
ER/Cir.No.ZD/959/ASP/ 2000 dt 14.07.2000 and C.O. Cir ZD/1087/ASP/2006, dt.
01.07.2006).
III. GROUP PERSONAL ACCIDENT POLICY FOR EMPLOYEES CARR YING
CARRYING
CASH TO /FROM BANK AND THE EMPLOYEES ACCOMPANYING THEM.
ACCOMPANYING
The Group Personal Accident Policy provides on-duty cover to employees carrying
cash to/from Bank and the employees accompanying them for a capital sum insured of
` 10,00,000/- (Ten lakhs only) per employee ( revised w.e.f. 18.05.2006). The policy is
presently with the Oriental Insurance Co Ltd., Mumbai City D.O - XI, 7 J.Tata
Road,Churchgate,Mumbai- 400 020.
( Ref: CO Circular ZD/1048/ASP/2004 dated 01.06.2004 and C.O. Cir ZD/1086/ASP/2006
dated 01.07.2006)
IV
V.. GROUP TERM INSURANCE SCHEME 1997
Group Term Insurance Scheme has been introduced to cover the loss of commutation
of pension on death while in service. The scheme came into existence w.e.f. 1.2.1997.
The employees who are governed by the LIC of India (Employees) Pension Rules, 1995
were given option to be governed by GTIS,1997.
(Ref Circular:ZD/877/ASP/97 dated 21.02.1997)
Benefits and Premium
The scheme is non-contributory and as such the entire premium is borne by the
employee. The benefits and the premiums payable as under : w.e.f. 01.05.2011
Category Basic Pay Term Cover ((`
` ) Premium
Range ((`
`) payable ((`
` )
I 50810 and above 12,00,000/- 250.00
II 35300 to 50809 10,00,000/- 208.33
III 24800 to 35299 7,00,000/- 145.83
IV 12855 to 24799 5,00,000/- 104.17
V 7115 to 12854 2,50,000/- 52.08
VI Below 7115 1,50,000/- 31.25
The revised categorisation as given above is effective from 01.02.2011.
While determining the category, the basic pay shall include the allowances which rank
for both D.A. and P.F. In terms of clause 7(5) of the scheme, the premium rates shall be
reviewed depending upon the claim experience after 3 years from the commencement
of the scheme and once in three years thereafter.
Deduction of premium : The Premiums are deducted from salary and is payable in

123
advance.
Accounting of the Premium/Settlement of claims etc.: The servicing of the scheme
relating to accounting of premium and settlement of claims under the scheme will be
done at Divisional level in accordance with the instructions issued by P&GS Department
of Central Office.
Income Tax Relief : The Premium paid by an employee is eligible for Income Tax Relief
under section 80C of Income Tax Act,1961.
For new entrants
entrants:: The new entrants will get the benefit of life cover with effect from
the date of confirmation and the deduction of risk premium will commence immediately.
Normally premiums are recovered in advance.
Change of category due to change in basic salary : The basic salary of the employee
as on 1st February be the basis for determining the GTIS premium for the next year.
Hence the basic salaries of the employees as on 1st February , taking into account the
increments to be sanctioned as on 1st February are to be reviewed to arrive at the
slabs and premium to be deducted for the year. As premiums are recoverable in advance
the revised premiums on change in category will be deductible w.e.f. deduction
pertaining to January salary.
Benefits
Benefits:: On death of the member while he is in service, the life cover will be paid to
the beneficiary.
Beneficiaries
Beneficiaries:: Every member at the time of entry into the Scheme shall appoint one
or more beneficiaries (wife/child/ children/dependants). If a member does not have a
wife or child/children or dependants, then he shall appoint his legal representative. In
the event of death of the member, the benefits in respect of the member will be paid to
the beneficiary/ beneficiaries appointed by him. The benefits under this scheme are
strictly personal and can not be assigned, charged, alienated in any way.
Advancing of premiums
premiums:: Considering that there is a vital need to provide
continuation of the membership of an employee in the Scheme, it would not be proper
to have a situation where an employee’s membership of the scheme is terminated whilst
in service of the Corporation when he does not earn salary due to leave on loss of pay
on account of serious injury, major sickness, etc. In such instances, he should not be
treated as having gone out of the Scheme, provided the employee is continuing in the
service of the Corporation as per the service conditions of LIC. The Office may advance
the premiums in respect of the employee, so long as the employee is on leave. The
maximum amount that can be advanced including the amount advanced under GSLI,
GI Scheme 2004 if any shall not be more than the Provident Fund contribution of the
employee (i.e. his own contribution). If he has taken any loan, the amount towards
loan will be deducted from such contribution to arrive at the net amount available to
the employee’s credit. The amount of premium that can be advanced without interest
is dependent upon the length of service. Viz. for employees with upto 5 years service,3
months premium can be advanced and for employees with more than 5 years service, 6
months premium can be advanced .Further on the amount so advanced for the period
in excess of three or six months, interest will be charged at the rate which is allowed
by the Provident Fund on the employee’s contribution towards Provident Fund. The
employee will have to give a consent-cum-authority letter similar to the one shown
under GSLI - Annexure I (Revised).

124
 However, before advancing the premium as stated above, the employee may be given
an option to pay the appropriate premium directly. The same can be accepted provided
the Corporation retains him in its service in terms of the service conditions.
Calculation of Interest on advanced GTIS Premium :
The method of calculation of interest on the GTIS premium advanced by the Corporation
in excess of 3 or 6 months is same as that shown for GSLI premium.
Mode of recovery of premiums advanced is same as that shown under GSLI.
V. GROUP INSURANCE SCHEME FOR CLASS I, CLASS II, CLASS III AND
CLASS IV EMPLOYEES OF THE CORPORA TION.
CORPORATION.
Class I, ClassIII and Class IV employees are covered under this scheme effective from
01.12.2004. For Class - II employees, the scheme was made available effective from
01.12.2005.The scheme is purely optional and self contributory ie ., the employee has
to pay the entire premium. (Circular ZD/1141/ASP/2009 dated 07.11.2009)
The premium and benefits are as shown under :
Category Cover ((`
` ) Monthly premium ((`
` )
Class - I 10,00,000 250.00
Class - II 8,00,000 200.00
Class - III 7,00,000 175.00
Class - IV/Regular Part Time 3,00,000 75.00
Eligibility
Eligibility:: All Probationary and Confirmed Employees of the Corporation who had
given their consent to join the scheme from the proposed date of commencement are
eligible for coverage.
An employee promoted from a lower Class to a higher Class shall be eligible for the
increased cover from the 1st of December following the date he has taken charge in the
higher cadre.
Similarly, in the case of an employee moving from a higher Class to a lower Class will
be covered for the lower benefit from the 1st of December following the date he was
reverted to the lower cadre.
Employees who are not in good health or have suffered/are suffering from critical
illnesses and who have availed leave on sick grounds continuously for 7 days or more
during the last 6 months prior to the date of giving consent are not eligible to join the
scheme.
Advancing of premiums
premiums:: Considering that there is a vital need to provide
continuation of the membership of an employee in the Scheme, it would not be proper
to have a situation where an employee’s membership of the scheme is terminated
whilst in service of the Corporation when he does not earn salary due to leave on loss
of pay on account of serious injury, major sickness, etc. In such instances, he should not
be treated as having gone out of the Scheme, provided the employee is continuing in
the service of the Corporation as per the service conditions of LIC. The Office may
advance the premiums in respect of the employee, so long as the employee is on leave.
The maximum amount that can be advanced including the amount advanced under
GSLI, GTIS if any shall not be more than the Provident Fund contribution of the
125
employee (i.e. his own contribution). If he has taken any loan, the amount towards loan
will be deducted from such contribution to arrive at the net amount available to the
employee’s credit. The amount of premium that can be advanced without interest is
dependent upon the length of service. Viz. for employees with upto 5 years service,3
months premium can be advanced and for employees with more than 5 years service, 6
months premium can be advanced .Further on the amount so advanced for the period
in excess of three or six months, interest will be charged at the rate which is allowed
by the Provident Fund on the employee’s contribution towards Provident Fund. The
employee will have to give a consent-cum-authority letter similar to the one shown
under GSLI - Annexure I (Revised).
However, before advancing the premium as stated above, the employee may be given
an option to pay the appropriate premium directly. The same can be accepted provided
the Corporation retains him in its service in terms of the service
conditions.
Members once opted cannot withdraw
withdraw:: Members admitted to the Scheme cannot
withdraw from the Scheme during the eligibility period. Existing eligible employees of
the Corporation, who have not opted to join the scheme on the proposed Date of
Commencement or at later date as allowed by the corporation cannot be allowed to
join the scheme from a later date.
New Entrants
Entrants:: All new employees who join the Corporation after the proposed date
of commencement of scheme must join the scheme from the date on which they are put
on probation and must submit their consent letter to the concerned office promptly.
Coverage is granted from the 1st of the month following the month in which salary
deduction has been effected.
Claims Settlement
Settlement:: Claims should be preferred by the nominee to the office
Concerned where the employee worked last. The Office will forward the Claim Form
along with certified premium position and attested copy of the Death Certificate to
their respective P&GS Divisional unit. P&GS unit will settle the claim in favour of the
OS Dept of LIC.

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 CHAPTER 13
EMPLOYEES’ BENEFITS
SUPPLY OF UNIFORMS, SHOES /CHAPP
SUPPLY ALS ,SOCKS AND
/CHAPPALS
UMBRELLAS TO CLASS IV EMPLOYEES
Details showing the cost of uniform set per employee:
(C.O Circular Ref:CO/OS/OA/2011-12/08 dated 21.11.2011)
Particulars White White Khaki White White Blue
shirting suiting shirting & shirting saree saree
material material suiting material
material for punjabi
dress
category Peon & Peon & Watchman Peon Peon Sweeper
Driver Driver & Sweeper (Female) (Female) (Female)
Total Meters 2.25 mtrs 1.2 mtrs 2.5 mtrs 4.5 mtrs 5.5 mtrs 5.5 mtrs
Per Set (36 panna)
Cost per meter 90 230 230 90 100 90
in `
Total cost per 202.50 276 575 405 550 495
set in `
Limit for cost 480 480 575 405 550 495
of materials
per set in `
Stitching charges 330 330 350 205 80 80
in `
Blouse Pcs in ` NA NA NA NA 70 70
Fall & Bidding NA NA NA NA 40 40
Charges in `
Cost of Dupattas NA NA NA 95 NA NA
in `
Total limit for cost 810 810 925 705 740 685
of uniform per
set per employee
in `
● The uniforms are to be stitched as per our approved pattern only.
● Confirmed Class IV employees are eligible for 5 sets of uniforms for every 2 years. 3
sets supplied in the first year and 2 sets in the second year subject to above limits.
Shoes/Chappals & Socks : Confirmed Class IV employees are eligible for the reimbursement
of ` 650/- per pair towards the cost of shoes and ` 350/- towards the cost of chappals, once in
the block of 2 years commencing from May,2011 and they may be allowed to purchase 2 pairs of

127
socks each year at a cost not exceeding ` 55/- per pair.
(C.O Circular Ref: ZD/1188/ASP/2011 dated 05.10.2011)
Umbrellas : Eligible employee may be reimbursed to the extent of actual cost of the umbrella
not exceeding ` 200/-per umbrella on production of duly paid bill on every alternate year.
(C.O Circular Ref:CO/OS/OA/2011-12/08 dated 21.11.2011).

BENEFITS TO CLASS I OFFICERS

1. SUPPLY OF BRIEFCASE/LEA
SUPPLY THER BAGS
BRIEFCASE/LEATHER
(Ref.C.O.Cir. CO/OS/P&S/JND/2011/22 Dtd. 10.03.2011)
Conditions:
Sl.No. Group/Range Limit of Reimbursement
1. Officers in the cadre of AAO ` 2000
2. Officers in the cadre of AO/ADM ` 2500
3. Officers in the cadre of DM/SDM ` 3000
4. Officers in the cadre of ZM/ED ` 3500
The above reimbursement shall be subject to the following:
a) Reimbursement may be allowed to all Class I Officers including Promotee/
Probationary Officers who are in service.
b) The frequency of reimbursement will be once in three years from the date of
last reimbursement.
c) No fresh reimbursement shall be permitted on promotion/change of group unless
a full term of three years has elapsed since the date of last reimbursement.
d) No reimbursement will be made to Officers who opt for VRS or have given letter
of resignation, during the notice period.
e) The above limit of reimbursement is inclusive of Sales Tax, if any, and all other
supplementary taxes if any.
Control Aspect:
a. The copy of letter addressed to the Officer concerned communicating the
reimbursement towards purchase of briefcase/leather bags should be kept filed
in the ‘A’ file of the Officer.
b. A note has to be taken in the Staff Record Sheet of the Officer concerned regarding
the date of reimbursement and the amount reimbursed.
2. REIMBURSEMENT OF ENTERT AINMENT EXPENSES
ENTERTAINMENT
(Ref.C.O. Cir.No. ZD/1118/ASP/2008 dated 04.03.2008)
The monetary limit for reimbursement of expenses incurred for serving tea/coffee to
visitors on official business by Officers are as under:-
1. E.D./ZM No Monetary Ceiling

128
 2. Officers in D.Z.M.’s cadre ` 600/- p.m.
3. Officers in D.M./A.D.M.’s cadre ` 500/- p.m.
4. Officers in AO/AAO’s cadre ` 350/- p.m.
3. SUPPLY OF VISITING CARDS
SUPPLY
(Ref.C.O. Cir/Per/B/ZD/587 dated 30.1.86)
All Class-I Officers of the Corporation are eligible for an initial supply of 200 visiting
cards during a year. The visiting cards may be printed bi-lingual and the cost of printing
the cards shall be borne by the Corporation.
As regards basic design system for maintaining uniformity in Printing of official visiting
cards ,all our offices should follow the guidelines issued by C.O. circular Ref:CO/PR &
PUB/98-99/02,dated 23rd May 1998.
4. SUPPLY OF GREETING CARDS:
SUPPLY
(Ref.: C.O. Cir/Pub/Greeting Cards dt. 20.4.92)
The instructions to be followed by the Officers who are entitled to get greeting cards
are reproduced herein below. The greeting cards will be supplied to the Officers working
in the CO/ZO/DO/BO as per the quantity fixed by C.C. Deptt,C.O. Greeting cards will
not be supplied by Central Office to ZOs/DOs/BOs. The C.C. Department of Zonal Offices
will ascertain the requirement of greeting cards for Zonal/Divisional/Branch Offices
and will purchase/ print the greeting cards accordingly. The other Departments of the
Zonal Office and the Divisional offices should not purchase/print the greeting cards in
addition to the same supplied by the C.C. Department of Zonal Office. Greeting cards
supplied by the Office should not be sent by one Officer of L.I.C. or of its associates to
another Officer within the Organisation. Postage for sending greeting cards is to be
borne by the L.I.C. in respect of those Officers who are entitled to get greeting cards
from C.C. Department and for number of greeting cards supplied.
5.. REIMBURSEMENT OF COST OF NEWSPAPER
NEWSPAPER
(Ref.: Cir. CO/46/ZD/1/97 dt. 10.3.97 (w.e.f 1.4.97) & ZD/1044/ASP/2004 dt. 29.4. 2004)
Class I Officers are entitled for supply of Newspapers at their residence subject to the
following conditions:
Sl. Cadre Newspaper allowed Magazines allowed
No.
1. Zonal Managers 2(one financial & one 2 Indian Magazines of
General) repute - one financial
and one General
2. Officers in the Rank -do- Nil
of Secretary/Sr.DM&DM
in-charge of Divisions
3. Officers in the rank of -do- Nil
DM/ADM
4. Officers in the rank of 1 financial or Nil
AO ,AAO non-financial of repute

129
 Common Rules: 1. Reimbursement in the first week of next month. 2. Voucher should
clearly contain the name of daily/ magazine and the month and should be accompanied
by the bill of the vendor. 3. Reimbursement of service charges revised to ` 5/- per month
(vide C.O. Circular CO/OS/P/2007/04 dtd 30.04.2007).
6. HONORARIUM FOR P APER SETTING, EV
PAPER ALUA
EVALUATION OF ANSWER SCRIPTS
ALUATION
AND SUPER VISION
SUPERVISION
ETC RELATING TO PROMOTION AND RECRUITMENT
(Ref. C.O. Circular Per/MPPR DATED 19/06/2010)
The following is the rate at which Honorarium is payable for invigilation, paper setting
and evaluation;
No Particulars Rate ((`
` )
1 Setting up of Question papers for all 1000/-
kinds of written tests/trade tests
2 Setting Question Papers with 1500/-
Model Answers
3 Evaluation of answer scripts Objective Subjective
20/- per script 30/-per script

The Honorarium for Supervision and other work connected with written tests is quoted
below:
Cadre Amount ((`
`)
DM & Above 600/-
For Supervision and other work connected AAO to ADM 550/-
with written tests Class II 400/-
Class III (HGA/SH) 400/-
Other Class III 350/-
Class IV 300/-
The above rates are for Employees /Officers working on Sundays and Holidays (Full
Day). If the examination is not for a full day on Sundays and Holidays, 75% of the rates
quoted above should be paid. If the day on which test is conducted is a full working day,
no payment should be made.
7. PREVENTIVE HEAL TH CHECK-UP:
HEALTH
(Ref. C.O. Circular ZD/920/ASP/99 dt. 24.05.99)
Senior Officers in the cadre of Divisional Managers and above are allowed
reimbursement of expenses towards Preventive Health Check-up at periodic intervals
as under:
a) First check-up before age 50
b) Two check-ups between age 50 to 55

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 c) Two check-ups between age 55 to 60
The maximum limit of reimbursement per check-up is ` 2,000/-.
8. CONVEY ANCE F
CONVEYANCE ACILITIES FOR OFFICERS COMING BACK TO
FACILITIES
TION AFTER JOB ROT
ADMINISTRATION
ADMINISTRA ROTAATION FROM THE MARKETING SIDE:
(Ref: Personnel/B/ZD/235 dated 18.08.75 & Circular Ref.: Mktg./Con/Z/7/92 dated
20.03.92)
Insurance premium and road tax may be reimbursed to the Officers who come back to
Administration from marketing side only if he is an Officer of the cadre Asst. Divisional
Manager and above. Officers who have been de-rotated but are in the cadre of ADM
and above shall be reimbursed insurance premium and road tax irrespective of the
status of the loan provided they are using the same car and that car is at the station of
his posting.

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 CHAPTER 14
LEAVE TRA
LEAVE VEL CONCESSION
TRAVEL
I. Application :
i) Leave Travel Concession shall be admissible to all confirmed employees in the service
of the Corporation.
ii) Leave Travel Concession shall not be admissible to -
a) Any employee in Class I or Class II who has not completed one year of continuous
service in that cadre or any employee in Class III or Class IV who has not
completed six months continuous service in that cadre on the date
the outward journey is performed by him or any member of his family, as the
case may be.
b) Any employee who is not a whole-time salaried employee of the Corporation or
who has been appointed oncontract or work-charged basis.
c) An employee serving abroad.
Note: Any employee officiating in higher cadre will be eligible to Leave Travel Concession
facility based on his substantive cadre only.
II Definitions :
a) “employee” shall mean a permanent whole-time salaried employee in the service of
the Corporation.
b) “family” shall mean an employee’s wife or husband, as the case may be, and parents,
legitimate/legally adopted children and step children wholly dependent on the
employee.
Explanations:
1) Not more than one wife is included in the term “family”.
2) Parents having income/pension-exceeding ` 2,550/- per month will not be deemed
to be dependent on the employee. Declaration to the effect that the parents are
either residing with him or residing with his family and
are dependent on the employee must be obtained from the employee who is
claiming LTC benefits for parents.
It is further clarified that the combined income of parents is to be taken for
determining eligibility under the LTC rules. If the father of the employee is
drawing pension more than maximum income limit of ` 2,550/-p.m, the mother
cannot be treated as dependent on the employee. (REF: ER-A/G/LTC dated 15/
04/2010).
3) Children with income exceeding ` 2,550/- per month shall not be deemed to be
dependent on the employee. A stipend or scholarship, granted by a University
or other Institutions shall not be deemed as income for this purpose. However,
stipend to the M.B.B.S. graduate during internship in hospital will be treated
as income.
4) Widow female employee may claim LTC benefit either for her parents or her
parents-in-law who reside with her and are dependent on her.

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c) Competent Authority shall mean -
i) In respect of employee belonging to Class I and II:
1) The Officer-in-charge of a Division in respect of employees in the Division.
2) The Zonal Manager in respect of the employees in the Zonal Office and
the Officers-in-charge of the Divisions in the Zone.
3) Chief Internal Auditor in respect of the employees in the Internal Audit
Organization.
4) Chairman in respect of Zonal Managers, Executive Directors and
Managing Directors.
5) Executive Director (E&OS)/Chief (E&OS) in respect of other employees
in the Central Office.
ii) In respect of employee belonging to Class III & IV:
1) An Officer of the rank of ADM. nominated for this purpose by the Officer-
in-charge of a Division in respect of employees in the Division.
2) An Officer of the rank of ADM nominated by the Zonal Manager in respect
of employees in the Zonal Office.
3) An Officer of the rank of ADM nominated by the chief Internal Auditor in
respect of employees in the Internal Audit Organization.
4) An Officer of the rank of ADM nominated by the Executive Director
(E&OS)/ Chief (E&OS) in respect of the employees in the Central Office.
d) “Appropriate Class” shall mean the class shown below by which the employees and the
members of their family are entitled to travel while availing of LTC.
Category By T rain
Train By Road By Steamer
ZM and above I Class AC / II AC Sleeper Bus or by single I Class
including Rajdhani seat in a taxi
Other Officers in I Class Ordinary / II AC Bus or by single I Class
Class I Sleeper including Rajdhani seat in a taxi
Development I Class or II AC / Rajdhani —do— —do—
officers Class II Express Chair Car /
AC III Tier Sleeper
Class III employees I Class / II AC / Rajdhani Bus II Class
drawing a Basic Express Chair Car / AC III
Pay of ` 12,070/- Tier Sleeper
and above
Class III employees II Class / Sleeper Class Bus II Class
drawing a Basic Pay (other than Rajdhani
of less than Express) I Class / II AC if
` 12,070/- night journey is involved /
Chair Car / AC III Tier

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Category By T rain
Train By Road By Steamer
Sleeper in Rajdhani Express
(if night journey is involved)
Class IV employees I Class / II AC / Rajdhani Bus Deck
drawing a Basic Express Chair Car / AC III
Pay of ` 12,070/- Tier Sleeper
and above
Class IV employees II Class / Sleeper Class Bus Deck
drawing a Basic (other than Rajdhani
pay of less than Express)
` 12,070/-
Notes:
1. Reimbursement of fare by Rajdhani Express Chair Car, wherever permissible,
will be allowed only if the employee actually travels by Rajdhani Express Chair
Car.
2. Officers of the rank of DM and above who are entitled to travel by Air while on
tour may also travel by Air on LTC alongwith the eligible members of the family
subject to following conditions:
(a) For travel by air the surface distance between two places by shortest
route by rail will be the basis for reckoning entitlement of mileage under
LTC Scheme. Where the two places are not connected by rail, reference
may be made to the Road Map for mileage by direct route.
(b) Officers who are entitled to travel by air shall be reimbursed full air fare
for 3000 kms of surface distance each way for one block subject to the
ceiling of twice the eligible class standard air fare of Air India (previously
Indian) for Delhi to T rivendrum route.
Trivendrum route The fare would stand revised
as & when Air India revises its fare for such sector. Reference may be
made to monthly subscription, viz, Excel’ s T ime T
Time able of Air Services
Table
within India
India.
(c) when an officer entitled to travel by air on LTC, performs the entire
journey by air, then the reimbursement under LTC will be restricted to
the economy class standard air fare of Air India for Delhi – Trivendrum
route for 3000 kms .This means that the ceiling of reimbursement shall
be on both the distance as well as the fare.
(d) If distance travelled by air is more than surface distance of 6000 Kms (to
& fro), the deduction for the excess distance shall be on pro-rata basis.
(e) When an officer entitled to travel by air on LTC performs part journey by
air and part by other modes of travel, i.e, railway / roadways, then the
reimbursement shall be made as under:
Example :
Mr A , entitled to travel by air on L TC visited the following places from
LTC
Mumbai

134
 Places travelled Mode Distance Expenses
Tr a v e l l e d Incurred ((` )
Mumbai to Delhi 2 AC rail 1388 kms 1,464
Delhi to Chennai Air 1663 kms 13,000
Chennai to Tirupati & back 2 AC rail 298 kms 596
Chennai to Trivendrum Air 675 kms 3,000
Trivendrum to Mumbai Air 2038 kms 13,500
To t a l 6062 kms 31,560
The procedure of reimbursement :
Ceiling will be both on distance of 6000 kms for one block and air fare for Delhi to
Trivendrum, which is presently ` 32,695/-
The entitlement will be ` 32,695 x 2 = ` 65,390/- per person
Places travelled Mode Distance Distance Expenses Re ma
m ar k s
Tr a v e l l e d A l l o w e d a l l o w e d
( `.)
.)
Delhi to Chennai Air 1663 kms 1663 kms 13,000
Chennai to Trivendrum Air 675 kms 675 kms 3,000
Trivendrum to Mumbai Air 2038 kms 2038 kms 13,500
Mumbai to Delhi 2 AC rail 1388 kms 1388 kms 1,464
Chennai to Tirupati & 2 AC rail 298 kms 236 kms 472 Proport-
back ionate for
236 kms
To t a l 6062 kms 6000 kms ` 31,436/-
(f) For employees posted in North East : When an Officer eligible to travel by air
undertakes journey by air for full or part LTC journey, the distance covered by air
journey shall be the aerial distance of the journey undertaken by him. If he undertakes
the balance journey by any other mode, that part of journey shall be calculated as per
the surface rail distance and in such cases the actual amount incurred by him on fare
will be reimbursed, provided such amount does not exceed the fare of the entitled
class by train.
(g) However, where the surface distance between the place of origin of journey and the
destination is within 3000 kms. but no direct flight is available, the officer shall be
allowed travel by the shortest air connectivity available in that sector if in such cases
aerial distance does not exceed 3000 kms. This relaxation would apply only to Officers
who are eligible for LTC by air.
(h) Class I Officers in the cadre of D.M. and above are allowed to undertake overseas
journey. In this connection, it is to be noted than at officer in the cadre of D.M. and
above can undertake air journey to a destination outside India. The eligible fare per
block per eligible member shall be limited to the fare for twice the eligible class standard
air fare of Air India (previous Indian) for Delhi-T rivandrum route
Delhi-Trivandrum route.

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Foreign LTC (Reference Personnel / ER- circular no: ZD/1114/ASP/2007 dt: 17/11/2007)
LTC
It has been decided to allow foreign travel under LTC as per the instructions given below:-
(I) The basis of re-imbursement shall be as under:-
a) For Class III / IV , Development Officers, Asstt. Administrative Officer Officer,,
A.O. and A.D.M. – All confirmed employees are allowed Foreign LTC. For one block,
the entitlement per eligible person shall be two times the IInd AC fare for 3000 kms. or
actual expenses incurred, whichever is less. The journey can be made by any mode of
travel. When the blocks are clubbed they will be entitled for twice the permissible
amount mentioned above.
b) D.M. & above :
1. The Officials are allowed to undertake Foreign LTC. For one block the
entitlement per eligible person shall be two times the economy class air fare for
3000 kms. (on the basis of surface distance) by Air India on domestic route, i.e.
Delhi – Trivandrum route. The journey can be made by any mode of travel.
When the blocks are clubbed they will be entitled for twice the permissible
amount mentioned above.
2. Foreign tour under LTC, as per prevalent Income Tax rules, may attract Income
Tax and in such cases, the tax liability shall be borne by the employees
themselves.
3. Travel to foreign destination should be by shortest route from the place of posting
and the fare will be limited to his eligibility in India as per this rules or the
actual fare, whichever is lower.
4. Foreign journeys performed by Ship are admissible within the overall
entitlement.
5. Passport / Visa charges are not payable.
6. Airport tax is payable within the overall ceiling on production of ticket / receipt.
7. It is clarified that the spouse of an employee staying abroad or children
prosecuting higher studies abroad may be allowed LTC journey from such place
abroad where he/ she is staying to the employee’s headquarters or Home-Town,
subject to the reimbursement limits mentioned above. (Ref: Per/ER/A/G dt: 27/
01/2009)
8. It is further clarified that clause (17) and sub-clause (xviii) to clause (18) given
in Part-II of Life Insurance Corporation of India (Leave Travel Concession)
Instructions,1994 shall stand deleted.
9. For employees, who have their home town outside India, no additional mileage
will be permitted. The journey has to be completed within the fare for 3000 kms
as per eligibility as stated above.
L TC to Andaman ,Nicobar Islands and Lakshadweep Islands to employees not
entitled to travel by air
(Reference Personnel / ER- circular no: ZD/1122/ASP/2008 dt: 26/04/2008)

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The journey to Andamans can be broken up into three parts –
A. Kolkata / Chennai to Port Blair & back to be undertaken by Ship / Air.
B. Various places / islands in Andaman as well as in Nicobar to be undertaken mostly by
Ship and somewhere partly by Ship and partly by road.
C. From Place of Posting of employee to Kolkata / Chennai and back to be undertaken by
train / road / air.
he reimbursement of expenses in respect of above may be determined as under :-
(i) In respect of A above, the reimbursement shall be the Ship fare for the eligible class or
actual expenses, whichever is less.
For example : The distance between Kolkata / Chennai and Andaman is 1236 kms.
Suppose the ship fare for the eligible class for the same is ` 4000/-, then the amount to
be taken into account will be ` 4000/- or actual expenses, whichever is less.
(ii) In respect of B above, for the number of kilometers traveled within Andaman and
Nicober islands (by Ship / Car / taxi) the entitled fare for such distance will be the per
kms. charge as arrived from (i) above.
For example : If a person travels 500 kms. in A & N islands then the amount to be
taken into account will be (500 X 4000 / 1236) ` 1618/-. Similarly, for 600 kms. theamount
will be ` 1941/-, for 700 kms. the amount will be ` 2265/- and for 1764 kms. the amount
will be ` 5708/- and so on and so forth.
(iii) Apart from (i) and (ii) above, twice the fare for the entitled class by train for half the
balance number of kms., if any, may be utilized for journeys from Place of Posting to
Kolkata / other places or Chennai / other places as the case may be depending upon the
place (Kolkata or Chennai) from where the onward journey for Andaman & Nicobar
islands is undertaken.
For example : If a person travels 1236 kms. from Kolkata to Andaman, 700 kms.
within Andaman and again 1236 kms. for return journey back to Kolkata, then the
balance of 6000 kms. minus total distance traveled (3172 kms.) i.e. 2828 kms. would be
available to him which may be allowed to be utilized. The entitlement will be twice the
fare of 1414 kms. for entitled class. Such amount may be utilized for LTC journey in
mainland as a part of same LTC journey.
In respect of two blocks, the method would be same as described in (I), (II), (III) above
except that in such cases, the balance number of Kilometers as in (III) would normally
be more.
The reimbursement shall be in the same order, i.e. A, B & C as above.
REIMBURSEMENT FOR CHILDREN BETWEEN 3 TO 5 YRS. OF AGE
In respect of above, for journey between Kolkata / Chennai & Port Blair & back the ceiling
will be the actual ship fare of the entitled class for child. Thus, where the child travels by
other mode, the reimbursement will be actual expenses limited to actual ship fare. Similarly,
for traveling within Andaman & Nicobar islands on ship, the actual amount charged for the
entitled class may be reimbursed subject to production of proof of travel.

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The above clarification will be applicable while availing LTC facility to Lakshadweep islands
as well.
Example:
An officer (AAO to ADM), Mr A avails LTC to Port Blair as under:
LTC
From To Mode Distance Fare
Incurred
Mumbai Chennai Air 1279 kms 2735
Chennai Port Blair Air 1236 kms 6404
Port Blair Chennai Air 1236 kms 6404
Journey within Andaman Car/Ship 1390 kms 8000
Chennai Mumbai Air 1279 kms 4094
To t a l 27637

L TC W orking Sheet
Working
Part A
Journey from Chennai to Port Blair & back
From To Mode Distance Fare Fare
Incurred Allowed
Chennai Port Blair Air 1236 kms 6404 6320
Port Blair Chennai Air 1236 kms 6404 6320
(Eligible ship
fare = ` 6,320/-)
Part A 2472 kms 12808 12640

Part B
Journey within Port Blair
Distance travelled within Port Blair = 1390 kms
Fare claimed = ` 8,000/- per person for 1390 kms
Eligible Fare = (` 6,320/ 1236 kms) x 1390 kms = ` 7,107.44 per adult
Part C
Journey from HQ to Chennai & back
Total Kms admissible per block = 6000 kms
Less: Distance part A 2472 kms
Less: Distance part B 1390 kms
Balance Distance 2138 kms

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2138 kms (to & fro), i.e, = 2138 kms divided by 2 = 1069 kms each way

Admissible fare for Part C = II AC rail fare for 1069 kms x 2 ways
= ` 1,197 x 2 ways = v2,394/-
Fare incurred for Part C
Fare
Mumbai Chennai Air 2735
Chennai Mumbai Air 4094
To t a l 6829
Fare allowed for Part C = ` 2,394/-
Total Bill Passed for
Allowed
Part A 12640.00
Part B 7107.44
Part C 2394.00
22141.44
Bill Passed for = ` 22141.00

In case, two LTC blocks are availed, the calculation for Part A & B will remain the same. The
calculation for Part C shall be as under:
Part C
Journey from HQ to Chennai & back
Total Kms admissible per block = 12000 kms
Less: Distance part A 2472 kms
Less: Distance part B 1390 kms
Balance Distance 8138 kms

8138 kms (to & fro), i.e, 8138 kms divided by 2 = 4069 kms each way
Admissible fare for Part C = II AC rail fare for 4069 kms x 2 ways
= ` 2406 x 2 ways = ` 4,812/-
Fare incurred for Part C
Mode Fare
Mumbai Chennai Air 2735
Chennai Mumbai Air 4094
To t a l 6829
Fare allowed for Part C = ` 4,812/-
139
Total Bill Passed for
Allowed
Part A 12640.00
Part B 7107.44
Part C 4812.00
24559.44

Bill Passed for = ` 24,559/-

III Frequency of Entitlement:

i) Leave Travel Concession can be availed in respect of the employee himself and each
member of the family during any block of 2 years either for journey to home town or for
journey to places other than home town but not both.
ii) The current block for Class I and II Officers is the Calendar Year 2011- 2012 and that
for Class III and IV employees is Financial Year 2010-2012, i.e. 01.04.2010 to 31.03.2012.
iii) An employee or any member of the family who does not avail the concession in one
block may carry forward and aggregate the same alongwith the current block and travel
to any place in India on LTC subject to a maximum distance of 3000 kms X 2 each way.
iv) An employee who is unable to avail of LTC during the particular block of two years
may carry forward the unavailed LTC to the the next year block. However, the unavailed
facility of one block cannot be carried forward beyond immediate next block of two
years.
When an employee carries forward the unavailed LTC facility of one block to the next
block he will have the following options. (ref: Personnel / ER circular no: ZD/1114/ASP/
2007 DT: 17/11/2007)
In case of carrying forward of LTC of the previous block to the first year of the current
block and return journey falling in the second year of the current block or when the
previous and the current block are clubbed and return journey falling in the first year
of the next block the provisions for reimbursement of fare would be as under:
a) Commencement of journey must be in the first year of the current block and
return journey can be performed within 6 months from the date ofcommencement
of onward journey even if it falls in the second year of the current block.
b) Similarly, when the two blocks are combined, the return journey can be performed
within six months from the date of commencement of onward journey even if it
falls in the first year of the next block.
v) An officer whose family is living away from the head quarters can avail of the Concession
for himself for visit to the hometown once every year during each two-year block
provided no other eligible member avails of the concession for the same block.
However, if an employee has claimed LTC reimbursement of the expenses incurred for
even one member of the family, the facility of two trips to hometown in any block will
not be available.

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vi) The LTC facility for the unavailed block that is being carried over to the next block
should be availed of only in the first year of the next block. Carry over of LTC of a
particular block to the second year of the next block should be allowed only in exceptional
and rare cases provided the Competent Authority is satisfied that sufficient and valid
reasons of office exigencies existed for not availing of the concession of the carried
forward block either in that block itself or during the first year of the next block.
When carry over is allowed to the second year of the next block for satisfactory reasons
and his / her family travels together the claim can be reimbursed against the carried
forward block in respect of family members also. However, where family members alone
travel but not the employee, the need for carry over to the second year of the next
block because of refusal of leave or office exigencies does not arise and in such cases
the benefit of carry over of LTC to the second year of next block will not be available to
the family.
IV Home-Town
own::
Home-Town
i) Home-town shall mean the place as is declared by the employee duly supported by
reasons, as the place where he would normally reside but for his absence from such a
station for service in the Corporation. Such a declaration shall be subject to acceptance
by the Competent Authority.
ii) Every employee shall within one month from the date of confirmation submit to the
Competent Authority a declaration of home town, failing which the place of his posting
shall be declared as his home town.
iii) A declaration of hometown once made and accepted by the Competent Authority shall
be treated as final and will continue to be the home town during the entire service
period of the employee.
Provided that the authority mentioned below may, in exceptional circumstances, accept
a change in the hometown but such a change shall not be made more than once during
the entire service period of an employee.
Cadre Competent Authority
Class III & IV employees of the Division SDM-in-charge of the Division
All classes of employees working in the Zonal
Office and SDMs-in-charge of Divisions Zonal Manager-in-charge of the
Zone
All employees / Officers in Audit Department Chief (Audit)
All classes of employees in Central Office ED (E & OS) / Chief (E & OS)
Notes:
1) The declaration of hometown shall be submitted in the prescribed Form ‘A’.
2) For the purpose of determining whether a declaration of home town may be accepted,
the authority mentioned above shall satisfy himself that one or more of the following
criteria is satisfied :
a) Whether the place declared by the employee is one which requires his physical
presence at intervals for discharging various domestic and/or social obligations
and whether, after his entry into service, the employee had been or is likely to

141
 be visiting that place regularly.
b) Whether the employee owns residential or landed property in that place or
whether he is a member of a joint family owning such property there.
c) Whether near relations of the employee are resident in that place.
d) Whether the employee had been living in that place for some years prior to his
entry into the service of the Corporation.
e) Where the employee or his family own residential or landed property in more
than one place, such place among these as is chosen by the employee for reasons
to be given, may be declared by him as his home town, subject to acceptance by
the Authority.
V Leave
Leave::
i) LTC shall be admissible both for travel to home town and to a place other than home
town and is to be performed during any sanctioned leave including Casual Leave but
other than Special Leave or Quarantine Leave without any restriction as to the minimum
number of days.
ii) LTC will not be admissible to an employee:
(a) who proceeds on leave and then resigns his post without returning to duty.
(b) if availed on Sunday/holiday or without availing of leave;
(c) while on suspension.
iii) LTC may be allowed to an employee:
(a) who is on sanctioned Sick Leave provided a certificate from the attending doctor
deeming the employee/officer fit to undertake journey is submitted and found
satisfactory by the Competent Authority;
(b) who performs journey during EOL provided it was duly sanctioned by the
Competent Authority;
(c) both for outward and return journeys for travel to home town or other than
home town while the employee is on leave preparatory to retirement or on
terminal leave. The return journey must be completed before the retirement
date.
Notes:
1) The condition regarding leave shall not apply to journeys performed by the members
of an employee’s family;
2) LTC shall be admissible irrespective of the actual period of stay in the home town/
place other than hometown.
VI Approval of Travel Agencies:
Travel
All Divisional Offices including Zonal Office at Zonal Headquarters are required to approve
travel agencies of good repute and standing for the purpose of LTC. At places where both
Divisional and Zonal Offices are situated, the approval is to be done by the Zonal Office.
Similarly, for Zonal and Divisional Office at Mumbai, Central Office will approve the travel
agencies.

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While approving, it should be ensured that the travel agent is of long-standing and good
reputation. They should maintain records for a long period of time and should consent to
produce records when called for verification. The logbook maintained by them should contain:
(i) Opening / Closing Meter Reading
(ii) Station to Station mileage
(iii) Registration number of vehicle used (iv) Number of persons travelled
(v) Driver’s name
(vi) Make and Model of the cab (vii) Seating Capacity
(viii) Charges per kilometer
The stamped receipt issued by the Travel Agent should contain the following information:
(i) Name and number of Train / Bus etc
(ii) Name of the passenger and the seat number allotted to them
(iii) Date of commencement and completion of each of the onward and return journey (iv)
(iv) Distance travelled (station to station)
(v) Fare charged for each person excluding boarding and lodging or halting charges
VII LTC between places connected by rail:
i) Where an employee for cadres not eligible for air travel and having basic pay of
` 12,070/- and above and/or a member of his family performs the journey by a longer
route and/or by a higher mode or by different modes of travel, the amount reimbursable
shall be the actual fare restricted to the II class AC fare (other than Rajdhani Express)
for the eligible distance i.e. for 3000 kms each way or the actual fare, whichever is less.
For cadres eligible for air travel: if the Officer travels by train, the reimbursement of
fare will be restricted to II AC fare for DM / SDM cadre and I AC fare for ZM and above
subject to overall limit of 3000Kms each way.
Class I officers are entitled to travel by Rajdhani Express by eligible class and hence
difference in Rajdhani Express fare is reimbursable.
Example: An employee for cadre not eligible for air travel and whose basic pay is
` 12,070/- or more travels by air for distance less than 3000 Kms. the reimbursement
will be IInd A/C fare for 3000 kms or actual fare whichever is less.
Similarly if an employee having basic pay of ` 12,070/- or more combines two blocks and
travels by air to and fro for a distance less than 3000 kms (Surface) then the
reimbursement will be 4 times the II AC fare for 3000 Kms. or actual fare whichever is
less.
ii) Where an employee or a member of his family travel by air or by road or by steamer,
between two places connected by rail, the concession shall be determined with reference
to the fare by the appropriate class of railway accommodation or the fare for the mode
of travel actually used, whichever is less.
iii) Where the places are connected by rail and a Class III employee whose basic pay is less
than ` 12,070/- travels by luxury bus involving night journey, notional II Class railway
fare may be reimbursed to the employee.

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VIII LTC between places not connected by rail
rail::
i) In the case of travel by road between places connected by a recognised public transport
system, the fare for the mode of travel actually used shall be taken into account subject
to the limit of the fare by the appropriate class of travel by road.
ii) Where the journey is performed by road, an employee belonging to Class III or Class
IV would be entitled to travel by luxury/semi-luxury buses regularly plying with Regional
Transport Officer’s/Authority’s permission in that route. The LTC claim amount that
can be reimbursed in this regard shall be limited to the notional train fare by appropriate
class for the eligible distance.
iii) Wherever places that are connected neither by rail nor by road but connected through
steamer/plane, LTC journey can also be performed by steamer/plane. The LTC claim
amount that can be reimbursed in this regard shall be limited to the fare by eligible
mode for the appropriate class for the eligible distance.
iv) Where the journey is performed between places not connected by any recognised public
transport system, the actual cost of the journey shall be taken into account to the extent
considered reasonable by the authority competent to sanction the reimbursement.
Notes:
If in any case covered under sub-clause (iv), any doubt arises about the extent of reasonable
cost, the decision of the Officer-in-charge of the Division/Zonal Manager/Executive Director
(P)/Chief Internal Auditor, as the case may be, shall be final.
IX LTC by Taxi/ Single seat in a taxi / Bus
Taxi/ Bus::
1. Reimbursements for travel by taxi / single seat in taxi/ bus:
Entire Distance travelled by an approved Actuals, restricted to fare for eligible
agency distance by eligible mode for the distance
travelled
Distance travelled by an unapproved Reimbursement restricted to the actual
agency (outside the Divisional area of expenses (or) the fare by the eligible
the employee) mode for appropriate class for the actual
distance travelled, whichever is less,
subject to conditions given in Clause 18
(xvi) of LTC Instructions, 1994
Subject to overall eligibility of 3000 kms (to & fro) by eligible class.
(a) If any ineligible person has also travelled in the taxi, the taxi fare paid should
be proportionately reduced and such reduced amount should be the reimbursable
amount subject to other conditions mentioned above.
(b) Receipt issued by Central/State Government Tourist Bureaus will be treated at
par with the receipts of recognised Travel Agencies.
2. No reimbursement shall be allowed for travel by a friend’s car or by a private car
borrowed for such purpose.
3. LTC travel by various modes: PER/ER/A/G/200 dated 04/08/2000.
If an employee travels by a higher capacity vehicle like Tata Sumo/ Jeep/Mahindra etc.,
which are used similar to taxi the reimbursement shall be allowed on the same terms
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 & conditions laid down in Clause 11 on LTC instructions 1994.
4. Further, journey by taxi for different circuits is to be separately considered. Thus for
each such circuit, the payable fare should be the actual or twice the AC second fare for
the distance between the origin and the farthest point and the total amount should be
limited to the train fare of the entitled class for 3000 kms (Per/ER- A/G 200 (x) dt: 08/10/
2007)
Example :
(i) When the travel is by a circuitous route, where the travel agency does not provide for
stage-to-stage bifurcation of distance travelled, then to decide reimbursement, the total
distance travelled divided by two is to be taken, as the distance travelled in onward /
return journey.
LTC claim of a Class III employee who draws Basic Pay of more than ` 12,070/- by a
circuitous route:
Claimed :
Number of Persons F r o m To Distance M o d e Fare
Adults Children (Kms)
6 - Chennai Kumbakonam Taxi
6 - Kumbakonam Rameswaram Taxi
6 - Rameswaram Kanyakumari Taxi
6 - Kanyakumari Tirunelveli Taxi
6 - Tirunelveli Palani Taxi
6 - Palani Yercaud Taxi
6 - Yercaud Chennai Taxi
Total
Total 2630 kms ` 22247.1
As the travel is by circuitous route and the distance travelled is 2630 kms, half of the
distance, i.e., 1315 kms is taken as the farthest point.
Amount eligible:
The amount that can be settled will be the II AC fare for 1315 kms (` 1351/-) each way
for one person.
For 6 adults: (1351 x 2 ways) x 6 persons = ` 16,212/-
Amount Payable: ` 16,212/-
(ii) When the travel is by a circuitous route, where the travel agency provides for stage-to-
stage bifurcation of distance travelled, then the reimbursement, will be as under:
(Per/ER- A/G 200 (x) dt: 08/10/2007)
LTC claim of a Class III employee who draws Basic Pay of more than ` 12,070/- by a
circuitous route: (Peak season)

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 Claimed :
Number of Persons F r o m To Distance M o d e Fare
Adults Children (Kms)
6 - Chennai Kumbakonam 376 Taxi
6 - Kumbakonam Rameswaram 375 Taxi
6 - Rameswaram Kanyakumari 322 Taxi
6 - Kanyakumari Tirunelveli 471 Taxi
6 - Tirunelveli Palani 398 Taxi
6 - Palani Yercaud 356 Taxi
6 - Yercaud Chennai 332 Taxi
To t a l 2630 kms ` 22247.1
The LTC reimbursement shall be as under:
Total fare / distance travelled = ` 22247.10 / 2630 kms = 8.458973 per km
From To Mode Dist- Rate Fare Fare II Fare
ance (per per AC Allowed
(Kms) km) person F a r e
Chennai Kumbakonam Taxi 376 8.458973 3180.57 530.10 567 530.10
Kumba- Rameswaram Taxi 375 8.458973 3172.11 528.69 567 528.69
konam
Rames- Kanyakumari Taxi 322 8.458973 2723.79 453.96 509 453.96
waram
Kanya- Tirunelveli Taxi 471 8.458973 3984.18 664.03 685 664.03
kumari
Tirunelveli Palani Taxi 398 8.458973 3366.67 561.11 591 561.11
Palani Yercaud Taxi 356 8.458973 3011.39 501.90 544 501.90
Yercaud Chennai Taxi 332 8.458973 2808.38 468.06 521 468.06
To t a l 2630 22247.10 3707.85
Fare Allowed = ` 3707.85/-
Total reimbursement = ` 3707.85 x 6 persons = ` 22,247/-
X Incidentals
Incidentals::
i) No incidental expenses shall be payable in respect of journeys for Leave Travel
Concession.
ii) Service charges paid to authorised travel agents for tickets booked are to be reimbursed
to the extent the Office allows for official bookings on production of the printed receipt
to that effect. Service charges once for onward journey and once for return journey
may be allowed.

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iii) The reservation charges once for onward journey and once for return journey are
allowed.
iv) Expenses on local transport shall not be admissible.
XI Journeys of employees and members of family
family::
i) An employee and his family may travel together or independently and Leave Travel
Concession in respect of the journeys of either shall not depend upon the journeys of
the other. The members of the employee’s family may also travel together or separately.
ii) The return journey of the employee or each member of his family shall be completed
within six months from the date of commencement of the outward journey of the
employee or member of the family, as the case may be.
Provided that the Officer-in-charge of the Division/Zonal Manager/Executive Director
(P)/Chief Internal Auditor, as the case may be, may relax this condition in special cases.
iii) An employee married during the extended LTC block period can avail of LTC for himself
and for his wife. He/She can avail of LTC for his/her spouse by combining two blocks
provided he/she is otherwise eligible.
iv) If husband and wife are working in different Organisations, LTC facilities may be allowed
to our employee as per our rules, subject to the condition that his/her spouse should
not claim reimbursement from his/her employer for the same journey for which an
employee is claiming reimbursement. Before our employee’s LTC claim is settled, it is
necessary to confirm by obtaining a declaration from the employee that his/her spouse
has not claimed the benefits from his/her employer in respect of the same journey for
which an employee has submitted the claim.
XII Special Provision where both husband and wife are employees of the
Corporation:
i) Where both husband and wife are employees, Leave Travel Concession shall be as
admissible to the husband or wife but not for both.
ii) Where both husband and wife are employees, they shall be treated as a single family
unit and shall declare only one place as their home town.
iii) Where the wife of an employee is also an employee holding a post at the same
headquarters, the wife shall be treated as a member of the employee’s family but the
appropriate class of the wife, if higher, shall be the one admissible to the husband and
the family.
iv) Where the husband and wife are both employees and both serving at different
headquarters, LTC shall apply separately to each of them and such members of the
family as are resident and dependent on each of them.
Provided that the concession in respect of the wife and each member of the family shall
be available only once in every block of two years either under sub-clause (iii) or sub-
clause (iv).
v) In cases where both husband and wife are employees of the Corporation, Leave Travel
Concession benefit as is allowed to the male employee and his wife may be allowed to
the parents of the female employee also, provided they are residing with her and are
dependent on her.

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XIII Miscellaneous:
i) Where the journey is performed in stages, we may allow reimbursement of the actual
expenses limited to the fare for 3000 Kms. by the eligible class. For example, an employee
travels in three stages i.e. Mumbai to Delhi (distance of 1388 Kms; fare ` 1397/-), Delhi
to Chennai (distance of 2150 Kms; fare ` 1810/-) & from Chennai to Mumbai (distance of
1279 Kms; fare ` 1335/-). The total distance travelled is 4817 kms & fare incurred is
` 4542/. In such a case, reimbursement of the actual expenses limited to the fare for
3000 Kms. by II nd AC sleeper class ( ` 2070 x 2 ways = ` 4140) shall be allowed.
LTC claim of a Class III employee drawing Basic Pay of more than ` 12,070/- availing
two blocks:
Entitlement = II AC fare for 3000 Kms x 4 x 2 persons = 2070 x 4 x 2 = 16560/-
Plus Reservation, SF and Safety Charges each way. Reservation and SF only once each
way.
Claimed:
Number of From To Distance M o d e Fare
Persons (Kms)
Adults Children
2 — Chennai New Delhi 2184 II AC rail 1960 x 2 = 3920
2 — New Delhi Haridwar, 500 Bus 650 x 2 = 1300
Rishkesh &
back to
New Delhi
2 — New Delhi Agra, 500 Bus 650 x 2 = 1300
Mathura&
back to
New Delhi
2 — New Delhi Simla, 950 Bus 2250 x 2 = 4500
Chandigarh&
back to
New Delhi
2 — New Delhi Jaipur & 550 Bus 800 x 2 = 1600
back to
New Delhi
2 — New Delhi Chennai 2184 II AC rail 1960 x 2 = 3920

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 Admissible:
From To Distance Mode Fare
Allowed Allowed
(Kms)
Chennai New Delhi 2184 II AC rail for (1825+25+30+80)
2184 kms x 2= 3920
New Delhi Haridwar, 500 (250 kms x 2) Actuals, being 650 x 2 = 1300 *
Rishkesh less than II AC
& back to rail fare 250
New Delhi kms (to & fro)
New Delhi Agra, 500 (250 kms x 2) Actuals, being 650 x 2 = 1300 *
Mathura& less than II AC
back to rail fare 250
New Delhi kms (to & fro)
New Delhi Simla, 950 (475 kms x 2) II AC rail fare (685 x 2) x 2 =
Chandigarh& for 475 kms 2740 **
back to (to & fro)
New Delhi
New Delhi Jaipur & back 550 Actuals, being 800 x 2 = 1600 *
to New Delhi (275 kms x 2) less than II AC
rail fare 275
kms (to & fro)
New Delhi Chennai 2184 II AC rail (1825+25+30+80)
x 2= 3920
To t a l ` 14,780/-
* Actual fare less than II AC fare
** (2 X II AC fare for 950/2Kms) X 2
Amount Payable
Payable:
Towards fare : ` 14780.00
Service Charges for onward journey : ` 50.00
Service Charges for return journey : ` 50.00
Payable : ` 14,880.00
ii) An employee and/or members of the family may, while availing of the concession, travel
by a longer route and/or a higher class and/or by or different modes of travel. However,
the Leave Travel Concession would be subject to the limit of the fare by the appropriate
class for 3000 kms each way.
Further, while travelling to a place other than home town an employee or members of
his family can visit nearby places making any place on the onward and/or return journeys
as base camp. The only condition is that they should not commute between 2 places
more than once. The fares for the additional trip, if commuted between two places
more than once, as also the trips in the nature of local travel shall be disallowed.

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iii) An employee and members of his family may perform journeys to different places while
availing of the benefit.
iv) The children of the employee, who are prosecuting whole-time studies at places other
than the headquarters of the employee, will be eligible to the concession.
v) The spouse of an employee staying away from the headquarters of the employee will be
allowed to travel on LTC to places other than home-town as holiday travel subject to
3000 Kms. limit each way.
vi) An Employee or any member of the family may avail of any concession such as seasonal
concession, student concession, etc. In such cases, the concessional fare alone shall be
taken into account for the purpose of reimbursement.
vii) Certificates/receipts issued by recognised schools, colleges, educational institutes shall
be accepted in respect of employees’ children who join sightseeing tours organised by
their schools/colleges/educational institutions.
viii) The journey in respect of which the concession is admissible need not necessarily
commence from or end at the headquarters of the employee either in his own case or in
the case of members of his family. However, the concession shall be that admissible in
respect of the actual distance travelled limited to what would have been admissible
had the journey been performed between the headquarters and the place concerned by
the appropriate class subject to 3000 Kms.
ix) Journeys performed through approved travel / yatra agencies will be admissible under
the Leave Travel Concession.
The reimbursement shall be allowed on the basis of the railway fare by the appropriate
class irrespective of the actual mode of travel used subject to the prescribed limits or
the amount spent by the employee, whichever is less.
x) For the purpose of sight-seeing or pilgrimage, etc., the concession shall be allowed for
travel upto motorable distance only and the expenses incurred by the employee for
climbing up and down the hill by unconventional means of transport like mules, tattoos,
etc. should not be taken into account for the purpose of reimbursement.
xi) Night Journey: Night Journey means any single journey or break journey on through
ticket undertaken for a minimum of 4 1/2 hours between 8.00 p.m. to 6.00 a.m.
xii) Tatkal Reservation charges shall not be reimbursed in case of journey on LTC (Memo
Ref P/ER/A/TE/x dt 13/08/1999)
xiii) Safety surcharges levied by rail/air authorities may be reimbursed to the employee
regardless of the number of journeys performed if otherwise entitled for reimbursement,
subject to overall eligibility of the employee concerned under LTC Travel. However,
service charges to travel agent may be reimbursed only once for onward and return
journey. (Ref: CO letter Per/ER/A/G/200 dated 19.07.2004).
xiv) Sight Seeing at Goa: CO clarification dated 22.11.1993, North Goa, South Goa and
Dabolim fall outside the municipal limits of Panjim. Hence sight seeing to these places
does not fall under local sight seeing.
xv) Air travel for children below 5yrs.: CO circular reference PER/A/G/200 dated 03/06/
1998 states that if an employee not entitled for air travel travels by air reimbursement
will be determined with reference to the entitled class in train. As per railway rules,

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 fare is not charged for a child aged less than 5 yrs, so the question of reimbursement of
notional train fare for the child below 5 yrs does not arise.
In respect of children between 5 to 12 yrs the reimbursement will be limited to the
extent of 50% of train fare of adult for the eligible distance.
xvi) For journey by bus/ approved travel: CO circular No ZD/921/ASP/99 dt 07/06/1995. For
child between 3 and 5 yrs of age travel by bus between two places whether connected
by rail or not reimbursement may be allowed taking the age of child as over 5 yrs but
less than 12 yrs. and half the notional train fare of the eligible class of actual distance
travelled or the actual fare charged by the travel /yatra agent whichever is less.
xvii) For journey by Taxi -Children aged below 5 yrs: CO circular PER/ER/A/G/200 /VII /MMS
dated 01/02/2003 In case travel by taxi reimbursement may be made without
proportionate recovery towards children aged upto 5 yrs where journey is performed
by hiring the full taxi.
xviii) Travel by Yatra: CO circular Personnel/ER/A/G/200/VIII/MMS dated 07/11/2003 In case
of travel by yatra agency the reimbursement irrespective of the actual mode of travel
used shall be subject to the actual distance travelled or 3000 kms whichever is less for
ever block of two yrs by the eligible class.
xix) Senior Citizens: CO reference Per/ER/A/G/200/VIII dated 17/08/2004.
Reimbursement in case of senior citizens
i) An employee or member of the family may avail of any concession such as seasonal
concession, students etc, and in such cases the concessional fare alone shall be
taken into account for the purpose of reimbursement. In case of senior citizen, if
the journey is performed by availing concession, the reimbursement should be
limited to actual fare paid or fare for 3000 kms by entitled class, whichever is
less.
iii) In the afore said case where the employee is not entitled to travel by air as
matter of rule total reimbursement should not exceed twice the fare for 3000
kms by entitled class of travel by train.
XIV Travel to Home Town:
Town:
In addition to all the above mentioned, being common to both Home Town travel & Other
Than Home Town, the parameters given below will be the only distinct difference between
home town travel and Other Than Home Town:
Parameter To Home Town
Town Other Than Home Town
Town
Distance of 3000 kms each way Not Restricted Restricted
Shortest Route Compulsory Not necessary
Cheapest Route Compulsory Not necessary
Fare Payable for the actual Restricted to 3000 kms each
distance travelled by the way by eligible mode
eligible mode

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1. Hometown T ravel between places connected by rail:
Travel
(a) An employee whose family is living away from his headquarters may avail of the
concession once every year during the two-year block for travel to the hometown.
However, while claiming reimbursement for visiting the hometown twice in a
two-year block, the family shall forgo their eligibility for LTC.
(b) The children of the employee, who are prosecuting whole time studies at places
other than the headquarters of the employee, will be eligible to the concession
for the purpose of visiting hometown or the headquarters of the employee. The
reimbursement in these cases shall be the actual fare incurred for the journeys
from the place of study to the home town or headquarters and back by the
appropriate class by the shortest / cheapest route. If however any railway
concession in the fare, like the seasonal concession is availed of the concessional
fare alone shall be taken into account for the purpose of reimbursement.
(c) If, for the entire journey by the shortest or cheapest route between headquarters
and hometown or a part thereof an employee has to pay railway fare on the
basis of an assumed or weighted mileage or at inflated rates, the employee shall
be entitled to leave travel concession irrespective of the actual distance between
his headquarters and hometown. In such a case, the amount reimbursable by
the Corporation to the employee in respect of each journey shall be the actual
railway fare.
(d) Where an employee or a member of his family travel by air or by road or by
steamer, between two places connected by rail, the concession shall be
determined with reference to the fare by the appropriate class of railway
accommodation or the fare for the mode of travel actually used, whichever is
less.
Notes:
1. If, in a case covered by sub-clause (d) a part of the journey has to be performed
by road also, the Leave Travel Concession admissible shall be determined in the
manner prescribed in the above sub-clause taking into account
the appropriate fares for such road journey.
2. In case of an employee belonging to Class I or Class II the provisions of sub-
clause (d) shall also apply in cases where the journey is performed by own car,
the cost of propulsion being borne by the officer. For this purpose the
petrol and oil charges for the shortest route shall be taken as the fare by the
mode of travel actually used. This provision shall not apply to employees
belonging to Class III and Class IV.
2. Hometown travel between places not connected by rail:
(a) In the case of travel by road between places connected by a recognised public
transport system, the fare for the shortest route by the mode of travel actually
used shall be taken into account subject to the limit of fare by the
appropriate class of travel by road.
(b) An employee and members of his family may travel by steamer where an alternate
means of travel is not available or is more expensive. In such cases, the actual
fare limited to the fare by the appropriate class by train shall be taken into
account.
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 (c) In respect of journeys between places not connected by rail which are performed
by steamer or air, other than those covered by sub-clause (b), the amount to be
taken into account shall be the fare for the appropriate class of travel by the
eligible mode or by steamer, as the case may be, provided the employee is not
entitled to travel by air.
(d) Where the journey is performed between places not connected by any recognised
public transport system, the actual cost of the journey shall be taken into account
to the extent considered reasonable by the authority competent to sanction the
reimbursement.
Notes:
1. If in any case covered under sub-clause (d), any doubt arises about the extent of
reasonable cost, the decision of the Officer-in-charge of the Divisional / Zonal
Manager / Executive Director (P) / Chief Internal Auditor, as the case may be,
shall be final.
2. In the case of employees belonging to Class I or Class II the provisions of sub
clause (d) shall also apply in the case of travel by own car, the cost of propulsion
being borne by the Officer. The petrol and oil charges for the shortest
route shall be taken as the fare by the mode of travel actually used.
3. Hometown travel by car:
Officers belonging to Class I or Class II shall be entitled to travel by car while on LTC.
If the journey is undertaken by car, reimbursement under the LTC would be admissible
only when the journey is performed by an Officer and/ or members of his family in a car
owned by the Officer concerned or allotted to him under any of the schemes of the
Corporation. The basis for reimbursement in such cases shall be the actual petrol and
oil charges, subject to the limit of the fare by the appropriate class, as prescribed under
the rules. In case an Officer is unable to produce receipt/vouchers for the petrol and oil
charges and the Competent Authority is satisfied that the journey was performed by
car owned by the Officer or allotted to him by the Corporation, reimbursement may be
allowed on the basis of the mileage rates under the Scheme VI (conveyance facilities to
Marketing Officials) subject to the limit of the prescribed ceilings by the appropriate
class. Class III and IV are not eligible for journey by car car..
4. Hometown T ravel for One W
Travel ay Journey:
Way
(a) Admissibility of Leave Travel Concession for one way journey shall be determined
with reference to the facts existing at the time of outward and return journeys
independently.
(b) Leave Travel Concession shall be admissible only for the outward journey to the
home town in the following cases:
(i) Dependent son/daughter getting employment or getting married after
going to the home town or remaining there for prosecution of studies.
(ii) The family having performed the journey to home town have no intention
of completing the return journey from home town, provided the employee
foregoes in writing the Leave Travel Concession in respect of the return
journey, if performed by the family members at a subsequent date.

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 (c) The Leave Travel Concession shall be available only for the journey to the
headquarters in the following cases:
(i) Newly married wife coming from the home town to headquarters;
(ii) Family members living at the home town who did not avail of the
concession for the outward journey;
(iii) Dependent son/daughter coming from the home town where he/she has
been prosecuting studies or living with grandparents, etc.;
(iv) Child legally adopted by an employee while staying in the home town.
(d) During leave preparatory to retirement, Leave Travel Concession shall be
admissible to the employee and members of family both in respect of the outward
and return journey from the headquarters to home town or other than home
town.
5. Any member of the family who is staying at a place other than the headquarters and
who otherwise qualifies would be eligible for the concession for the purpose of visiting
either the home town or the headquarters of the employee. If a member of the family
travels to a home town the reimbursement shall be the actual fare incurred from the
place of residence of such member of the family to the hometown and back limited to
what would have been admissible had the journey been performed from the headquarters
of the officer/employee to the hometown and back by appropriate class and by the
cheapest / shortest route.
6. An officer whose family is living away from the head quarters can avail Leave Travel
Concession for himself alone once every year during each block provided no other
eligible member avails of the concession for the same block. However, if an employee
claims reimbursement of the expenses incurred by any member of the family for visiting
the headquarters / hometown, the facility of two trips to hometown in any block will
not be available.
7. Hometown Travel in case of employees who are posted away from mainland:
Travel
Employees who are posted from the mainland to Port Blair and availing of LTC will be
allowed free passage by steamer by the appropriate class for self and ‘family’ from Port
Blair to the port on the mainland nearest to hometown and back, the actual duration of
the voyage being treated as Special Leave. Leave Travel Concession to home and leave
will be reckoned from the place and date of disembarkation on mainland till the date of
embarkation from the mainland on return journey from the place of disembarkation.
8. Travel to Hometown in combination with transfer or tour:
(a) Where an employee travels to his home-town availing of Leave Travel Concession
and proceeds therefrom on transfer to new headquarters, he should be eligible
to Leave Travel Concession provided it is otherwise admissible. The Leave Travel
Concession in such case shall be limited to the extent the total distance from
the old headquarters to the home town and from the home-town to the new
headquarters, exceeds the distance for which transfer travelling allowance is
admissible.
(b) Where an employee proceeds from a station where he is on tour to his home-
town on leave and proceeds therefrom to his headquarters for resuming duty,

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 Leave Travel Concession shall be admissible for journeys from the tour station
to the home town and from the hometown to the headquarters deeming the tour
station as the starting point of the outward journey.
(c) Where an employee travels to his home town availing of Leave Travel Concession
and proceeds from the home town to a tour station and returns therefrom to his
headquarters, the Leave Travel Concession shall be admissible in respect of the
journey from the headquarters to the home town only.
Notes:
1. In cases of the type referred in sub-clause (a) above, it shall be open to an
employee not to avail of the Leave Travel Concession on such an occasion in
which case Leave Travel Concession may be availed of later provided it is
otherwise admissible.
2. An employee who avails of the concession in terms of sub-clause (a) above, shall
make the claim at the time of submitting the transfer travelling allowance bill.
XV Advances:
i) An advance may be granted to an employee against the reimbursement admissible.
ii) The amount of advance shall be limited to four-fifths of the entitled amount, which
shall have to be reimbursed in respect of the cost of outward and return journeys.
iii) Where an employee and members of the family avail of Leave Travel Concession at
different times, advances may be granted on each such occasion.
iv) Advance in respect of both the outward and return journeys to an employee and/or
members of the family may be granted at the time of commencement of the outward
journey only if the period of leave granted to the employee the period of anticipated
absence or the period of absence of the members of family does not exceed 90 days.
Where the period of leave or anticipated absence exceeds 90 days, advance may be
granted in respect of the outward journey only.
v) An employee may be allowed to draw the advance as permissible not earlier than 16
days prior to the commencement of the journey. However, LTC advance may be granted
to an employee earlier than 16 days of the commencement of the journey only against
the production of money receipts or tickets. Further, not earlier than 16 days of the
commencement of the journey another advance may be granted without insisting on
production of receipts/tickets.
vi) The advance drawn shall be refunded forthwith if the journey is not commenced as
reserved.
vii) Advance drawn under the LTC Rules shall be deemed to become due as under:
a) Where the advance is drawn for both the outward journey and return journey,
one half of the advance shall be refunded on the date on which the employees
come to know that the period of leave or anticipated absence would exceed 90
days or when such period of 90 days expires (a period of 90 days being reckoned
from the date of commencement of leave or the date of commencement of outward
journey, as the case may be) whichever is earlier.
b) The entire amount of advance drawn shall become due for refund if outward

155
 journey is not commenced on the date on which it was to commence.
c) Where an employee who is eligible to travel by higher class of Railway
accommodation travels by lower class of Railway accommodation or where
cheaper mode of travel is adopted or where he does not visit all the places
indicated by him in his application for advance in LTC module at the time of
withdrawal of the advance (or otherwise), excess amount of advance drawn shall
become due for refund on the date on which the authority competent to sanction
the reimbursement under the instructions ascertains the amount required to
be refunded and intimates about it to the employee concerned.
viii) The employee concerned should refund LTC advance sanctioned to them within 7 days
after the advance drawn by them becomes due for refund as per clause (vii) above,
under the instructions. If the employee fails to refund it within the prescribed period
of 7 days then the amount of advance due for return or refund shall be recovered from
the next pay bill of the employee.
ix) Authority competent to sanction an advance under this clause shall be the same as for
sanction of an advance towards travelling allowance.
Note: Application for advance from an employee shall be submitted in LTC module
XVI Procedure for reimbursement:
i) The authority competent to sanction the reimbursement shall be the authority competent
to pass the travelling allowance bills of the employees.
ii) An employee availing of LTC shall submit his claim for reimbursement within 15 days
from the date of completion of the return journey or of the outward journey in cases
where LTC is admissible in respect of outward journey only. However, any delay in
submission of the claim can be condoned by the Competent Authority in the following
manner:
1) Upto 3 months:
Employees/Officers working at Competent Authority
Branch and Divisional Office Senior/DM-in-charge
Zonal Office An Officer in the rank of DM
authorised by ZM
Central Office An Officer in the rank of DM
authorised by ED (E & OS) / Chief (E &
OS) / Chief Internal Auditor
Audit Centres Secretary (Audit) / Deputy Secretary
(Audit)
2) Beyond 3 months:
No relaxation is permitted except in cases of prolonged illness during the period
of 3 months. Such cases should be referred to ZM/CIA/Executive Director
(E&OS)/Chief (E&OS).
iii) An employee shall alongwith his claim for reimbursement, submit necessary cash
receipts or vouchers or tickets in respect of travel by train. The employee shall also

156
 give such other information as may be required by the authority competent to sanction
reimbursement.
If an employee is unable to produce the proof as mentioned above, the Officer-in-charge
of the Division/Zonal Manager/Executive Director (E&OS)/ Chief Internal Auditor, as
the case may be, may at their discretion and in exceptional cases, waive this requirement
for part of the journey if proper proof has been produced for rest of the journey and the
Competent Authority is satisfied about the bonafides of the claim provided it is
established that the employee had visited the final destination. For the purpose of
reimbursement the part of the journey for which the Competent Authority waives proof,
should be deemed to have been performed by rail in the lowest class without sleeper
accommodation.
The Competent Authority while waiving production of proof for a part of the journey
should satisfy himself that the employee concerned as also each eligible member of the
family had undertaken the journey to the final destination. Only on being satisfied and
after recording the reason/s in writing in the file to the effect as to how he satisfied
himself that the employee and/or each member/s of the family had reached the final
destination, the Competent Authority should exercise his discretion for waiver of
production of proof for part of the journey.
iv) Where an employee’s home town is not entirely connected by the train, that is to say,
when an employee has to travel otherwise than by train from the nearest railway station
to reach his own home town, the Competent Authority may, at his discretion, also waive
production of receipt for that portion of the journey which is not connected by train,
provided that the employee had produced receipt/vouchers evidencing journey to the
railway station nearest to the home town and the distance between the railway station
and the home town is not more than 50 Kms. In such cases, the Competent Authority
may allow reimbursement of appropriate bus fare from the nearest railway station to
home town and back. Where the distance is more than 50 Kms., the Competent Authority
should insist upon production of receipts/vouchers.
Notes:
1) The claim for reimbursement shall be submitted in LTC module. Distance between the
places of travel shall be invariably furnished by the employee.
2) In cases where an employee continues to be on leave after he returns to the
headquarters, the period of 15 days may be counted from the date of his resuming duty.
3) Receipts issued by travel agents specifically authorised by the railway authorities for
ticket purchased by the employees through them may be accepted provided ticket
number, the name of the passenger and other relevant details are given therein.
4) Leave Travel Concession shall not be admissible in respect of journey performed by an
employee or a member of his family holding a ticket on which reservation has been
made in the name of the other persons.
5) LTC claims for air travel where airlines do not issue air tickets:
Some private airlines like Air Deccan, Spice Jet, Kingfisher, etc. are known not to
issue air ticket in usual form and instead they issue a print out giving details of air
travel such as name of passenger, sector, date of travel fare charged, etc. In such case

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 employee has to submit a Xerox copy of print out attested by Class I Officer of the
Corporation and original boarding pass. In case of e-tickets also the print out of e-
ticket alongwith original boarding pass is to be submitted.
XVII Entitlement on promotion from Class III to Class II::
1. Class III employees who are promoted to Class I are eligible to Class I LTC benefits
only after they have put in one year of continuous service in Class I.
2. The unavailed concession as admissible to such employees in Class III, which accrued
to them prior to their taking charge in Class I, may be availed of by them within a
period of one year from the date they took charge in the Class I cadre. The carry-over
of the Class III concession would not be admissible after an employee has become eligible
to Class I LTC benefits.
3. An officer may avail of LTC benefits for the Calendar Year 2009-2010 block after he
becomes eligible to Class I benefits, irrespective of the fact that he has or has not
availed of the LTC benefits available to him for the Class III LTC block ending 31.03.2010.
4. Though the Officer avails LTC facility that has accrued to him as a Class III employee,
the basic pay for determining the appropriate mode of travel for reimbursement purposes
should be the one drawn by him on the date of his travel.

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 CHAPTER 15
PENSION MA
MATTERS
TTERS
Life Insurance Corporation of India (Employees) PENSION RULES 1995 :
Application:- These rules shall apply to employees who,
(1) (a) were in the service of the Corporation before the notified date and continue to
be in the service of the Corporation on or after the notified date, i.e. 28.06.1995
and
(b) exercise an option in writing within one hundred and twenty days from the
notified date to become member of the Fund; and
(c) authorise the trust of the Provident Fund to transfer the entire contribution of
the Corporation to their Provident Fund alongwith the interest accrued thereon
to the credit of the Fund constituted for the purpose under rule 5;
or
(2) join the service of the Corporation on or after the notified date i.e. 28.06.1995;but before
01-04-2010(These rules shall not apply to the whole time salaried employees of the
Corporation joining the service of the Corporation or after 1st April, 2010 since these
employees shall be covered by the defined contribution Pension Scheme.)
Option to subscribe to the Provident Fund:- (1) Notwithstanding anything
contained above, an employee who joins the service of the Corporation on or after the
notified date at the age of thirty-five years or more, may, within a period of ninety days
from the date of his appointment, elect to forego his right to pension, whereupon these
rules shall not apply to him.
(2) The option once exercised, shall be final.
Qualifying Service:- Subject to the other conditions contained in these rules, an
employee who has rendered a minimum ten years of service in the Corporation on the
date of his retirement shall qualify for pension.
Commencement of qualifying service:- Subject to the provisions contained in these
rules, qualifying service of an employee shall commence from the date he takes charge
of the post to which he is first appointed on a regular basis.
Counting of Service on probation:- Service on probation against a post in the
Corporation if followed by confirmation in the same or another post shall qualify.
Counting of period spent of leave:- All leave during service in the Corporation for
which leave salary is payable shall count as qualifying service:
Provided that extraordinary leave granted on medical certificate or on account of the
employees' inability to join or rejoin duty due to civil commotion, not exceeding twelve
months during the entire service, shall also count as qualifying service.
Broken period of service of less than one year:- If the period of service of an
employee includes broken period of service of less than one year, then if such broken
period is more than six months it shall be treated as one year and if such broken period
is six months or less it shall be ignored.

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Counting of period spent on training:- Period spent by an employee on training in
the Corporation immediately before his appointment or re-employment or re-
appointment shall count as qualifying service.
Counting of past service with the erstwhile Insurer:- Period of continuous
service of a "transferred employee" with an insurer shall qualify for pension:
Provided that such "transferred employee" was not eligible for any pension, annuity,
gratuity in lieu of pension or such other superannuation benefit in lieu of pension from
the insurer in respect of his service with such insurer.
Period of Suspension:- Period of suspension of an employee pending enquiry shall
count for qualifying service where, on conclusion of such enquiry, he has been fully
exonereated or the suspension is held to be wholly unjustified and, in other cases, the
period of suspension shall not count as qualifying service unless the competent authority
passing the order under regulation 38 of the Staff Regulations governing such cases
expressly declares at the time that it shall count to such extent as such authority may
declare.
Forfeiture of Service:- Resignation or dismissal or removal or termination or
compulsory retirement of an employee from the service of the Corporation shall entail
forfeiture of his entire past service and consequently shall not qualify for pensionary
benefits.
Period of deputation to foreign service:- An employee deputed on foreign service
to the United Nations or any other foreign body or organisation may, at his option,-
(a) pay pension contribution in respect of his foreign service and count such service
as qualifying service under these rules; or
(b) avail of the retirement benefits admissible under the rules of the foreign employer
and not count such service as qualifying service under these rules:
Provided that where an employee opts for clause (b), retirement benefits shall be payable
to him in India in rupees from such date and in such manner as the Corporation may,
by order, specify.
Military Service:- An employee who has rendered military service before appointment
or re-employment or re-appointment in the Corporation shall continue to draw the
military pension, if any, and the military service rendered by the employee shall not
count as qualifying service for pension.
Period of deputation to an organisation in India:
India:- Period of deputation of an
employee to another organisation in India will count as qualifying service:
Provided the organisation to which he is deputed or the employee pays the pensionary
contributions at the rates specified above to the Corporation.
Counting of service rendered on permanent part-time basis in certain cases:-
(1) In the case of an employee who immediately prior to his appointment on a whole-
time basis, was employed on a permanent part-time basis in the service of the
Corporation and was contributing to the Provident Fund, such service rendered by
him on a permanent part-time basis shall be counted as qualifying service;(provided he
was employed on a whole-time basis before the notified date or he should have opted
for pension at the time of permanent part-time employee and he was employed on a

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 whole-time basis after the notified date)
(2) The length of qualifying service of the employee referred to in sub-rule(1) for
the purpose of calculating the amount of pension shall be determined in
accordance with Appendix II.
CLASSES OF PENSION
Superannuation Pension:- Supperannuation pension shall be granted to an employee
who has retired on his attaining the age specified in rule 14 of the Service Rules or sub-
regulation (1) or sub-regulation(2) of Regulation 19 of the Staff Regulations.
Pension on V oluntary Retirement: (1) At any time after an employee has completed
Voluntary
twenty years of qualifying service he may, by giving notice of not less than ninety days,
in writing to the appointing authority, retire from service:
Provided that this sub-rule shall not apply to an employee who is on deputation unless
after having been transferred or having returned to India and has resumed charge of
the post in India and has served for a period of not less than one year:
Provided further that this sub-rule shall not apply to an employee who seeks retirement
from service for being absorbed permanently in an autonomous body or a public sector
undertaking to which he is on deputation at the time of seeking volutary retirement.
(2) the notice of volutary retirement given under sub-rule (1) shall require acceptance by
the appointing authority:
Provided that where the appointing authority does not refuse to grant the permission
for retirement before the expiry of the period specified in the said notice, the retirement
shall become effective from the date of expiry of the said period.
(3) (a) An employee referred to in sub-rule (1) may make a request in writing to the
appointing authority to accept notice of voluntary retirement of less than ninety
days giving reasons therefor;
(b) on receipt of a request under clause (a), the appointing authority may, subject to
the provisions of sub-rule (2), consider such request for the curtailment of the
period of notice of ninety days on merits and if it is satisfied that the curtailment
of the period of notice will not cause any administrative inconvenience, the
appointing authoriy may relax the requirement of notice of ninety days on the
condition that the employee shall not apply for commutation of a part of his
pension before the expiry of the notice of ninety days.
(4) An employee, who has elected to retire under this rule and has given necessary notice
to that effect to the appointing authority, shall be precluded from withdrawing his
notice except with the specific approval of such authority:
Provided that the request for such withdrawal shall be made before the intended date
of his retirement.
(5) The qualifying service of an employee retiring voluntarily under this rule shall be
increased by a period not exceeding five years, subject to the condition that the total
qualifying service rendered by such employee shall not in any case exceed thirty-three
years and it does not take him beyond the date of retirement.
(6) The pension of an employee retiring under this rule shall be based on the average

161
 emoluments as defined in these rules and the increase, not exceeding five years in his
qualifying service, shall not entitle him to any notional fixation of pay for the purpose
of calculating his pension.
Invalid Pension :- (1) Invalid pension may be granted to an employee who,-
(a) has rendered minimum ten years of service; and
(b) retires from the service on account of any bodily or mental infirmity which
permanently incapacitates him for the service.
(2) An employee applying for invalid pension shall submit a medical certificate of incapacity
from a medical officer approved by the Corporation.
Compassionate allowance:- (1) An employee who is dismissed or removed or
compulsorily retired or terminated from service, shall forfeit his pension:
Provided that the authority competent to dismiss or remove or compulsorily retire or
terminate him from service may, if-
(i) such dismissal, removal, compulsory retirement or termination is on or after
1st day of November, 1993; and
(ii) the case is deserving of special consideration, sanction a compassionate allowance
not exceeding two-thirds of the pension which would have been admissible to
him on the basis of the qualifying service rendered upto the date of his dismissal,
removal, compulsory retirement or termination.
(2) The compassionate allowance sanctioned shall not be less than the amount of the
minimum pension payable under these rules.
RATE OF PENSION
RATE
Amount of Pension:-
(1) In the case of an employee retiring in accordance with the provisions of the Service
Rules or of the Staff Regulations after completing a qualifying service of not less than
thirty three years the amount of basic pension shall be calculated at fifty per cent of
the average emoluments (i.e. average of last 10 months "pay" prior to the retirement
date; and for the purpose of this rule "pay" includes - 1.Basic Pay & 2. Allowances
which count for the purposes of making contribution to the Provident Fund and payment
of dearness allowance)
(2) Pension as computed above shall be subject to the minimum pension as specified in
these rules.
(3) An employee who has commuted the admissible portion of his pension as per the
provisions of these rules shall receive only the balance of pension, monthly.
(4) (a) In the case of an employee retiring before completing a qualifying service of
thirty-three years, but after completing a qualifying service of ten years, the
amount of pension shall be proportionate to the amount of pension admissible
under these rules and in no case the amount of pension shall be less than the
amount of minimum pension specified in these rules.
(b) Notwithstanding anything contained in these rules, the amount of invalid
pension shall not be less than the ordinary rate of family pension which would
have been payable to his family in the event of his death while in service.
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(5) The amount of pension finally determined under this rule shall be expressed in whole
rupee and where the pension contains a fraction of a rupee, it shall be rounded off to
the next higher rupee.
Minimum pension:- The amount of minimum pension shall be,-
(a) rupees "three hundred and seventy five" per month in respect of an employee
who had retired before the 1st day of August, 1992 for Class-3 & 4 and 1st day
April, 1993 for Class 1 & 2;
(b) rupees "seven hundred and twenty" per month in respect of an employee who
retires on or after the 1st day of August, 1992 for Class-3 & 4 and 1st day April,
1993 for Class 1 & 2 but before the 1st day of August 1997;
(c) rupees "one thousand one hundred" per month in respect of an employee who
retires on or after the 1st day of August, 1997 but before 1st day of August 2002;
and
(d) rupees "one thousand four hundred eighty" per month in respect of an employee
who retires on or after the 1st day of August, 2002. but before 1st day of August
2007; and
(e) rupees "one thousand eight hundred eighty" per month in respect of an employee
who retires on or after the 1st day of August, 2007.
Dearness Relief:- (1) Dearness relief shall be granted on basic pension or family pension or
invalid pension or on compassionate allowance in accordance with the rates specified in
appendix-III.
(2) Dearness relief shall be allowed on full basic pension even after commutation.
Determination of the period of ten months for average emoluments:-
(1) The period of the preceeding ten months for the purpose of avearge emoluments shall
be reckoned from the date of retirement.
(2) In the case of voluntary retirement the period of the preceeding ten months for the
purpose of average emoluments shall be reckoned from the date on which the employee
voluntarily retires.
(3) In the case of dismissal or removal or compulsory retirement or termination of service
the period of the preceeding ten months for the purpose of average emoluments shall
be reckoned from the date on which the employee is dismissed or removed or
compulsorily retired or terminated by the Corporation.
(4) If during the last ten months of the service an employee had been absent from duty on
extraordinary leave on loss of pay or had been under suspension and the period whereof
does not count as service, the aforesaid period of extraordinary leave or suspension
shall not be taken into account in the calculation of the average emoluments and an
equal period before the ten months shall be included.
FAMILY PENSION
AMILY
Family pension:- (1) Without prejudice to the provisions contained in these rules where an
employee dies -
(a) after completion of one year of continuous service, or

163
 (b) before completion of one year of continuous service, provided the deceased
employee concerned immediately prior to his appointment to the service or post
was examined by a medical officer approved by the Corporation and declared fit
for employment in the Corporation; or
(c) after retirement from service and was on the date of death in receipt of a pension,
or compassionate allowance; the family of the deceased shall be entitled to family
pension, the amount of which shall be determined in accordance with Appendix
I.
(2) The amount of family pension shall be fixed at monthly rates and be expressed in whole
rupees and where the family pension contains a faction of a rupee, it shall be rounded
off to the next higher rupee:
Provided that in no case a family pension in excess of the maximum prescribed under
these rules shall be allowed.
(3) (a) (i) Where an employee, who is not governed by the Workmen's Compensation
Act, 1923 (8 of 1923), dies while in service after having rendered not less
than seven years' continuous service, the rate of Family Pension payable
to the family shall be equal to 50% of the Pay last drawn or twice the
Family Pension admissible under sub-rule (1) (see Appendix I) whichever
is less and the amount so admissible shall be payable from the date
following the date of death of the employee for a period of seven years or
for a period upto the date on which the deceased employee would have
attained the age of 65 years had he survived, whichever is less.
(ii) in the event of death of an employee after retirement, the family pension
as determined under clause (a) or clause (b) of this sub-rule shall be
payable for a period of seven years or for a period upto the date on which
the retired deceased employee would have attained the age of sixty five
years had he survived, whichever is less;
(b) (i) where an employee, who is governed by the Workmen's Compensation
Act, 1923 (8 of 1923), dies while in service after having rendered not less
than seven years' continuous service, the rate of family pension payable
to the family shall be equal to fifty percent of the pay last drawn or one
half times the family pension admissible under sub-rule (1), whichever is
less;
(ii) the family pension so determined under sub-clause (i) shall be payable
for the period mentioned in clause (a);
(c) After the expiry of the period referred to in clause (a), the family, in receipt of
family pension under that clause or clause (b) shall be entitled to family pension
at the rate admissible under sub-rule (1).
4 Definition of Family:- In terms of Rules 2 of the Amended Pension Rules, "family in
relation to an employee means:-
i. wife in the case of a male employee or husband in the case of a female employee;
ii. a judicially separated wife or husband , such separation not being granted on
the ground of adultery and the person surviving was not held guilty of committing
adultery;
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 iii. Son who has not attained the age of twenty five years including such son or
daughter adopted legally.
iv. Unmarried/Widowed /Divorced daughter till the date of her marriage/re-
marriage or the date on which her income exceeds the dependency criteria as
defined in clause 8 of these instructions;
v. Parents who were wholly depended on the deceased employee as per the
dependency criteria as defined in clause 8 of these instructions, when he/she
was alive, provided that the deceased employee had left behind neither a widow
nor a child or had left behind only a widow who has subsequently remarried;
Provided that the eligibility of a member of the family to family pension, at any
particular point of time, shall be determined in order of his/her appearance in
this clause
5. Family pension to Unmarried/W idowed/Divorced daughter:-
Unmarried/Widowed/Divorced
(i) The payment of family pension to the unmarried daughter is to be continued till
the date of her marriage or the date on which here income exceeds the dependency
criteria as defined in clause 8 of these instructions.
(ii) In case of widowed/divorced daughter, family pension will be admissible without
age restrictions till the date of her remarriage or the date on which here income
exceeds the dependency criteria as defined in clause 8 of these instructions.
(iii) All other conditions, for claiming the family pension, are also applicable to
unmarried/widowed/divorced daughter.
Procedure for family pension: Circular no:ZD/1 165/ASP/2010
no:ZD/1165/ASP/2010
(a) The existing pensioners/family pensioners are required to submit the particulars afresh
in annexure-10(details of the members of the family) for inclusion of the name of the
dependent unmarried/widowed/divorced daughters/parents whose name/s had not been
declared and included earlier.
(b) The family pension to the dependent unmarried/widowed/divorced daughters or
dependent parents, if eligible, shall become payable from the date of notification viz
8th October,2010.
(c) The following documents/certificate are required for processing the family pension
cases of widowed/divorced daughters in addition to satisfying dependency criteria:-
(a) Original affidavit sworn before a 1st class magistrate showing the details of the
claimaint's marriage including the name of the bride, bridegroom and the death
of death of her husband (widowed daughter)/date of divorced decree(divorced
daughter).
(b) Original/attested copy of death certificate of her husband issued by registrar of
Deaths.(In case of widowed daughter)
(c) Original/attested copy of Divorce decree obtained from the Court of Law .(In
case of divorced daughter)
(d) There is no change in the procedure for sanction of family pension as detailed in
CO circular ref: ZD/831/ASP/95 dated 5th July, 1995 and further instructions
issued from time to time.

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6. Family pension to dependent Parents:-
The family pension shall be admissible to parents subject to the following:-
(i) the parents who were wholly dependent on the employee/pensioner when he/
she was alive as per the dependency criteria as defined in clause 8 of these
instructions.
(ii) the employee/pensioner has not left behind a widow/widower, eligible son or
daughter or an unmarried /widowed/divorced daughter who will have a prior
claim to family pension in the order of their appearance in the definition of
"family" in clause 4 of these instructions.
(iii) the family pension wherever admissible to parents, the mother will receive the
pension first and after her death the father will receive the family pension.
7. The amount of family pension to dependent Parents:-
The wholly dependent parents shall be entitled to family pension determined in
accordance with Appendix V of the pension rules only. Therefore, the dependent parents
are not entitled to draw family pension at enhanced rate admissible under sub-rule (3)
of Rule 39 of the Pension Rules.
8. Dependency Criteria:-
(i) An unmarried /widowed/divorced daughter having a monthly income of more
than ` 3500/-shall be eligible for family pension.
(ii) Parents having a monthly income of more than ` 3500/-shall not be eligible for
family pension. For this purpose, income of both parents, if any, shall be clubbed
together to determine the dependency criteria.
The amended definition of family shall be effective from 8th October, 2010 and shall
apply to the whole time salaried employees of the corporation who are covered under
the Life Insurance Corporation of India (Employees) Pension Rules, 1995. These rules
shall not apply to the whole time salaried employees of the Corporation joining the
service of the Corporation or after 1st April, 2010 since these employees shall be covered
by the defined contribution Pension Scheme.
Period of payment of family pension:- (1) The period for which family pension is
payable shall be, -
(a) in the case of a widow or a widower, upto the date of death or re-marriage,
whichever is earlier;
(b) in the case of a son, until he attains the age of twenty-five years; and
(c) in the case of an unmarried/widowed/Divorced daughter till the date of her
marriage/re-marriage or the date on which her income exceeds the dependency
criteria as defined in clause 8 of the Circular no:ZD/1165/ASP/2010 i.e. income of
` 3500/-per month.
(d) Parents who were wholly dependent on the deceased employee as per
dependency criteria,when he/she was alive, provided that the deceased employee
had left behind neither a widow nor a child or had left behind only a widow who
has subsequently remarried. For purpose of monthly income for dependency
criteria income of both the parents, if any shall be clubbed together.

166
Provided that if the son or daughter of an employee is suffering from any disorder or
disability of mind or is physically crippled or disabled so as to render him or her unable
to earn a living even after attaining the age of twenty-five years, the family pension
shall be payable to such son or daughter for life subject to the following conditions,
namely:-
(i) if such son or daughter is one among two or more children of the employee, the
family pension shall be initially payable to the minor children in the order set
out in clause (e) sub-rule(1) until the last minor child attains the age of twenty-
five and thereafter the family pension shall be resumed in favour of the son or
daughter suffering from disorder or disability of mind or who is physically
crippled or disabled and shall be payable to him or her for life;
(ii) if there are more than one such children suffering from disorder or disability of
mind or who are physically crippled or disabled, the family pension shall be
paid in the order of their birth and the younger of them will get the family
pension only after the elder next above him or her ceases to be eligible:
Provided that where the family pension is payable to such twin children it shall
be paid in the manner set out in clause (f) as under:
(iii) the family pension shall be paid to such son or daughter through the guardian
as if he or she were a minor except in the case of a physically crippled son or
daughter who has attained the age of majority;
(iv) before allowing the family pension for life to any such son or daughter, the
Competent Authority shall satisfy that the handicap is of such a nature as to
prevent him or her from earning his or her livelihood and the same shall be
evidenced by a certificate obtained from a medical officer approved by the
Corporation, setting out, as far as possible, the exact mental or physical condition
of the child;
(v) the person receiving the family pension as guardian of such son or daughter or
such son or daughter not receiving the family pension through a guardian shall
produce every three years a certificate from a medical officer approved by the
Corporation to the effect that he or she continues to suffer from disorder or
disability of mind or continues to be physically crippled or disabled.
Explanation:- The grant of family pension to disabled children beyond the age limit
specifed in this sub-rule is subject to the following conditions, namely:-
(i) a daughter shall become ineligible for family pension under this sub-rule from
the date she gets married;
(ii) the family pension payable to such son or daughter shall be stopped if he or she
starts earning his or her livelihood. In such cases it shall be the duty of the
guardian or son or daughter to furnish a certificate to the Corporation every
month that -
(A) he or she has not started earning his or her livelihood;
(B) in case of daughter that she has not yet married;
(d) if a deceased employee or pensioner leaves behind a widow or widower, the
family pension shall become payable to the widow or widower, failing which to
the eligible child;
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 (e) family pension to the children shall be payable in the order of their birth and
the younger of them shall not be eligible for family pension unless the elder
next above him or her has become ineligible for the grant of family pension:
Provided that where the family pension is payable to twin children it shall be
paid in the manner set out in clause (f) as under;
(f) where the family pension is payable to twin children it shall be paid to such
children in equal shares:
Provided that where one such child ceases to be eligible, his or her share shall
revert to the other child and where both of these cease to be eligible, the family
pension shall be payable to the next eligible single child or twin children, as the
case may be.
(2) Where a deceased employee or a pensioner leaves behind more children than one, the
eldest eligible child shall be entitled to the family pension for the period mentioned in
clauses (b) or (c) of sub-rule (1) above, as the case may be, and after the expiry of that
period the next child shall become eligible for the grant of family pension.
(3) Where family pension is granted under this rule to a minor, it shall be payable to the
guardian on behalf of the minor.
(4) In case both wife and husband are employees of the Corporation and are governed by
the provisions of this rule and one of them dies while in service or after retirement,
the family pension in respect of the deceased shall be payable to the surviving husband
or wife and in the event of death of the husband or wife, the surviving child or children
shall be granted the two family pensions in respect of the deceased parents subject to
the limits specified below, namely :-
(a) if the surviving child or children is or are eligible to draw two family pensions
at the rates mentioned in sub-clause(i) of clause (a) and sub-clause(i) of clause(b)
of sub-rule(3) of the rule relating to Family Pension as given above the amount
of both pensions shall be limited to two thousand five hundred rupees only per
mensem in respect of class 3&4 employees who retired or died while in service
prior to the 1st day of August 1992 and in respect of class 1 & 2 employees who
retired or died while in service prior to 1 st day of April 1993, four thousand
eight hundred rupees per mensem only in respect of class 3 & 4 employees who
retired or died on or after 1/8/1992 and in respect of class 1 & 2 employees who
retired or died on or after 1/4/1993, seven thousand eighty rupees per mensem
in respect of employees who retired or died on or after 1/8/1997 and ten thousand
eight hundred thirty rupees per mensem in respect of employees who retired or
died on or after 1/8/2002,seventeen thousand nine hundred and fifty five rupees
per mensem in respect of employees who have retired or died while in service
on or after 01.08.2007.
(b) if one of the family pensions ceases to be payable at the rates mentioned in sub-
clause (i) of clause(a) or sub-clause (i) of clause (b) of sub-rule (3) of the rule
relating to Family Pension and in lieu thereof the family pension at the rate
mentioned in sub-rule(1) of the rule relating to Family Pension becomes payable,
the amount of both the pensions shall also be limited to two thousand five
hundred rupees per mensem in respect of class 3 & 4 employees who retired or
died while in service prior to the 1st day of August 1992 and in respect of class

168
 1 & 2 employees prior to the 1st day of April 1993 and four thousand eight hundred
rupees per mensem only in respect of class 3 & 4 employees who retired or died
on or after 1/8/1992 and in respect of class 1 & 2 employees who retired or died
on or after 1/4/1993; seven thousand eighty rupees per mensem in respect of
employees who retired or died on or after 1/8/1997 and ten thousand eight
hundred thirty rupees per mensem in respect of employees who retired or died
on or after 1/8/2002 , seventeen thousand nine hundred and fifty five rupees per
mensem in respect of employees who have retired or died while in service on or
after 01.08.2007.
(c) if both the family pensions are payable at the rate mentioned in sub-rule (1) of
the rule relating to Family Pension the amount of the two pensions shall be
limited to one thousand two hundred and fifty rupees per mensem in the case of
class 3 & 4 employees who retired or died while in service prior to the 1st day of
August 1992 and in the case of class 1 & 2 employees prior to the 1st day of April
1993 and two thousand four hundred rupees per mensem in respect of class 3 &
4 employees who retired or died on or after 1/8/1992 and in respect of class 1 &
2 employees who retired or died on or after 1/4/1993; seven thousand eighty
rupees per mensem in respect of employees who retired or died on or after 1/8/
1997 and ten thousand eight hundred thirty rupees per mensem in respect of
employees who retired or died on or after 1/8/2002 , seventeen thousand nine
hundred and fifty five rupees per mensem in respect of employees who have
retired or died while in service on or after 01.08.2007.
(5) (a) Where family pension is payable to more widows than one, the family pension
shall be paid to the widow in equal shares;
(b) on the death of a widow, her share of the family pension shall become payable to
her eligible child:
Provided that if the widow is not survived by any child, her share of the family
pension shall not lapse but shall be payable to the other widows in equal shares,
or if there is only one such other widow, in full, to her;
(c) where the deceased employee or pensioner is survived by a widow but has left
behind eligible child or children from another wife who is not alive, the eligible
child or children shall be entitled to the share of family pension which the mother
would have received if she had been alive at the time of the death of the employee
or pensioner:
Provided that on the share or shares of family pension payable to such a child or
children or to a widow or widows ceasing to be payable, such share or shares
shall not lapse, but shall be payable to the other widow or widows or to other
child or children otherwise eligible, in equal shares, or if there is only one widow
or child, in full, to such widow or child;
(d) where the family pension is payable to twin children it shall be paid to such
children in the manner specified in clause (f) of sub-rule (1) above;
(e) except as provided in this sub-rule the family pension shall not be payable to
more than one member of the family at the same time.

169
(6) Where a female employee or male employee dies leaving behind a judicially separated
husband or widow and no child or children, the family pension in respect of the deceased
shall be payable to the person surviving:
Provided that where in a case the judicial separation is granted on the ground of adultery
and death of the employee takes place during the period of such judicial separation,
the family pension shall not be payable to the person surviving if such person surviving
was held guilty of committing adultery.
(7) (a) Where a female employee or male employee dies leaving behind a judicially
separated husband or widow with a child or children, the family pension payable
in respect of the deceased shall be payable to the surviving person provided he
or she is the guardian of such child or children;
(b) where the surviving person has ceased to be the guardian of such child or
children, such family pension shall be payable to the person who is the actual
guardian of such child or children.
(8) If the son or unmarried daughter eligible for the grant of family pension has attained
the age of eighteen years, the family pension may be paid to such son or unmarried
daughter directly.
(9) (a) If a person who, in the event of death of an employee while in service, is eligible
to receive family pension under these rules is charged with the offence of
murdering the employee or for abetting in the commission of such an offence,
the claim of such a person, including other eligible member or members of the
family to receive the family pension, shall remain suspended till the conclusion
of the criminal proceedings instituted against him;
(b) if on the conclusion of the criminal proceedings referred to in clause(a), the
person concerned -
(i) is convicted for the murder or abetting in the murder of the employee,
such a person shall be debarred from receiving the family pension which
shall be payable to the other eligible member of the family, from the date
of death of the employee;
(ii) is acquitted of the charge of murder or abetting in the murder of the
employee, the family pension shall be payable to such a person from the
date of death of the employee;
(c) the provisions of sub-clauses (a) and (b) shall also apply for the family pension
becoming payable on the death of an employee after his retirement.
COMMUTATION
COMMUTA
Commutation:- (1) An employee shall be entitled to commute for a lump sum payment of a
fraction not exceeding one-third of his pension.
(2) An employee shall indicate the fraction of pension which he desires to commute and
may either indicate the maximum limit of one-third pension or such lower limit as he
may desire to commute.
(3) If fraction of pension to be commuted results in fraction of rupee, such fraction of a
rupee shall be ignored for the purpose of commutation.

170
(4) The lump sum payable to an applicant shall be calculated in accordance with the Table
given below:-
TA B L E
Commutation Value for a Pension of Re.1/- per annum
Age next Commutation V alue
Value Age next Commutation V alue
Value
birthday expressed as number birthday expressed as number
of year's purchase of year's purchase
17 19.28 51 12.95
18 19.20 52 12.66
19 19.11 53 12.35
20 19.01 54 12.05
21 18.91 55 11.73
22 18.81 56 11.42
23 18.70 57 11.10
24 18.59 58 10.78
25 18.47 59 10.46
26 18.34 60 10.13
27 18.21 61 9.81
28 18.07 62 9.48
29 17.93 63 9.15
30 17.78 64 8.82
31 17.62 65 8.50
32 17.46 66 8.17
33 17.29 67 7.85
34 17.11 68 7.53
35 16.92 69 7.22
36 16.72 70 6.91
37 16.52 71 6.60
38 16.31 72 6.30
39 16.09 73 6.01
40 15.87 74 5.72
41 15.64 75 5.44
42 15.40 76 5.17
43 15.15 77 4.90
44 14.90 78 4.65
45 14.64 79 4.40
46 14.37 80 4.17
47 14.10 81 3.94
48 13.82 82 3.72
49 13.54 83 3.52
50 13.25 84 3.32
85 3.13

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Notes:-
(1) The table above indicates the commuted value of pension expressed as number of years
purchase with reference to the age of the pensioner as on his next birthday. The
commuted value in the case of an employee retiring at the age of fifty eight years is
10.46 years purchase and, therefore, if he commutes rupees one hundred from his
pension within one year of retirement, the lump sum amount payable to him works out
to ` 100 x 10.46 x 12 = ` 12,552. Commuted value of a portion of pension has to be
calculated based on the factor applicable for the age next birthday. Where the date of
birth is 1st of the month and commuted value is calculated as on that date, for
determining the age next birthday, the 1st of the same month in the next year has to be
taken. For example, an employee who was born on 1st January 1945 and whose age of
superannuation is 58 will retire on 31.12.2002. In his case for calculating commuted
value as on 1.1.2003, the age next birthday will be determined as on 1.1.2004 i.e. the age
next birthday will be taken as 59.
(2) An employee who had commuted the admissible portion of pension is entitled to have
the commuted portion of the pension restored after the expiry of a period of fifteen
years from the date of commutation.
(3) An applicant who is authorized a superannuation pension, voluntary retirement
pension, invalid pension or compassionate allowance shall be eligible to commute a
fraction of his pension under these rules.
(4) In the case of a pensioner eligible for superannuation pension or pension on voluntary
retirement, no medical examination shall be necessary, if the application for
commutation is made within one year from the date of retirement. However, if such a
pensioner applies for commutation of pension after one year from the date of his
retirement, the same will be permitted subject to medical examination.
Explanation:- An applicant who -
(i) retires on invalid pension, or
(ii) is in receipt of compassionate allowance,
shall be eligible to commute a fraction of his pension subject to the limit specified after
he has been declared fit by a medical officer approved by the Corporation.
(5) The commutation of pension shall become absolute in the case of an employee -
(a) retiring on superannuation or voluntary retirement who submits an application
for commutation of pension before the date of retirement, on the date following
the date of retirement:
Provided that the employee governed by sub-rule(3) of the rule relating to pension
on voluntary retirement the commutation of pension shall become absolute only
on the expiry of the period of notice referred to in sub-rule (1) of the said rule;
(b) retiring on superannuation or on voluntary retirement if he applies for
commutation of pension after the date of retirement but before the completion
of one year from the date of retirement, on the date the application for
commutation is received by the Competent Authority;
(c) retiring on superannuation or on voluntary retirement, if he applies for
commutation of pension after one year from the date of retirement, on the date

172
 of the medical certificate given by medical officer approved by the Corporation;
(d) in respect of whom invalid pension or compassionate allowance is admissible,
commutation shall become absolute on the date of the medical certificate given
by a medical officer approved by the Corporation.
GENERAL CONDITIONS
Pension subject to future good conduct: - Future good conduct shall be an implied
condition of every grant of pension and its continuance under these rules.
Withholding or withdrawal of Pension:- The Competent Authority may, by order in writing,
withhold or withdraw a pension or a part thereof, whether permanently or for a specified
period, if the pensioner is convicted of a serious crime or is found guilty of grave misconduct:
Provided that where a part of pension is withheld or withdrawn, the amount of such pension
shall not be reduced below the minimum pension per mensem payable under these rules.
Conviction by Court:- Where a pensioner is convicted of a serious crime by a Court of Law,
action shall be taken in the light of the judgement of the court relating to such conviction.
Pensioner guilty of grave misconduct:- In a case not falling under the preceding rule if
the Competent Authority considers that the pensioner is prima facie guilty of grave misconduct,
it shall, before passing an order, follow the procedure specified in regulation 39 of the Staff
Regulations.
Provisional pension:- (1) An employee who has retired on attaining the age of superannuation
or otherwise and against whom any departmental or judicial proceedings are instituted or
where departmental proceedings are continued, a provisional pension, equal to the maximum
pension which could have been admissible to him, would be allowed subject to adjustment
against final retirement benefits sanctioned to him, upon conclusion of the proceedings but
no recovery shall be made where the pension finally sanctioned is less than the provisional
pension or the pension is reduced or withheld etc. either permanently or for a specified period.
12 In such cases the gratuity shall not be paid to such an employee until the conclusion of
the proceedings against him. The gratuity shall be paid to him on conclusion of the
proceedings subject to the decision of the proceedings. Any recoveries to be made from
an employee shall be adjusted against the amount of gratuity payable.
Explanation:- In this chapter -
(a) The expression "serious crime" includes a crime involving an offence under the Official
Secrets Act, 1923 (19 of 1923):
(b) The expression "grave misconduct" includes the communication or disclosure of any
secret official code or password or any sketch, plan, module, article, note, document or
information, such as is mentioned in section 5 of the Official Secrets Act, 1923 (19 of
1923) (which was obtained while holding an office in the Corporation) so as to
prejudicially affect the interest of the general public or the security of the state.
Commutation of pension during departmental or judicial proceedings:-
An employee against whom departmental or judicial proceedings have been instituted before
the date of his retirement or a person against whom such proceedings are instituted after the
date of his retirement, shall not be eligible to commute a fraction of his provisional pension,
or pension, as the case may be, authorized under these rules, during the pendency of such
proceedings.
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 Recovery of Pecuniary loss caused to the Corporation:- (1) The Competent
Authority may withhold or withdraw a pension or a part thereof, whether permanently
or for a specified period, and order recovery from pension of the whole or part of any
pecuniary loss caused to the Corporation if in any departmental or judicial proceedings
the pensioner is found guilty of grave misconduct or negligence during the period of
his service:
Provided that the Executive Committee shall be consulted before any final orders are
passed:
Provided further that departmental proceedings, if instituted while the employee was
in service, shall, after the retirement of the employee, be deemed to be proceedings
under this rule and shall be continued and concluded by the authority by which they
were commenced in the same manner as if the employee had continued in service:
Provided also that no departmental or judicial proceedings, if not initiated while the
employee was in service, shall be instituted in respect of any cause of action which
arose or in respect of an event which took place more than four years before such
institution.
(2) Where the Competent Authority orders recovery of the pecuniary loss from the pension,
the recovery shall not ordinarily be made at a rate exceeding one-third of the pension
admissible on the date of retirement of the employee:
Provided that where a part of pension is withheld or withdrawn, the amount of pension
drawn by a pensioner shall not be less than the minimum pension payable under these
rules.
Recovery of Corporation's dues:- The Corporation shall be entitled to recover the
dues to the Corporation on account of housing loans, advances, licence fees, other
recoveries and recoveries due to staff co-operative credit society from the commutation
value of the pension or the pension or the family pension.
Commercial employment after retirement:- 1) If a pensioner who, immediately
before his retirement was holding the post of an officer belonging to the cadre of
Divisional Manager or above and wishes to accept any commercial employment before
the expiry of two years from the date of his retirement, he shall obtain the previous
sanction of the Corporation to such acceptance:
Provided that an employee who was permitted by the Corporation to take up a particular
form of commercial employment during his leave preparatory to retirement or during
refused leave shall not be required to obtain subsequent permission for his continuance
in such employment after retirement.
(2) The Corporation may, by order in writing, on the application by a pensioner, grant,
subject to such conditions, if any, as it may deem necessary, permission, or refuse, for
reasons to be recorded in the order, permission to such pensioner to take up the
commercial employment specified in the application.
(3) In granting or refusing permission to a pensioner for taking up any commercial
employment, the Corporation shall have regard to the following factors, namely:-
(a) the nature of the employment proposed to be taken up and the antecedents of
the employer;

174
 (b) whether his duties in the employment which he proposes to take up might be
such as to bring him into conflict with the Corporation;
(c) whether the pensioner while in service had any such dealing with the employer
under whom he proposes to seek employment as it might afford a reasonable
basis for the suspicion that such pensioner had shown favours to such employer;
(d) whether the duties of the commercial employment proposed involve liaison or
contact work with Corporation;
(e) whether his commercial duties will be such that his previous official position or
knowledge or experience under Corporation could be used to give the proposed
employer an unfair advantage;
(f) the emoluments offered by the proposed employer; and
(g) any other relevant factor.
(4) Where within a period of sixty days of the date of receipt of an application, the
Corporation does not refuse to grant the permission applied for or does not communicate
the refusal to the applicant, the Corporation shall be deemed to have granted the
permission applied for:
Provided that in any case where defective or insufficient information is furnished by
the applicant and it becomes necessary for the Corporation to seek further clarifications
or information from him, the period of sixty days shall be counted from the date on
which the defects have been removed or complete information has been furnished by
the applicant.
(5) Where the Corporation grants the permission applied for subject to any conditions or
refuses such permission, the applicant may, within thirty days of the receipt of the
order of the Corporation to that effect, make a representation against any such condition
or refusal and the Corporation may make such orders thereon as it deems fit:
Provided that no order other than an order cancelling such condition or granting such
permission without any conditions shall be made under this sub-rule without giving
the pensioner making the representation an opportunity to show cause against the
order proposed to be made.
(6) If any pensioner takes up any commercial employment at any time before the expiry of
two years from the date of his retirement without the prior permission of the Corporation
or commits a breach of any condition subject to such permission to take up any
commercial employment has been granted to him under this rule, it shall be competent
for the Corporation to declare by order in writing and for reasons to be recorded therein
that he shall not be entitled to the whole or such part of the pension and for such
periods as may be specified in the order:
Provided that no such order shall be made without giving the pensioner concerned an
opportunity of show cause against such declaration:
Provided further that in making any order under this sub-rule, the Corporation shall
have regard to the following factors, namely:-
(i) the financial circumstances of the pensioner concerned;
(ii) the nature of, and the emoluments from, the commercial employment taken up
by the pension concerned; and
175
 (iii) any other relevant factor.
(7) Every order passed by the Corporation under this rule shall be communicated to the
pensioner concerned.
(8) In this rule,-
(a) the expression "commercial employment" means-
(i) an employment in any capacity including that of an agent, under a
company, co-operative society, firm or individual engaged in trading,
commercial, industrial, financial or professional business and includes
also a directorship of such company and partnership of such firm, but
does not include employment under a body corporate, wholly or
substantially owned or controlled by the Central Government or a State
Government;
(ii) setting up practice, either independently or as a partner of a firm, as
adviser or consultant in matters in respect of which the pensioner-
(A) has no professional qualifications and the matters in respect of which
the practice is to be set up or is carried on are relatable to his official
knowledge or experience, or
(B) has professional qualifications but the matters in respect of which
such practice is to be set up are such as are likely to give his clients
an unfair advantage by reason of his previous official position, or
I has to undertake work involving liaison or contact with the offices or officers of the
Corporation.
Explanation:- For the purpose of this clause, the expression "employment under a co-
operative society" includes the holding of any office, whether elective or otherwise,
such as that of President, Chairman, Manager, Secretary, Treasurer and the like, by
whatever name called in such society.
Nomination:- (1) The trust shall allow every employee governed by these rules to
make a nomination conferring on one or more persons the right to receive the amount
of pensionary benefits under these rules in the event of his death before that amount
becomes payable or, having become payable, has not been paid. Such nomination shall
be made in such form as may be specified by the Corporation from time to time.
(2) If any employee nominates more than one person, he shall, in his nomination, specify
the amount or share payable to each of the nominees in such a manner as to cover the
whole of the amount of the pensionary benefits that may be payable in the event of his
death.
(3) A nomination made by an employee may, at any time, be modified or revoked by him
after giving a written notice to the trust of his intention of doing so in such form as the
Corporation may from time to time specify.
(4) A nomination or its revocation or its modification shall take effect to the extent it is
valid on the date on which it is received by the trust.
Date from which pension becomes payable:- (1) Except in the case of an employee
to whom the provisions of rule relating to withholding or withdrawal of pension and

176
 rule relating to provisional pension apply a pension other than family pension shall
become payable from the date following the date on which an employee retires.
(2) Family pension shall become payable from the date following the date of death of the
employee or the pensioner.
(3) Pension including family pension shall be payable for the day on which its recipient
dies.
Currency in which pension is payable:- All pensions admissible under these rules
shall be payable in rupees in India only.
Manner of payment of pension:- A pension fixed at a monthly rate shall be payable
monthly on or after the first day of the following month.
AMOUNT OF MONTHLY F
MONTHLY AMIL
FAMILY PENSION - APPENDIX I
AMILY
Scale of pay per month Amount of monthly Family Pension
(1) (2)
a) In respect of employees retired before (Class I,III&IV-1.08.1987:Class II-1.04.1988) -
CPI 332
Upto ` 663 30 per cent of the `Pay' shall be the basic
Family Pension plus 30 percent of
allowances as additional Family pension
subject to minimum of ` 100 and maximum
of ` 166.
` 664 to ` 1991 15 per cent of the `Pay' shall be the basic
Family Pension plus 15 percent of
allowances as additional Family Pension
subject to minimum of ` 166 and maximum
of ` 266.
Above ` 1991 12 per cent of the `Pay' shall be the basic
Family Pension plus 12 percent of
allowances as additional Family Pension
subject to minimum of ` 266 and maximum
of ` 415.
The basic family pension so arrived at should be updated adding to such family pension the
dearness relief at CPI 600 as per chart (Annexure-21) for updating of basic pension and the
additional family pension arrived at by applying above formula should be updated by applying
the chart (Annexure-22) for updating the additional pension.

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 ANNEXURE - 21
CHART FOR UPDATING PENSION AT 600 POINTS
UPDATING
BASIC FAMILY PENSION Dearness Relief
I SUBORDINATE STAFF 80.40% OF PENSION
II CLASS 3 DRAWING PENSION < 757 67% OF PENSION
III CLASS 3 DRAWING PENSION
757-796 508
797-804 534
805-824 540
825-844 553
845-864 567
865-884 580
885-904 593
905-924 607
925-944 620
945-964 634
965-984 647
985-1004 660
1005-1024 674
1025-1044 687
1045-1064 701
1065-1084 714
>1084 727
IV CLASS 1&2 DRAWING PENSION < 766 66% OF PENSION - MAX. 500
766-1165 500
>1165 42.90% OF PENSION - MAX. 715

178
 ANNEXURE - 22
CHART FOR UPDATING ADDITIONAL PENSION
UPDATING
As per LIC of India Class III As per LIC of India Class III & IV
& IV Employees (Revision of Employees (Revision of Terms &
Terms & Conditions of Service) Conditions of Service) Rules,
Rules, 1985 w.e.f. 1-4-1983 1989 w.e.f. 1-8-1987
Nature of Amount of Special Additional Amount of Special Updated
Allowance Allowance (which Pension Allowance (which Additional
ranks for P.F.) ranks for P.F.) Pension
` ` ` `
a) Special
Allowance to
IAAs
1) for the first
5 years of
service 110 55 162 81
2) next 5 years 120 60 180 90
3) subsequent
years 135 68 202.50 102
b) Special
Allowance to
Assistant
appointed as
Receiving &
Paying Cashier 70 35 157.50
b) In respect of employees retired between (cl.III&IV-1.08.1987 TO 31/07/1992;cl.I-1.08.1987
TO 31/03/1993;cl.II - 1.4.1988 TO 31/03/1993)-CPI 600
Upto ` 1500 30 per cent of the `Pay' shall be the basic Family
Pension plus 30 percent of allowances which
are counted for making contribution to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall not be less than ` 375 per month.
` 1501 to ` 3000 20 percent of the `Pay' shall be the basic Family
Pension plus 20 percent of allowances which
are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall not be less than ` 450 per month.

179
 Above ` 3000 15 per cent of the `Pay' shall be the basic Family
Pension plus 15 per cent of allowances which
are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall not be less than ` 600 per month
and not more than ` 1250 per month.

c) In respect of employees retired between (cl.III&IV-1.08.1992 TO 31/07/1997;cl.I&II-1.04/

1993 TO 31/07/1997)-CPI 1148
Upto ` 2870 30 per cent of the `Pay' shall be the basic Family
Pension plus 30 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 720
per month.
` 2871 to ` 5740 20 per cent of the `Pay' shall be the basic Family
Pension plus 20 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 860
per month.
Above ` 5740 15 per cent of the `Pay' shall be the basic Family
Pension plus 15 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension.The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1150
per month and a maximum of ` 2400 pm.
d) In respect of employees retired between 1.8.1997 to 31.07.2002-CPI 1740
Upto ` 4360 30 per cent of the `Pay' shall be the basic Family
Pension plus 30 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1100
per month.

180
 ` 4361 to ` 8700 20 per cent of the `Pay' shall be the basic Family
Pension plus 20 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1310
per month.
Above ` 8700** 15 per cent of the `Pay' shall be the basic Family
Pension plus 15 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1740
per month.
** for Pay of ` 8701/- to 11670/- Family pension will be worked out in CPI 1148 points & in
1740 points and whichever is beneficial will be sanctioned - refer C.O. cirs. dt.13/10/
2001 & Per/ER/A/G/345/MMS dt.10/12/2001.
e) In respect of employees retired between 1.8.1997 to 31.07.2002-CPI 2328
Upto ` 5840 30 per cent of the `Pay' shall be the basic Family
Pension plus 30 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1480
per month.
` 5841 to ` 11640 20 per cent of the `Pay' shall be the basic Family
Pension plus 20 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1760
per month.
Above ` 11640 15 per cent of the `Pay' shall be the basic Family
Pension plus 15 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 2330
per month.

181
f) In respect of employees retired after 01.08.2007-CPI 2944
Upto ` 7390
` 7391 to ` 14720
Above ` 14720
APPENDIX II (See Rule 29)
Actual service rendered on regular
part-time basis
Less than 3 hours
3 hours or more but less than 4 hours
4 hours or more but less than 5 hours
5 hours or more but less than 6 hours
6 hours or more but less than 7 hours
7 hours or more but less than 8 hours
182
30 per cent of the `Pay' shall be the basic Family
Pension plus 30 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 1880
per month.
20 per cent of the `Pay' shall be the basic Family
Pension plus 20 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 2230
per month.
15 per cent of the `Pay' shall be the basic Family
Pension plus 15 per cent of the allowances
which are counted for making contributions to
Provident Fund but not for Dearness Allowance
shall be the additional Family Pension. The
aggregate of basic and additional Family
Pension shall be subject to a minimum of ` 2950
per month.
Length of corresponding qualifying
service for each year of service
rendered on regular part time basis for
calculating the amount of pension
1/4th of a year
3/8th of a year
1/2 of a year
5/8th of a year
3/4th of a year
7/8th of a year
 DUAL FAMIL
FAMILY PENSIONS LIMIT - APPENDIX III
AMILY
If the surviving child or children are eligible to draw two family pensions, both the pensions
shall be limited as given below:
Sr.No. Class Employee's retirement or Two One Two Normal
death while in service Enhanced Enhanced Family
Family Family Pension
Pension Pension
and One
Normal
Family
Pension
1. 3&4 Before 01.08.1992 2500 2500 1250
2. 1&2 Before 01.04.1993 2500 2500 1250
3. 3&4 On or after 01.08.1992 4800 4800 2400
but before 01.08.1997
4. 1&2 On or after 01.04.1993 4800 4800 2400
but before 01.08.1997
5. All On or after 01.08.1997 7080 7080 7080
but before 01.08.2002
6. All On or after 01.08.2002 10830 10830 10830
but before 01.08.2007
7. All After 01.08.2007 17955 17955 17955
APPENDIX IV - DEARNESS RELIEF
a) In respect of employees retired before (class.I & II-1.04.1993;class.III & IV-1.08.1992)-
CPI 600
Scale of Basic Pension per month The rate of Dearness Relief as a percentage of
basic Pension
(1) (2)
i) upto ` 1250 0.67 per cent
ii) ` 1251 to 2000 0.67 per cent of ` 1250 plus
0.55 per cent of basic Pension in excess of ` 1250
iii) ` 2001 to ` 2130 0.67 per cent of ` 1250 plus
0.55 per cent of the difference between ` 2000
and
` 1250 plus 0.33 percent of basic Pension in
excess of ` 2000
iv) above ` 2130 0.67 per cent of ` 1250 plus
0.55 per cent of the difference between ` 2000
and ` 1250 plus 0.33 per cent of the difference

183
 between ` 2130 and ` 2000 plus 0.17 per cent of
basic Pension in excess of ` 2130.
0.67 per cent of ` 1250 plus
0.55 per cent of the difference between ` 2000
and ` 1250 plus 0.33 per cent of the difference
between ` 2130 and ` 2000 plus 0.17 per cent of
basic Pension in excess of ` 2130.
b) In respect of employees retired before 1.08.1997-CPI 1148
Scale of Basic Pension per month The rate of Dearness Relief as a percentage of
basic Pension
(1) (2)
i) Upto ` 2400 0.35 per cent
ii) ` 2401 to ` 3850 0.35 per cent of ` 2400 plus
0.29 per cent of basic Pension in excess of ` 2400
iii) ` 3851 to ` 4100 0.35 per cent of ` 2400 plus
0.29 per cent of the difference between ` 3850
and ` 2400 plus
0.17 per cent of basic Pension in excess of ` 3850.
iv) above ` 4100 0.35 per cent of ` 2400 plus
0.29 per cent of the difference between ` 3850
and ` 2400 plus
0.17 per cent of the difference between ` 4100
and ` 3850 plus
0.09 per cent of basic Pension in excess of ` 4100.
c) In respect of employees retired before 1.08.2002-CPI 1740
0.23% of Basic Pension
d) In respect of employees retired before 1.08.2007-CPI 2328
0.18% of Basic Pension
(e) In respect of employees retired on or after 1.08.2007-CPI 2944
0.15% of Basic Pension

184
 DEARNESS RELIEF SLABS
DA Slabs for
various
CPI points
Period CPI 600 CPI 1148 CPI 1740 CPI 2328 CPI 2944
08/2002-01/2003 432 295 147 0
02/2003-07/2003 449 312 164 17
08/2003-01/2004 459 322 174 27
02/2004-07/2004 469 332 184 37
08/2004-01/2005 476 339 191 44
02/2005-07/2005 495 358 210 63
08/2005-01/2006 501 364 216 69
02/2006-07/2006 528 391 243 96
08/2006-01/2007 542 405 257 110
02/2007-07/2007 574 437 289 142
08/2007-01/2008 586 449 301 154 0
02/2008-07/2008 614 477 329 182 28
08/2008-01/2009 643 506 358 211 57
02/2009-07/2009 692 555 407 260 106
08/2009-01/2010 713 576 428 281 127
02/2010-07/2011 804 667 519 372 218
08/2011-01/2011 831 694 546 399 245
02/2011-07/2011 892 755 607 460 306
08/2011-01/2012 919 782 634 487 333
02/2012-07/2012 979 842 694 547 393

3) Minimum Pension : APPENDIX V

RETIRED/DIED MIN. PENSION Pay linked to CPI
Class III & IV Class I & II
Before1/8/1992 Before 01.04.1993 375 600
On or after 1/8/1992 On or after 01.04.1993 720 1148
On or after 1/8/1997 On or after 01.08.1997 1100 1740
On or after 1/8/2002 On or after 01.08.2002 1480 2328
On or after 1/8/2007 On or after 01.08.2007 1880 2944

185
EXAMPLES
(I) Calculation of Pension for an employee retired on or after 01.08.2002 (Example)
Date of birth 02/12/1945 02/12/1945
Date of Appointment on probation 20/08/1973 20/08/1973
Date of Training 20/05/1973 18/05/1973
Date of Retirement 31/12/2005 31/12/2005
EOL availed during entire service
EOL on Medical Certificate Nil 465
EOL other than on Medical Certificate 40 40

No EOL during last 10 months EOL during last 10 months

A B
Period Pay (` ) Period Pay (` )
.02.05 1 day 258
.03.05 7740 7740
.04.05 7945 7945
.05.05 7945 ( 1 day EOL) 7945
.06.05 7945 7945
.07.05 7945 7945
.08.05 7945 7945
.09.05 7945 (1 day EOL) 7680.17
.10.05 7945 7945
.11.05 7945 7945
.12.05 7945 7945
Total 79245 79238.17

186
Qualifying Service 33 years (32 yrs 6 months 1 day) 32 years (32 yrs 2 months 21
days)
Age at Retirement 60 years 60 years
Basic Pension, Commuted Value and Pension
Average Emoluments 7924.50 7923.82
Basic Pension 7924.5*33/(2*33)=3963 7923.82*32/(2/33)=3842
Commuted Portion 1321 1280
Pension after
Commutation 2642 2562
Commuted Value 1321*12*9.81=` 155508.12 1280*12*9.81=` 150681.60
>=` 155509/- >=` 150682/-
Total Pension
(DA slabs as on
01.08.2005) 2642+492.20=3134.20 i.e. ` 3134/- 2562+477.18=3039.18 i.e. ` 3039/-
Pension should not be less than ` 1480/-
Compassionate allowance maximum allowable is 2/3rd of Pension applicable. However, if it is
less than ` 1480/-, then ` 1480/- will be payable.
(II) Eligible for Voluntary Retirement
A B
Date of Birth 02/12/1955 02/12/1955
Date of Appointment on probation 20/08/1985 20/08/1985
Date of Training 20/05/1985 20/05/1985
Date of Retirement (on Vol. Ret.) 31/12/2005 31/12/2005
EOL availed during entire service
EOL on Medical Certificate Nil 555
EOL other than on Medical Certificate 40 40
To be eligible for Voluntary Retirement employee has rendered minimum 20 qualifying years
of service [i.e. Date of Retirement minus Date of Appointment minus(Eol other than Medical
Certificate+EOL on medical certificate exceeding 12 months+Dies-non)].
Qualifying Years service
20 yrs 6 months 1 day 19 yrs 11 months 21 days
(eligible for Voluntary (not eligible for
Retirement) Voluntary Retirement)
Qualifying years service to be increased by 5 years for 1st case (if date of birth is 2/12/1949,
years of service to be increased by 4 years only)- Conditions to be noted a) it should not exceed
33 years service or b) take the employee beyond superannuation age.

187
The date of receipt of notice period for voluntary retirement is reckoned from the next day of
the receipt of notice by the office and the day on which notice for voluntary retirement received
is taken as 0.
(III) Example for deciding the Completion of 90 days notice period & arriving at the absolute
date of commutation (i.e. date on which the commutation falls due):
A B
Date of notice for Vol. Retirement : 02/04/2002 02/03/2002
Date of receipt of notice for Vol. Retirement by the
Office (B.O. for employees working in B.O. and
D.O. for employees working in D.O.) : 02/04/2002 03/03/2002
Date of retirement : 01/07/2002 06/03/2002
Date of receipt of Form no.5 by the Office B.O. for
employees working in B.O. and D.O. for employees
working in D.O.) : 03/07/2002 06/03/2002
Completion of 90 days notice period : 01/07/2002 01/06/2002
Absolute date of commutation : 02/07/2002 02/06/2002
Please note that absolute date of commutation will fall due on,
The next day of retirement of the employee if received on or before date of retirement.
OR
After completion of 90 days of notice period for voluntary retirement
OR
Date of receipt of application for commutation of fraction of pension
Whichever is later.
(IV) (A) Arriving at Family Pension for those who have retired before (Class-I, III & IV -1/8/
1987; Class-II - 1/4/1988)
(Class-3)
Without drawing any allowance
Basic Pay last drawn: ` 1885
15% of PAY 282.75 =>Max.266
Updation of DA(as per Annex.21) on 266 => 178.22
Total 444.22
Basic Family pension @ ordinary rate 445
with allowance

188
BP ` 1885, Allow 146(Rank for PF of 245)
12% of PAY 226.20=>Min.266-12% of 146 (17.52=>18)
248.00
DA on 248 166.16 DA on 18.12.06
TOTAL 414.16 - 30.06
Basic Family pension @ ord.rate 415
Add. Family Pension 31
Total Family Pension 446
with allowance
Basic Pay last drawn: ` 1885 Allow 70 (Rank for PF)
15% of PAY 282.75 =>Max.266 -15% of 70 (10.5=>11)
255
Updation of DA on 266 => 170.85 DA on 11.37
Total 425.85 18.37
Basic Family pension @ ord.rate 426
Add. Family Pension 19
Total Family Pension 445

(Class-1)
Without drawing any allowance
Basic Pay last drawn: ` 2080
12% of PAY 249.60 =>Min. 266
Updation of DA on 266 => 175.56
Total 441.56
Basic Family pension @ ord.rate 442

(Class-2)
Without drawing any allowance
Basic Pay last drawn: ` 1870
15% of PAY 280.50 =>Max.266
Updation of DA on 266 => 175.56
Total 441.56
Basic Family pension @ ord.rate 442

189
(Class-4)
Without drawing any allowance
Basic Pay last drawn: ` 650
30% of PAY 195 => MAX. 166
Updation of DA on 166 => 133.46
Total 299.46
Basic Family pension @ ord.rate 300 -> Min ` 375/-
(IV) (B) Arriving at Family Pension for those who have retired before (Class-III & IV -1/8/
1992; Class-I & II - 1/4/1993)
Without drawing any allowance
Basic Pay last drawn: ` 1225
30% of PAY 367.50 => Min.375
Basic Family pension @ ord.rate 375
without drawing any allowance
BP ` 1380
30% on PAY 414
Basic Family pension @ ord.rate 414
with allowance
BP ` 1380 Allow 157.50(Rank for PF of 175)
20% of PAY 276=>Min.450-20% of 157.50(31.5=>32)
Basic Family pension @ ord.rate 418
Add. Family Pension 32
Total Family Pension 450
with allowance
BP ` 2985 Allow 157.50(Rank for PF of 175)
15% of PAY 447.75=>Min.600-15% of 157.50(23.63=>24)
Basic Family pension @ ord.rate 576
Add. Family Pension 24
Total Family Pension 600
without drawing any allowance
BP ` 7000
15% of PAY 1050
Basic Family pension @ ord.rate 1050

190
(IV) (C) Arriving at Family Pension for those who have retired before 1/8/1997 but after
(Class-III & IV after 31/07/1992-; Class-I & II - 31/3/1993)
Without drawing any allowance
Basic Pay last drawn: ` 2350
30% on PAY 705 => Min.720
Basic Family pension @ ord.rate 720
without drawing any allowance
BP ` 5500
20% on PAY 1100
Basic Family pension @ ord.rate 1100
with allowance (before 1/8/1994)
BP ` 5500 Allow 157.50 (Rank for PF of 175)
20% on PAY 1100 20% of 157.50 (31.5=>32)
Basic Family pension @ ord.rate 1100
Add. Family Pension 32
Total Family Pension 1132
with allowance(after 31/07/1994)
1.BP ` 5500 Allow 210 (Rank for PF of 210) 2.BP ` 5500 Allow 210,156 (Rank for PF
of 210)
20% on (BP+Allow) 1142=> 1142 15% on (BP+Allow) 879.9 => 1150
Basic Family pension @ ord.rate 1142 1150
without drawing any allowance
BP ` 14000 FPA 400
15% on BP +FPA 2160
Basic Family pension @ ord.rate 2160
(IV)(D) Arriving at Family Pension for those who have retired before 1/8/2002 but after 31/07/
1997 (except Pay between 8701 to 11670 in 1740 AICPI points)
Without drawing any allowance
Basic Pay last drawn: ` 3440
30% on PAY 1032 =>Min.1100
Basic Family pension @ ord.rate 1100
without drawing any allowance
BP ` 8275
20% on PAY 1655
Basic Family pension @ ord.rate 1655

191
with allowance
BP ` 8275 Allow 330,380 (Rank for PF of 330,380 respectively)
15% on (BP+Allow) 1347.75 =>Min.1740
Basic Family pension @ ord.rate 1740
without drawing any allowance
BP ` 23600 FPA 700
15% on BP +FPA 3645
Basic Family pension @ ord.rate 3645
(IV)(E) Arriving at Family Pension for those who have retired after 31/7/2002
Without drawing any allowance
Basic Pay last drawn: ` 4730
30% on PAY 1419 =>Min. 1480
Basic Family pension @ ord.rate 1480
without drawing any allowance
BP ` 10950
20% on PAY 2190
Basic Family pension @ ord.rate 2190
with allowance
BP ` 10950 Allow (Rank for PF) 515?
15% on (BP+Allow) 1772.25 => Min. 1780
Basic Family pension @ ord.rate 1780
without drawing any allowance
BP ` 25280 FPA 560
15% on BP +FPA 3876
Basic Family pension @ ord.rate 3876
(IV)(F) Arriving at Family Pension for those who have retired on or after 01.08.2007
Without drawing any allowance
Basic Pay last drawn: ` 6115/-
30% on PAY is =1834 but Min.= 1880
Basic Family pension @ ord.rate= 1880
without drawing any allowance
BP ` 12365/-
20% on PAY 2473
Basic Family pension @ ord.rate 2473

192
with allowance
BP ` 14530/- Techn. Allow (Rank for PF) ` 590/-
15% on (BP+Allow) = 2288 =Min.= 2950
Basic Family pension @ ord.rate 2950
without drawing any allowance
BP ` 34460 FPA 840
15% on BP +FPA =5295
Basic Family pension @ ord.rate5295
Salient features of the Life Insurance Corporation of India (Regular Part-time
Employees) Pension Scheme,1999.
Deptt: Personnel\E.R.
Cir.No. ZD\942\ASP\99 DATED 3.11.1999
Chairman has issued Life Insurance Corporation of India (Regular Part-time employees)
Pension Scheme,1999, vide above Circular, which is broadly on the lines of Pension Rules for
Regular employees.
The salient feature of the Scheme is as under :
The Scheme shall come into effect from 1st November,1993, except where it is specifically
provided.
The Scheme covers those employees who have retired on or after 31st December,1991 either
on attaining the age of superannuation or voluntarily are also eligible to be covered by the
Pension Scheme, subject to other provisions of the Pension Scheme. They will be entitled to
pension only from 1st November,1993.
Categories eligible for pension and Family Pension :-
In accordance with the various provisions contained in the pension scheme the following are
the categories of part-time employees who are eligible for Pension and Family Pension.
I) Pension :
a) Regular part-time employees who were in the service of the Corporation prior to the
scheme date and continued to be in service even after the scheme date.
b) Those who joined the service of the Corporation after the scheme date.
Qualifying years service will be reckoned from 1.1.1982 or date of appointment whichever
is later.
II) Only Family Pension :
a) Families of employees who are in service on the scheme date or joined thereafter but
died while in service.
b) Families of deceased employees who have been in receipt of pension or compassionate
allowance under the Pension Scheme.
The family for this purpose shall mean spouse, son who has not completed 25 years of
age and unmarried Divorced /Widowed / daughter.

193
 Rule 4 of the Scheme states that notwithstanding anything contained in Sub para (4) of
Para 3 an employee, who joins the service of the Corporation on or after the scheme
date at the age of thirty five years or more, may within a period of ninety days from the
date of appointment, elect to forgo his right to pension, whereupon this scheme shall
not apply to him.
Determination of the period of 10 months for average emoluments, commutation of
pension/invalid pension/compassionate and other conditions - same as per rules
applicable to regular employees.
APPENDIX I
The length of qualifying service of regular part time employee who has retired on regular
part time basis having rendered service for:
Actual service rendered Length of
on regular part-time basis corresponding
qualifying
service for each
year of service
rendered on
regular part
time basis for
calculating the
amount of
pension
a) 4 hours a day at the time of retirement 4 hours 1 year
3 hours or more but 3/4th year
less than 4 hours
less than 3 hours 1/2 year
b) 3 hours but less than 4 hours a day 3 hours or more but 1 year
at the time of retirement less than 4 hours
less than 3 hours 2/3rd year
c) Less than 3 hours a day at the less than 3 hours 1 year
time of retirement.
APPENDIX II
Dearness relief on basic pension shall be as under:
1) In the case of regular part-time employees who retired on or after 31st day of December,
1991,but before the 1st day of August, 1992 dearness relief shall be payable for every
rise or be recoverable for every fall, as the case may be, of every 4 points over 600
points in the quarterly average of the All India Average Consumer Price Index for
Industrial Workers in the series 1960 = 100. Such increase or decrease in dearness
relief for every said four points shall be calculated at the rate of 0.67 per cent of the
basic pension.
2) In the case of regular part-time employees who retire on or after the 1st day of August,
1992 but before 1st day of August 1997; dearness relief shall be payable for every rise or

194
 be recoverable for every fall, as the case may be, of every 4 points over 1148 points in
the quarterly average of All India Average Consumer Price Index for Industrial Workers
in the series 1960= 100. Such increase or decrease in dearness relief for every said four
points shall be calculated @ 0.35 % of basic Pension or such other rate as may be
communicated by the Central Office from time to time.
3) In the case of regular part-time employees who retire on or after the 1st day of August,
1997 but before 1st day of August 2002; dearness relief shall be payable for every rise or
be recoverable for every fall, as the case may be, of every 4 points over 1740 points in
the quarterly average of All India Average Consumer Price Index for Industrial Workers
in the series 1960= 100. Such increase or decrease in dearness relief for every said four
points shall be calculated @ 0.23 % of basic Pension or such other rate as may be
communicated by the Central Office from time to time.
4) In the case of regular part-time employees who retire on or after the 1st day of August,
2002 but before 1st day of August 2007; dearness relief shall be payable for every rise or
be recoverable for every fall, as the case may be, of every 4 points over 2328 points in
the quarterly average of All India Average Consumer Price Index for Industrial Workers
in the series 1960= 100. Such increase or decrease in dearness relief for every said four
points shall be calculated @ 0.18 % of basic Pension or such other rate as may be
communicated by the Central Office from time to time.
5) In case of regular part-time employees who have retired and/or died on or after 1.8.2007,
the pensionary benefits have to be calculated on the basic of revised pay and Dearness
Relief shall be payable at the rate of 0.15% on revised pension for every rise or be
recoverable for every fall, as the case may be for every 4 points over 2944 points in the
quarterly Average Consumer Price Index for Industrial Workers in the series of
1960=100.
6) Dearness relief shall be payable for the half year commencing from the 1st day of
February and ending with 31st day of July on the quarterly average of the index figures
published for the months of October, November and December of the previous year
and for the half year commencing from the 1st day of August and ending with the 31st
day of January on the quarterly average of the index figures published for the months
of April, May and June of the same year.
7) In case of family Pension, invalid pension and compassionate allowance, dearness relief
will be payable in accordance with rates mentioned above.
8) Dearness relief will be allowed on full basic pension even after commutation.
Family Pension:
(1) Without prejudice to the provisions contained in this scheme where an employee dies
after completion of one year of continuous service; or before completion of one year of
continuous service, provided the deceased employee concerned immediately prior to
his appointment to the service or post was examined by a medical officer approved by
the Corporation and declared fit for employment in the Corporation; or after retirement
from service and was on the date of death in receipt of a pension, or compassionate
allowance; the family of the deceased shall be entitled to family pension, the amount of
which shall be determined in accordance with Appendix IV.
(2) The amount of family pension shall be fixed at monthly rates and be expressed in whole

195
 rupees and where the family pension contains a faction of a rupee, it shall be rounded
off to the next higher rupee:
Provided that in no case a family pension in excess of the maximum prescribed under
this scheme shall be allowed.
(3) (a) (i) Where a regular part-time employee dies while in service after having
rendered not less than seven years of service continuous service, the rate
of Family Pension shall be equal to 50% of the Pay last drawn or one and
half times of the Family Pension admissible as per Appendix IV whichever
is less and the amount so admissible shall be payable from the date
following the date of death of the employee for a period of seven years or
for a period upto the date on which the deceased employee would have
attained the age of 65 years had he survived, whichever is less.
(ii) in the event of death of an employee after retirement, the family pension
as determined under clause (a) of this sub-para shall be payable for a
period of seven years or for a period upt to the date on which the retired
deceased employee would have attained the age of sixty five years had
he survived, whichever is less;
APPENDIX-III
Scale of pay per month Amount of monthly Family Pension
(1) (2)
a) In respect of employees retired before 1.08.1987-CPI 332
Upto ` 332 30 per cent of the `Pay' shall be the basic Family
Pension subject to minimum and maximum of -
332 - 4 Hrs ` 50.00 ` 83.00
249 - 3 Hrs. ` 38.00 ` 63.00
166 - 2 Hrs ` 25.00 ` 42.00

` 332 & above 15 per cent of the `Pay' shall be the basic Family
Pension subject to minimum and maximum of -
332 - 4 Hrs ` 83.00 ` 133.00
249 - 3 Hrs. ` 63.00 ` 100.00
166 - 2 Hrs ` 42.00 ` 67.00
Note: Family pension shall be reduced in the same proportion as the number of hours
worked on part-time basis to 4 hours of work in a day.
The basic family pension so arrived at should be updated adding to such family pension
the dearness relief at CPI 600 per chart (Annexure-18P) for updating of basic pension
i.e. Dearness Relief should be 80.40% on Family Pension arrived as above.
b) In respect of employees retired between 1.08.1987 to 31/07/1992-CPI 600
Upto ` 1500 30 per cent of the `Pay' shall be the basic Family

196
 Pension shall not be less than the minimum
pension specified under Appendix V.
c) In respect of employees retired between 1.08.1992 to 31/07/1997-CPI 1 148
1148
Upto ` 2870 30 per cent of the `Pay' shall be the basic Family
Pension shall not be less than the minimum
pension specified under Appendix V.
d) In respect of employees retired between 1.08.1997 to 31/07/2002-CPI 1740
2 Hrs. upto 1090 30 per cent of the `Pay' shall be the basic Family
3 Hrs. upto 1635 Pension subject to a minimum pension
4 Hrs. upto 2180 prescribed in Appendix-V.
2 Hrs. 1091 & above 20 per cent of the `Pay' shall be the basic Family
3 Hrs. 1636 & above subject to the minimum pension as prescribed
4 Hrs. 2181 & above below.
2 Hrs. ` 330/-p.m.
3 Hrs. ` 490/-p.m.
4 Hrs ` 650/-p.m.
e) In respect of employees retired between 1.08.2002 to 31.07.2007-CPI 2328
2 Hrs. upto 1460 30 per cent of the `Pay' shall be the basic Family
3 Hrs. upto 2190 Pension shall be subject to a minimum pension
4 Hrs. upto 2920 prescribed in Appendix-V.
2 Hrs. 1461 & above 20 per cent of the `Pay' shall be the basic Family
3 Hrs. 2191 & above Pension shall be subject to a minimum pension
4 Hrs. 2921 & above prescribed in Appendix-V.
2 Hrs. ` 440/-p.m
3 Hrs. ` 660/-p.m
4 Hrs. ` 880/-p.m
f) In respect of employees retired on or after 1.08.2007-CPI 2944
Hours of Employment Scale of Pay Amount of monthly family pension
Less than 3 hours Upto ` 1.850
More than 3 hours but Upto ` 2,770 30% of pay as basic family pension
less than 4 hours subject to the minimum pension
4 hours Upto ` 3,700 as per para 6 above.
Less than 3 hour ` 1,851 & above 20% of pay as basic family pension
More than 3 hours but ` .2,771 & above subject to the minimum pension
less than 4 hours as per para 6 above.
4 hours ` 3,701 & above
Notes: (1) "Sales of Pay" for the purpose of calculation of family pension as above shall
be "Pay" as defined in sub-clause (n) of Para 2 of the Scheme.

197
3) Minimum Pension : (Appendix-IV)
RETIRED/DIED MIN.PENSION Pay linked
to CPI
4 Hrs duty 3 Hrs duty 2 Hrs duty
BEFORE 1/8/1992 188 141 94 600
BEFORE 1/8/1997 360 270 180 1148
BEFORE 1/8/2002 550 410 275 1740
BEFORE 1/8/2007 740 550 370 2328
After 31.07.2007 470 700 940 2944

The Regular Part Time Employees joining the services of the Corporation on or after 1.4.2010
shall be governed by a Defined Contribution Pension Scheme.
Split-up particulars of No. of Hours of work per day and EOL/Dies-non availed during the
period from date of appointment to date of retirement is important for arriving at qualifying
years service in Regular Part-time Pension. For example, if
Date of appointment 01.04.1982
Date of retirement 31.01.2000
On retirement, No. of Hrs. work per day 4 Hrs
From 01/04/1982 to 31/01/1990 3 Hours work per day
From 01/02/1990 to 31/01/2000 4 Hrs. work per day
EOL for the above period 28 days(i.e.3 Hrs.W/D.)
EOL for the above period 20 days
Hence, qualifying years of service will be;
31/01/1990 Plus 31/01/2000
(-) 31/03/1982 (-) 31/01/1990
---------------- ----------------
0-10- 8 0- 0- 10
(-) 28 (-) 20
---------------- ----------------
02-09- 8 X ¾ = 24days- 6 months- 6 yrs 10- 11- 9 X 1 = 10 days - 11 months- 9 yrs
(d) (m) (y) (d) (m) (y)

Total Qualifying Years service is 16 years 6 months 4 days (rounded off to 17 years)
( If DO has furnished total EOL as 48 days during the entire service without split-up, Qualifying
Years service will be 16 years 5 months 27 days (rounded off to 16 years))

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SALIENT FEA TURES OF THE INDEX-LINKED EX-GRA
FEATURES TIA SANCTIONED
EX-GRATIA
TO PRE 1.1.1986 RETIREES
1. This scheme comes into force w.e.f. 1.11.97
2. All those retirees who retired before 1.1.1986 and who were living as on 1.11.97 will be
eligible for above relief.
3. Scheme applies to those who have rendered at least 20 years of continuous service
prior to their superannuation and does not apply to those who are getting any pensionary
benefits either from Govt., Corporation or erstwhile Insurance Companies.
4. The ex-gratia will be paid w.e.f. 1.11.97 at the rate of ` 300/- p.m. with Dearness Relief.
The dearness relief on ex-gratia amount will be payable at the rate of 0.67% for every
rise or fall of 4 points over 600 points in the quarterly average of AICPI (Base
1960=100).The dearness relief will be adjusted twice in the year i.e. in the month of
February and August.
5. The Scheme of Ex-gratia Relief will not be applicable to those who were dismissed or
removed or terminated from the services of the Corporation and to those who have
resigned from the Corporation and to those who were on contractual/daily wages
employment of the Corporation.
6. Life time arrears of ex-gratia payment will also be payable in respect of C.P.F.
beneficiaries who were alive on 1.11.97 and died subsequent to the date for the period
from 1.11.97 to the date of death.
7. Eligible retiree/claimant has to make an application for exgratia relief in the prescribed
format in triplicate.
8. The application should be made to the office in which the retiree was working at the
time of his/her retirement.
9. It is the responsibility of the applicant to satisfy Sr./Divisional Manager-in charge/
R.M. (E&OS)/Executive Director (E&OS), as the case may be, that he/she is the bonafide
and eligible retiree for grant of ex-gratia relief by producing the necessary documents.
10. The eligible retiree has a choice to receive the monthly ex-gratia relief through crossed
cheque. He/she has to give full permanent address for communication.
11. The retiree has to furnish Life Certificate and Advance Receipt etc. periodically.
Administrative procedure for the payment of ex-gratia relief to surviving spouse
of deceased pre 1986 retirees/employees who died while in service prior to
01.01.1986 circular: deptt: Personnel/ER, Circular no:ZD/1 108/ASP/2007 dtd.13/
no:ZD/1108/ASP/2007
07/07
(1) This scheme will come into force with immediate effect
(2) The ex-gratia relief will be payable to spouse of those deceased retirees who retire on
or before 31.12.1985 from the service of the corporation provided the employee had
rendered at least 20 years of continuous service prior to their superannuation and are
not in receipt of any pensionery benefit from the corporation/companies or from other
sources.This scheme is also applicable to the surviving spouses of employees who died
prior to 01.01.1986 while in service irrespective of the period of the service rendered
by them before death(hereinafter called as deceased employee).

199
(3) The ex-gratia relief payable shall be admissible to the surviving spouse only and not to
any other member of the family as defined for the purpose of family pension and shall
cease on the death of the spouse.
(4) The payment to be made to claimant on the basis of the local certification.
(5) The payment should be made to spouse preferring the claim for payment and the
corporation shall not be liable to contact the beneficiary .The payment is to be made
from the date of preferring the claim and no arrears are liable to be paid.
(6) The ex-gratia shall be admissible at the rate of ` 1000/- per month (fixed) to the surviving
spouse and no dearness relief is to be granted thereupon.
(7) The ex-gratia payments will not be admissible in all such cases wherin ,(a) employee
was dismissed/removed from the service,(b) who resigned from the service.
Fixed Personal Allowance payable to Class-III and Class -IV Employees on wage revision
Category FPA
Sweeper 315
Peons 390
Drivers 390
Record Clerks 480
Assistants/ Stenographers/ Section Head/
Higher Grade Assistants/ Superintendents 840
Income Tax on Pension:
Tax
Pension is defined under the definition of 'Salary' as per Income Tax rules. Hence Income Tax
is also to be calculated as per Tax on Salaries.
Income:
Salary*
Taxable portion of Gratuity/Taxable portion of PL encashment/Road Tax etc.*
Additional Gratuity (Class 1 & 2)*
Free Insurance (Class 3 & 4)*
Perquisites*
Pension(due from month of March but payable on 1st April to month of February but payable
on 1st March)
Any other income reported by the pensioner
Deductions:
Commuted Value ( to be included in Income and should be given relief u/s.10)
HRA relief*
Transport Allowance*
Professional Tax*
Housing Loan Interest

200
Investment attracting a reliefs u/s.Sec.80C, 80CCC, 80D & 80G
80 DD (Relief allowed to physically handicapped/mentally retarded dependants of pensioners)
& 80 U (Relief allowed to physically handicapped pensioners) for which the pensioner has to
submit Annexure-B or Annexure-C as per IT circular for the Financial Year 2005-06
* Retirement in the Current year:
For deciding Senior Citizen, the pensioner has to complete the age of 65 years at the end of
relevant year i.e. as at 31st March.
For family pension, tax at source need not to be deducted and hence Form 16 is not applicable.
Tax should be deducted from March pension but payable on 1st April onwards.

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 CHAPTER 16
TERMINAL BENEFITS
The terminal benefits that are payable to the Class I and II Officers and Class III and Class IV
employees are given as under:

Class I & II Class III & IV

Retirement / VRS Death Retirement / VRS Death

1. Gratuity 1. Group Gratuity 1. Gratuity 1. Group Gratuity
2. PL Encashment 2. Lumpsum in lieu 2. PL Encashment 2. Lumpsum in lieu
of PL of PL
3. Additional 3. Free Insurance
Encashment Encashment
Gratuity 4. Commutation of
3. Additional 3. Term Assurance
4. Commutation of Pension (for
Gratuity Pension Optees 4. GTIS if opted
Pension (for
Pension Optees 4. GTIS if opted only)
5. Employees
only) 5. Employees contribution of
5. Employees
5. Employees contribution of PF
contribution of
contribution of PF
PF 6. Corporation
PF 6. Corporation Contribution of
6. Corporation
6. Corporation Contribution of PF (for PF
Contribution of
Contribution of PF (for PF Optees only)
PF (for PF
PF (for PF Optees only)
Optees only) 7. Risk and Savings
Optees only) 7. Savings Portion Portion of GSLI
7. Risk and Savings
7. Savings Portion of GSLI
Portion of GSLI 8. Group Insurance
of GSLI -2004 if opted
8. Group Insurance
-2004 if opted

I Gratuity payable to Class I & II Officers

Gratuity is payable under Staff Regulations, 1960 / Revision Rules, 1985 for Class I Officers
and Revision Rules, 1986 for Class II Officers or Payment of Gratuity Act, 1972 whichever is
favourable.
i) Gratuity Payable by Regulation
Class I Officers:
As per Rule (9) of Revision Rules, 1985
1. (a) A permanent Class I Officer who has been in continuous service of the
Corporation for not less than 15 years (excluding period of probation or
temporary service) and
(i) whose services are terminated by the Corporation for any reason
whatsoever; or
(ii) who voluntarily resigns from the services of the Corporation; or

202
 (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 services are dispensed with either due to continued illness
or accident incapacitating him from the proper discharge of duties;
or
(iv) whose services are dispensed with owing to reduction of staff or
reorganisation of establishment;
shall be eligible for receiving Gratuity.
2. The Gratuity admissible to Class I Officers shall be at one month’s
Terminal Basic Pay including special pay, for each completed year of
continuous service or part thereof in excess of six months subject to a
maximum of 15 month’s terminal Pay upto 30 years of service and for
service over 30 years, half-a-month’s terminal Basic Pay for each
completed year of service or part thereof in excess of six months. Provided
that any period spent by such Class I Officer on extraordinary leave
exceeding 12 months during the entire period of his/her service shall be
excluded. For the purpose of computation of Gratuity under this sub-
rule Pay means
(a) Basic Pay including additions to Basic Pay as specified in rule 4A
(Stagnation Increment)
(b) Fixed Personal Allowance provided under rule 9A.
2. (A)The gratuity admissible to a Class I Officer shall be determined in accordance
with the provisions of sub-rule (2) or calculated under the Payment of Gratuity
Act, 1972 (39 of 1972), whichever is more favourable to him.
3. In the case of Class I Officers promoted from Class III Cadre on or after 1.4.73
and who dies or retires after promotion, the Gratuity payable to him shall be:
a) Gratuity admissible under sub-rule (2) or (2A); or
b) The amount of Gratuity, which such employee would have been entitled
to, had he continued as Class III Employee when the Gratuity becomes
due and payable.
While calculating Gratuity of such eligible Officers, the following points
should be kept in view:
a) Normal Grade Increment: While calculating Gratuity under Rule
9(3), we have to notionally release the Normal Grade Increment
in the scale of pay of Class III cadre from which the employee has
been promoted to Class I cadre.
b) Stagnation Increment: No Stagnation Increment is to be released
notionally. However, if the Officer had already been granted any
stagnation increments in the scale of pay of the Class III cadre
from which he was promoted to Class I cadre, the same should be
taken into consideration when the Gratuity is calculated under
Rule 9(3)
203
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, to the heirs, the amount
of gratuity admissible under this rule.
5. Not withstanding anything contained in the forgoing 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 or for
an offence involving moral turpitude provided that such offence is
committed by him in the course of his employment, the gratuity payable
to him shall stand wholly forfeited.
(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 a financial loss, the gratuity payable to him shall be
forfeited to the extent of such loss.
Class II Officers
Officers::
As per Rule (9) or Revision Rules, 1986
(1) A permanent Development Officer
(a) who has been in continuous service of the Corporation for not less than
15 years (excluding the period of probation or temporary service) and
(i) whose services are terminated by the Corporation for any reason
whatsoever; or (ii) who voluntarily resigns from the services of the
Corporation; OR
(b) who dies while in service of the Corporation; OR
(c) who retires from the service of the Corporation; OR
(d) whose service is terminated either due to continued illness or accident
incapacitating him from the proper discharge of his duties; OR
(e) whose services are dispensed with owing to reduction of staff or re
organisation of establishment shall be eligible to receive gratuity.
(2) The gratuity admissible under sub-rule (1) shall be at the rate of one month’s
terminal basic pay for each completed year of service or part thereof in excess
of six months subject to a maximum of 15 months terminal basic pay upto 30
years of service, and for service over 30 years, at the rate of half-a-month’s terminal
basic pay for each completed year of service or part thereof in excess of six
months: Provided that any period spent by such Development Officer on extra-
ordinary leave exceeding 12 months during entire period of his service shall be
excluded.
(3) Gratuity admissible to a Development Officer shall be determined in accordance
with the provisions of sub-rule (2) or calculated under the Payment of Gratuity
Act, 1972 (39 of 1972), whichever, is more favourable to him.
(4) In the case of a Development Office who has been appointed from Class III cadre

204
 on or after the 1 st day of April, 1983 and who dies or retires after such
appointment, 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.
(5) Subject to any lien the Corporation may have on the amount of gratuity admissible
to any Development Officer, the Corporation shall pay to the Officer or his
nominee or nominees, or if no nomination has been made or is subsisting, to his
heirs, the amount of gratuity admissible under this rule.
(6) Notwithstanding anything contained in the forgoing sub-rules:
(i) where the penalty of dismissal is imposed on a Development 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
or for an offence involving moral turpitude provided that such offence is
committed by him in the course of his employment, the gratuity payable
to him shall stand wholly forfeited.
(ii) Where the penalty of compulsory retirement, removal from service or
dismissal is imposed on a Development Officer for any act involving the
Corporation in a financial loss, the gratuity payable to him shall stand
forfeited to the extend of such loss.
ii) Gratuity Payable Under Act:
ELIGIBILITY
Officers who have completed 5 years of continuous service (including the period of
probation) shall become eligible for gratuity under the Act. It may be noted that although,
while a part of the year exceeding six months shall be counted as one year for payment
of gratuity, it shall not be counted as one year for determining eligibility of an Officer
for Gratuity under the Act.
Further, the completion of continuous service of five years shall not be necessary where
the termination of the employment of an Officer is due to death or disablement.
RA TE OF GRA
RATE TUITY
GRATUITY
For every completed year of service or part thereof in excess of 6 months the Gratuity
payable shall be at the rate of 15 days last drawn salary.
For the purpose of Gratuity Calculation under the Act, a month shall be of 26 days.
SALAR
RYY
For the purpose of above calculation the ‘salary’ means Basic Pay + Allowance (which
count for PF) + Dearness Allowance + Increment and Fixed Personal Allowance, if any.
SER VICE
SERVICE
‘Service’ means continuous service (including period of probation)
COMPLETED YEAR OF SER VICE
SERVICE
Completed year of service means continuous service for one year.

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 CONTINUOUS SER VICE
SERVICE
‘Continuous Service’, means uninterrupted service and includes service which is
interrupted by sickness, accident, leave, lay-off, strike or lock-out or cessation of work
not due to any fault of the Officer concerned whether such uninterrupted or interrupted
service was rendered before or after the commencement of the Act. This would mean
that for the purpose of determining the amount under this Act, extraordinary leave
granted to an Officer would also be taken into account as service.
CEILING ON GRA TUITY
GRATUITY
From 24.05.2010 onwards : ` 10 lakhs
GRA TUITY P
GRATUITY PAAYMENT IN RESPECT OF OFFICERS PROMOTED FROM CLASS
III ON OR AFTER 01.04.1973
In the case of a Class I Officer who has been promoted from Class III cadre on or after the 1st
day of April, 1973 and dies or retires after promotion the Gratuity payable to him shall be:
a) The amount of Gratuity admissible under sub-rule (2) or sub-rule (2A) of Revision Rules,
1985
OR
b) The amount of Gratuity which such employee would have been entitled to, had he
continued as a Class III employee when the Gratuity becomes due and payable
whichever is higher.
RESIGNA TIONS
RESIGNATIONS
1. Resigned after completion of 5 years of service but before 15 years of service:
Officers who resign from the services of the Corporation after completing 5 years of
service but before 15 years of service shall be paid Gratuity under Payment of Gratuity
Act, i.e. as per sub-rule (2A) of Revision Rules, 1985.
2. Resigned after completing 15 years of service:
Officers who resign from the services of the Corporation after completing 15 years of
service shall be paid Gratuity under Payment of Gratuity Act, i.e. as per sub-rule (2A)
or by Regulation i.e. as per sub-rule (2), whichever is favourable.
TERMINA TION UNDER REGULA
TERMINATION TION 39
REGULATION
1. Before completing 5 years of service:
No gratuity shall be paid to Officers, who are terminated from the services of the
Corporation before completing 5 years of service,
2. After completing 5 years of service but before 15 years of service:
In case of Officers who are terminated from the services of the Corporation after putting
5 years of service but less than 15 years, the Gratuity shall be paid under the Payment
of Gratuity Act.
3. After completing 15 years of service:
Officers who are terminated from the Corporation after putting 15 years of service,
shall be paid Gratuity under Payment of Gratuity Act, i.e. as per sub-rule (2A) of Revision
Rules, 1985 or by Regulation, whichever is favourable.

206
 It may be noted that if the penalty of dismissal is imposed on the Officer for an act
involving violence against the management or other employees or any riotous or
disorderly behaviour in or near the place of employment or for an offence involving
moral turpitude provided that such offence is committed by him in the course of his
employment, the gratuity payable to him shall stand wholly forfeited. Similarly, if the
penalty of compulsory retirement, removal from service or dismissal is imposed on an
Officer for any act involving the Corporation in a financial loss, the gratuity payable to
him shall be forfeited to the extent of such loss. In other words, while dealing with
such cases the provisions of rule 9(5) should be observed.
II PAYMENT OF GRATUITY TO CLASS III & IV EMPLOYEES
GRATUITY
Gratuity is payable under Staff Regulations, 1960 / Revision Rules, 1985 or Payment of Gratuity
Act, 1972 whichever is more favourable.
i) Gratuity Payable by Regulation
As per Rule (19) of Revision Rules 1985,
1. (a) A permanent Class III or Class IV employee who has been in continuous
service of the Corporation for not less than 15 years (excluding the period
of probation or temporary service) and
(i) whose services are terminated by the Corporation for any reason
whatsoever;
OR
(ii) who voluntarily resigns from the services of the Corporation
OR
(b) A permanent Class III or Class IV employee
(i) who dies while in the service of the Corporation
OR
(ii) who retires from the services of the Corporation
OR
(iii) whose services are terminated 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 for
reorganisation of establishment shall be eligible for the payment
of Gratuity.
2. Gratuity admissible to an employee under sub-rule 1 shall be at the rate of one
month’s terminal Pay for each completed year of continuous service in respect
of first 15 years and at the rate of half a month’s terminal Pay for each completed
year of further continuous service subject to a maximum of 20 months’ terminal
Pay.
For the purpose of computation of Gratuity under this sub-rule any period spent
by an employee on extraordinary leave, exceeding 12 months during the entire

207
 period of service shall be excluded.
For the purpose of computation of Gratuity under this sub-rule Pay means.
a) Basic Pay including additions to Basic Pay as specified in rule 7
(Stagnation Increment),
b) Special Allowances as specified in sub-rule (2) of rule 4 (Special Allowances
for Internal Audit Assistants, Cashiers. After 31.07.2007 this allowance
shall not count for the purpose of Gratuity)
c) Special Allowance as specified in sub-rule (2) of rule 6 (Special Allowance
for Head Peons, Liftmen and Watchmen)
d) Graduation allowance payable to Assistants and Stenographers as
specified in rule 19A
e) Special allowance as specified in rule 2 or rule 4 of the L.I.C. of India
Class III Employees (Special Allowance for Passing Examination) Rules,
1988.(Special Allowance for passing Licentiate, Associate and Fellowship
examinations, MBA,ICWA and CA examinations)
f) Fixed Personal Allowance provided under rule 19D.
3. Gratuity admissible to a Class III or Class IV employee shall be determined in
accordance with the provisions of sub-rule (2) or calculated under the Payment
of Gratuity Act, 1972 (39 of 1972), whichever is more favourable to him.
Provided that
a. While calculating the Gratuity under the said Act, the monthly salary of
an employee shall be deemed to be his terminal Basic Pay, Dearness
Allowance and the Special Allowance as specified in the proviso in sub-
rule (2) of rule 4 and sub-rule (2) of rule (6).
b. The provisions of the said Act shall apply notwithstanding that monthly
salary of an employee calculated in accordance with Clause (a) exceeds
rupees two thousand five hundred only.
c. In the case of an employee who dies while in service of the Corporation
after having completed 15 years of continuous service, the Gratuity under
the said Act shall be calculated at the rate of one month’s salary for every
completed year of service.
d. The amount of gratuity calculated under the said Act shall in no case
exceed the maximum prescribed under the said Act.
2. Subject to any lien the Corporation may have on the amount of Gratuity
admissible to an employee, the Corporation shall pay to the employee or to the
nominee or nominees of the employees, or if no nomination has been made or is
subsisting to the heirs of the employee, the amount of Gratuity admissible under
this rule.
3. Notwithstanding anything contained in sub-rules (1) and (4)
(i) where the penalty of dismissal is imposed on an employee for any act
involving violence against the management or other riotous or disorderly
behaviour in or near the place of employment or for an offence involving
208
 moral turpitude provided that such offence is committed by him in the
course of his employment, the Gratuity payable to him shall stand
forfeited; and
(ii) where the penalty of compulsory retirement, removal from service or
dismissal is imposed on an employee for any act involving the Corporation
in financial loss, the Gratuity payable to him shall stand forfeited to the
extent of such loss.
ii) Gratuity Payable Under Payment of Gratuity Act, 1972:
Same as in respect of Class I & II Officers.
III GRA TUITY P
GRATUITY PAAYABLE ON DEA TH:
DEATH:
GROUP GRA TUITY SCHEME
GRATUITY
In the event of death of an Officer/employee while in service of the Corporation, Gratuity
would be paid on the basis of the length of service which the Officer/employee would have put
in, had the Officer/employee served upto the normal retirement date.
Class I & II Officers
In case of death of an Officer while in service, regardless of the number of years of service,
under the Group Gratuity Scheme the higher of the following is payable:
1. As per Rule 9(2) of Revision Rules, 1985:
Based on the salary drawn as on the date of death and length of service which the
Officer would have put in had the Officer served upto the normal date of retirement.
2. As per Payment of Gratuity Act:
At the rate of 15 days salary drawn as on the date of death for a length of service which
the Officer would have put in had the Officer served upto the normal date of retirement,
subject to a maximum of ` 10,00,000/-
Note:
In case of Officers, who are promoted from Class III to Class I, the gratuity is arrived as below
and the most favourable is to be settled:
For Officers who have put less than 15 years of service till the date of death: The gratuity
arrived as above is to be compared with that calculated, had the Officer continued as Class III
upto the normal date of retirement (under Rule 19 (2) and Rule 19 (3) of Revision Rules, 1985.
For Officers who have put more than 15 years of service till the date of death: In addition to
the above, for such Officers, the gratuity has to be calculated under Rule 19 (3)(c) of Revision
Rules, 1985.
While calculating Gratuity of such eligible Officers, the following points should be kept in
view:
a) Normal Grade Increment: While calculating Gratuity under Rule 9(3), we have to
notionally release the Normal Grade Increment in the scale of pay of Class III cadre
from which the employee has been promoted to Class I cadre.
b) Stagnation Increment: No Stagnation Increment is to be released notionally. However,
if the Officer had already been granted any stagnation increments in the scale of pay of
the Class III cadre from which he was promoted to Class I cadre, the same should be
209
 taken into consideration when the Gratuity is calculated under Rule 9(3)
Class III & IV Employees
In the event of death of a Class III or IV employee while in service of the Corporation, Gratuity
would be paid on the basis of the length of service which the employee would have put in, had
the employee served upto the normal retirement date.
a. Death before completing 15 years of service:
i. As per Rule 19(2) of Revision Rules, 1985:
Based on the basic salary drawn as on the date of his death and service upto his
normal date of retirement, Maximum limit 20 months’ terminal Basic Pay.
ii. As per Rule 19(3) of Revision Rules, 1985:
At the rate of 15 days salary for each completed year of service, which the
employee would have completed, had he survived and served upto his normal
retirement age subject to a maximum ` 10,00,000/-
b. Death after completing 15 years of service:
i. As per Rule 19(2) of Revision Rules, 1985:
Based on the basic salary drawn as on the date of his death and service upto his
normal date of retirement, Maximum limit 20 months’ terminal Basic Pay.
ii. As per Rule 19(3) of Revision Rules, 1985:
At the rate of 15 days salary for each completed year of service, which the
employee would have completed, had he survived and served upto his normal
retirement age subject to a maximum ` 10,00,000/-
iii. As per Rule 19(3)(c) of the Revision Rules, 1985
At the rate of one month salary (as desired in the provision (a)) for each completed
year of service upto the date of his death subject to a maximum of ` 10,00,000./-
FREE INSURANCE TO CLASS III & CLASS IV EMPLOYEES:
Class III & IV employees retiring from the services of the Corporation are paid Free Insurance
Benefit of ` 3,750/ - for Class III and ` 3,000/- for Class IV employees vide Central Office
Circular No ZD/980/ASP/2001 dated 07.07.2001.
TERM ASSURANCE TO CLASS III & CLASS IV EMPLOYEES:
TERM INSURANCE (for death case only)
This scheme started from 01.01.1957 for the benefit of permanent Class III & IV employees.
Only confirmed employees who die while in service of the Corporation will be eligible to the
benefit of Insurance cover. The cause of death is immaterial.
The initial cover in respect of Class III employees on the date of confirmation is ` 4500/- and
in respect of Class IV employees it is ` 2250/-. Quinquennial increase for Class III is ` 1500/-
and for Class IV it is ` 750/- only. The maximum benefit available in respect of Class III employee
is ` 12000/- and in respect of Class IV employee it is ` 6000/- only. The amount will be paid on
death of the employee to the person who is entitled to receive Gratuity.

210
The quantum of benefit is given below:
Total service from confirmation Class III Class IV
Less than 5 years ` 4,500/- ` 2,250/-
5 years or more but less than 10 years ` 6,000/- ` 3,000/-
10 years or more but less than 15 years ` 7,500/- ` 3,750/-
15 years or more but less than 20 years ` 9,000/- ` 4,500/-
20 years or more but less than 25 years ` 10,500/- ` 5,250/-
25 years and above ` 12,000/- ` 6,000/-

ADDITIONAL GRA TUITY FOR CLASS I & II OFFICERS

GRATUITY
(I) APPLICABILITY:
The Scheme shall apply to confirmed whole time Class I and Class II Officers of the
Corporation. In the case of Class III employees promoted to Class I the Scheme shall
apply from the date of their promotion to Class I.
(II) ELIGIBILITY:
(A) To be eligible under the Scheme an officer has to hold or take out at his own cost
a qualifying policy/policies aggregating to a sum assured/cash option not less
than the amount indicated in Annexure I hereto and continue to maintain the
same in full force by regular payment of premiums and should not be encumbered
except for policy loan or housing loan availed from LIC. If the employee takes or
already holds another qualifying policy under approved plan and term before
discontinuing the payment of premium or surrendering the qualifying policy
originally held, he will still be entitled for the usual benefit under the scheme.
That is a qualifying policy can be substituted by another qualifying policy
provided there is no gap between the two qualifying policies. (Cir No ZD/612/
ASP/86 dated 24/04/86) In the case of an officer (aged below 44 years last birthday)
whose proposal for a policy under the Endowment or Limited Payment Whole
Life Plan (referred to in Annexure I ) is declined, he may take out a Deferred
Annuity Policy for a cash option equal to the sum assured under Endowment
Assurance Plan mentioned in Annexure I.
(B) The maturity age or the premium ceasing age, as the case may be, under the
qualifying policies taken out after 1st January 1957 or the date of joining the
Corporation, if later, must necessarily be 60 years nearer birthday. In case of
Deferred Annuity Policies the vesting age should be 60 years last birthday.
(C) An officer will be exempted from taking out an additional insurance if on the
date of joining the Corporation, he was holding an Insurance Policy under any
of the Plans mentioned in Annexure II assuring a sum (bonuses, if any, not
included) not less than the amount indicated in Annexure I. An Insurance Policy
under a Plan other than those specified in Annexure II will not rank for eligibility
under the scheme.
(D) An officer may pay the premiums on his individual policies by withdrawals from
his Provident Fund, if permissible.

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 (E) A policy which was in force on the date of entry into the Scheme, and matures/
matured before the date of retirement of the officer would be treated as a
qualifying policy, provided it otherwise satisfies the conditions as to the plan of
assurance and minimum amount of insurance excluding bonuses.
(F) A Class III employee promoted to Class I need not take out any additional policy,
provided he was holding on 1-1-57 or any subsequent date (after entry into the
service of the Corporation) prior to the date of his promotion to Class I, qualifying
policy/policies aggregating to a sum assured/cash option not less than the amount
indicated in Annexure I against Development Officers and provided further he
continues to keep the policy/policies in force as required under the Scheme.
Officers would become eligible for the Group Insurance benefit from the first of
the calendar month following the date of commencement of the necessary
qualifying policies (or from the date of commencement of the policy itself if that
date falls on the 1st of a month), provided they satisfy other eligibility conditions
of the Scheme.
(G) The condition regarding qualifying policy shall not be made applicable in case
of Class I and II officers who have been covered under Group Saving Linked
Insurance Scheme for the Corporation employees. In other words, if any officer
is covered under GSLI Scheme, he need not hold a qualifying policy under the
Scheme in order to be eligible to receive Group Insurance Benefit. The sum
assured, reversionary and final (additional) bonus, if any payable under the
Scheme in such cases shall be for Endowment Plan only. This relaxation shall
be deemed to have come into force with effect from 01/11/1987.
The Officers who had no qualifying policy to their credit prior to 01/11/1987 and
who become eligible to be covered under the Group Insurance Scheme by virtue
of their membership to Group Savings Linked Insurance Scheme, will enter
into the Scheme with effect from 01/11/1987 only and the Group Insurance Benefit
shall be paid accordingly. (Cir ref no. ZD/678/ASP/89 dated 09/01/89)
(H) It is not necessary that sum assured of a qualifying policy should strictly match
with the sum assured required as above. It may be more. Where an Officer holds
a policy for a lesser sum assured, he may be paid the proportionate benefit which
the sum assured under the policy held by him bears to the sum assured required
to qualify for full benefits under the Scheme.( Cir. ref no. ZD/612/ASP/86 dated
24/04/1986)
(III) The benefits available under Group Insurance Scheme are
(a) Basic Benefit.
(b) Simple Reversionary Bonus
(c) Final Additional Bonus, if eligible.
(IV) Basic Benefits available on normal retirement to officers whose age last birthday on
the date of entry into the Scheme is 44 years or below:
(A) The basic benefits available under the Scheme are as given in Annexure III.
(B) If an officer does not have the qualifying policy he will be given the option to opt
either for the benefit under

212
 Whole Life Assurance Plan or Endowment Assurance Plan. If he opts for the
benefit under Endowment Assurance Plan then the amount of benefit will be
payable to him on his retirement at age 60. If he opts for the
benefit under Whole Life Assurance Plan, then on retirement at age 60, he will
be granted a fully paid up Whole Life Policy for the appropriate amount. It is
however open to him to opt for Cash Surrender Value of
the Group Insurance Scheme on the date of retirement in lieu of the fully paid
up Whole Life Policy. The procedure for issue of a fully paid up Whole Life With
Profit Policy is given separately. In case of an Officer who already has the
qualifying policy/policies, the policy/policies held by him will determine the type
of benefit payable to him. That is to say, if he is holding the necessary qualifying
policy/policies under the Endowment Plan, he will get the Group Insurance
benefit equivalent to the Endowment cover and if he is holding necessary
qualifying policy/policies under the Whole Life Limited Payment Plan, he will
get the Group Insurance benefit equivalent to the Whole Life Cover. In respect
of an officer who already holds qualifying policy/policies under both the plans
and the sum assured under each plan is adequate to qualify him
for the Group Insurance benefit, he will be given an option to choose either the
benefit equivalent to the Endowment Cover or the Whole Life Cover.
(C) If an officer has both types of assurances and the sum assured under the policy/
policies under each Plan is not adequate to qualify him for the Group Insurance
benefit, but the total sum assured under the policies under both the Plans is
adequate for the purpose, he will be eligible for the Group Insurance benefit
equivalent to the Endowment Cover only. He would, however, have the option
to take out suitable additional insurance of the appropriate type to qualify for
the type of full benefit he wishes to secure. An officer who has taken out a
Deferred Annuity Policy, his proposal under Endowment or Whole Life Plan
having been declined, will be eligible for the Endowment Cover only.
(D) In the case of an employee transferred from Class III to Class II, the Group
Insurance benefit available to him will be the benefit which he would have been
entitled to had he been a Class II officer from the very beginning, provided he
had satisfied the condition as regards qualifying policy.
If an officer aged 44 or below last birthday on the date of joining the Corporation,
dies while in service of the Corporation without satisfying the conditions as to
qualifying policy, he shall be paid the benefit equivalent to the Endowment cover
only. In other words, in such cases, the conditions regarding qualifying policy
shall be waived. The payment will be made to the person/s, entitled to receive
gratuity in terms of the Gratuity Instructions.
(V) Basic Benefits available on normal retirement to officers whose age last birthday on
the date of entry into the Scheme is 45 years or over but not more than 57 years.
(A) Officers whose age last birthday on the date of entry into the Scheme is 45 years
or over but not more than 57 would get on retirement at age 60, the benefit
shown in the Table III of Annexure III. That is where an officer enters the Scheme
at age 45 or above the benefit available is fixed. Simple reversionary bonus as
well as Final Additional Bonus if any as per the Scheme shall also be paid on
the benefits admissible. (Cir ref no. ZD/643/ ASP/87 dated 18/05/1987 )

213
 (B) In the case of death of an officer of the above age-group while in the service of
the Corporation the benefit payable would be ` 4500/- if he is Class I Officer and
` 3000/- if he is Class II Officer. The death benefit will be payable whether or not
the officer has satisfied the eligibility condition as regards qualifying policy.
The payment will be made to the person/s entitled to receive gratuity in terms
of the Gratuity Instructions. Simple reversionary bonus as well as Final
Additional Bonus if eligible as per the Scheme shall also be paid on the benefits
admissible.
(VI) Basic Benefits available to employees promoted to Class I Officers’ Grade.
An employee who is promoted to Class I Officer’s Grade and whose age last birthday
on the date of joining the Corporation, was 44 years or below would have his amount of
benefit adjusted as shown in the Tables III-A and IIIB of Annexure III. In the case of an
employee who is promoted to Class I Officer’s Grade and whose age last birthday on
the date of joining the Corporation, was 45 years or over but not more than 57 the
Group Insurance benefit applicable to Class I Officers corresponding to his age last
birthday on the date of his promotion to Class I or the date of entry into the Scheme, if
later, would become payable.
(VII) SIMPLE REVERSIONARY BONUS:
A simple reversionary bonus declared/may be declared from time to time will be added
to the basic group insurance benefit under Endowment Cover or Whole Life Cover, at
the rates applicable to Endowment Assurance and Whole Life Assurance plans of the
Corporation, as the case may be. Simple reversionary bonus additions to the basic
Group Insurance Cover shall be allowed only in respect of the Officers holding qualifying
policies with profit plans. In other words Officers holding qualifying policies under
without profit plans or Double Endowment Policy, Fixed-Term (Marriage) Endowment
Policy, Educational Annuity Policy, Deferred Annuity Policy and Pure
Endowment Policy are not entitled to any bonus. This restriction will, however not be
applicable in the case of Officers holding qualifying policies taken out before the date
of joining the service of the Corporation, in which case bonus additions shall continue
as per existing practice even if the qualifying policies are without profits basis.
In order to simplify the calculations and to ensure that these conform more or less to
the pattern of payment of bonuses under LIC policies, following guidelines for the
calculation of simple reversionary bonus may be followed (Cir ref no. ZD/643/ASP/87
dated 18/05/1987)
(i) The number of years for which the bonus is allowed shall be the number of years
the Officer was in the Scheme from the date of entry into the Scheme to the date
of retirement/death. For this purpose, a period of six months and above shall be
rounded off to the next year and period of less than six months shall be ignored.
(ii) The basic cover and the quinquennial increases earned by the Officer from time
to time be clubbed together and the bonus shall be calculated on this entire
amount for the number of years the Officer was in the Scheme.
(iii) The simple reversionary bonus is to be calculated with reference to the date of
entry into the Scheme and the number of years for which the bonus is payable,
from the Bonus chart issued by the Actuarial Department after the annual
valuation for participating type of policies.

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 (iv) If the date of entry is between January and March, refer column ‘January to
March’ and if the date of entry is between April and December, refer the
relevant column.
(v) Add one/two/three years’ bonus, as the case may be, at interim rate if the number
of years indicated in the bonus chart against the relevant year of entry is less by
one/two/three years than the number of years for which the bonus is to be allowed
to the Officer as per (i) above. After the results of next valuation are declared,
the cases settled on the basis of interim bonus rates may have to be reopened
for settlement of differential between the declared bonus rates and interim bonus
rates, if any.
(vi) In cases of voluntary and premature retirements under Regulation 19 of (Staff)
Regulations 1960, if an officer opts for the payment on normal retirement date,
the simple reversionary bonus for the period between actual and normal
retirement shall be calculated with reference to the initial basic cover and
increases therein, provided the Officer continues to keep the qualifying policy
in force upto the date on which he would have normally retired. In case such an
Officer surrenders/absolutely assigns the qualifying policy after his actual
retirement but before the date on which he would have normally retired, the
simple reversionary bonus accrued on the date of actual retirement only shall
be paid and bonus for the period between actual retirement and normal
retirement shall not be paid.
(VIII) FINAL ADDITIONAL BONUS:
While calculating Group Insurance Benefit, apart from simple reversionary bonus final
additional bonus is also to be added to the basic group insurance benefit provided the
qualifying policy is under a With Profit Plan. The following instructions in the matter
of calculation of Final Additional Bonus may be noted.
(i) The rate of Final Additional Bonus shall be in accordance with the instructions
issued by our Actuarial Department on the subject from time to time.
(ii) The minimum qualifying period as decided by the Actuarial department from
time to time while declaring valuation results is required to be completed for
becoming eligible for payment of Final Additional Bonus. For this purpose initial
basic cover and quinquennial increase granted thereafter from time to time shall
be treated separately. In case of retirement including voluntary/premature
retirements, completion of 15 years (17 years from 01/01/2004 as per Actuarial
Department’s Valuation Result as on 31/03/2003 - circular ref. Actl/Valn./1899/
14 dt.18/09/2003) from the date of entry into the Scheme or the date of granting
quinquennial increase, as the case may be, is required in order to ascertain the
eligibility for Final Additional Bonus. In case of death, a period of 14 years need
be completed for eligibility and the deceased employee should have atleast
entered 15th year from the date of entry into Scheme or the date of subsequent
increase, as the case may be.
(iii) The basic cover and the quinquennial increase qualifying for the computation of
Final Additional Bonus shall be clubbed together and the Final Additional Bonus
shall be calculated on the total amount with reference to the entire term the
Officer was in the Scheme. For this purpose, a period of six months and more

215
 shall be rounded off to the next year and period of less than six months shall be
ignored.
(iv) No Final Additional Bonus shall be paid in cases of resignations and terminations.
However, in case of voluntary and all premature retirements under Regulation
no. 19 of Staff Regulations 1960, Final Additional Bonus shall be paid provided
the Officer satisfies the condition of minimum qualifying period. If the Officer
opts for the payment on normal retirement date, the Final Additional Bonus
shall be payable till that date provided the Officer continues to keep the
qualifying policy in full force upto the date on which he would have normally
retired. In such cases, the Final Additional Bonus shall be payable for the entire
term on the basis of the initial basic cover and eligible increases granted from
time to time. In case such an Officer surrenders/absolutely assigns the qualifying
policy after his premature retirement but before the date on which he would
have retired, the Final Additional Bonus shall be payable on the initial basic
cover and eligible increases therein for the term calculated upto the actual date
of retirement.
(IX) Effect of discontinuance, etc., of the Officer’s qualifying policy:
(A) If an officer discontinues payment of premiums on his qualifying policy, which
he is required to hold or take out and maintain in terms of Paragraph II or
surrenders the same or executes an absolute assignment thereof (otherwise
than as security for a loan) to a person other than a dependent he will forfeit the
eligibility and will not be entitled to any benefit whatsoever under the Scheme.
If, however, the officer takes or already holds another qualifying policy under
approved plan and term before discontinuing the payment of premiums or
surrendering the qualifying policy originally held he will still be entitled for the
usual benefit under the Scheme. That is a qualifying policy can be substituted
by another qualifying policy provided there is no gap in between the two
qualifying policies. (Cir ref no. ZD/612/ASP/86 dated 24/4/86). In case of Officers
who do not hold the qualifying policy but are member of GSLI Scheme the
question of discontinuance of the qualifying policy does not arise.
(B) A policy, which is discontinued in the last policy year, would be deemed to have
matured for its full sum assured or paid up amount (excluding bonuses), as the
case may be.
(C) A fully paid/paid-up policy would be considered as a qualifying policy for the
purpose of the Group Insurance Scheme provided it satisfies the conditions of
the Scheme. Only the sum assured/paid-up amount excluding the
bonus will be taken into account for the purpose.
(X) Benefit payable on voluntary retirement:
In case of an Officer opting for voluntary retirement as per the provisions of Staff
Regulations (1960), the Group Insurance Benefit corresponding to the age on the date
of entry into the Scheme in full shall be paid. In such cases, the actual retirement date
shall be reckoned as normal retirement for the purpose of calculation of Scheme
benefits. This concession, however, will not be available to the Officers resigning/
terminated from the services of the Corporation.

216
(XI) Benefit on cessation of service, otherwise than by normal & voluntary retirement/death:
The Group Insurance benefit to an officer will automatically terminate if his employment
with the Corporation terminates, otherwise than by retirement/voluntary retirement,
unless it is specifically continued as provided hereunder:
The following alternatives will be available to the officer in respect of the Group
Insurance benefit in the event of termination of service, other than retirement (normal
& voluntary), subject to his having completed at least 10 years’ service with the
Corporation and provided his services was not terminated on account of misconduct or
as a result of disciplinary action taken against him. Previous service with an insurer
will not be reckoned for this purpose.
(1) To take a cash surrender value of the benefit in discharge of all liabilities of the
Corporation in respect of such benefit. The surrender value in such cases should
be calculated by applying the surrender value factors as shown in
the surrender value tables in use for calculating the same under a life insurance
policy. For this purpose, the duration may be counted from the date of entry into
the Scheme for the basic sum assured and for the subsequent quinquennial
increase from the respective date of such increase. The officer cannot surrender
the benefit under the Scheme while in service. Surrender value quotation may,
however, be given to the employees applying for loans under IEHS/ECHS even
though the value is not actually payable.
(2) To take a Whole Life Policy or an Endowment Policy maturing at age 60, as the
case may be, for the sum assured which a single premium equal to the
surrender value of the benefit mentioned in (1) above will purchase. This
alternative will not be available to an officer whose age last birthday on the
date of entry into the Scheme is 45 and over but not more than 57, and as such
he would be entitled to the surrender value mentioned in (1) above.
(XII) No Group Insurance Benefit is payable to an officer whose age last birthday on the
first of the month following the date on which he satisfies the eligibility conditions, is
more than 57 years. This restriction shall not, however, apply in case of an employee
who is promoted to Class I at his age 58 or 59 years.
(XIII) Procedure for issuance of a fully paid-up Whole Life (With Profit Policy):
In terms of Clause 4(b) of the Scheme, if an Officer has opted for the benefit under
Whole Life Assurance Plan, then on retirement at age 60, he will be granted a fully
paid-up Whole Life Policy. It is however, open to him to opt for Cash Surrender Value
of the Group Insurance Benefit on the date of retirement in lieu of the fully paid-up
Whole Life Policy as aforesaid. In that event, the Officer would be eligible for issuance
of a fully paid-up Whole Life (With Profits) Policy for the amount equivalent to the
Basic Cover under the Scheme. The Bonus Additions on the Basic Cover will be attached
to this Policy. The single premium required to take out the Policy for Sum Assured
equivalent to Basic Cover should be calculated from Table 8 (The Limited Payment
Life Policy - With Profits) and the Single Premium required for covering the Bonus
Addition should be calculated from Table 7 (The Limited Payment Life Policy - Without
Profits). The total of these both single premiums will be the single premium
required to take out the fully paid-up Whole Life Policy. The following procedure should
be adopted for issue of the Policy:

217
1) An ordinary Proposal Form (without Personal History and Medical Report)
completed by the Officer should be obtained;
2) The appropriate amount of Income Tax, if applicable, at the average rate
applicable on the Income Tax on salary for that financial year on the amount of
Single Premium calculated as above to be borne by the Corporation to issue the
Policy, should be collected from the Officer;
3) After obtaining the sanction from the Competent Authority for the amount of
single Premium, the amount should be adjusted towards the single premium for
issuing the Whole Life Policy as mentioned above in lieu of Group Insurance
Benefit payable to the Officer;
4) The Whole Life Policy may be issued in favour of the Officer making following
changes in the Policy form for the Whole Life With Profits Table no. 2
i) Schedule:
a) The date of retirement should be shown as date of commencement
and the Sum Assured should be the Basic Cover under Group
Insurance Scheme
b) Under other particulars of the policy, the word “instalment” should
be deleted and substituted by the word “Single “. The single
premium should not be shown but it should be written in the
bracket -”Please see Special Provisions”;
c) Period during which premium payable - Delete “till death of the
Life Assured” and substitute “Single Premium” in place thereof;
d) Special Provision:- The following special provisions may be
incorporated in the Policy - “The Proposer who was an employee of
the Corporation having retired from the services of the Corporation
at age __________ years is entitled to a Whole Life With Profits
Policy assuring a sum of ` ______________ in terms of Para 4(d) of
Group Insurance Scheme (Revised) for Class I Officers and Class II
Officers of the Corporation and under Para4(h) of the said Scheme
a Bonus of ` .__________. This Policy is being issued for sum assured
of ` _____________ under Whole Life With Profits. On the date of
commencement of this Policy, a simple reversionary bonus of
` _________________ stands attached to it”;
e) A Single Premium Policy (except Deferred Annuity by Single
Premium) is issued on the policy form of the annual premium policy
with policy clause No. 45 endorsed on it.
ii) Guaranteed Surrender Value:
The guaranteed Surrender Value Clause of the policy clause no. 45 is to
be deleted and is to be substituted by the following clause in the place
thereof - “Guaranteed Surrender Value- This Policy can be surrendered
for cash. The Surrender Value will be quoted on request. If the Policy be
on `With Profit’ scale, the cash surrender value of any existing bonus
additions will also be allowed.”

218
(XIV) The Corporation shall have lien on the Group Insurance Benefit against any loss in the
case of dismissal, removal and compulsory retirement for acts involving financial loss
to the Corporation. The benefit can also be forfeited for dismissal involving violence or
riotous behaviour.
(XV) Class III selected for recruitment, as AAO will enter from the date of promotion provided
he has the qualifying policy.
(XVI) An Officer not holding a qualifying policy takes out a new policy he will be eligible for
the benefit from the first of the month following the date of commencement of the
policy or from the date of entry if it is first of the month.
(XVII) The total amount paid as Additional Gratuity shall be added to the income under the head
of salary for Income Tax purpose. The benefit, however, in the case of death is not taxable.
ANNEXURE I
Amount and Plan of Insurance for qualifying for Group Insurance Benefit:
Age completed Class Of If Officer was holding policy/ If the Officer was not holding
on the date of Officer policies on the date of joining policy/policies on the date of
entry into the the Corporation joining the Corporation
scheme
If opted for If opted for If opted for If opted for

Whole Life E n d o w m e n t Whole Life Endowment

Cover Cover Cover Cover
(1) (2) (3) (4) (5) (6)

44 or below Class I ` 5000/- ` 4000/- ` 5000/- ` 4000/-

under Whole under under under
Life Limited Endowment Whole Life Endowment
Payment Assurance Limited Assurance
Plan or any Plan or any Payment (with profits)
other allied other allied (with plan
plan plan profits) maturing at
mentioned in mentioned in Plan with age 60 NBD
Annexure II Annexure II premium
ceasing at
age 60 NBD
44 or below Class II ` 3000/- ` 2750/- ` 3000/- ` 2750/- under
under Whole under under Endowment
Life Limited Endowment Whole Life Assurance
Payment Assurance Limited Plan (with
Plan or any Plan or any Payment profits) plan
other allied other allied (with maturing at
plan plan profits) age 60 NBD
mentioned in mentioned in with
Annexure II Annexure II premium
ceasing at
age 60 NBD

219
Note: The Whole Life Limited Payment Plan (with profits) and the Endowment Assurance
(with profits) Plan mentioned under columns 5 and 6 are the Corporation’s Table 5 and Table
14 respectively.

Age Class of If Officer was holding policy/ If the Officer was not holding
completed on Officer policies on the date of joining policy/policies on the date of
the date of the Corporation joining the Corporation
entry into the
scheme
(1) (2) (3) (4)
45 to 57 Class I ` 5000/- under Whole Life ` 5000/- under Whole Life
LimitedPayment Plan or Limited Payment (with
` 4000/- under Endowment profits) Plan with premium
Assurance Plan or for ceasing at age 60 NBD or
appropriate amount under ` 4000/- under Endowment
any other allied plan Assurance (with profits) Plan
mentioned in annexure II or maturing at age 60 NBD or
Deferred Annuity Policy for Deferred Annuity Policy for
the cash option not less than the cash option not less than
the Group Insurance Benefit the Group Insurance Benefit
corresponding to completed corresponding to completed
age on date of entry. age on date of entry annuities
vesting at age 60 LBD

45 to 57 Class II ` 3000/- under Whole Life ` 3000/- under Whole Life

Limited Payment Plan or Limited Payment (with
` 2750/- under Endowment profits) Plan with premium
Assurance Plan or for ceasing at age 60 NBD or
appropriate amount under ` 2750/- under Endowment
any other allied plan Assurance (with profits) Plan
mentioned in Annexure II or maturing at age 60 NBD or
Deferred Annuity Policy for Deferred Annuity Policy for
the cash option not less than the cash option not less than
the Group Insurance Benefit the Group Insurance Benefit
corresponding to completed corresponding to completed
age on date of entry. age on date of entry annuities
vesting at age 60 LBD
Note: The Whole Life Limited Payment Plan (with profits) and the Endowment Assurance
(with profits) Plan mentioned under columns 5 and 6 are the Corporation’s Table 5 and Table
14 respectively.
ANNEXURE II
The policies issued in favour of an Officer on his own life under the following plans whereunder
risk of death is covered to the full extent upto the date of his retirement are accepted as
qualifying policies:
(i) Whole Life Policy

220
(ii) Special Whole Life Policy
(iii) Limited Payment Life Policy
(iv) Endowment Assurance Policy
(v) Double Endowment Policy
(vi) Guaranteed Triple Benefit Policy (vii) Anticipated Endowment Policy (viii) Convertible
Whole Life Policy (ix) Multi-purpose Policy
(x) Other plans which offer substantially similar benefits as above plans.
A Deferred Annuity or Pure Endowment Policy shall be treated as an alternative
qualifying policy when effected by an Officer after attainment of 45 years or in the case
of an Officer (aged below 44 years) whose proposal for a policy under Whole Life or
Endowment Plans referred to above is declined or offered to be accepted at other than
Ordinary Rates.
It may be please be noted that Joint Life Policies, Children’s Deferred Endowment
Policies and Children’s Anticipated Policies are not acceptable as qualifying policies
under any circumstance.
ANNEXURE III
Table I: Table showing the amount of Group Insurance Benefit available on various dates to
Officers confirmed after 01.09.1956 (for those who are aged below 45 years on the date of
entry into the scheme)
Total service from date Class I Class II
of entry into the scheme
Whole-Life Endowment Whole-Life Endowment
Cover Cover Cover Cover
Less than 5 years 7,500 6,000 4,500 4,125
5 years or more but less 7,500 6,000 6,000 5,250
than 10 years
10 years or more but less 9,375 7,500 7,500 6,375
than 15 years
15 years or more but less 11,250 9,000 9,000 7,500
than 20 years
20 years or more but less 13,125 10,500 10,500 8,625
than 25 years
25 years or more 15,000 12,000 12,000 9,750

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Table II
Table showing the Group Insurance Scheme Benefit for the Officers whose age at the time of
recruitment was 45 years or over (CO Circular Ref: PER/ER/A/6C dated 05.05.2005).
Age LBD on the date of entry Amount of Group Insurance Benefit
into the scheme (` )
Ye a r s Class I Officers Class II Officers
45 5548 3884
46 5104 3551
47 4660 3218
48 4217 2885
49 3773 2552
50 3440 2219
51 3107 1997
52 2774 1775
53 2441 1553
54 2108 1332
55 1775 1110
56 1443 888
57 1110 666
58 777 *
59 444 *
* Available only to employees promoted to Class I at the respective ages.
Table III A
Class III employees (whose age LBD on the date of joining the Corporation, was 44 years or
below) promoted as Class I Officer will have their amount of benefits adjusted as under:
Amount of Term Assurance Amount of Group Insurance Next increase in the
Cover immediately prior to Benefit which will be available benefit of ` 1750 / 1000 will
the date of promotion to Class on the date of promotion to Class be granted after 5 years
I Officers’ grade (` ) IOfficer’s grade reckoning from
Whole Life E n d o w m e n t
Cover Cover
4500 7500 6000 P
6000 7500 6000 S
7500 9375 7500 S
9000 11250 9000 S
10500 13125 10500 S
12000 15000 12000 -

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Note: ‘S’ means date of last increment in the cover while in lower grade. ‘P’ means date of
promotion to Class I Officers’ grade.
Table III B
Class II Development Officers (whose age LBD on the date of joining the Corporation, was 44
years or below) promoted as Class I Officer will have their amount of benefits adjusted as
under:
Amount of Term Assurance Cover Amount of Group Insurance Benefit Next increase in
immediately prior to the date of which will be available on the date the benefit of
promotion to Class I Officers’ grade of promotion to Class I Officer’s ` 1875 / 1500
(` ) grade willbe granted
after 5
years reckoning
from
Whole-Life Cover Endowment Whole-Life Endowment
Cover Cover Cover
4500 4125 7500 6000 P
6000 5250 7500 6000 P
7500 6375 9375 7500 P
9000 7500 9375 7500 S
10500 8625 11250 9000 S
12000 9750 13125 10500 P
Note: ‘S’ means date of last increment in the cover while in lower grade. ‘P’ means date of
promotion to Class I Officers’ grade.
P.L. ENCASHMENT ON RETIREMENT / VOLUNT AR
VOLUNTAR
ARYY RETIREMENT
1. An employee / Officer can on retirement from the services of the Corporation encash
the balance of unavailed PL upto a maximum of 240 days as on the date of retirement.
2. The amount payable will be calculated at the rate of the salary drawn by the employee
/ Officer immediately preceding the date of retirement, but excluding HRA, CCA,
Transport Allowance and Functional Allowance. Thus only Basic Pay, FPA, all
Allowances which count for PF and DA will be taken into consideration for the
calculation.
3. Income Tax on PL encashment: Encashment of leave on retirement is exempted from
Income tax subject to a limit of ` 300000/-.
Exempted Portion: The amount encashed based on the average salary drawn by the
employee for the last 10 months immediately preceding the date of retirement or `
300000/- whichever is less is exempted from tax.
Taxable Portion: The difference between the actual amount payable and the exempted
portion is taxable.
PL ENCASHMENT IN CASE OF DEATH
1. In the case of death while in service, a lumpsum benefit may be paid which shall be

223
 equal to the salary for unavailed Privilege Leave to his credit but not exceeding 240
days calculated at the rate of salary drawn by him as on the date of death which shall
include HRA, CCA, Functional Allowance etc
2. The amount payable as compensation for the period of unavailed Privilege Leave as on
the date of death shall be calculated on the basis of salary that would have been payable
for the period of Privilege Leave had the deceased employee been on Privilege Leave
from the day following the date of death, but without taking into account any change in
the salary subsequent to the date of death of the employee arising on account of increase
or decrease in Dearness Allowance, Normal Grade Increment etc.
3. Lumpsum in lieu of PL encashment payable on death is wholly exempted from Tax.
COMPONENTS OF SALAR
SALARYY TO BE T AKEN FOR ENCASHMENT OF PL
TAKEN
While In Service On Retirement On Death
Basic Pay Basic Pay Basic Pay
DA DA DA
- - HRA
Special Allowance for Passing Special Allowance for Special Allowance for
Technical Exams Passing Passing
Technical Exams Technical Exams
Special Allowance to Cashiers / Special Allowance to Special Allowance to
IAAs / Head Peons / Liftman / Cashiers /IAAs / Head Cashiers /IAAs / Head
Watchman Peons / Liftman / Peons / Liftman /
Watchman Watchman
FPA(Not HRA on FPA) FPA (Not HRA on FPA) FPA including HRA
Personal Allowance - Personal Allowance
CCA - CCA
Graduation Allowance payable Graduation Allowance Graduation Allowance
to Assistant / Steno payable to Assistant / payable to Assistant /
Steno Steno
Graduation Allowance payable - Graduation Allowance
to Record Clerks payable to Record Clerks
Hill Allowance - -
Special Area Allowance - -
Note: Special Allowance for in-house development of Actuarial Capability not to be considered
for above purposes.
Miscellaneous:
1. Settlement of the Terminal Benefits in the absence of valid nomination:
In the absence of valid nomination we may settle the terminal dues in favour of Class I
or Class II legal heirs as the case may be on the strength of Indemnity Bond to be
executed by all legal heirs and one or two sureties having sound financial background,
provided there are no rival claimants. While making the said settlement, we should

224
 follow the same procedure, which is followed by us while making policy claim
settlements in absence of valid nomination. According to the said procedure, authorities
for waiver of legal evidence of title are as under:
Extent of finanacial power
Nature/Extent of power Authority Class I & II heirs
Employees upto DM in DO SDM/DM Full
Employees upto ZM(O) in ZO&SDM in DO RM(E&OS) Full
Employees upto ZM O in CO/IAD/MDC Chief(E&OS) Full
ZM (S) in all offices ED(E&OS) Full
While on the subject, reference may be made to Circular No ZD / 660 / ASP / 87 dated
12.12.1987 and circular ZD/1135/ASP/2009 dated 17.08.2009, wherein it is advised that
in order to minimise the hardships to the bereaved families, all our offices must go
through the records of the employees and get nomination forms duly completed from
the employees with valid nomination for gratuity, PF, GSLI etc.
2. Settlement of Lumpsum in lieu of PL for death while in service:
The cash payment in lieu of unavailed PL of an employee dying while in service may be
paid to the Gratuity Nominee. Also the unpaid salary, arrears of DA and bonus, if any
may also be paid to the Gratuity Nominee.
Ref: CO Circular letter P/ER/A/G/68 dated 8thJune 1982
3. Excess CL availed by employees who die while in service:
CL need not be calculated on proportionate basis upto the date of death. Even if they
were granted leave in excess of the notional proportionate days, the CL already granted
to such employees need not be reverted.
Ref: CO Circular ZD/368/ASP/75 dated 12.2.1975
4. PL Encashment on Voluntary Retirement:
The Central Government has vide its notification dated 16/2/96 amended Regulation
19 of the LIC of India (Staff) Regulations 1960 which deals with superannuation and
retirement. In view of this amendment, Regulation 19(4) which speaks about
encashment of PL up to 240 days will also be applicable to an employee who takes
voluntary retirement after completion of 20 years of service provided the employee is
governed by the Pension Rules 1995.
Ref: CO Circular ZD/843/ASP/96 dated 6/3/1996
5. Rounding-off of years of service:
Payment by Regulation: For the purpose of computation of Gratuity, as per Rule 19 of
Staff Regulation, the term “Completed Year” should be taken as “any part of the year
shall be accounted as one year if it exceeds six months and ignored, if it is equal to or
less than six months”.
Further for determining eligibility, the period spent on probation has to be excluded.
However, once eligible, period of probation has to be included for calculating the amount
of Gratuity.

225
 Ref: CO TP Message B / 330 / 13-2-88 / 1122
Payment under Payment of Gratuity Act: To become eligible for Gratuity under the
Payment of Gratuity Act 1972, the employee / officer should have completed five years
of continuous service (including the period of probation). However, while a part of a
year shall be counted as one year for payment of Gratuity, it shall not be counted as one
year for determining eligibility under the Gratuity Act.
Further, completion of continuous service of 5 years shall not be necessary where
termination is due to death or disablement.
Ref: CO Circular ZD / 940 / ASP / 99 dated 07.10.1999
6. Effect of EOL on Gratuity:
Under the Payment of Gratuity Act, all kinds of leave including the period spent on
EOL count for computation of service. Under Staff Regulations also, EOL upto 365
days counts for the purpose of computation of service.
However, both under the Payment of Gratuity Act and Staff Regulation, the period
treated as “Dies-Non’ shall not count as service for the purpose of Gratuity. Even for
the purpose of qualifying service for eligibility to Gratuity, this period will have to be
excluded.
Ref: CO Circular Personnel / A/ 3504 / ASP / 74 dated 27.06.1974
7. Bonus Rates applicable to Group Insurance Scheme:
Group Insurance Scheme for Class I & Class II Officers of the Corporation: Bonus at
the rates declared for regular endowment and whole life policies issued by the
Corporation for the valuation done as at the 31st March of every year are to be applied
from the 1st January of the following year, unlike bonuses declared for policies.
8. Effect of Removal / Dismissal on Terminal Benefits:
S.NO. ITEMS OF REMOVAL DISMISSAL
CLASSIFICATION
1) Gratuity Payable subject to If Misconduct is of the nature of
recovery of the Moral turpitude, or offences like
financial loss to the violence against any co-
Corporation employee or Management or
any riotous or disorderly
behavior in or near the place of
employment, provided that the
offence is committed in the
course of his employment
Gratuity payable shall be
wholly forfeited.
2) Provident Fund The employee’s
contribution along
with interest thereon
and the employer ’s
contribution along

226
 with interest is to be The employee’s contribution
paid in full. along with interest thereon is
to be paid.
AND
If the misconduct is of the
nature of negligence,
insubordination, fraud,
misappropriation, acceptance of
bribe, acts involving violence
against the management or
other employees or any riotous
or disorderly behavior in or near
the place of employment,
employer’s contribution to be
paid subject to recovery of
financial loss caused to the
corporation, for this purpose,
the Chairman or an Executive
Director or the Zonal Manager
of the Corporation shall be
entitled to declare the amount
the Corporation shall be final
and conclusive and the trustees
shall not be entitled to call for
any proof in support of the claim
of the Corporation.
ELSE
Employer’s contribution along
with interest is to be paid in full.
3) GSLI To be paid in full. To be paid in full.

4) Encashment of Not to be paid Not to be paid.

PL
5) Addl. Gratuity Not to be paid Not to be paid.
(for class I & II )
Free Insurance
(for class III & IV)

6) Pension ER dept. C.O. circular ER dept. C.O. circular DT.30/07/

dt.30/07/1996 on the 1996 on the subject to be
subject to be referred. referred.
7) R e t i r e m e n t Not to be paid Not to be paid
Travelling allow-
ance (to class I)

227
9. Settlement of Terminal Payments in respect of cases where disciplinary proceedings
are contemplated.
The settlement of terminal benefits, where disciplinary proceedings are contemplated
i.e. where charge sheet is already issued, depends on merits of each case and as such,
it is not possible to issue general guidelines in the matter. However, given below are
the important provisions regarding settlement of terminal benefits in respect of cases
where disciplinary proceedings are pending:
(i) Gratuity: The LIC Employees Pension Rules 1995 are framed by the Central
Govt. in exercise of the powers vested in them under Sec. 48 of the LIC Act.
In view of this withholding of gratuity in terms of Rule 46(2) of the Pension
Rules in the case of an employee against whom departmental enquiry is/or being
contemplated is perfectly in order (Ref: CO circular ZD/853/ASP dated 30/07/
1996). The gratuity withheld can be released only after the proceedings are over
and after recovering from the gratuity the final loss, if any, caused to the
Corporation.
(ii) P.F. (own contribution) and A.P.F. including interest thereon: The same cannot
be withheld in the case of retired employees against whom the disciplinary
action is contemplated, as these are his own contributions.
(iii) G.S.L.I. and G.T.I.S. benefits: It is clarified that since these are insurance benefits
for which the employee also pays the premium, the same cannot be withheld
even if the disciplinary proceedings are contemplated or continued against the
employee.
(iv) Encashment of unavailed P.L.: The same can be withheld at the discretion of the
Competent Authority. While taking the decision, the competent authority
should, inter alia, keep in view the financial loss if any, suffered by the
Corporation and take appropriate decision.
(v) Staff Quarters-Occupation: If any such employee is in staff quarters the
instruction issued for withholding retirement benefits of those who do not vacate
staff quarters will have to be kept in view and followed (Ref. Central Office
circular Personnel/B/ZD/554 dated 20/06/1985)
(vi) Additional Gratuity/Free Insurance Cover: These benefits are ex-gratia benefits
and hence are to be withheld.
(vii) a) Pension: It is clarified that provisional pension is payable to an employee
against whom disciplinary proceedings are instituted and continued.
b) Commuted Value of Pension: Commutation of pension will not be allowed
during the pendency of disciplinary proceedings. (Pension Rules 46 and
47 may be referred).
Ref: Cir. no. ZD/952/ASP/2000 dated 04/05/2000 Deptt. Personnel/ER
However, where no charge sheet has been issued to a retired employee, then in such
cases the Office cannot withhold the settlement of Gratuity and the commuted value of
pension.

228
10. Cover under LIC Employees Group Term Insurance Scheme, 1997 (Circular ZD/1184/
ASP/2011 dated 01.04.2011)
Term Assurance cover available to compensate the loss of commutation of pension on
death of employee while in service:
Category Basic Pay ((` ) Term Cover ((` ) Premium per
month ((` )
I 50810 and above 12,00,000/- 250.00
II 35300 to 50809 10,00,000/- 208.33
III 24800 to 35299 7,00,000/- 145.83
IV 12855 to 24799 5,00,000/- 104.17
V 7115 to 12854 2,50,000/- 52.08
VI Below 7115 1,50,000/- 31.25
11. Cover under LIC Employees Group Savings Linked Insurance Scheme: (Circular 3875/
ASP/2007 dated 10.09.2007)
The cover available to all classes of employees under the Group Savings Linked
Insurance is given below:
C ategory Basic Pay Life Cover Monthly Contribution by
employees towards
Life Savings To t a l
I 50810 and above 700000 123.00 492.00 615.00
II 35300 to 50809 560000 98.25 393.00 491.25
III 24800 to 35299 420000 73.50 294.00 367.50
IV 12855 to 24799 280000 48.75 195.00 243.75
V 7115 to 12854 200000 35.25 141.00 176.25
VI Below 7115 110000 19.50 78.00 97.50
12. Group Insurance Scheme - 2004: (Circular ZD/1141/ASP/2009 dated 07.11.2009)
The cover under the Group Insurance Scheme is as under and this cover is without
accident benefit:
Class of Employees Cover (` ) Premium (` )
Class I 10,00,000 250.00
Class II 8,00,000 200.00
Class III 7,00,000 175.00
Class IV/Regular Part-Time 3,00,000 75.00

229
13. COMPARISON OF CALCULATION OF GRATUITY UNDER REGULATION AND ACT:

DESCRIPTION UNDER REGULATION UNDER ACT

YEARS OF SERVICE - 15 YEARS OF 5 YEARS OF
ELIGIBILTY CONTINUOUS SERVICE CONTINUOUS SERVICE
EXCEPT PERIOD OF EXCEPT PROBATION
PROBATION
YEARS OF SERVICE -FOR ONCE ELIGIBLE, ONCE ELIGIBLE,
CALCULATION PERIOD OF PROBATION PERIOD OF PROBATION
TO BE TAKEN FOR TO BE TAKEN FOR
CALCULATION CALCULATION
YEARS OF SERVICE - 6 MONTHS AND ABOVE 6 MONTHS AND ABOVE
ROUNDING OFF TO BE ROUNDED OFF AS TO BE ROUNDED OFF AS
ONE YEAR ONE YEAR
COMPONENTS OF LAST DRAWN BASIC + LAST DRAWN BASIC +
SALARY COMPONENTS TAKEN ALL COMPONENTS
FOR PF TAKEN FOR PF + DA

MAXIMUM AMOUNT NO MAXIMUM LIMIT 10 LAKHS

TAXABILITY AMOUNT ABOVE ` 10 MAXIMUM PAYABLE -

LAKHS IS TAXABLE ` 10 LAKHS - NON-
TAXABLE
14. Action to be initiated in the case of retirement of employees:
(i) On the first working day of the month, salary of the retiring employee is to be
drawn.
(ii) PF, Additional PF, PF Loan and Loan Interest is to be transferred to Zonal Office
PF Department on the first working day itself.
(iii) Net salary payable is to be credited to Unpaid Salary Account which is to be
paid to the retiring employee on the last working day of the month.
(iv) Copies of Payment voucher/salary Sheet (for the purpose of salary particulars
for the month) along with a copy of DD forwarding Memo to PF Department to
be forwarded to OS Department on the first working day itself.
(v) Outstanding PF Loan and address of the employee/Officer after retirement to
be furnished to Divisional Office on the first day of the month itself.
(vi) Particulars of PF Deduction made other than the usual recovery from salary-
while making payment of arrears, etc. to be furnished to OS Department while
forwarding the above papers.
15. Withholding of Retirement Benefits on Occupation of Staff Quarters:
Experience over the years have shown that a number of employees do not vacate the
Staff Quarters allotted to them for one reason or the other on their retirement. In
order to ensure that these employees vacate the staff Quarter immediately on
retirement it has been decided to withhold payment of retirement benefits to the extent

230
 specified below:
(i) Provident Fund: The entire provident fund contribution of the Corporation in
the employee’s account.
(ii) Gratuity: Gratuity payable to Class I, II, III, IV, employees under the Payment
of Gratuity Act, 1972 shall not be withheld even though the employee or his
family has not vacated the Staff Quarter. However, if the Gratuity Payable under
the Staff Regulations is more than that admissible under the Act, such excess
amount shall be with held.
(iii) Additional Gratuity / Free Insurance Cover: These benefits shall be withheld in
full.
(iv) Encashment of Privilege Leave: The entire cash benefit in lieu of unutilized
Privilege Leave shall be withheld.
(v) Pension / Commutation of Pension: No pension / compassionate allowance,
commutation of family pension will be paid unless an employee / his family in
case of a deceased employee vacates the staff quarter provided by the
Corporation.
However, it may be noted that GTIS payment can be made to the nominees of the
deceased employee, even if the nominee / relatives of the employee have not vacated
the Staff Quarters (Ref: P/ER/A/G/416-II dated 02.11.2001)
TAXABILITY OF TERMINAL BENEFITS
GRA TUITY (Retirement / V
GRATUITY oluntary Retirement)
Voluntary
By Gratuity Act
Any Gratuity received by an employee covered by the Payment of Gratuity Act 1972, is exempt
from tax to the extent of least of the following:
i) 15 days’ salary based on the salary last drawn for every completed year of service or
part thereof in excess of 6 months
ii) ` 10,00,000/-
iii) Gratuity actually received
“Salary” for the purpose of the aforesaid limits means salary last drawn by the employee
and includes dearness allowance but does not include any bonus, commission, house
rent allowance, overtime wages or any other allowance. Salary for 15 days is calculated
by dividing the salary last drawn by 26, being the number of working days in a month
and multiplying it by 15.
Gratuity in excess of the aforesaid limits is taxable in the hands of the assessee.
By Regulation
Any Gratuity received by an employee on retirement, death, termination, resignation or on
his becoming incapacitated prior to retirement, is exempt from tax to the extent of the least of
the following:
i) ` 10,00,000/-
ii) Half-month’s salary for each completed year of service calculated on the basis of average

231
 salary for 10 months immediately preceding the month of exit
iii) Gratuity actually received
Gratuity in excess of the aforesaid limits is taxable in the hands of the assessee.
Hence any amount of Gratuity paid under Staff Regulation in excess of ` 10,00,000/- is
taxable in the hands of the retiree.
GRA TUITY P
GRATUITY PAAYABLE ON DEA TH
DEATH
The gratuity payable to an employee in case of death has two components, viz. accrued gratuity
and future service gratuity. The future service gratuity component is secured under Group
Gratuity Scheme and it is covered under one-year renewable term assurance plan. The
additional benefit being claim proceeds under insurance cover does not form part of the income,
as per the provisions of Section 10 (10D) of the Income Tax Act. The accrued gratuity
for past services will be taxed to the extent it exceeds the amount calculated according to the
provisions of Payment of Gratuity Act 1972.
Source: CO Circular CO / F&A dated 15.03.2000
ENCASHMENT
PL encashment while in service is taxable.
Leave encashment on retirement is exempt from tax to the extent of the least of the following:
i) Cash equivalent of the leave salary in respect of the period of earned leave to the
credit of an employee only at the time of retirement
ii) 10 months’ average salary
iii) the amount not chargeable to tax as specified by the Government - presently it is 3
lakhs
iv) leave encashment actually received at the time of retirement.
“Average Salary” for the aforesaid purpose is to be calculated on the basis of average
salary drawn during the period of 10 months immediately preceding the retirement /
superannuation.
Salary paid to the legal heirs of the deceased employee in respect of privilege leave
standing to the credit of such employee at the time of his / her death is not taxable as
salary - Circular letter No F 35 / 1 / 65-IT (B) dated November 5, 1965.
ADDITIONAL GRA TUITY
GRATUITY
The entire amount of Additional Gratuity paid is taxable.
FREE INSURANCE / TERM ASSURANCE
Free Insurance payable on retirement from the services of the Corporation to Class III & IV
employees is taxable. Term Assurance payable on death of the employee while in service is
not taxable.

232
ILLUSTRA TIONS
ILLUSTRATIONS
Illustration 1 - Retirement - Class III promoted to Class I:
Date of Appointment : 01.11.1975
Date of Confirmation : 01.05.1976
Date of Retirement : 31.03.2011
Date of Promotion to Class I : 24.11.2005
Number of years of service : 35 years
Gratuity
Last drawn Salary Details as Class III:
Basic Pay : 18545.00
Fixed Personal Allowance : 540.00
Technical Allowance : 325.00
Internal Audit Allowance : 480.00
Dearness Allowance : 1288.71
Note: The employee has received 3 stagnation increments.
Last drawn Salary Details as Class I:
Basic Pay : 33550.00
Fixed Personal Allowance : 840.00
Dearness Allowance : 15399.45
Class I Gratuity:
Gratuity under Regulation Gratuity by Act
For first 30 years (33550 + 840 + 15399.45) X 15 / 26 X 35 =
(33550 + 840) X 15 = 5,15,850.00 10,05,363.89 subject to a maximum of
` 10,00,000/-
For the rest 5 years
(33550 + 840) X 5/2 = 85,975.00 Payable = ` 10,00,000.00
0,00,000.00
Payable = ` 6,01,825.00
Gratuity Payable is ` 10,00,000/- being the higher of the above two.

233
Class III Gratuity:
Gratuity under Regulation Gratuity by Act
For first 15 years (18545 + 540 + 325 + 480 + 1288.71)
X 15 / 26 X
(18545 + 540 + 325 + 480) 35 = 4,27,647.00 subject to a
X 15 = 2,98,350.00 maximum of ` 10,00,000/-
0,00,000/-
For the rest 20 years
(18545 + 540 + 325 + 480)
X 5 = 99,450.00
Payable = ` 3,97,800.00 Payable = ` 4,27,647/-
Gratuity Payable is ` 4,27,647 being the higher of the above two.
Gratuity Payable as Class I : ` 10,00,000.00
Gratuity payable as Class III : ` 4,27,647.00
Hence the higher of the two, i.e. ` 10,00,000/- will be payable.
PL Encashment
PL as on date of retirement 240 days
Encashment Payable (33550 + 840 + 15399.45) X 240 / 30 = 3,98,315.60
Additional Gratuity
From To Cover ((`
` )
Term Insurance Cover as Class III
01.05.1976 30.04.1981 4500/-
01.05.1981 30.04.1986 6000/-
01.05.1986 30.04.1991 7500/-
01.05.1991 30.04.1996 9000/-
01.05.1996 30.04.2001 10,500/-
01.05.2001 onwards 12,000/-
Entered Class I with cover of ` 12,000/-
Sum Assured 12,000.00
Bonus (167 X 12) (Circular No ZD/1175/ASP/2011
dated 17.01.2011) 2,004.00
FAB Not Eligible
To t a l 14,004.00
Additional Gratuity is wholly taxable.

234
Illustration 2 - Retirement - Direct Recruit Class I Officer:
Date of Appointment : 27.07.1979
Date of Confirmation : 27.07.1980
Date of Birth : 09.10.1951
Date of Retirement : 31.10.2011
Number of years of service : 32 years
Last drawn Salary Details:
Basic Pay : 49410.00
Fixed Personal Allowance : 1200.00
Dearness Allowance : 24680.30
Gratuity:
Gratuity under Regulation Gratuity by Act
(49410 + 1200) X (15+(32-30)/2) = 8,09,760/- (49410 + 1200 + 24680.30) X 15 / 26 X 32 =
13,89,974.77 subject to a maximum of
` 10,00,000/-
Gratuity Payable is ` 10,00,000/- being the higher of the above two.
Additional Gratuity
From To Cover ((`
` )
01.08.1980 31.07.1985 6000/-
01.08.1985 31.07.1990 6000/-
01.08.1990 31.07.1995 7500/-
01.08.1995 31.07.2000 9000/-
01.08.2000 31.07.2005 10,500/-
01.08.2005 onwards 12,000/-
Sum Assured 12,000.00
Bonus ((1799+48) X 12) (Circular 22,164.00
No ZD/1175/ASP/2011 dated 17.01.2011)
FAB (800 X 7.5) 6,000.00
Total 40,164.00
Additional Gratuity is wholly taxable.
Illustration 3 - Retirement - Class II Officer promoted to Class I Cadre:
Date of Appointment : 05.10.1977
Date of Confirmation : 04.12.1978
Date of Birth : 12.11.1951

235
Date of promotion as Class I : 29.05.1987
Date of Retirement : 30.11.2011
Number of years of service : 34 years
Last drawn Salary Details:
Basic Pay : 52210.00
Fixed Personal Allowance : 1200.00
Dearness Allowance : 29289.81
Gratuity:
Gratuity under Regulation Gratuity by Act
(52210 + 1200) X (15+(34-30)/2) = 9,07,970/- (52210+1200+29289.81) X 15 / 26 X 34 =
16,22,188.58 subject to a maximum of
` 10,00,000/-
Gratuity Payable is ` 10,00,000/- being the higher of the above two.
Additional Gratuity
From To Cover ((`
` )
Group Insurance Cover as Class II
01.01.1979 31.12.1983 4125/-
01.01.1984 28.05.1987 5,250/-
Group Insurance Cover as Class I
29.05.1987 28.05.1992 6000/-
29.05.1992 28.05.1997 7500/-
29.05.1997 28.05.2002 9000/-
29.05.2002 28.05.2007 10500/-
29.05.2007 onwards 12000/-
Sum Assured 12,000.00
Bonus ((1477+48) X 12) (Circular No 18,300.00
ZD/1175/ASP/2011 dated 17.01.2011)
FAB (70 X 7.5) 525.00
To t a l 30,825.00
Additional Gratuity is wholly taxable.
Illustration 4 - Retirement - Class III promoted as Class II Officer and retires as Class I
Officer:
Date of Appointment : 08.12.1972
Date of Confirmation : 08.03.1973
Date of Birth : 15.08.1950

236
Date of promotion as Class II : 22.01.1980
Date of promotion as Class I : 02.07.1991
Date of Retirement : 31.08.2010
Number of years of service : 38 years
Last drawn Salary Details:
Basic Pay : 45260.00
Fixed Personal Allowance : NIL
Dearness Allowance : 16633.05
Gratuity:
Gratuity under Regulation Gratuity by Act
(45260) X (15+(38-30) / 2) = 8,59,940/- (45260+16633.05) X 15 / 26 X 38 =
13,56,886.10 subject to a maximum of
` 10,00,000/-
Gratuity Payable is ` 10,00,000/-/- being the higher of the above two.
Additional Gratuity: Since the employee was selected from class III to class II the benefit
from the very beginning will be the benefit applicable to class II officers.
From To Cover ((`
` )
Term Assurance Cover as Class II
01.04.1973 31.03.1978 4,125/-
01.04.1978 31.03.1983 5,250/-
01.04.1983 31.03.1988 6,375/-
01.04.1988 01.07.1991 7500/-
Group Insurance Cover as prior to promotion
to Class I - 7500/-. The next increase will be
01.04.1993 31.03.1998 9,000/-
01.04.1998 31.03.2003 10,500/-
01.04.2003 12,000/-
Sum Assured 12,000.00
Bonus (1786 X 12) (Circular No 21,432.00
ZD/1144/ASP/2010 dated 04.02.2010)
FAB (750*9) 6,750.00
Total 40,182.00
Additional Gratuity is wholly taxable.

237
Illustration 5 - Retirement - HGA:
Date of Appointment : 10.01.1976
Date of Confirmation : 10.04.1976
Date of Birth : 12.01.1952
Date of Retirement : 31.01.2012
Number of years of service : 36 years
Last drawn Salary Details:
Basic Pay : 29650.00
Fixed Personal Allowance : 840.00
Dearness Allowance : 16633.65
Gratuity:
Gratuity under Regulation Gratuity by Act
(29650 + 840) X 20 = 6,09,800/- (29650 + 840 + 16633.65) X 15 / 26 X 36 =
9,78,721.96 subject to a maximum of
` 10,00,000/-
Gratuity Payable is ` 9,78,721.96 being the higher of the above two.
Illustration 6 - Resignation - Assistant:
Date of Appointment : 24.08.1998
Date of Confirmation : 24.02.1999
Date of Birth : 24.07.1951
Date of Resignation : 31.07.2011
Number of years of service : 13 years
Last drawn Salary Details:
Basic Pay : 15270.00
Technical Allowance : 180.00
Dearness Allowance : 7444.13
Gratuity:
Gratuity under Regulation Gratuity by Act
NOT ELIGIBLE (15270 + 180 + 7444.13) X 15 / 26 X 13 =
1,71,705.98 subject to a maximum of
` 10,00,000/-
Gratuity Payable is ` 1,71,705.98.

238
Illustration 7 - Retirement - Plumber:
Date of Appointment : 04.12.1973
Date of Confirmation : 05.06.1974
Date of Birth : 29.05.1951
Date of Retirement : 31.05.2011
Number of years of service : 37 years
Last drawn Salary Details:
Basic Pay : 16320.00
Fixed Personal Allowance : 390.00
Dearness Allowance : 7956.00
Gratuity:
Gratuity under Regulation Gratuity by Act
(16320 + 390) X 20 = 3,34,200/- (16320+390+7956) X 15 / 26 X 37 = 5,26,524.23
subject to a maximum of ` 10,00,000/-
Gratuity Payable is ` 5,26,524.23 being the higher of the above two.
Illustration 8 - Death - Assistant:
Date of Appointment as sub-staff : 01.08.1990
Date of Confirmation : 01.02.1991
Date of Birth : 06.07.1969
Date of Death : 06.10.2011
Normal Date of Retirement : 31.07.2029
Number of years of service (NDR) : 39 years
Date of Promotion to Class III cadre : 01.10.1996
Last drawn Salary Details:
Basic Pay : 21890.00
Fixed Personal Allowance : 840.00
Graduation Allowance : 530.00
Dearness Allowance : 11,198.79
Gratuity:
Rule Gratuity
19 (2) of Revision Rules, 1985 (21890+840+530) X 20 = 4,65,200.00
19 (3) of Revision Rules, 1985 (21890+840+530+11198.79) X 15 / 26 X 39 = 7,75,322.77
subject to a maximum of 10,00,000/-
19 (3)(C) of Revision Rules, 1985 (21890+840+530+11198.79) X 21 = 7,23,634.59 subject
to a maximum of 10,00,000/-

239
Rule 19 (3) is more favourable subject to a maximum of ` 10,00,000/-. Accordingly ` 7,75,322.77
is payable.
Lumpsum in lieu of PL Encashment:
PL as on 06.10.2011 : 234 days
Encashment Payable
Month Days BP FPA Grad All DA HRA CCA Total
10.11 25 17653.23 677.42 427.42 9031.28 1765.32 512.10 30066.77
11.11 30 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
12.11 31 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
01.12 31 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
02.12 29 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
03.12 31 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
04.12 30 21890.00 840.00 530.00 11198.79 2189.00 635.00 37282.79
05.12 27 19065.48 731.61 461.61 9753.78 1906.55 553.60 32472.09
Total 234 168058.71 6449.03 4069.03 85977.80 16805.87 4875.16 286235.60
Encashment Amount : ` 2,86,235.60
Term Assurance
From To Cover ((`
` )
Term Assurance Cover as Class IV
01.02.1991 31.01.1996 2250/-
01.02.1996 30.09.1996 3000/-
Group Insurance Cover as Class III
01.10.1996 30.09.2001 6000/-
01.10.2001 30.09.2006 7500/-
01.10.2006 30.09.2011 9000/-
01.10.2011 06.10.2011 10500/-
Term Assurance Payable : ` 10,500/-
Illustration 9 - Death - Sweeper:
Date of Appointment : 02.07.2007
Date of Confirmation : 02.01.2008
Date of Birth : 07.12.1967
Date of Death : 04.09.2010
Normal Date of Retirement : 31.12.2027
Number of years of service (NDR) : 20 years

240
Last drawn Salary Details:
Basic Pay : 6615.00
Dearness Allowance : 2431.01
Gratuity:
Rule Gratuity
19 (2) of Revision Rules, 1985 6615 X 17.5 = 1,15,762.50/-
19 (3) of Revision Rules, 1985 (6615+2431.01) X 15 / 26 X 20 = 1,04,377.04
19 (3)(C) of Revision Rules, 1985 NOT ELIGIBLE
Rule 19 (2) is more favourable subject to a maximum of ` 10,00,000/-. Accordingly ` 1,15,762.50
is payable.
Lumpsum in lieu of PL Encashment:
PL as on 04.09.2010 : 39 days
Encashment Payable
Month Days BP DA CCA HRA Total
09.2010 26 5733.00 2106.88 177.67 573.30 8590.85
10.2010 13 2774.03 1019.46 85.97 286.65 4166.11
Total 39 8507.03 3126.34 263.64 859.95 12756.96
Encashment Amount : ` 12756.96
Term Assurance
From To Cover ((`
` )
Term Assurance Cover as Class IV
01.02.2009 31.01.2014 2250/-
Term Assurance Payable : ` 2,250/-
Illustration 10 - Death - Sub-Staff:
Date of Appointment : 27.02.1991
Date of Confirmation : 27.08.1991
Date of Birth : 01.12.1962
Date of Death : 26.03.2011
Normal Date of Retirement : 31.12.2022
No of days of EOL availed : 575 days
As per Central Office Circular 3504/ASP/74 dated 27.06.1974 period of EOL upto 365 days
only shall count for the purpose of computation of service for the purpose of Gratuity.
Number of years of service (NDR) : 31 years

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Last drawn Salary Details:
Basic Pay : 10190.00
Dearness Allowance : 4677.21
Gratuity:
Rule Gratuity
19 (2) of Revision Rules, 1985 10190 X 20 = 2,03,800/-
19 (3) of Revision Rules, 1985 (10190 + 4677.21) X 15 / 26 X 31 = 2,65,894.33
19 (3)(C) of Revision Rules, 1985 (10190+4677.21) X 19 = 2,82,476.99
Rule 19 (3) (c) is more favourable subject to a maximum of ` 10,00,000/-. Accordingly
` 2,82,476.99 is payable.
Lumpsum in lieu of PL Encashment:
PL as on 26.03.2011 : NIL
Encashment Payable
Encashment Amount : NIL
Term Assurance
From To Cover ((`
` )
Term Assurance Cover as Class IV
27.08.1991 26.08.1996 2250/-
27.08.1996 26.08.2001 3000/-
27.08.2001 26.08.2006 3750/-
27.08.2006 26.03.2011 (Date of Death) 4500/-
Term Assurance Payable : ` 4,500/-
Illustration 11 - Removal under Regulation 39 (1)(f) - Sub-Staff:
Date of Appointment : 21.08.1999
Date of Confirmation : 23.02.2000
Date of Birth : 07.05.1976
Date of Removal : 06.08.2011
No of days of EOL availed : 364 ½ days
No of days treated as Dies-Non : 930 ½ days
As per Central Office Circular 3504/ASP/74 dated 27.06.1974 period of EOL upto 365 days
only shall count for the purpose of computation of service for the purpose of Gratuity. The
same circular envisages that the entire period treated as “Dies-Non” shall not count as service
for the purpose of Gratuity.
Number of years of service : 9 years

242
Last drawn Salary Details:
Basic Pay : 6680.00
Dearness Allowance : 3336.66
Gratuity:
Gratuity under Regulation Gratuity by Act
NOT ELIGIBLE (6680 + 3336.66) X 15 / 26 X 9 = 52,009.58 subject
to a maximum of ` 10,00,000/-
Gratuity Payable is ` 52,009.58

243
PL encashment and Free Insurance not payable.
Life Insurance Corporation of India REASON OF EXIT

ANNEXURE ‘A’
CHECK LIST FOR SETTLEMENT OF TERMINAL DUES
1) NAME AND DESIGNATION : _________________________________________________
2) S.R.NO. AND DEPARTMENT : _________________________________________________
3) DATE OF EXIT AND REASON : _________________________________________________
4) DEPUTATION PERIOD IF ANY : _________________________________________________
AMOUNTS PAYABLE:
A) GRATUITY: `
B) ADDL. GRATUITY/ FREE INS./ TERM ASS. BEN. _______________
C) SAVINGS UNDER GSLI SCHEME _______________
D) LIFE COVER UNDER GSLI SCHEME (IN CASE OF DEATH) _______________
E) ENCASHMENT OF UNAVAILED P.L.FOR_______DAYS _______________
F) GTIS (IN CASE OF DEATH AND IF OPTED FOR GTIS) _______________
G) GROUP INSURANCE SCHEME 2004 (IN CASE OF DEATH) _______________
H) GROUP PERSONAL ACCIDENT INSCE (IN CASE OF
DEATH BY ACCIDENT) _______________
I) GROUP INSCE SCHEME FOR CARS COVERED
UNDER SCHEME VI (REV) _______________
J) SHORT REMITTANCE _______________
TOTAL AMOUNT PAYABLE ` _____________
AMOUNTS RECOVERABLE `
1) INCOME TAX ON GRATUITY/ADDL. ______________
GRATUITY/ FREE INS./ ENCASHMENT
OF LEAVE / WDV OF CAR
2) MORTGAGE LOAN IEHS/LICHFL ______________
3) EMPLOYEES’ CO-OP CREDIT SOCY/ ______________
BANK DUES
i) ______________
ii) ______________
4) SALARY SECTION DUES
i) NOTICE PERIOD SALARY ______________
ii) FESTIVAL ADVANCE ______________

244
 iii) COMPUTER ADVANCE ______________
iv) CYCLE ADVANCE ______________
v) CELL PHONE ADVANCE ______________
vi) FLOOD ADVANCE ______________
vii) EARTHQUAKE ADVANCE ______________
viii) ANY OTHER ______________
5) BOND AMOUNT
i) BOND EXECUTED ON ______________
ii) BOND VALID UPTO ______________
6) COMMUNICATION SECTION DUES (TELEPHONES)
7) ESTATE DEPT. DUES
i) LICENCE FEES/ RENT ______________
ii) DEPOSIT TOWARDS ELECTRICITY ______________
CHARGES
iii) WATER CHARGES ______________
iv) MISCELLANEOUS CHARGES ______________
8) CASH MEDICAL BENEFIT
RECOVERY (For Months)
9) BILLS SECTION DUES ______________
i) T.E ADVANCE/ CLAIM RECOVERY ______________
ii) LTC ADVANCE/ CLAIM RECOVERY ______________
iii) ANY OTHER ______________
10) OFFICER’S/ EMPLOYEE’S DEPT DUES ______________
11) LIBRARY DUES ______________
12) CREDIT CARD DUES ______________
13) EXCESS C.L. DUES___________ DAYS ______________
14) VIGILANCE DEPT. CLEARANCE ______________
15) ER/DISCIPLINE DEPT. CLEARANCE ______________
16) I.T. DEPT DUES (LAPTOP/COMPUTER) ______________
17) CAR SECTION
i) W.D.V OF CAR (SCH VI) / O/S ______________
VEHICLE ADVANCE
ii) ONE TIME ROAD TAX (OFFICER’S ______________
SHARE)
18) Transfer Grant (In case of exit within ______________
1 yr of transfer

245
19) SPECIAL STUDY LEAVE RECO ______________
VERY IF ANY
20) Actuarial
a) Subscription Fee ______________
b) Examination Fee ______________
c) Tuition course material ______________ ` _____________
NET AMOUNT PAYABLE
1) NOTICE FOR FORM III SENT ON ______________
2) PF PROFORMA SENT ON ______________
3) STAMPED DISCHARGE RECEIPT SENT ON ______________
4) STAMPED DISCHARGE RECEIPT RECEIVED ON ______________
5) PAYMENT VOUCHER PREPARED AND SENT ON ______________
6) SALARY SLIP RECEIVED ON ______________
7) STAFF RECORD SHEET RECEIVED ON ______________
8) MEMO TO SALARY SECTION FOR INCOME TAX SENT ON ______________
9) PROVIDENT FUND/PENSION (OPTION) ______________
10) PENSION FORMS NO. 5,10,25 RECEIVED ON ______________

246
 CHAPTER 17
VE RULES
LEAVE
LEA
1. Various kinds of leave as mentioned below may, subject to the discipline laid down in
Reg.30, be granted to employees (Reg.60B),
1) Casual Leave 2) Privilege Leave 3) Sick Leave, Special Sick Leave & Converted Sick
Leave 4) Extra-ordinary Leave 5) Maternity Leave 6) Special Leave 7) Quarantine Leave.
I. CASUAL LEAVE (REG.62)
LEAVE
a) Quantum
Quantum: 15 days during a period of 12 months from 1st July to 30th June in the next
year.
b) Additional Casual Leave
Leave: The quantum will be 23 1/2 minus the number of holidays
declared under N.I. Act in a calendar year (Jan. to Dec.) Additional Casual Leave may
be availed during the period of six months from 1st January to 30th June of the following
calendar year. According to the number of holidays declared under the Negotiable
Instruments Act, the quantum of Additional Casual Leave will vary from State to State.
Hence adjustments will be necessary in the case of employees transferred from one
State to another. It may also be noted that subsequent holidays declared in a particular
state should also be considered. Not more than 6 days including intervening Sundays/
Holidays may be granted at a time.
c) As per CO Circular ZD/602/ASP/86 dated 03.02.1986, an employee who is on tour /
training in a State other than that of his / her headquarters and enjoyed holidays declared
under NI Act in the State of tour / training, he / she may be granted Additional Casual
Leave for the number of days by which the holidays were observed under NI Act only
by the office of his permanent posting falling short of 23 ½ days in a calendar year as
per provisions of Regulation 62 (2) of Staff Regulations, 1960. Similarly, if an employee/
Officer is attending a training programme/on duty in another State on a day, for which
holiday has been declared under NI Act in the headquarters of the employee, he will
not be entitled to any additional casual leave, on the pretext that he was on duty on a
holiday.
d) An employee who is due to retire from the services of the Corporation between January
to June of a calendar year is entitled to full Additional Casual Leave. However, only
proportionate Casual Leave is to be credited.
e) Unavailed Casual Leave/Additional Casual Leave balance as on 30th June is converted
into Sick Leave on full pay subject to such Converted Sick Leave not exceeding 60 days
(i.e.120 days on Half pay) during the entire period of service.
f) Those joining service in the middle of the year will be entitled to proportionate Casual
Leave only. The proportionate leave will be at the rate of 1 1/4 days for each month of
service in the rest of the Casual leave year (July to June).
(i) Any employee joining service (i.e. whose probation begins) on or before the 15th
will be treated as having joined on the first of the month.
(ii) If the date of joining service is later (i.e. after 15th) that month is to be ignored.
For example, if an employee joins on the 17th April and the Additional Casual
Leave admissible for 12 months is say 8 1/2 days. Thus, an employee joining on
17th April will be eligible for Casual Leave for 2 months @ 1 1/ 4 days p.m. i.e. 2

247
 1/2 days. Additional Casual Leave will also in the case mentioned above be
proportionate to the number of Additional Casual Leave admissible to an
employee who has put in full 12 months service.
N.B.: C.L. and Additional Casual Leave are to be rounded off to the lower half.
g) C.L. on retirement/resignation etcetc.: In case of retirement/resignation etc. during
the Casual Leave year, the employee is eligible only for proportionate Casual Leave
upto the date of exit. Wages for excess C.L. availed have to be recovered.
h) Casual Leave of employees who die while in service: C.L. need not be calculated
on proportionate basis upto the date of death. Even if they were granted leave in excess
of the notional proportionate days, the CL already granted to such employees need not
be reverted. (Ref: CO Circular Personnel/V Circular No D 22/78- 79 dated 25.12.1978)
i) Half-a-day Casual Leave and Casual Leave on Saturday Saturday: If an employee applies
for C.L. for half a day, he has to work continuously for 3 1/2 hrs. However, in the case of
Class IV employee he has to work for 4 1/2 hrs continuously. Casual Leave on Saturday
will be full day.
j) Casual Leave for T emporary/Badli workers
Temporary/Badli workers: Though by the terms of appointment
they are not eligible for any leave, the Competent Authority may at his discretion grant
C.L. to them at the rate of 1 1/4 days for each completed month of service.
k) Casual Leave for Regular Part-T Employees: 10 days in a year.
ime Employees
Part-Time
II. PRIVILEGE LEAVE (REG.63)
LEAVE
a) Quantum
Quantum: 1/11th part of duty, i.e. for every 11 days of service (including holidays) one
day PL will be added to the credit. Duty for this purpose will be the service minus the
period of leave of all kinds except C.L. and Quarantine Leave.
b) Accumulation allowed upto 240 days.
c) Grant of P.L.-Conditions:
1) 15 days notice (Shortage may be waived).
2) May be curtailed/refused for office exigencies.
3) Reasons for waiving notice to be recorded.
d) P.L. for short duration:
duration Casual Leave is intended to cover casual contingencies and
therefore the occasions for short period P.L. should not normally arise. In rare cases
where it becomes necessary due to unforeseen contingencies, P.L. for short period may
be considered on genuine grounds. Such occasions should not exceed two in a year. The
Competent Authority to sanction the third and subsequent occasions is the Sr. Divisional
Manager-in-charge of the Division for Branch and Divisional Office employees and
Secretary (OS) for Central Office and Zonal Office employees. PL on medical grounds
for 6 days and less should not be considered as short duration PL. Short duration PL
can be sanctioned in a Casual Leave Year i.e. from July to June.
e) P.L. for half day:
day P.L. for 1/2 day should not be ordinarily considered. In exceptional
cases and rare occasions it may be considered.
f) PL for Regular Part-Time employees
employees: One day for every completed month of service.

248
 Accumulation may be allowed upto 30 days.
III. SICK LEAVE (REG.64)
LEAVE
a) Quantum
Quantum: At the rate of 30 days for each completed year of service, subject to maximum
of 16 months (480days) with half pay during the entire period of service.
b) Additional Sick Leave/Converted Sick Leave
Leave: Unavailed Casual Leave as on 30th
June will be converted into Additional Sick Leave with full pay subject to maximum of
60 days (or 120 days half pay) during the whole service.
c) Sick Leave/Converted Sick Leave can be considered for sanction only against Medical
Certificate from a Registered Medical Practitioner. Medical Certificate must be with
Registration number of Medical Practitioner. In case of illness, the employee should
intimate the Office immediately of his absence followed by proper Medical Certificate
of Treatment with his leave application. The Certificate should mention (1) the patient’s
name (2) nature of illness (3) probable duration of treatment. His application should
also specify whether the Sick leave applied for is on full pay or half pay. On resuming
duty, Medical Certificate of Fitness is to be produced.
N.B.: In case of suspicion/doubt: the Competent Authority may refer the employee to a
Named doctor or Panel doctor for obtaining fresh medical opinion, either for grant of
leave or in connection with fitness to resume duty. Cost of such medical examination
will be borne by the Corporation. Sick Leave applications forwarded to OS department
should have the recommendations of the department/section concerned.
d) Sick Leave for Regular Part-T ime employees
Part-Time employees: At the rate of 10 days on half-pay
for each completed year of service subject to a maximum of 160 days on half-pay
throughout the entire service period.
e) Special Sick Leave
Leave: Employees suffering from major diseases of cancer, leprosy,
tuberculosis, cardiac ailments/mental diseases, paralysis, brain tumours, kidney
disorders and AIDS may be allowed Special Sick Leave not exceeding six months on
half-pay if they do not have any Sick Leave or converted Sick Leave to their credit.
f) Special reports for T uberculosis
Tuberculosis
uberculosis: Before allowing the employee who was suffering
from T.B. to resume duties, arrangements should be made to obtain at LIC’s cost an X-
Ray, ESR, Sputum Report (Culture Report is not necessary). Such reports are to be
referred to authorised Medical Examiner and the employee is not allowed to resume
duties unless the Medical Examiner’s report is clear and unambiguous. Even after the
resumption, the employee should, after a lapse of three months produce necessary X-
Ray, sputum report etc. to confirm that the disease has not relapsed in case of Pulmonary
TB cases only. (Please refer to Circular Ref:Per/C/KSR- Cir No. 46 dt. 10.05.1979 and
Circular No. 3576/ASP/78 dt. 30.03.1978)
g) Special Report: Leprosy - Employee suffering from infectious leprosy should not be
allowed to resume duties unless the competent Medical Examiner/Hospital certifies
him bacteriological-negative judged by three conversion techniques carried out at
monthly intervals. He should also continue treatment as advised by the Medical
Examiner/Hospital with periodical check-up once in 3 months. As per Circular Ref:
Personnel/IR/G/102 dated 27.06.1991, the Competent Authority to sanction Special Sick

249
 Leave is given below:
Extent of Power Competent Authority
In respect of Class III & IV employees Officer-in-charge not below the rank of
DM/Dy Secretary or an officer not below
the rank of DM/Dy Secretary (A & I)
authorised by ZM/D(P)/Chief(A&I)
In respect of Class II Officers Appointing Authority
In respect of Class I Officers upto the Zonal Manager
rank of Zonal Manager
DM/SDM/DZM in the Zones
Officers in Central Office / Audit Executive Director (E & OSExecutive
Departments upto the rank of DZM Director (Co-ord)
Zonal Mangers and above Chairman
IV
V.. MA TERNITY LEA
MATERNITY VE (REG.66)
LEAVE
Lady employees are eligible for Maternity Leave for a period of six months from the date of its
commencement. Total maternity leave during service not to exceed one-year i.e., 360 days.
Maternity leave may be granted in cases of miscarriage and abortion including medical
termination of pregnancy. The leave should not exceed six weeks from date of miscarriage/
abortion and leave application should be supported by proper medical certificate. When a
lady employee not having any children adopts a child who is below one year of age, the
Maternity Leave for maximum period of two months or till the child reaches the age of one
year, whichever is earlier, shall be granted. The leave shall be granted for adoption of only
one child and subject to submission of Certified true copy of Adoption Deed to the Corporation.
This leave may be granted only once during the service.
Maternity leave for Regular Part-Time employees
employees: Maximum six months to be availed
of on two occasions of 3 months each. It will be admissible only after completion of two years
of continuous service.
V. SPECIAL LEAVE (REG.67)
LEAVE
Chairman is the authority to grant Special Leave, which will not be debited to any other leave
account. Chairman has issued instructions in respect of the following circumstances when
Special Leave may be granted:
a) Family Planning Special Leave as follows:
(i) 6 days for sterilisation operation or vasectomy.
(ii) 14 days to lady employees for Non-Puerperal Operation / Tubectomy. Not
exceeding 14 days for the 2nd time may be granted if the operation is for the 2nd
time due to the failure of the first operation.
(iii) One day to lady employees for IUCD insertion. One day for re-insertion of IUCD
may be granted.
b) Defence Service:
(i) During any period of emergency, employees joining any branch of Army, Navy or
Air Force are treated as on special leave for the duration of Interviews, test or

250
 medical examination as a preliminary to joining defence service, training, joining
time and duty / embodiment. 178
(ii) Employees joining the Home Guards Organisation or the Civil Defence
Organisation are granted special leave for the duration of training and/or duty.
The above special leave may be sanctioned by the Officer-in-charge of the office in
which the employee is working.
c) Sports:
(i) Upto 30 days (in a calendar year) for participation in National/International
events.
(ii) Upto 30 days (in a calendar year) for participation in important State event if
the employee is sponsored by LIC.
(iii) Upto 30 days for Trekking programme approved by Indian Mountaineering
Foundation or Youth Hostels Association of India. However, there is no provision
for undertaking Desert Trekking Expeditions (Ref:ER/Sports/88 dated 21st
March 2006).
Note: Total of (i), (ii) and (iii) should not exceed 30 days in a calendar year.
d) Trade Union Activity:Applicable only for Class I -Delegates:
(i) For annual Conference at Zonal level is 3 days (limited to 12 persons)
(ii) For annual Conference at All India level 4 days (limited to 70 persons) (a+b)
maximum 7 days in a year including journey period.
e ) Special Leave in lieu of Joining Time
Time:
Special Leave in lieu of joining time (Reg.73) : Joining time may be granted to all classes
of employees on his/her transfer. Six days are allowed for preparation and in addition
a period to cover actual journey as under.
Journey By T ime Allowed
Air Actual time
Train For 400 kms – one day
Steamer For 320 kms – one day
Motor Vehicle For 128 kms – one day
Special leave in lieu of joining time may be availed at a later date with a prior approval
of Competent Authority. The number of days of special leave admissible shall be number
of days of joining time he is eligible less the number of days of joining time actually
availed of (including journey period) excluding Sundays. No Privilege leave will accrue
for the period of special leave availed.
In terms of clause 74(DD) of LIC of India(Travelling And Transfer Allowances in India)
Instructions, 1977 it is provided that special leave in lieu of joining time may be granted
within six months of transfer to an employee to attend to matters connected with
winding up or settling the affairs in the old headquarters. Further, clause 74(F) (3) of
the said instructions provides that the officer should obtain permission from the office
from where he is transferred to avail joining time at a later date. The office shall then

251
 intimate to the office to which he is transferred regarding the permission so granted.
Where joining time is curtailed by Competent Authority, Special Leave in lieu of the
period curtailed, may be granted to enable the employee to go back to his earlier place
of duty for winding up the establishment there or for any other connected purpose.
Some of the important provisions as per the Travelling and Transfer Allowances in
India Instructions, 1977 & Central Office Circular Ref: No.ZDB/7/1988 dt. 18.10.88 is
given below:
(1) Trip to old headquarters should be made only after the officer has taken over
charge of the post at the new headquarters.
(2) The trip should be completed and the special leave availed of, as the case may
be, within a period of six months from the date of handing over charge by the
officer at the old headquarters or within such time as may have been allowed to
him by the Competent Authority for shifting his family.
(3) The benefits are admissible to the officer:
(i) for the purpose of shifting his family or any member of his family from
the old headquarters to the new headquarters and / or
(ii) for the purpose of shifting his personal belongings provided at least 5
quintals of the personal belongings, reckoned in weight, are transported
during such second trip and not for any other purpose.
(4) The benefit of special leave and trip to old head quarters can also be availed of
for the purpose of attending to matters connected with winding up or settling
the affairs in the old head quarters. However, this benefit for the purpose of
winding up the establishment at the old head quarters can be availed of only
within six months of transfer and cannot be availed during the extended period
(beyond six months). Further, prior sanction for extension beyond six months
should be obtained before expiry of six months from the date of handing over
charge at the old headquarters, for shifting the family and to avail of Special
Leave, if any. Under no circumstances will any request for relaxation of time
limit not sought before the expiry of six months from the date of handing over
charge at the old headquarters be granted. Beyond one year no case could be
considered for claiming the fares for members of the family and the dependents
as well as the cost of transporting personal belongings, etc., and no reference be
made to Zonal Office /Central Office for such relaxation.
It is further clarified that specific permission should be obtained for shifting
family beyond six months from the Competent Authority even if approval for
retention of Staff quarters / extension of leased accommodation beyond six
months has been obtained.
f) I.I.I. Examination invigilation: Invigilators are eligible for Special Leave on the day/s
they invigilate.
g) I.I.I. Annual Conference/Council Meetings:
(i) Annual Conference: Special Leave for not more than 3 delegates from each
Division for the days of Conference and the actual to and fro journey time.

252
 (ii) Council Meeting: Special Leave to representatives of local institutes twice a
year for attending Council meeting period as in (i).
(iii) Prize Winners who are invited by the Institute to read their papers. Period as
in (i). They are eligible for TA/ DA also.
h) Special Leave may be granted to an employee who donates blood voluntarily at a
Hospital/Blood Bank, for the day he donates Blood. Employee to produce Certificates
from Hospital/Blood Bank certifying that no payment was made to him. Such occasions
shall not exceed 10 days in a year.
i) Accident while on duty:
(i) Employee to produce within 3 days certificate from the Hospital/Doctor about
the admission and probable period of treatment, if admitted.
(ii) If out-patient, certificate showing the likely period of treatment and if the
recommended period is over a week, the employee to be directed to appear
before an authorised Medical Examiner to ascertain the extent of injury and
probable period of treatment.
(iii) If treated by a private doctor as in (ii).
As per Central Office Circular IR/3797/ASP/91 dated 06.07.1991, the Competent Authority to
sanction Special Leave for Accident while on duty is given below:
Upto 90 days Class III & IV employees, Class II 1. Divisional Manager/
employees and Class I Officers Senior Divisional Manager-
upto the rank of ADM in-charge
2. Zonal Manager in respect of
employees in Zonal Office
3. Secretary (Audit)/Secretary
(OS) in respect of employees
in Audit Centres and in
Central Office
Class I Officers in the rank of 1. Zonal Manager in the Zone
Divisional Manager Dy Zonal 2. Executive Director (CO-
Manager Ord) in respect of Class-I
officers in the Audit
Department, Central
Office
3. Executive Director(E&OS)
in respect of Class-I officers
in Central Office
Over 90 days All Class-II,III & IV employees Zonal Manager in the Zone/
and Class-I officers upto the rank Executive Director (CO-ord) in
of Dy Zonal Manager respect of Audit Centres and
Audit Department of Central
Office/Executive Director
(E&OS) in respect of Central
Office.
Zonal Manager & Above Chairman

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Special study leave for actuarial exams:
As per CO Circular No.ZD/1133/ASP/2009 dated 19.5.2009 “No Special study leave for preparing
for the Actuarial examination shall be granted “
VI. QUARANTINE LEAVE (REG.68)
LEAVE
a) Quarantine Leave is absence from duty necessitated by orders not to attend Office in
consequence of presence of infectious disease in the household of the employee (not
the employee himself).
b) Quarantine Leave may be granted on the Certificate of Medical/Public Health Officer,
Government Doctor, Government Hospital or qualified Medical Practitioner appointed
by LIC.
c) Period of leave is normally not exceeding 21 days. However, in exceptional
circumstances it may extend to 30 days.
d) Cholera, Diphtheria, Plague, Small Pox, Cerebrospinal Meningitis and Typhus fever
are considered infectious diseases for the purpose of Quarantine Leave. In case of
Chicken-Pox Quarantine Leave should not be sanctioned unless the Medical Officer
responsible considers that because of doubt as to the true nature of the disease, there
is reason for the grant of such leave. In the case of a Corporation employee stationed in
areas under the administration of State Governments, such other diseases, as may
have been declared by leave rules may also be considered as infectious diseases for the
purpose of Quarantine Leave. Such Corporation employee will, however, be eligible
for quarantine leave for any diseases mentioned above even though it has not been
declared in orders issued by the State Government concerned to be an infectious disease.
e) On resuming duty, a certificate should be produced to show that the patient has been
cured and is no more in infectious stage and that the employee himself is fit to resume
duty.
f) The term “Medical or Public Health Officer” includes medical officer-in-charge of any
Government (Civil or Military) or Municipal Hospital or Dispensary, or a qualified
medical practitioner appointed by the Corporation. In the case of an employee at whose
place of duty there is no Government or Municipal Hospital or Dispensary, the certificate
is to be issued by the Medical Officer-in-charge of a Government or Municipal Hospital
or Dispensary situated nearest to his/her place of duty or a qualified medical practitioner
appointed by the Corporation.
g) In granting Quarantine Leave, the following procedure should be followed:
(i) The employee must, in first instance, report the presence of the infectious disease
in his household immediately it is detected, supported by a medical certificate
acceptable to the Corporation in terms of the Staff Regulations. On production
of such a certificate, the Competent Authority would pass orders that the
employee should not attend office for the relevant period recommended in the
medical certificate subject to the maximum period permissible for Quarantine
Leave under the Staff Regulations, i.e. 21 days or 30 days, as the case may be.
Any privilege leave sanctioned to the employee for that particular period would
be cancelled. If the employee does not promptly intimate the detection of the
infectious disease in his household, he would not be eligible to have the earlier
period, i.e. the period prior to the intimation to the office of the disease, to be

254
 treated as quarantine leave. This would mean that if an employee reports about
the presence of an infectious disease after he rejoins duty, he would not be eligible
to have his absence for the period treated as quarantine leave.
(ii) An employee in whose household the presence of an infectious disease is
detected, should produce a certificate prior to resuming duty that the concerned
patient has been cured and is no more in an infectious stage and the employee
himself is fit to resume duties. Further, apart from the infectious diseases
mentioned above, such diseases as have been declared by the State Government
for the purpose of Quarantine Leave have also to be considered as infectious
diseases for the purposes of granting Quarantine Leave. The concerned offices
of the Corporation should obtain the list of such prescribed diseases from the
respective State Governments to eliminate doubts as to which diseases are
considered infectious in a particular territory by the State Authority concerned.
VII. EXTRA-ORDINAR
EXTRA-ORDINARYY LEAVE (REG.65)
LEAVE
a) EOL is normally granted when no other leave is due.
b) The Competent Authority has every right to treat any period of unauthorised absence/
overstayal as EOL.
c) Duration of EOL shall not exceed in exceptional circumstances beyond 3 months on
any one occasion and 12 months during the entire service period. EOL exceeding 12
months may be granted on grounds of illness. Where the E.O.L. exceeds 90 days at a
stretch or 365 days during the entire period of service or where it exceeds 365 days for
reasons other than own sickness-then refer to the Competent Authority as per Schedule
IV of Staff Regulations. Half day EOL should not normally be granted.
VIII. MISCELLANEOUS
a) Leave to Trainees:
During the training period employee is not eligible for any leave. Any absence will
amount to proportionate stipend cut.
b) Leave to Probationers: As service commences on the day the probation commences,
they are eligible for C.L./P.L. etc. C.L. will be on proportionate basis.
c) SC/ST - IAS/IPS Coaching:
SC/ST employees receiving coaching in Pre-examination Courses from Government
for IAS/IPS etc. are eligible for P.L. and if there is no P.L., E.O.L should be granted for
the period of training and journey period.
d) I.I.I./Actuarial Examinations & MBA Exams by a Recognised University.
(i) Employees of the Corporation appearing for prescribed examinations for which
the Corporation grants special allowances/increments may be treated as ‘on
duty’.
(ii) All employees are treated as ‘on duty’ for the period of examination. To and fro
journey period for outstation employees to the place of examination (which shall
be the nearest Centre) is also treated as ‘on duty’, but no TA/DA shall be paid.
(iii) In the case of employees working at the examination centre, if the examination
is in the forenoon and if there is no examination on the following day they must

255
 attend the office in the afternoon or take half day leave.
e) Promotion Test/Interview:Treated as on duty on the date/s of test/interview and for
the periods of to and fro journey. T.A./D.A will also be paid as per rules.
f) Forfeiture of Leave [(Reg. 30(3)]:
(i) An employee habitually late in attendance shall forfeit one day leave for every
three days he is late in a month. If he has no C.L., then P.L or EOL will be
debited.
(ii) Where due to circumstances beyond his control, an employee is late and the
Competent Authority is satisfied about the circumstances, he may condone late
attendance. Such condonation may be allowed not more than twice a month.
Late attendance so condoned will not be taken into account in forfeiting leave.
(iii) Notice of resignation will be proper only if the employee remains on duty during
notice period. Any Leave cannot be set off against Notice. (No leave accrues
during notice period).
g) Special Sick Leave to Part-Time Employees: Central Office letter Ref: PER/ER/G/104
dated 18/03/2004, clarifies that regular part-timers cannot be granted special sick leave.
h) Sanction of leave during notice period in case of Voluntary Retirement under Regulation
19(2A) of Staff Regulations, 1960 or Rule 31 of Pension Rules, 1995:
(i) Casual Leave / Privilege Leave/Sick Leave can be sanctioned during the period
of notice for Voluntary Retirement under the above-mentioned rules, and such
leave does not affect the validity of notice. However, while sanctioning sick leave,
one has to exercise a lot of caution in order to rule out the misuse of sick leave
and ensure that the same is not availed of in a programmed way. By way of
precaution, any request for sick leave for more than a week’s duration during
the notice period should be examined closely to make sure that it is for genuine
sickness. For this purpose recourse may be taken to verifying the medical
certificate, relevant prescription papers and Mediclaim, if any, and in case of
doubt a second medical opinion from ZMR / DMR or any other nominated
physician may be obtained.
(ii) In case any employee is sanctioned EOL during the period of notice for any
reason whatever, the same will not affect the validity of notice, and consequently
the date of retirement will not be postponed to the extent of the duration of
EOL.
(iii) In case any employee gives notice for voluntary retirement for more than three
months, such notice will be deemed to be valid.
(iv) If any employee is not able to, or does not give three months notice and desires
relief earlier, and the competent authority does not agree to waive the notice /
balance notice period, the employee may be allowed to retire earlier provided
he agrees to pay salary in lieu of the notice / balance notice period.
General conditions governing leave (Reg.61)
a) Duty or service earns leave.
b) Leave cannot be claimed as a matter of right. In cases of exigencies, the Corporation

256
 can refuse or revoke leave. Sanction of leave may not be presumed and leave shall not
be availed of unless specifically sanctioned.
c) All unavailed leave excepting the PL subject to maximum limit lapses on retirement,
death, dismissal, resignation or other form of termination. (Encashment of unavailed
portion of PL shall not be paid in case of dismissal, resignation or other form of
termination.)
d) No outside service or employment can be taken up during the leave period except
during L.P.R. (Leave preparatory to retirement) which the Chairman may permit.
e) Leave granted is to be fully availed unless (i) the employee is recalled (ii) allowed by
the Competent Authority to join before expiry. In such events –
1) Officiating arrangement, if any, has to be reviewed,
2) Advance salary and PL encashment, if paid, is to be refunded.
f) Overstayal after expiry of sanctioned leave will be E.O.L. unless otherwise directed by
the Competent Authority. Willful absence will attract Disciplinary Action under
Regulation 39.
g) In case of sickness, the Office is to be intimated immediately, say, in a day or two followed
by Medical Certificate of treatment. On resuming duty, Medical Certificate of fitness is
essential.
h) Leave may be prefixed or suffixed to a holiday. Intervening Holiday (i.e. holiday between
two periods of leave) will also be treated as leave.
i) Employee under suspension may not be granted leave.
j) Leave to the credit or due is always the leave earned minus the leave availed.
k) Leave is to be availed only after sanction thereof except that one-day casual leave may
be availed without prior sanction in case of unforeseen emergency.
l) P.L. requires 15 days’ notice; otherwise it may be refused.
m) Employees shall furnish his address while on leave.
n) Casual Leave cannot be combined with any other leave except Special Leave. Other
kinds of leave may be combined.
o) Change in nature of leave: Sanctioning Authority can refuse leave applied for but cannot
change or alter the kind of leave. e.g. EOL or other leave cannot be granted against an
application for Privilege leave not submitted in time. P.L., may however be refused.
Inspite of this, if the employee remains absent, the absence may be treated as E.O.L/
Dies-Non. Moreover, disciplinary action may also be initiated against the employee.
p) If extension of leave is applied after resuming duty, unless the reasons for extension
are such as would have prevented the employee from applying for extension in time,
the overstayal shall be treated as E.O.L/ Dies-Non.
q) Leave on false pretexts: If it comes to light that if leave sanctioned was taken under
false pretext, the Competent Authority should reopen the case and treat the absence
as E.O.L./Dies-Non. However, such treatment of absence as EOL/dies-Non should be
only after calling for necessary explanation from the employee and also after giving
show-cause notice regarding the proposed treatment of absence as EOL/ Dies-Non.

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UNAUTHORISED ABSENCE (REG. 30)
a) No employee shall absent himself/herself from duty without prior permission of the
Competent Authority.
b) In case of sickness or accident he/she should send an intimation to the Office within 3
days. Such intimation shall be followed at the earliest by written application supported
by Medical Certificate of Treatment when absence is due to sickness.
c) In an unforeseen emergency, an employee may be allowed to avail a day’s Casual Leave
without prior approval.Even in such cases the Competent Authority has to be advised
of the circumstances in which prior sanction could not be obtained.
d) An employee remaining absent without leave or overstays is not entitled to any salary
for the period of absence/overstayal.
e) The Competent Authority may, depending on the circumstances, treat the period of
absence/overstayal, as PL/S.L./E.O.L The employee has no right for such treatment of
absence/overstayal.
f) If not treated as above in (e) the absence/overstayal will be ‘Dies-Non’.
g) The employee remaining unauthorisedly absent or overstays also renders himself liable
for disciplinary Action under Reg.39.
KIND OF LEAVE
LEAVE HOW SALAR
SALARYY IS AFFECTED
Casual Leave Not affected
Privilege Leave Not affected
Sick Leave
a) Full Pay a. Not affected
b) Half Pay b) Half of the aggregate Basic Pay
+ DA, HRA, CCA, Hill Allowance
(appropriate to half of the basic
pay)
Maternity Leave Not affected
Special Leave Not affected
Quarantine Leave Not affected
EOL No Salary
Dies-Non No Salary
Re: Effect of ‘Dies Non’ on the rate of accrual of Casual Leave / Additional Casual
Leave.
Whenever an absence of the employee is treated as ‘Dies Non’, besides other effects, the
employee is entitled to only proportionate casual leave and additional casual leave. The method
for calculating such proportionate casual leave on account of the effect of ‘Dies Non’ on the
rate of accrual of Casual Leave/Additional Casual Leave is given below: Proportionate casual
leave/additional casual leave may be calculated on the basis of the aggregate period for which
an employee has been treated as on ‘Dies Non’ at a given time. ‘Dies Non’ for a fraction of
month upto 15 days may be ignored and ‘Dies Non’ for 16 days or more may be taken as complete
month. The proportionate casual leave/additional casual leave may be calculated on the basis
258
of the months so arrived. If the resulting product is a number with a fraction, the casual leave/
additional casual leave should be rounded off to the lower half. However, where the casual
leave/additional C.L. has already been availed of in excess of the proportionate entitlement
calculated as per the above instructions before a decision to treat any absence as ‘Dies Non’ is
taken, such cases need not be reopened. The period treated as ‘Dies Non’ may be noted on the
top of the casual leave registers in red ink immediately on receipt of the advice from the
Department. In case the period treated as ‘Dies Non’ happens to be before 30th June of the
year, it should be recorded in the casual leave register for the next year so that proper action
in regard to calculation of proportionate casual leave/additional casual leave could be taken.
At the end of the casual leave year, it should be ensured that the effect of ‘Dies Non’ on the
accrual of casual leave/additional casual leave has been taken care and that there is no pending
case.
LEAVE AND INCREMENTS (REG.56 & REG.69)
LEAVE
The leave availed by the employee will affect the release of the Normal Grade Increment as
shown below:
Nature of leave Effect
CL/PL/Sick Leave Does not affect the release of NGI
EOL The NGI will fall due on the first of the month following that
in which the employee completes 12 months
Dies-Non Period of Dies-Non is not treated as service and is excluded
from the period elapsed for considering the grant of NGI
N.B: Competent Authority, on written application from the employee, may condone EOL
availed owing to own sickness for the purpose of release of Normal Grade Increment. His
decision will be based on the nature of illness, length of service and past leave record.
Dies-Non means the period that does not count for service. Therefore, where any benefit
accrues or service conditions is dependent on ‘service’, the period of service should be arrived
at after excluding the period treated as ‘Dies-Non’.
The period ‘Dies-Non’ has therefore to be excluded in arriving service period for the following
purpose.
a) Payment of Gratuity
b) Provident Fund
c) Medical Benefit for Class III & IV (Annual payment)
d) Competing for promotion
e) Calculation of C.L./Addl.C.L.
f) Release of Normal Grade Increment/Stagnation Increment.
g) Privilege Leave/Sick Leave.
Notice of resignation will be proper only if the employee remains on duty during notice period.
Any leave cannot be set off against notice. (No leave accrues during notice period).

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ENCASHMENT OF PRIVILEGE LEAVE WHILE IN SER
LEAVE VICE
SERVICE
(Ref. C.O. Circular Dept. Per/ER Cir No 3806/ASP/92 dated 21-4-1992) and C.O. Circular
Ref.Per/ER/A/G/87(iii) dated 25.5.92)
1. Once in a block of 2 calendar years, an employee will be allowed to encash Privilege
leave upto a maximum of 15 days out of the Privilege Leave standing to his credit but
not availed of.
2. To be eligible for encashment of leave, as aforesaid, the employee must also avail of a
minimum of 15 continuous days Privilege Leave during the relevant block. The cash
payment is to be made alongwith the advance salary, if requested by the employee,
otherwise on the working day immediately prior to the date on which his leave
commences. The employee has to give in writing his intention to encash Privilege Leave.
3. The first block commenced from 1-4-1992 and ended on 31-12-1993. The subsequent
blocks of 2 calendar years were 1-1-1994 to 31-12-1995,1-1-1996 to 31-12-1997, ………..,
01.01.2006 to 31.12.2007 and so on.
4. It is required to proceed on leave at least from the last day of the encashment block. It
is not necessary to avail the minimum number of days, i.e., 15 days Privilege Leave
before the last date of the block, i.e., 31st December.(Memo Ref.: ER/A/G/87 dt.
15.02.1996)
5. The block to which the encashment relates will be decided with reference to the date
of commencement of the Privilege Leave availed of by the employee. For example, an
employee avails of leave from 17.12.2005 to 18.1.2006. In this case, the encashment of
leave will relate only to the block 2004-2005.
6. When an employee avails of the benefit of encashment of Privilege Leave, the leave
account of the employee shall be debited by the amount of leave so encashed (maximum
15 days) in addition to the number of days Privilege Leave(subject to a minimum of 15
days) that he actually avails of.
7. The encashment of Privilege Leave upto the maximum permissible period of leave shall
be allowed only on one occasion in the stipulated block. For example, if an employee
avails encashment of Privilege Leave, say, for 14 days or less at a time during any
particular block, he shall not be eligible to avail encashment of leave for the balance
any time thereafter. This shortfall cannot also be carried forward and added to the
next block.
8. The salary for the purpose of encashment shall consist of Basic Pay, Special Allowance,
Personal Allowance (if any) and other Allowances drawn by the employee on the date
prior to the date on which he proceeds on leave but excluding Officiating Allowance,
Functional Allowance, Conveyance Allowance, Entertainment Allowance and House
Rent Allowance. If there is any change in the quantum of benefit due to change in the
rate of Dearness Allowance, after the payment has been made, consequent excess/
shortage is to be adjusted in the ensuing months’ salary.
9. No Contribution to the Provident Fund or Pension Fund, if any,or other deductions
except towards taxes shall be effected from the amount payable to the employees
towards the encashment of Privilege Leave.
10. Privilege Leave is calculated only on the basis of the number of days the employee has

260
 been on duty. The days of Privilege Leave for which encashment is allowed should not
be treated as period actually spent on leave and should therefore, not be treated as
Privilege Leave availed while calculating further P.L.
11. An employee who has been allowed encashment may not be allowed to curtail the leave
that he has taken if such curtailment reduces the amount of leave availed of by the
employee to less than 15 days.
12. A separate register should be maintained indicating the name of the employee who has
availed encashment, number of days of leave encashed, the period of leave availed of
by him and the amount of salary that has been paid towards encashment.
13. As the salary paid towards encashment of leave is liable for Income Tax, suitable remark
has to be made in the Earning Record Sheet/Salary Master with regard to the amount
that has been paid by way of encashment of leave.
14. The Competent Authority to allow encashment of leave will be the authority who is
empowered to sanction Privilege Leave.
15. The quantum of salary for the number of days of P.L. encashed is to be decided as
follows:
Salary + Allowance No.of days of P.L
included for encashment X surrendered
30 days (for all months)
The above formula should be followed irrespective of the month in which P.L is availed and
surrendered.
ATTENDANCE REGISTER AND LEAVE RECORDS OF EMPLOYEES
LEAVE
1. Every employee who attend the Office after the appointed time for commencement of
the Office (10.00 / 10.30 a.m for Class III and 9.30 / 10.00 a.m. for Class IV) should
invariably mark the time of reporting for duty in the Attendance Register. It is also
essential to mark the time of reporting for duty in the Attendance Register when an
employee avails half day leave in the forenoon session to determine whether the
employee has worked for 3 1/2 hours in the case of Class III and 4 1/2 hours in the case
of Class IV employees.
2. Exactly at 10.00 a.m. a horizontal line in red ink should be put indicating the absence of
the employee at 10.00 a.m. sharp. At 10.10 a.m. a vertical line is to be drawn in a manner
that will make the horizontal line L-shaped and it should be drawn on the left end of
the muster roll block showing that the employee has not attended the Office within
the grace period. At 10.10 a.m the Attendance Register must be placed before the Branch
Manager/Sr.Branch Manager/AO/AS/ADM or the senior most Officer/ Supervisory
person of the Office looking after the O.S.Dept. At 10.30 / 11.00 a.m. the Attendance
Register should be closed with a mark to make the “L” mark into a triangle to indicate
that the employee has not attended the Office even after the expiry of one hour from
the commencement of Office hours and the Attendance Register should be kept in the
custody of the Head of the Office/Department or an Officer authorised by him.
Note: In case of Class III & IV employees the above timings should be read as 10.30 a.m.
and 10.00 a.m. respectively wherever the office hour commences at 10.00 a.m. Above
timings may vary from zone to zone.

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3. The Departmental Head in the Divisional Office and Sr/Branch Manager/AS/ADM in
the Branches/CO/ZO/will be responsible for the proper maintenance of the Attendance
Registers of the Divisional Office/Branch Office/CO/ZO respectively. He should
nominate one of the Officers/Supervisory Personnel to be in charge of the Attendance
Register and person so nominated should see whether all employees in the Department/
Office have attended the Office and signed the Attendance Register, noting the time of
reporting for duty, wherever necessary.
4. The authorised Official should see that marking of late attendance is done in time
regularly. To ensure that this is being done, senior Officer should make surprise
inspection. A record of the surprise check made, shortcomings noticed and the corrective
action that has been initiated is to be maintained. The Officer concerned should daily
initial the Attendance Register for having checked the attendance regularly. The Branch
Manager/Asst. Branch Manager/AO/AAO should also attend the Office in time and joint
calls except during the month or year-end should be so arranged as to enable at least
one Officer to attend the Office in time.
LA TE ATTENDANCE
LATE
1. In order to exercise proper control over the late attendance, it is necessary to obtain
appropriate form duly filled by the concerned employee on each occasion he attends
Office late beyond grace time. A register should be maintained and all cases of late
attendance should be entered so that the number of occasions in any particular month
in respect of any particular employee can be found out easily and correctly.
2. An employee who attends the Office after the expiry of the grace period will be
considered late for the purpose of regulation 30(3) of (Staff) Regulations, 1960 if he
attends the Office with in one hour from the commencement of the office hours.
3. Sub-Regulation 3 of Regulation 30 of the (Staff) Regulations, 1960 empowers the
Competent Authority to condone late attendance by an employee for 2 days in a month.
Such condonation, however, is intended only for delay in the attendance, merited by
circumstances of the case. The power to condone to be exercised at the discretion of
the competent Authority-not to condone the late attendance if he is not satisfied that
the late attendance was justified by the circumstances prevailing. The provision for
condoning the late attendance on two days in a month is, in fact, quite liberal and no
further condonation is to be granted.
4. In terms of the same sub-regulation of Regulation 30 of the (Staff) Regulations, 1960, if
an employee is habitually late in attendance, he forfeits one day’s Casual Leave for
every 3 days he is late in a month. Some employees take undue advantage of this
provisions by coming late to the Office by one hour from the commencement of Office
hours on two days every month. It should be realised that the provision regarding late
attendance is intended to cover late attendance in exceptional circumstances only. An
abuse of this provision would not be conducive to Office discipline and, therefore, should
be actively discouraged. Where an employee is found to be making it a practice to come
late habitually on 2 days every month and thereby avail himself of the maximum
concession permissible under the Regulation, he should be cautioned and if
improvement is not noticed, even after a warning is issued, suitable disciplinary action
should be taken against him.

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5. Further, if an employee attends Office during grace period for more then 5 times a
month, he should be given a letter advising him to maintain the punctuality and not to
abuse the facility extended by the Office.
6. In case of employees attending the Office late with prior permission of the Competent
Authority, the time limit for coming late to the Office should be the same as for coming
late without prior permission. Viz., by one hour. Even though an employee who attends
the Office late with prior permission of the Competent Authority stands on a different
footing from an employee attending the Office late without prior permission, special
sanction should not ordinarily be given more than once in a month and, of course, it
cannot be given every month. In any event, such special sanction should not be given
for more than two times a month. As mentioned above, late attendance with prior
permission stands on a different footing in as much as the Competent Authority having
exercised his discretion and allowed the employee to attend late must necessarily
condone such late attendance. Late attendance with prior permission should not,
therefore, be considered as an additional privilege and in terms of Regulations 30 (3),
the Competent Authority cannot condone late attendance either with or without prior
permission for more than two times in a month.
7. In so far as forfeiture of leave is concerned, if an employee attends Office late for 3
days in a month (other than those which have been condoned) he will forfeit a day’s
Casual Leave as the case may be. For instance, if an employee attends Office late 3
times more in a month excluding those, which the Competent Authority has already,
condoned (twice in a month), the employee will forfeit a day’s leave for every 3 such
late attendance.
PERMISSION TO LEAVE OFFICE EARL
LEAVE Y
EARLY
As per CO Circular No.ZD/1158/ASP/2010 dated 1.9.2010 “Facility of leaving office early up to
an hour provided vide Circular No.3369/ASP/66 dated 16.5.1966 stands withdrawn with
immediate effect. Inspite of this provision, if early going is availed, apart from any other
action that may be taken by the Competent Authority, Meal coupon for the day will not be
paid”.
LA TE ATTENDANCE ON HALF-A-DA
LATE Y LEA
HALF-A-DAY VE
LEAVE
When an employee applies for half-a-day Casual Leave either in the forenoon or afternoon, he
has to put in 3 ½ hours (4 1/2 hours in the case of Class IV employee) continuous work in the
afternoon or forenoon as the case may be. As such the question of allowing to attend Office
late by one hour does not arise in such cases. So, an employee reporting for work in the
afternoon session must report at 2.00.p.m. If the commencement of working hours is 10.30
a.m. for Class III / 10.00 a.m. for Class IV. (1.30 p.m. in the case of Class IV employee.).
EMPLOYEES GOING ABROAD
Some of the employees were going abroad ostensibly for the purpose of meeting members of
their family, visiting places, etc., but fail to return and resume duty for a long period. In such
cases extension of leave applied for must not be granted. However, after reviewing the matter
Per/ER department, Central Office had vide their circular reference PER/ER/G/169/MKK dated
27.2.1998 instructed as follows.
Where an employee has gone abroad and asks for extension of leave, the Competent Authority
may sanction the extension provided it is satisfied that the reasons given are genuine and

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such leave can be granted subject to office exigencies. Where no extension of leave can be
granted, the employee should be asked to resume duty immediately on the expiry of the leave
already sanctioned and also be informed that no extension of leave will be considered until
he/she resumes duty. If employee fails to resume duty within a period of 1 week, a chargesheet-
cum-show cause notice may be issued to the employee stating the fact that the employee has
overstayed unauthorisedly and as such, is liable for action under Regulation 31 of the staff
Regulations. The show cause notice may also propose a penalty of removal from service. In
case the employee resumes duty and offers a valid explanation for the overstayal of the leave,
the Competent Authority may either grant leave or proceed with the disciplinary proceedings
taking into account whether the leave was necessary or for reasons beyond the control of the
employee.
For taking such action, no reference need be made to the Central Office and the Zones/Divisions
may take appropriate action at their end.Where an employee has been asked to resume duty
immediately on the expiry of the leave already sanctioned and also been informed that no
extension of leave will be considered until he/she resumes duty, resignation, if submitted by
the employee on resumption of duty, may be accepted by the Competent Authority subject to
rules under Regulation 18(1) of the Staff Regulations.

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 CHAPTER 18
T. E. RULES
A. TOUR
I. WHO CAN SANCTION TOUR?
A tour can be undertaken only after prior sanction in writing has been obtained of:
1. Branch Manager/ABM (S) in-charge in the case of development officers / Class III / IV
employees.
2. Senior Divisional Manager in-charge / Divisional Manager/Assistant Divisional Manager
duly authorised in this behalf by the Senior Divisional Manager in-charge in the case
of employees in the Division
3. Zonal Manager or Regional Manager duly authorised in this behalf by the Zonal Manager,
in case of employees in Zonal Office and in case of Divisional Managers going on tour
outside their division.
4. Executive Directors or Officers not below the rank of Divisional Manager duly
authorised by the Executive Director concerned, in case of persons employed in the
Central Office.
5. Secretary (A&I) of the Zone in case of Internal Audit and Inspection staff of the Zone.
Chief (A&I) in case of Internal Audit and Inspection Staff at the central office and for
inter-Zonal tours for Internal Audit and Inspection Staff of the Zones.
6. Executive Engineers in the case of Asst. Engineers, Overseers and other employees
working under them at Zonal headquarters and other projects directly under their
control.
7. Officers of the rank of Zonal Manager and above may themselves decide their own tour
programmes, a copy of which should be forwarded for information to the Chairman in
advance of the commencement of tour as far as possible. The Divisional Managers and
Secretary (A & I) of the Zone may also themselves draw up their programmes of tour
within their respective jurisdiction and a copy thereof shall be sent to the Zonal
Manager or Chief (A & I) as the case may be in advance of the commencement of the
tour as far as possible.
II MODE OF TRAVEL:
TRAVEL:
Journey is to be performed by the shortest and/or cheapest route between any two stations. In
cases where travel by costlier route becomes unavoidable, permission of competent authority
sanctioning tour should be obtained. The competent authority should also record the reasons
for permitting the relaxation while according his sanction.
If the journey is performed by the costlier route without prior sanction of competent authority,
travelling expenses shall be allowed as if journey was performed by the cheapest route by the
eligible class.

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 Cadre Mode of T ravel
Travel
ED / ZM / SDM I AC / I AC Rajdhani / Air Economy Class
DM II tier AC Rajdhani / II Tier AC Sleeper / Air Economy
Other Class I Officers II Tier AC Rajdhani / II Tier AC Sleeper
Development Officers II Tier AC Sleeper (other than Rajdhani Express)/
Rajdhani Chair Car / III Tier AC Rajdhani
Class III - Basic Pay ` 12,070/- II Tier AC Sleeper (Other than Rajdhani Express)/
and above Rajdhani Express Chair Car / III Tier AC Rajdhani
Class III - Basic Pay less than II Class (other than Rajdhani Express) / I Class /
` 12,070/- II Tier AC Sleeper, if night journey is involved
Class IV - Basic Pay ` 12,070/- II Tier AC Sleeper / Rajdhani Chair Car / III Tier AC
and above Rajdhani
Class IV - Basic Pay less than II Class with Sleeper berth for night journey (other
` 12,070/- than Rajdhani Express)
Note: In case of transfer or tour, if the employee is asked to leave the headquarters due to
office exigencies, Tatkal reservation charges may be reimbursed while settling transfer or
tour T.E.
Travel by Taxi :
Taxi
If places are connected by Train All classes of employees are eligible for the maximum
amount as per their eligibility
If places are not connected by Train Only class I Officers are eligible to travel, availing
single seat in a taxi
II (A) TRAVEL BY AIR :
TRAVEL
The air tickets should be normally purchased through Office Services Department and through
travel agents on the panel of our office only, who offer maximum discount in addition to the
corporate discount offered by Airlines.
The Officers/employees/agents traveling by air with/without family members on official tour/
LTC tour/conventions & conferences should invariably get the Deal Code number of the
respective airlines duly recorded at the appropriate place by the travel agents or by the
ticketing authority where ticket is directly booked through counter (in case of emergency) by
cash/credit card etc., so that substantial amount of incentive can be obtained from Airlines.
Details of Deal code to be recorded at the time of booking the ticket should be as per the
circulars issued from time to time. However the existing Deal codes are as under.
Name of the Airlines Deal Code No Place of incorporation
Air India B267 Tour Code Box
Jet Airways 9W0210002 Tour Code Box
Jet Lite S20210002 Tour Code Box
Kingfisher Airlines LIC01 Tour Code Box

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Indigo Airlines Tour Code Box
a) Corporate Promo Code LIC1
b) Retail Promo Code RLIC1
All the air tickets shall be booked under lowest available concessional fare instead of normal
economy class fare and no officer to insist for particular Airline and/or particular flight unless
it is absolutely necessary.
II (B) FOREIGN TOURS :
The air tickets for foreign tours shall be purchased by Office Services Department, Central
Office, only through our approved travel agents to get the best available deal.
The officers on receipt of intimation regarding their nomination for programme in foreign
country should send their travel plan along with copy of nomination letter to Office Services
Department, Central Office, immediately.
Whenever the officer desires to travel through different route and/or stays back availing leave,
the difference if any in the air fare due to above deviations will have to be borne by the officer.
Kit Allowance of ` 10,000/- is payable once in three years to the officers to equip with clothing
& other personal gear to his foreign station.
Daily Allowance for journey to foreign countries.
Ref- ZD/1121/ASP/2008 dt :11/04/2008
The matter of Daily Allowance for journey to Foreign Countries has been reviewed and
accordingly following instructions are issued with regard to payment of Daily Allowance to
Officials visiting foreign countries in super cession of all the practices followed and instructions
issued in the past in this regard.
1. BUSINESS VISITS :
a) Business visits for less than 45 days in a single trip, where no hospitality is provided :-
Chairman / MD - 500 US $ per day
ZM(S) / ZM (O) - 400 US $ per day
Sr. DM - 350 US $ per day
Other Officials - 300 US $ per day
b) In case where full hospitality is extended :-
(i) Business visits upto 10 days - 500 US $ (Lump sum)
(ii) Business visits for more than 10 days - 50 US$ per day upto Maximum period of
45 days.
It may be noted that in such cases, if the Officer does not avail himself or the hospitality
extended to him out of his own choice, he will not be allowed to be treated as if full
hospitality is not provided to him and accordingly he will not be allowed to be governed
by 1 (a) above.
2. OTHER THAN BUSINESS VISITS :
(a) In case of full hospitality - In this case the Diem Allowance shall be as in 1 (b) above.

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(b) Where full hospitality is not provided in foreign land then for out of those items listed
below, viz; Accommodation, Breakfast, Lunch, Dinner and other incidental expenses,
for which hospitality is not provided, amount mentioned against the cadre can be utilized
out of the consolidated per diem allowance applicable to that cadre.
S rr.. C a d r e A c c o m m o d a t i o n Incidental Breakfast Lunch D i n n e r
No. (US $) (US $) (US $) (US $) (US $)
1. Chairman/MD 250 75 35 70 70
2. ZM(S)/ZM(O) 160 65 35 70 70
3. Sr.DM 125 50 35 70 70
4. Other Officials 85 40 35 70 70
In no circumstances the Official will be entitled for any further reimbursement.
3. Airport Tax & Visa Charges - Actual amount as per receipt will be reimbursed.
4. When the Official going abroad, travels from one place to another on official work
within the same country or between two countries, he may be allowed cost on such
travel on actual basis. Itinerary of such visits should be approved by the competent
authority before departure on foreign trip.
5. The official should render accounts on return from tour for all items other than food
bills duly supported by receipts. However, where receipt is not available the Officer
will be required to give a declaration. Any surplus after calculation of the expenditure
incurred for the tour as a whole shall be refunded to the Corporation.
6. (i) (a) The Diem allowance for the period of stay in foreign land should be paid
as per (1) or (2) above, as the case may be. The per diem allowance shall
be paid from the first port of disembarkation in foreign land to the last
port of embarkation in foreign land for return to India.
(b) Apart from the per diem allowance stated above, the employees are also
entitled for the daily allowance for the journey period. The journey period
is the period spent during the journeys undertaken within India and the
time spent in the flight before the first point of disembarkation in foreign
land and in the last flight taken for return to India from the last port of
embarkation in foreign land. The journey period spent in flight to / from
foreign country for onward and return journeys are to be calculated
separately alongwith the onward and return journeys undertaken within
India. The daily allowance for journey period so determined is to be paid
at domestic rates separately for onward and return journey. The
calculation of this portion of Daily allowance would be as per the method
applicable for domestic tours at present.
(c) In case of delay, involuntary re-routing and cancellations, since the carrier
concerned takes care of the stranded passengers, no additional Diem
Allowance would be payable.
(d) Thus, while arriving at the total allowance to be paid for the tour as per
(a) and (b), period of delay, etc.. either in India or abroad, as per (c) has to
be excluded. To be precise, scheduled time of flight will only be taken
into account.

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 (ii) The proposal for foreign visits will be approved by the Chairman.
(iii) After the approval of the visits by the Chairman, the travel plans specifically
indicating scheduled time and dates of departure / arrival as well as the total
period of absence of officers from the head quarters be duly approved by the
Executive Director (E&OS) in respect of officials upto the rank of Zonal Manager.
For officials in the rank of Zonal Manager (selection grade) and Managing
Directors, the approval should be taken from Managing Director and Chairman
respectively.
(iv) In case of subsequent changes in the itinerary, the approval therefore is to be
obtained, as far as possible, before departure.
7. In respect of all foreign tours, whether the foreign tour is against full hospitality or not
will be as per the letter of concerned department of C.O. on the basis of which the
foreign visit is undertaken by the Official. All such H.O.D.s must clearly mention in
their letter the extent of hospitality to be available to the visiting official during the
visit abroad.
8. For any tour not covered by above rules, specific instructions will be issued regarding
allowances etc.. by Executive Director (E&OS), C.O.
9. Business visits will normally mean visits for attending company board meetings outside
the country, visit to LIC's / Joint Venture's offices, visit for the purpose of Audit and
Inspection, visit for rendering technical support and guidance to any such office abroad,
exploratory visits for the purpose for negotiating with companies / Government
organizations in connection with expanding LIC's Business through opening of offices,
establishing Joint Ventures and acquisition of property and Business Interests and
similar purposes.
10. For visits to Nepal and Bhutan, Diem Allowance to be paid in equivalent Indian Rupees.
11. These instructions are not applicable to Agents, Development Officers and marketing
officials who visit a foreign country as a result of qualifying in a Marketing competition
launched by Marketing Department C.O.
The above instructions are effective w.e.f : 01/09/2007.
III DAILY ALLOW
DAILY ANCE :
ALLOWANCE
1. For the purpose of determining the admissibility of DA, the chargeable period should
be taken as scheduled time of departure from the Headquarters and ending on scheduled
time of arrival to Headquarters (as per the scheduled time for travel by Air / Steamer/
Train).
2. DA for journey period will be paid at the rate applicable at the place of destination, i.e.,
the place of tour.
3. Full Daily Allowance will be paid for the first 30 days.
4. Half-Daily Allowance will be paid for the next 60 days.
5. No DA will be paid after 90 days

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6. For tours less than 24 hours
Duration DA Admissible
Less than 4 hours No DA
4 hours and above but less than 8 hours 50 % DA
8 hours or more Full DA
7. For tours involving more than one day: Every 24 hours or part thereof will be reckoned
as one full day (e.g. for 3 days 1 hour duration 4 days DA. will be paid.)
8. DA for enforced halt: If an employee on tour has to stop at a station enroute under
circumstances beyond his control such as waiting for connecting train, steamer or plane,
or is unable to proceed further for reasons like floods, etc., he may be allowed DA for
such halts at the rate applicable to the place of halt.
9. DA to person holding officiating appointment: Entitled to the privilege of the post he
is officiating.
10. Where the delay as a result of late running of trains / planes etc. is atleast eight hours
beyond the scheduled time and evidence such as letter / certificate from official sources
is available on record in support of the claim, ZM / ED (P) / Chief (A&I) as the case may
be permit daily allowance as per the actual time of arrival of the plane / train / steamer.
IV RA TES OF DA ADMISSIBLE
RATES
Rates of DA admissible to the various classes of employees are as under:
Sr Cadre "A" Class "B" Class "C" Class
no City City City
1 ED / ZM / DZM / SDM / DM 1000 800 700
2 ADM/SBM/BM/AO/AAO/ABM (S) 800 700 600
3 Class II Employees/Class III
Employees (HGA/SH) 500 375 300
4 Other Class III Employees 375 275 225
5 Class IV Employees 325 225 175
Provided that for class-I Officers at serial number 1 in the above table Daily Allowance payable
shall be ` 1200/- and for officers at serial number 2 in the above table, shall be ` 1000/- , while
on tour on official business at the four metros, viz Delhi, Mumbai, Kolkata & Chennai.
"A" Class City : Cities with population exceeding 12 lakhs and Faridabad, Ghaziabad, Noida,
Gurgaon, Vashi and Gandhinagar and any city in the state of Goa.
"B" Class City : Cities with population of 5 lakhs and above but not exceeding 12 lakhs and
State Capitals with population not exceeding 12 lakhs, Chandigarh, Mohali, Pondicherry, Port
Blair and Panchkula.
"C" Class City : All cities other than those specified in (A) and (B).
V STAY IN A HOTEL :
STA
If there is no Guest House at the place of tour or Guest House is available at the place of tour,
but accommodation not available, an employee can stay in a hotel and will be reimbursed the

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hotel charges as under. At the place of tour, if accommodation is not available, a certificate
from the respective Office to the effect that Guest House could not be given to the employee
has to be obtained and submitted along with T.E. Bill.
Revised Hotel Tariff w.e.f:.01/12/2008
Revision on hotel rates
adre/Class of Employee
Cadre/Class Reimbursable Amount
For Major Category II Other Places
Cities Cities
Executive Director / ZM 7000 + tax 2000 + tax 1750 + tax
DZM / SDM / DM 3750 + tax 1500 + tax 1300 + tax
ADM / SBM / BM / AO 2250 + tax 1000 + tax 800 + tax
AAO / ABM (S) 1500 + tax 750 + tax 500 + tax
Class II Officers 1350 + tax 675 + tax 450 + tax
Class III Employees 1200 + tax 600 + tax 400 + tax
Class IV Employees 1050 + tax 525 + tax 350 + tax
Major cities: Ahmedabad , Bangaluru, Bhopal, Chennai,
Delhi, Hyderabad, Kanpur, Kolkata, Mumbai,
& Patna
Category II cities: Agra, Coimbatore, Gandhinagar, Goa, Indore,
Jaipur, Kochi Lucknow, Ludhiana, Madurai,
Nagpur, Pune, Surat, Vadodra, Varanasi &
Visakhapatnam
Other Cities : All other cities
(It may be noted that the relaxation of 125% of the room tariff for officers in the cadre of ZM/
ED as contained in circular no: ZD/1098/ASP/2007 dt: 13/03/2007 stand withdrawn)
1. An employee will be entitled to 1/4th of the Daily Allowance when the lodging and
boarding arrangements are made by Office (Examples: Training in ZTC, MDC, NIA
etc.).
2. An employee will be entitled to draw 1/2 of the Daily Allowance where arrangement
for boarding at the place of tour has been made by the Office. (Example: Conference)
3. If an employee stays in a hotel, 3/4th of the normal DA is payable. If the employee
submits the bills for morning tea and standard breakfast charges, the employee may be
reimbursed reasonable amount subject to deduction of ` 10/-, in addition to the 3/4th of
the normal Daily Allowance applicable at the place of tour.
4. In some cases, the Hotels where the employee stays may serve morning tea and
breakfast but the Bills are in the name of a different Hotel because the restaurants are
run in a different name. In such cases also, the charges for morning tea & standard
breakfast can be reimbursed provided the employee certifies that he had taken the
morning tea and breakfast from the Hotel in which he was staying.

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5. Reimbursement towards morning tea and breakfast is also allowed to an employee,
who stays in a Hotel where the facility of tea and breakfast are not available, and
therefore takes tea/breakfast in a different Hotel and submits a declaration to that
effect.
6. Maximum amount of reimbursement towards tea and breakfast is to be determined by
the Competent Authority sanctioning the TE Bill, keeping in view the place of tour
and the type of Hotel in which the employee was staying. The Competent Authority
has to satisfy himself that the amount claimed by the employee is reasonable.
7. When 2 or more employees club their individual entitlements to hire double room
accommodation in a Hotel exceeding the limits in each cadre, the same can be allowed
provided each one pays 50% of the Room Rent and the reimbursement will be according
to the maximum entitlement for each.
8. Officers on tour availing hotel facilities should normally shift to a guest house
accommodation within 15days. Hotel charges for the period beyond 30days will not
normally be reimbursable unless specifically permitted by M.D.
9. An employee staying in a Guest House is entitled to full Daily Allowance. No
reimbursement for lunch, dinner, tea, breakfast etc. is to be allowed.
VI INCIDENT ALS ON TOUR :
INCIDENTALS
1. Incidentals for each completed journey shall mean coolie hire charges, cost of
transporting the personal luggage (including excess luggage charges), conveyance charge
between residence and Railway/Bus station and hire of bedding supplied by the Railway
Authorities for night journeys for sleeper class travel. Where the incidentals claimed
exceed more than 1/2 day's DA, then the employee should attach a statement for claiming
increased incidentals.
2. A journey is completed when the employee reaches the next place of his duty. If two or
more journeys are completed on the same calendar day (i.e.) from midnight to midnight,
all such complete journeys shall be treated as one complete journey for the purpose of
claiming incidentals.
3. Half the eligible DA or actual expenses whichever is less will be paid as incidentals for
each completed journey.
4. Reservation charges and service charges do not form part of incidentals. It forms part
of fare.
5. In case of Air Travel for the officers/others permitted to travel by air on tour, who have
not been provided with office car for journey to and from the airport, the incidentals
need not be restricted to 1/2 day's DA. The actual taxi charges may be reimbursed. In
order to enable the Competent Authority to satisfy himself about the correctness of
such charges, all Officers are requested to give particulars of the places between which
taxis had to be hired in every case.
6. Coolie charges cannot be claimed / allowed for Air Travel.

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VII TREA TMENT OF LEA
TREATMENT VE WHILE ON TOUR :
LEAVE
(i) TREATMENT OF LEAVE WHILE ON TOUR AND ADMISSIBILITY OF DAILY
ALLOWANCE THEREFOR:
1. An employee availing of casual leave at the commencement of tour or during the course
of the tour or at the end of the tour shall be eligible for full fare between the headquarters
and the place of tour as would be admissible by the shortest route and mode of travel
actually used but in any case not higher than the entitled class.
2. In rare cases where it becomes imperative in the exigencies of business to direct an
employee who is already on leave other than casual leave, to undertake tour on expiry
of the leave or curtailment of leave or otherwise, the employee shall be allowed
travelling allowance (including daily allowance admissible for journeys on tour) from
the place where the leave is spent to the place of tour, as under:
a. When an employee is directed to attend some office work at the place where the
leave is spent, he may be treated on duty for the days spent on office work and
paid daily allowance for that period.
b. When an employee is directed to proceed on tour from the place where the
leave is spent, and after completion of tour the employee returns to his original
place of leave, he may be treated on tour from the time he leaves his place of
leave till he returns to that place and he may be paid travelling and daily
allowances as per rules. Where, however, the employee returns to some other
place where he intends to spend his balance leave, he may be paid the travelling
and daily allowances for travel to that place subject to the limit of the amount to
which he would have been entitled had he returned to his original place of leave
from where he was asked to proceed on tour.
c. When an employee is directed to proceed on tour from the place where the
leave is spent (other than CL) and on completion of tour he returns to his
headquarters he may be treated on tour from the time he left his place of leave
till he returns to his headquarters and he may be paid travelling and daily
allowances as per rules subject to deduction of an amount which shall be equal
to the fare which he would have incurred had he travelled direct from the place
of leave to the headquarters (by the class by which he undertook his onward
journey to such place of leave).
d. Cancellation charges incurred by the employee on account of cancellation of
tickets because of his proceeding on tour from the leave place may be reimbursed
to him.
3. The basic rule is that an employee is on tour when absent on duty from the headquarters.
Any interpretation would therefore flow from this. Accordingly an employee availing
of any kind of leave while on tour shall not be entitled to daily allowance for the days
he is on leave. If the leave is taken in conjunction with holidays and / or Sundays, no
daily allowance shall be admissible for the holidays and / or Sundays as well unless the
employee is actually and not merely constructively in camp.
4. If an employee while on tour avails of any kind of leave other than casual leave at the
end of the visit to place of tour, no travelling allowance (including daily allowance for
the journey period) shall be payable for the journey, back to the headquarters or the
next place of duty.
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 Treatment of casual leave on tour will be governed as under:
(ii) CASUAL LEAVE AT THE COMMENCEMENT OF THE TOUR:
Casual leave at the commencement of the tour means casual leave after the employee
has left headquarters, but before he has reached the tour station. For casual leave at
headquarters prior to commencement of tour the daily allowance for journey period
will be admissible but if before reaching the first tour place, the employee goes on
leave elsewhere the entire period of this absence from the time of leaving headquarters
will be treated as leave and no daily allowance will be admissible till he reaches the
first place of tour.
(iii) CASUAL LEAVE AT THE PLACE OF TOUR
Where employee avails casual leave at the place of tour he will not be entitled to daily
allowance for the period of casual leave.
(iv) CASUAL LEAVE AT THE END OF THE VISIT TO A PLACE OF TOUR OR DURING
THE COURSE OF THE JOURNEY TO THE HEADQUARTERS/NEXT PLACE OF
DUTY
If casual leave is availed at the end of the visit to a place of tour, though no daily
allowance is payable for the journey period and the days of casual leave, the journey
period will be treated as duty if the employee joins duty at headquarters without
availing further leave on reaching headquarters. If he continues to be on leave on
reaching headquarters, the journey period will also be treated as leave. However, if
the employee avails leave after reaching headquarters as per the scheduled programme
and has not availed leave at the tour place or during the course of the journey to
headquarters, he will be eligible to draw daily allowance for the journey period as the
scheduled tour programme gets terminated on reaching headquarters. In other words
there cannot be a period of duty (i.e. journey period) between two periods of leave and
one at the tour place and the other at headquarters/next place of duty.
(v) CASUAL LEAVE DURING THE COURSE OF JOURNEY
If casual leave is availed during the course of journey to the tour place or return to
headquarters no daily allowance will be payable for the entire journey period.
(vi) PREFIXING OR SUFFIXING SUNDAY/HOLIDAYS FOR COMMENCING TOUR
JOURNEYS
Holidays should not be availed of for visiting any place other than the place of tour,
except with the previous permission of the competent authority. If an employee
commences his tour on a holiday or preceding night and with the permission of the
competent authority avails of it enroute, DA for journey period may be allowed excluding
DA for such holiday. However if by commencing his journey earlier than necessary on a
holiday / Sunday an employee during the course of journey spends time at any place
enroute on a working day it will be necessary for him to avail causal leave for such
working days and no daily allowance will be payable for the days of leave and the
period of journey from the headquarters to the place of tour.
NOTE :
No other kind of leave is intended to be covered by the above provisions. Tours in
continuation of privilege leave or any other type of leave except causal leave should

274
 not ordinarily be permitted, if, however any employee takes PL while on tour such
employee must rejoin duty only at his permanent headquarters on the expiry of such
leave. No travelling expenses shall be allowed for the return journey. No employee
shall be allowed to rejoin duty at the place of tour except with the previous approval of
the Chairman. If in any particular case, it is known before hand that an employee who
has applied for leave (other than casual leave) will be required to proceed on tour on or
about the same date, then leave should be so granted / altered as to enable him to join
duty at the headquarters in advance of the tour.
When leave is taken at the end of his stay at the place of tour an employee should be
allowed daily allowance at that place upto the time he actually leaves the station or
midnight of the last working day, whichever is earlier. Similarly, while returning from
leave to a place of tour the halt will be deemed to have commenced from the time of
arrival or the midnight of the last day of the leave whichever is later
If the leave is spent in whole or in part at the place of tour before resuming duty, the
halt shall be deemed to have commenced from the midnight of the last day of leave.
(vii) COMMENCEMENT OF TOURS ON SUNDAYS /HOLIDAYS
When the purpose of tour is not of an urgent nature and or the tour programme is
drawn up in advance, commencement of the tour as far as practicable should be on
working days. Employees should not be asked to proceed on tour on Sundays / holidays
merely for the sake of saving a working day. However, there is no bar to directing the
employees to commence the tours on Sundays/holidays when business consideration
so demands The competent authority will have the discretion to decide the urgency of
tour and the consequent necessity of commencing the same on Sunday / holiday.
V I I I TE FOR PROMOTION TEST / INTER VIEW :
INTERVIEW
a) Outstation candidates will be treated as on duty for the necessary period of to and fro
journeys between the nearest Test centre and the place of work besides the days of
test. Such candidates will be eligible for being treated as on duty and to travelling
expenses, wherever payable for the first three attempts only under the Promotion Rules,
1987. While the facilities of being treated as on Duty and payment as Travelling Expenses
are restricted to first three attempts, there is no restriction to the number of attempts
an employee can make for passing the Test.
b) All employees called for Interview will be treated as on Duty on the date of interview.
Outstation employees will also be treated as on duty for the necessary period of journey
between the place of work and place of interview and will be eligible to Travelling
Expenses as per Rules.
IX MISCELLANEOUS
1. No DA is allowed for journey within a radius of 8 kms or within the same municipal
limits of the station from where the employee starts his tour. Only TE is payable. (Ref
CO letter Sectl/23-L dated 20.02.1989).
2. Night Journey: Journey for a minimum period of 4 1/2 hours during the period from
8.00 p.m. to 6.00 a.m.
3. All bills are to be submitted within 15 days from the date of completion of tour or date
of joining in new station in case of transfer.

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4. Any delay beyond 15 days upto 3 months can be condoned as under:
Sr No Office Competent Authority
a Divisional Office Sr. DM / DM-in-charge
b Zonal Office An officer in the rank of DM authorized by
Zonal Manager
c Central Office An officer in the rank of DM authorized
by Director (OS) /Chief (OS)/ CIA
d Audit Centre Secretary (Audit) / Dy. Secretary (Audit)
5. For delay beyond 3 months, cases should be referred to Zonal Manager / CIA / Director
(OS) / Chief (OS).
6. Penalties for false claims: An employee furnishing a false certificate in a Travelling
allowance bill or preferring a false claim renders himself liable for disciplinary action
under regulation 39 of the (staff) regulation, 1960.
7. If the journey is by Air / Train / Bus, journey tickets should be submitted with the bill.
8. Non-production of the tickets/receipts may be waived by the Competent Authority in
genuine cases where he is satisfied about the circumstances under which it was not
possible to comply with the requirements.
X SPORTS :
Mode of travel
(Ref: ER/Sports/C-8 dated 07.10.2005)
Sr
Sr.. no. Level of Sports Event Mode of T ravel
Travel
01 DO Level Tournament / Meet Sleeper Class by Train
02 ZO Level Tournament / Meet III AC / Chair Car (Non-executive
Class ) by Train
03 LIC All India Tournament / Meet II AC by Train
04 Employees representing LIC outside II AC by Train
Tournament / Meet as a part of the
LIC All India Team
05 Employees representing LIC in outside III AC/ Chair Car (Non-executive
events in the individual capacity in Class) by Train
terms of CO Circular ER/Sports/ZD/880/
ASP/97 dated 03.04.1197
Note :
1. The participants of the ZO Level tournament / meet and as also the employees
representing LIC in outside tournaments in the individual capacity are not permitted
to travel by II AC by train. Alternately, these categories of participants are permitted
to travel by bus, however the reimbursement of fare would be limited to the notional
III AC fare or actual, whichever is less. No deviation would be allowed in this regard
and no reference should be made to ZO/CO.

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2. The facility to travel by III AC / Chair Car (Non-executive Class) by train for the
participants of the ZO Level tournament / meet and as also for employees representing
LIC in outside tournaments in the individual capacity would be extended for all the
trains excepting Rajdhani and Shatabdi Express Trains.
3. The participants of the LIC All India Tournaments / Meet and as also the employees
representing LIC in outside tournaments / meet as a part of the LIC All India Team can
travel by II AC by all trains excepting by Rajdhani and Shatabdi Trains.
Special Sports Allowance in lieu of DA Payable for Sports Events
(Ref: CO/HRD/SPR/108/11-12/011 dated 19/09/2011)
Level of Sports Event Special Sports Allowance Payable
LIC Divisional Level Tournament/ Meet ` 300/-
LIC Zonal Level Tournament / Meet ` 450/-
All India LIC Games ` 600/-
Representing LIC in outside Tournament / Meet ` 800/-
Note :
The Special Sports Allowance shall be payable at uniform rates to all classes of employees and
irrespective of the Class of cities where the sports event is held. The revised rates are
applicable from the All India LIC Games 2011-12.
Incidentals for Sports :
(Ref: CO Circular ER/Sports/116 dated 17.07.1996)
The incidentals payable are:
The actual expenses or half of the Special Sports Allowance payable to participants at the
Divisional / Zonal / All India Level whichever is less for each completed journey for Divisional
Level Tournament / Meet, Zonal Level Tournament / Meet, All India LIC Games and
representing LIC in outside Tournament / Meet respectively.

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 B. TRANSFERS
I MODE OF TRAVEL
TRAVEL
a. Except in case of ZM and above, officers who are entitled to travel by air on tour will be
entitled to travel only by train on transfer by II AC for themselves and their families.
DZM on promotion to the cadre of ZM can travel by AC I class.
b. Officers travelling by car on transfer are eligible for mileage at the rate of Scheme VI.
II INCIDENT ALS
INCIDENTALS
Cadre Amount
DM and above ` 500/-
Other Class I Officers ` 400/-
Class II Two first class fares
Class III Two first class fares if Basic Pay is
` 12,070/- or more and if Basic Pay is less
than ` 12,070/- two II Class fares
III DAILY ALLOW
DAILY ANCE
ALLOWANCE
Class I: The same rate as in tour is applicable to each member of the family irrespective of age
for the period of journey between old and new Headquarters. No Daily Allowance is payable
for Class II, III & IV.
Daily allowance at the rate at which an Officer is entitled to on tour shall be paid to the
Officer and each member of his family, irrespective of age, for the duration of journey between
old and new headquarters. The Officer shall be paid the Daily allowance for the period of
journey performed for reporting at the new headquarters as also for the period of to and fro
journeys performed after taking over charge at the new headquarters for bringing his family
to the new headquarters. The members of the family of the Officer proceeding to a place other
than new headquarters or proceeding to the new headquarters from a place other than the
old headquarters shall be entitled to the Daily Allowance limited to what they would have
been entitled to had they performed the journey from the old to the new headquarters. Where
the Officer and / or any member of his family travel in the Officer's car / motor-cycle / scooter
which is transported by road, the Daily Allowance shall be payable for the actual duration of
journey by road, limited to what would have been admissible had they travelled by train.
IV TRANSPORT
TRANSPORTAATION OF PERSONAL BELONGINGS
The reimbursement of transportation charges of personal belongings by road will be in the
following scales:
Cadre Eligibility
DM and above Actual Charges subject to a maximum of charges for 90 quintals
by goods train.
Class I upto ADM Actual Charges subject to a maximum of charges for 60 quintals
by goods train.
Other than Class I Actual Charges subject to a maximum of charges for 15 quintals
by goods train.

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While settling the bills of transportation of personal belongings on transfer of employees,
please refer to clause 9 of the explanatory note of the Coaching Tariff Book 25 Part III
(01.04.2006) (Scale - S).
V TRANSPORT
TRANSPORTAA TION OF CAR/JEEP
On transfer, a Class I Officer can transport his Car/Jeep by Truck. The amount will be the
actual cost of transportation of Car/Jeep by Truck limited to the cost of transportation of the
vehicle by EVK wagon. (Ref CO Cir. Per/ER dt. 22.11.91). For this purpose Coaching Tariff No
24 - Part IV published by Indian Railway Conference Association containing Rate Tables for
certain description of Coach Tariff may be referred to. For EVK Wagon purposes, Single Motor
Car / Single Motor Tractor without plough on wheels attached loaded in a 4-wheeled or 6-
wheeled vehicle of Table I is to be used.
However, in case where the personal belongings and the car are transported by the same
lorry, the actual expenses incurred are reimbursable subject to the total limit of the following
two amounts: (Ref CO letter Per/ER/TE dated 05.07.1995)
1. Cost of transportation of personal belongings by goods train to the extent of 60 / 90
quintals as the case may be;
2. Cost of transportation of the car by EVK Wagon.
VI LOCAL TRANSPORT
TRANSPORTAATION CHARGES
As per CO Circular ZD/873/ASP/97 dated 01.02.1997, local transportation charges as hereunder
are payable towards loading and unloading expenses at old and new headquarters respectively,
depending upon the place.
Place Class I Other than Class I
Mumbai, Delhi, Chennai, Kolkata ` 800/- ` 250/-
All other places ` 500/- ` 200/-
Example: In case of a Class I Officer transferred from Chennai to Madurai, the local
transportation charges payable is as given below:
Loading Charges (Chennai) : ` 800/-
Unloading Charges (Madurai) : ` 500/-
VII PACKING CHARGES
Packing charges for Class I Officers are given as under on actuals subject to maximum as
specified below and receipt being produced.
Cadre Amount
ZM and above ` 2500/-
DM/ SDM ` 1800/-
AAO / AO / ADM ` 1500/-
V I I I TRANSFER GRANT :
CO Circular ZD/1022/ASP/2003 dated 02.06.2003:
1. The quantum of Transfer Grant shall be equal to one month's basic pay as on the date of
relief on transfer.

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2. Fixed Personal Allowance shall be taken into account for calculating the Transfer Grant
payable to officers on their transfer.
3. An officer transferred on office exigencies is entitled to Travelling & Transfer Expenses
including Transfer Grant, irrespective of the duration of stay.
4. In case of request transfers, the method of payment of Transfer Grant shall be as under:
(i) If request is acceded to within 2 years: No Transfer grant or other benefits viz.
Transportation charges, Travel expenses for self and family, joining time, second
trip to old headquarters etc. shall be payable.
(ii) If request is acceded after 2 years but within 3 years:
Here two situations may arise:
a) Where the Officer is posted to a place of choice or to a place
from where commutation is possible/ permissible :
The Officer shall not be eligible for Transfer Grant. He shall be eligible
for transportation charges of household belongings and travel expenses
for self and family as per rules. He shall be eligible for joining time as per
the provisions of regulation 71,72, and 73 of Staff Regulation 1960. He
shall not be eligible for 2nd trip to old headquarters for winding up the
establishment and any other benefits in this regard.
b) Where the Officer is posted to a place from where commutation
to a place of his choice is not possible / permissible:
The Officer shall be eligible for Transfer Grant, Transportation Charges
for household belongings and Travelling expenses for self and family
members. He shall also be eligible for joining time as per the provisions
of Regulation 71, 72 & 73 of Staff Regulation 1960. He shall not be eligible
for second trip to old headquarters for winding up the establishment and
any other benefits in this regard.
(iii) If the request transfer is after 3 years: The Officer shall be entitled for all the
benefits as per rules.
5. (a) Transfer grant is admissible in case of an officer who is posted at a non-
commutable distance.
(b) Transfer grant is admissible if an officer is posted at a commutable distance but
shifts his family.
(c) Transfer grant may be paid to an officer posted to a place of commutable distance
even if he does not shift his family but shifts to the new place of posting and
takes up regular residence there and does not commute between the new and
old headquarters. In such a case transfer grant may be paid to the officer on a
declaration from him that he has taken up residence in the new place of posting.
It may however be noted that no transfer grant will be allowed if the officer is
posted within the same Municipal Limits. Twin cities such as Ahmedabad-
Gandhinagar, Hyderabad-Secundarabad, Ernakulam-Cochin, Hubli-Dharwar,
Bhuvaneshwar-Cuttack, National Capital Region (Faridabad, Ghaziabad,
Gurgaon, Noida), Mumbai (Including areas comprising within the limits of
Mumbai Municipal Corporation i.e. Greater Mumbai, Dombivli, Kalyan, Thane,

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 Bhivandi, Ulhasnagar, Bassein Municipalities, Navi Mumbai,) Kolkata and areas
mentioned under it under Category 1 of classification of cities, for the purpose
of CCA etc. will be treated as the same city for this purpose.
7. A situation may arise where an officer, who has requested for transfer to a place of his
choice, is instead transferred to some other place(s) due to office exigency. If such an
officer is finally transferred to his place of choice, he may be allowed transfer grant
provided 3 full years have elapsed from the date of original transfer request in writing.
8. The 2 years or 3 years may be defined as 2 completed years or 3 completed years of
posting at a place.
9. In case an officer, who joins at the new place of posting after drawing Transfer Grant
and then resigns/seeks voluntary retirement / reversion on request / transfer from
marketing side to administration on personal grounds, before completion of one year's
stay at that station without shifting family, Transfer Grant paid to him shall be recovered
from him before he is relieved.
10. Where husband and wife both are officers of LIC and if both of them are transferred
from the same Headquarters simultaneously to same place resulting in shifting of family
and residence only once, then transfer grant is payable to only one person drawing
higher basic pay as on the date of transfer.
11. The transfer shall be treated as request transfer for the purpose of transfer grant, if a
separate request in writing is received through proper channel. Mere mention of a
place in the P-Form will not be taken as request for the purpose of transfer grant.
12. The shortfall in 2 or 3 completed years may be waived upto 2 months in genuine cases
where the shortfall is because of office exigencies and unavoidable circumstances. The
competent authority for the purpose shall be Senior Divisional Manager-in-charge /
Zonal Manager-in-charge of the transferor Division / Zone and Executive Director
(E&OS) for Central Office.
Transfer Transfer between Transfer between Transfer
Within 2 years 2 to 3 years & 2 to 3 years & After
posted to place posted to place 3 years
of choice or from where
commutation is commutation
possible is not possible
Transfer Grant NO NO YES YES
Transportation NO YES YES YES
charges
TE for self & NO YES YES YES
family
Joining time NO YES YES YES
2nd trip NO NO NO YES

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IX OCTROI DUTY & TRANSIT INSURANCE
Octroi duty & Insurance on personal belongings will be fully reimbursed on production of
relevant receipt. The Competent Authority shall reimburse the actual amount @ 12.24 %
charged by the transport companies towards the service tax and paid by the employees in
case of their transporting the household goods and packing / unpacking charges as per CO
Circular No. CFA/ZDB/ 876 dated 24.05.2006.
X SECOND TRIP TO OLD HEADQUARTERS
CLASS III & IV : Two extra fares are allowed if they are transferred outside the Zone for
bringing their families.
CLASS I OFFICERS : To and fro fares for performing a second trip from the new Headquarters
to the old Headquarters and back shall be allowed provided:
1. The transfer is not effected at request.
2. If the employee is taking charge on promotion from Class II or Class III to Class I, he is
not entitled for the second trip.
3. An officer transferred to a place outside India shall not be eligible.
4. Trip to old headquarters should be made only after the officer has taken over charge of
the post at the new headquarters
Conditions :
1. The second trip should be completed and the special leave availed of, as the case may
be, within a period of six months from the date of handing over charge by the officer at
the old headquarters or within such time as may have been allowed to him by the
Competent Authority for shifting his family.
2. The benefits are available under below mentioned two circumstances only: (Ref: CO/
OS/Transfer TE dt: 14/11/2008)
(i) for the purpose of shifting his family or any member of his family from the old
headquarters to the new headquarters and / or
(ii) for the purpose of shifting his personal belongings provided at least 5 quintals
of the personal belongings, reckoned in weight, are transported during such
second trip and not for any other purpose
Further, prior sanction for extension beyond six months should be obtained before expiry of
six months from the date of handing over charge at the old headquarters, for shifting the
family and to avail of Special Leave, if any. Under no circumstances will any request for
relaxation of time limit not sought before the expiry of six months from the date of handing
over charge at the old headquarters be granted. Beyond one year no case could be considered
for claiming the fares for members of the family and the dependents as well as the cost of
transporting personal belongings, etc.
Further specific permission should be obtained for shifting family beyond six months from
the Competent Authority even if approval for retention of Staff quarters / extension of leased
accommodation beyond six months has been obtained.
XI TRIP TO THE LAST BUT ONE HEADQUARTERS
If an officer transferred from one station to another station is transferred again to a third

282
station within the time limit allowed to him to shift from his original headquarters to the
second headquarters, he may after transfer to the third headquarters be allowed benefits of
the second trip to the first headquarters subject to transport of atleast 5 quintals of personal
belongings reckoned in weight or shifing of the family. The reimbursement shall be limited to
the fare from the third headquartrs to the original (first) headquarters and back by the actual
class of travel subject to entitlement as per TA Rules.
XII LOCAL SHIFTING CHARGES PAYABLE TO CLASS I OFFICERS
PA
(Ref CO Circular ZD / 1149/ ASP dated: 06/03/2010 applicable from 01/04/2009)
Limit of reimbursement of expenses incurred for transporting household goods, including
packing charges from one Staff Quarter (including those taken on lease by the Corporation) to
another within the same locality or premises (where transportation of such household goods
does not require engaging a lorry) when the shifting is done at the instance of the Corporation
and / or on account of changes from an "out of class accommodation" to "an in-class
accommodation".
For Metros ` 2,000/-
For Non-Metros ` 1,000/-
Where such local shifting involves transportation of household goods from one place to another,
involving engaging a lorry, reimbursement of the actual expenses (all inclusive) may be made
to them on production of relevant receipts / voucher from the transporters subject to the
ceiling as following table:
Particulars Metro Other places
(actual subject to (actual subject to
maximum of) maximum of)
Transportation Charges ` 6000 ` 4000
(inclusive of packing chgs)
Loading charges ` 2000 ` 1000
Unloading charges ` 2000 ` 1000
It may be further noted that the increase of 25% in respect of shifting from Management
Development Centre, Borivli to Fort area as contained in our circular no: ZD/989/ASP/2001
dated: 29/11/2001 stands withdrawn.
These instructions are not applicable when the shifting has been permitted at the request of
the Officer.
X I I I MISCELLANEOUS :
1. For claiming transfer expenses the cadre in which an employee is relieved is to be
taken into account and not the new cadre he is going to join in the new place. (e.g.) an
H.G.A. transferred on promotion to the post of A.A.O. is entitled to the transfer privilege
of an H.G.A. but not that of A.A.O.
2. The Basic Pay drawn on the date of transfer order shall be taken into account for
deciding the mode of travel.
3. For purpose of Travel Allowance the family of an employee means wife and dependants.
The dependants are legitimate children, stepchildren, parents, brothers, and unmarried

283
 or widowed sisters whose monthly income or pension in cash does not exceed
` 2,550/-p.m.
4. Family members may follow the employee within six months from the date of his relief
from the old station or precede him to his new headquarters anytime after the order of
transfer has been issued. Cost of transportation of personal belongings also will be
allowed only if it is completed within six months. Beyond six months upto another six
months i.e., cases may be referred to Executive Director (Personnel). No further
extension is allowed.
5. Family members are entitled for the same mode of travel as the employee is entitled.
6. The Competent Authority for passing the transfer T.E. Bills is the same as the authority
competent to sanction the T.E. Bills of the Officers.
7. All Bills are to be submitted within 15 days from the date of completion of tour or date
of joining in new station in case of transfer.
8. Penalties for false claims: An employee furnishing a false certificate in a Travelling
allowance bill or preferring a false claim renders himself liable for disciplinary action
under regulation 39 of the (staff) regulation, 1960.
9. If the journey is by Air / Train / Bus journey tickets should be submitted with the bill.
10. Non-production of the tickets/receipts may be waived by the Competent Authority in
genuine cases where he is satisfied about the circumstances under which it was not
possible to comply with the requirements.
COMMON FOR BOTH TOURS AND TRANSFERS:
I ADVANCE :
ADVANCE
1. Advance not exceeding the probable expenditure may be granted to an employee
proceeding on tour or transfer.
2. If the employee to whom advance is given fails to submit the bill within the stipulated
time of 15 days the amount of advance may be recovered from the next pay bill.
3. The Competent Authority may extend the time limit for submission of bill to 30 days
only for good and sufficient reasons.
II SCRUTINY OF BILLS:
The following points need attention:
1. Whether tour is sanctioned by the Competent Authority
2. Journey by shortest/cheapest route.
3. Travel by the appropriate class.
4. Supported by proper tickets-Ticket Nos.
5. Bill submitted within time and balance if any refunded.
6. When hotel stay is involved, a copy of the hotel bill should be submitted along with the
TE Bill even if the hotel bill has been settled by the touring Division/Office.
7. When tour is undertaken by taxi, bill for taxi should be submitted alongwith the TE
Bill. Taxi Bills should not be settled debiting any other account.

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III COMPETENT AUTHORITY TO PASS BILL:
PASS
Cadre Competent Authority
Class II / III / IV AAO / ABM
AAO / ABM AO / BM / SBM
AO / BM ADM
ADM / SBM DM / SDM
DM / SDM/DZM SDM / DM-in-charge / DZM
Note : Officers-in-charge of Divisions, Secretary (Audit) posted at Zonal Audit Centres,
Principals of MDC & ZTCs and Officers of the rank of ZM and above may draw advances
against their own travelling expenses, LTC expenses and Transfer Travelling expenses as
well as pass their own bills.
IV AIR TRAVEL INSURANCE ON OFFICIAL DUTY
TRAVEL
Circular ref: Personnel/ER-A No: ZD/1150/ASP/2010 dt: 31/03/2010
Employees on official tour are covered under Air Travel Insurance for which premium is paid
entirely by L.I.C. The relevant details are furnished below:
Category of Employees Amount of Insurance
Asst/HGA/DOs ` 5,00,000/-
AAO / AO / ADM ` 10,00,000/-
DM / SDM/DZM ` 15,00,000/-
ZM and above ` 25,00,000/-

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 C. RETIREMENT TRAVELLING ALLOW
TRAVELLING ANCE
ALLOWANCE
I. Applicability:
These instructions shall apply to all Class I Officers and Development Officers of the
Corporation unless otherwise provided by the terms of any Contract, Agreement or
letter of appointment.
II. Definitions:
a. "Appropriate fare" in respect of the home-journey of a member means the amount of
fare actually incurred, but not exceeding the amount that would have been admissible
to him towards fare under Staff Regulations and TA instructions if such journey had
been performed on the Transfer of the officer.
Provided that where fare for air travel or travel by air conditioned class by train is
allowed under the Staff Regulations and TA instructions, the appropriate fare shall be
ascertained with reference to the fare for travel by air conditioned class by trains.
Provided further that where the home-town of an officer is outside India the appropriate
fare shall be the fare for travel upto the railway station or the Port of embarkation in
India which is nearest to his home town.
b. "benefit" means the benefit of Retirement Travelling Allowance.
c. "Eligible Officer" means an employee of the Corporation who is eligible for Retirement
Travelling Allowance in accordance with Clause 4 of these instructions.
d. "headquarters" means the headquarter of the officer at the time of his retirement or
death, as the case may be.
e. "home journey" means travel from headquarters to home town of a member pursuant
to the retirement of an officer or on his death.
f. "home town" means the place declared by the Officer & accepted as his home-town as
per LTC instructions.
g. "LTC instructions" means the LIC (LTC) Instructions, 1994 as may be amended from
time to time.
h. "member" means the officer or a member of his family, as the case may be.
i. "Retirement Travelling Allowance" means the allowance payable by the Corporation
as reimbursement towards the expenses incurred in respect of shifting of the
establishment of an officer to his hometown, pursuant to his retirement or on his death.
j. "Staff Regulations" means the Life Insurance Corporation of India (Staff) Regulations,
1960, as may be amended from time to time.
k. "TA instructions" means the LIC (Travelling & Transfer Allowances in India)
Instructions, 1977 as may be amended from time to time.
III The definitions described in TE instructions are applicable in respect of retirement
travelling allowance, and in particular in respect of the following matters, namely
(a) Definition of family
(b) Mode of travel
(c) Shortest and cheapest route

286
(d) Charges for transport of personal belongings including local transport charges for the
purpose
(e) Journeys between places not connected by rail
(f) Payment of incidentals
(g) Payment of Daily Allowance
IV
1. The Retirement Travelling Allowance shall be allowed in respect of the following
categories of officers.
a. Confirmed officer holding posts in Class I and Class II Officers who retire or die
while in service and
b. Officer belonging to Class I and Class II who are reappointed in the service of
the Corporation after the due date of retirement.
Provided that he is reappointed in the service of the Corporation during his leave
preparatory to retirement or within six months of the date of retirement.
Provided further that if such an officer has already availed of the benefit of Retirement
Travelling Allowance for any member before appointment, the benefit shall not be
allowed in respect of such member.
2. For the removal of doubt it is hereby clarified that the Retirement Travelling Allowance
shall not be allowed in respect of the following categories of officers.
a. Any officer who is not a Class I or II
b. Any officer in Class I or class II who has not been confirmed in the services of
the Corporation.
c. Any employee in Class I or Class II who resigns or who is dismissed / removed
or compulsorily retired under Regulation 39 of the Staff Regulations.
d. An employee not belonging to Class I or Class II but officiating in a post in Class
I on the date of retirement or death;
e. Any officer in Class I or Class II who is not whole-time employee of the
Corporation.
f. Any officer in Class I or Class II serving abroad.
g. Any officer in Class I or Class II not being an employee specified in sub-clause
(1) (b) above, whose appointment is governed by separate contract, agreement
or letter of appointment.
V. ALLOWANCE
WA
1. Retirement Travelling Allowance shall consist of
(i) the appropriate fare for the home journey performed by each member
(ii) cost of transportation of the personal belongings from the headquarters to the
home-town
Explanation
(i) Where the home-town of an officer is outside India, the Retirement Travelling

287
 Allowance shall consist of charges for transport of personal belongings upto
only the railway station or the port of embarkation in India, besides appropriate
fare for each member upto such station or port.
(ii) For the purpose of the first provisions, an officer during one year immediately
preceding the date of his retirement, if such member had commenced the outward
journey under the relevant travel concession within such one year.
2. On retirement Officers will be entitled to travel by II AC by train. However, for Officers
of the rank of Zonal Manager (O) and above are entitled to travel by air alongwith their
family members for returning to the declared hometown on retirement. (Reference:
CO Circular ZD/1041/ASP/2004 dated 31.03.2004)
3. Where a member travels by air or by steamer between two places connected by rail,
the appropriate fare shall be the fare by the entitled class of railway accommodation or
the fare for the shortest route by the mode of travel actually used, whichever is less.
4. Where the journey is performed by private car, the cost of propulsion being borne by
the member, the petrol and oil charges for the shortest route may be allowed, subject
to the limit of admissible train-fare for the member travelling in the car; No mileage is
allowed.
5. When two places are not connected by rail but by a recognised public road transport
system, the fare for the shortest route by the mode of travel actually used may be
allowed subject to the limit of the fare by bus, first class or luxury if provided, whichever
is the appropriate class of travel by road.
6. Where the journey is performed between places not connected by any public transport
system, reimbursement to the extent considered reasonable by the Competent Authority
but not exceeding the actuals, may be allowed.
7. Daily Allowance and incidental expenses shall be payable in respect of journeys for
which Retirement Travelling Allowance is admissible.
8. Reservation charges are payable. No expenses for local transport of the Officer and/or
member of the family shall be admissible.
9. The charges for transport of personal belongings shall include the cost of transportation
of the vehicle, if any maintained by the officer and Octroi duty paid by the Officer
subject to production of relevant receipt.
VI. RETIREMENT TRAVELLING ALLOW
TRAVELLING ANCE FOR TRA
ALLOWANCE VEL TO HOME TOWN
TRAVEL
1. Retirement Travelling Allowance shall be admissible in respect of the officer and
member of his family in the event of his retirement and for the member of his family in
the event of his death while in service.
2. The home-journey shall be performed by the officer during his leave preparatory to
retirement or within six months from the date of actual retirement.
3. The member of the family may accompany the officer or travel separately but the home-
journey of all the members of his family shall be performed and the personal belongings
of the officer transported, during a period of six months preceding the date of retirement
of the officer or before the expiry of six months from the date of his retirement.
4. In the event of the death of the officer while in service, the home-journey by the members

288
 of the family shall be performed and the personal belongings transported within a
period of six months from the date of his death.
VII. GRANT IN LIEU OF RETIREMENT TRA VELLING ALLOW
TRAVELLING ANCE FOR
ALLOWANCE
TRAVEL TO PLACE OTHER THAN HOMETOWN
TRAVEL
1. Where an officer on retirement or the family on death of the officer while in service,
decides to settle down at a place other than the home-town reimbursement may be
allowed towards expenses incurred for shifting the establishment of the officer from
the headquarters to that place (hereinafter called the place of settlement) which shall
be in lieu of Retirement Travelling Allowance, but subject to all other conditions for
the grant of retirement travelling allowance.
2. There shall be only one place of settlement for all the members and for transport of
personal belongings of the purpose of these instructions.
3. The reimbursement shall be the lowest of the amount arrived at in the manner following
namely
a. Actual expenses incurred towards fare for the travel of the members / charges
for the transport of personal belongings, from the headquarters to the place of
settlement subject to the eligibility, less deduction, if any, to the quantum of
amount settled towards LTC claim by the officer to the place of settlement during
the leave prior to the date of retirement and if any member had travelled by
higher class or costlier mode of travel then the one permissible under the Staff
Regulations and LTC instructions, the excess fare paid for such travel; or
b. The amount that might be admissible as Retirement Travelling Allowance if the
place of settlement had been the home town; or
c. The amount that might be admissible as Retirement Travelling Allowance if the
establishment had been shifted to the original hometown.
V I I I RETIREMENT TRA VELLING ALLOW
TRAVELLING ANCE IN RESPECT OF OFFICERS
ALLOWANCE
SETTLING DOWN AT THE SAME PLACE ON RETIREMENT AFTER
VACA TING ST
ACATING AFF QUARTERS
STAFF
As per CO Circular No ZD/1148/ASP/2010 dt.06/03/2010, the shifting charges to officers who
are staying in the staff quarters and settle down at the same place on retirement after vacating
the staff quarters, the limit of reimbursement is as follows:
I) where the transportation of household goods does not require engaging a lorry, the
limit of reimbursement shall be as follows:
Place Amount
For Metros ` 2,000/-
For Non-Metros ` 1,000/-

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II) where the transportation of household goods requires engaging a lorry, the limit of
reimbursement, subject to production of relevant receipts/ vouchers shall be as follows:
Particulars Metro Other places
(actual subject (actual subject to
to maximum of ) maximum of )
Transportation Charges
(inclusive of packing chgs) ` 6000 ` 4000
Loading charges ` 2000 ` 1000
Unloading charges ` 2000 ` 1000
However this will be applicable only in such cases when the shifting is done within
three months from the date of retirement.
The benefit referred to in VIII above may be availed of by the member of family if the
officer dies while in service and the family settles down at the same place; the above
benefit may also be availed of by the members of the family if the officer dies after his
retirement but before he has availed of any other benefit under these instructions.
IX. ADVANCE :
ADVANCE
1. Advance against Retirement Travelling Allowance may be granted to a retiring officer
on application, but such advance may be granted only if the journey of the members
are to be performed and the personal belongings are to be transported before the date
of his retirement.
2. The amount of advance granted shall not exceed the amount that will become payable
to the Officer as Retirement Travelling Allowance.
3. The authority to sanction such advance of Officers, in the cadre of Deputy Zonal Manager
and below, shall be the authority competent to sanction their TA bills. For Officers in
the cadre of Zonal Manager and above, Chairman shall be the Competent Authority for
the purpose.
4. The amount of any outstanding advance granted towards Retirement Travelling
Allowance shall be recoverable from the dues payable on retirement of the Officer.
X. CLAIMS :
1. Claims for the retirement travelling allowance in respect of journeys performed by the
Officers and members of the family shall be submitted together, within one week from
the date of completion of the journey by the last member performing the journey.
2. The claim shall be submitted in the form prescribed for the purpose of claiming travelling
allowance under the TA instructions.
3. An Officer shall, along with his claim to reimbursement, submit cash receipts or vouchers
in respect of the fares and charges. The Officers shall also give such other information
as may be required by the authority competent to sanction the reimbursement.
4. The authority competent to settle claims towards Retirement Travelling Allowance
shall be the authority competent to pass the travelling allowance bills of the Officer
under the TA Instructions. The concerned Zonal Manager shall pass retirement
travelling allowance bills in respect of Officers in charge of Divisions. The Retirement
Travelling Allowance bills of the Officers-in-charge of Zones and Officer in the rank of
Zonal Managers and above in the Central Office shall be passed by Executive Director
(E&O.S.), Central Office.
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 CHAPTER 19
OFFICIATING ARRANGEMENTS
OFFICIATING
Officiating arrangements should be resorted to only if it is absolutely necessary. They can be
made against leave/ replacement vacancies.
CA TEGORIES TO WHICH OFFICIA
CATEGORIES TING ARRANGEMENTS CAN BE MADE
OFFICIATING
A.A.O., H.G.A.(Admn.), Telephone Operator /Banda Machine Operator.
Officiating Post Leave vacancy Replacement vacancy
ZONE OF SELECTION
(A) Branch Offices
A. A. O. Office as a whole Office as a whole
H. G. A. -do- -do-
Tel. Operator -do- -do-
Duplicating/Banda Machine Operator -do- -do-
(B) Central/Zonal Offices /Divl. Offices
A. A. O Department Department where vacancy
where vacancy has arisen
has arisen
H. G. A. Section where -do-
vacancy has arisen
Tel. Operator Office as a whole Office as a whole
Duplicating/Banda Machine Operators -do- - do-
Where eligible/suitable employees are not available, the zone of selection may be extended
to Department/Office instead of Section/Department.
Where eligible/Suitable employees are not available in Branch the jurisdiction can be
extended to Divisional Office. In case of mofussil Branches, the jurisdiction can be extended
to nearby Branches if there is no eligible /suitable employees at the Divisional Office.
CONDITIONS OF ELIGIBILITY
Officiating Post Leave vacancy Replacement vacancy
A.A.O. Seniormost confirmed Superintendent/H.G.A.
Superintendent/H.G.A. with 3 years service as
Superintendent / H.G.A.
H.G.A. Seniormost confirmed S.H. with minimum 3
S.H./Cashier/Assistant years service /
Cashier/ Assistant
with 5 yrs service
Telephone Confirmed R.C. with Confirmed R.C. with
Operator good work record and good work record and
having proficiency in having proficiency

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 operating the Telephone in operating the
Switch Board and also Telephone Switch Board
in English and Regional and also in English and
Language Regional Language
Duplicating Seniormost Sepoy with Seniormost Sepoy with good
Machine/Banda good work record work record
Machine Operators
Leave during Officiating Period :
i) In case an employee officiating in a leave vacancy himself proceeds on leave, the
officiating arangement shall be terminated on the last working day immediately
preceding the date on which the employee proceeds on leave. However, exception may
be made in case of leave of any kind not exceeding six days;
ii) In case the employee officiating in a replacement vacancy proceeds on leave, the
officiating arrangement need not be terminated on the employee going on leave
preparatory to retirement or any kind of leave for more than 30 days or EOL for more
than 7 days. In the latter cases the officiating arrangement will be terminated on the
last working day immediately preceding the day on which the employee proceeds on
leave and, if necessary, officiating arrangement may be effected in his place.

OFFICIA TING ALLOW

OFFICIATING ANCE P
ALLOWANCE PAAYABLE
OFFICIA TING CASHIER ALLOW
OFFICIATING ANCE :
ALLOWANCE
The officiating cashier allowance is payable at the following rates:
(a) at ` 45/- per day if basic pay is equal to or less than ` 20210/-
(b) at ` 55/- per day if basic pay is more than ` 20210/-.
SatelliteOffice: Officer collecting cash at the Cash Counter: ` 70/- per day .
OFFICIATING ALLOWANCE FOR OTHER POSITIONS :
Rule 15 (3) of LIC of India Class III & IV Employees (Revision of Terms & Conditions of
Service), 1985 provides for payment of officiating allowance, which shall be equal to the
difference between the Basic pay in the lower scale and the higher scale (to which the officiating
arrangement is resorted to).The basic pay in the higher scale has to be notionally fixed as in
the case of promotion.
This allowance shall not rank for any benefit such as Dearness Allowance, Provident Fund,
H.R.A., Bonus, Gratuity. The officiating allowance payable to an employee is to be reviewed
on the employee getting an increment in the scale of pay during the period he is officiating.
The following illustration would make the point clear:
1) Assistant officiating as HGA
The quantum of officiating allowance payable to an Assistant with Basic pay of
` 12990.00 and who is in receipt of a sum of ` 840.00 towards special allowance for
passing Fellowship examination of III, the officiating allowance payable to him during
the period he officiates as HGA in a leave/replacement vacancy with effect from 15th
June 2011 shall be calculated as under :

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 Basic pay @ 15th June 2011 12990.00
Corresponding Basic pay in HGA scale 13690.00
Next above stage in the HGA scale 14530.00
Difference between 14530.00 & 12990.00 1540.00
The officiating allowance payable to the Assistant is ` 1540.00, which shall
not rank for any benefit such as DA, PF
PF,, HRA etc.
2) HGA officiating as AAO
a) A HGA with Basic pay of ` 17050.00 is asked to officiate as AAO with effect from
15th June 2011. The employee concerned is drawing ` 840.00 towards special
allowance for having passed FIII of III. The quantum of officiating allowance
payable to him/her is,
Basic pay @ 15th June 2011 17050.00
Add: Special allowance for passing III Exam (FIII) 840.00
Total@ 15th June 2011 17890.00
Corresponding Basic pay in AAO scale 18080.00
Next above stage in the AAO scale 18920.00
Difference between 18920.00 & 17050.00 1870.00
The officiating allowance payable to the HGA is ` 1870 which shall not rank
for any benefit such as DA, PF
PF,, HRA etc.
PS: 1) In the case of an Assistant officiating as HGA, the special allowance drawn
by the employee for having passed the prescribed examination, viz. LIII,
AIII, FIII etc. should not be taken into account while arriving at the
“Pay” for the reason that the said allowance shall continue to be payable
to him/her on his/her promotion to the cadre of HGA.
2) However, when a HGA officiates as AAO, the special allowance drawn by
the employee should be taken into account while arriving at the “Pay”.
This is because, on his/her promotion to the cadre of AAO, the special
allowance drawn by him/her for passing the examination shall cease to
be payable and hence the special allowance is taken into account while
fixing his/her pay on promotion. The same rationale is applied in case of
arriving at the quantum of officiating allowance too.
3) In a nutshell, the “pay” for the purpose shall mean and include “Basic
pay” and all special allowances that shall be protected on promotion to
the immediate next cadre.
Note : Reference to C.O on payment of officiating cashier allowance in the event of an
employee receiving the key on Saturday and officiating on Monday is pending . The
clarification in this regard may also be included.

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 CHAPTER 20
PART-TIME STUDIES
ART-TIME
Permission to prosecute part-time studies is granted on the following conditions and in
accordance with the instructions issued by the Central Office.
1. The employees desiring to procecute part-time studies should obtain prior permission
of the Office, regardless of the nature of the course/test.
2. The permission will be for the current academic year only and an employee who desires
to continue his/her studies in the next academic year also will have to seek in time
fresh permission which will be considered in accordance with the rule.
3. The part-time studies for which permission is accorded should be undertaken outside
office hours. Employee’s prosecution of studies should not interfere with or be a
hindrance to his/her office.
4. In case the employee does not prosecute part-time studies after obtaining permission,
he/she should inform office accordingly.
5. Employee will not be entitled to any leave for preparing for the examination and will
be allowed leave only for the days of the examination and for necessary travel from his/
her place of work to the examination centre.
6. This permission granted to the employee should not come in the way of transfer, if
exigencies of service requires such a transfer.
7. The permission can be granted by next immediate Officer of the department. If
permission is not granted by the officer, then the officer should record the reasons for
the same.
8. The permission granted / denied should also be recorded in the personal file of the
employee maintained by the P&IR Dept of DO/ZO/CO.
PART TIME WORK
1. As per regulation 29 of (Staff) Regulations 1960, no employee shall undertake part-
time work for a private or public body or a private person or accept fee therefor without
the sanction of the Competent Authority which shall grant sanction only in exceptional
cases when it is satisfied that the work can be undertaken without detriment to his
official duties and responsibilities. The Competent Authority may in cases in which it
thinks fit to grant such sanction, stipulate that any fees received by the employee for
undertaking the work shall be paid in whole or part to the Corporation. Provided that,
no employee of the Corporation shall be permitted to act as an insurance agent and no
employee shall allow any member of his family to act as an insurance agent.
2. As per schedule IV of the Staff Regulations, 1960 the Competent Authority (which in
this case is the Appointing Authority) is vested with full powers to allow an employee
to undertake part-time work and to determine the amount to be paid to the Corporation.
The following instructions are set out for the guidance of the Competent Authority in
disposing of the requests received from the employees regarding part-time work and
also to determine the amount paid to the Corporation in such cases:

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3. Conditions of Grant :
(i) As indicated in the Regulation itself, permission should be granted only in
exceptional cases, where such part-time work can be undertaken without any
detriment to official duties and responsibilities.
(ii) The work should be done entirely outside the office hours and such work should
not affect the efficiency of the employee in any way.
(iii) The nature of work should be such as is not likely to cause any embarrassment
to the employee in the discharge of his official duties.
4. Where Permitted:
Subject to the conditions set out above, permission may be granted in the following
cases :
(i) Work in honorary capacities in cultural and social organisations :
(ii) Broadcasts on the All India Radio on purely literary, artistic and scientific
subjects;
(iii) Broadcasts on All India Radio on behalf of the Corporation. (In this case the
entire fees received by the employee should be paid back to the Corporation and
rules regarding prior approval of the script by the Competent Authority should
be duly observed);
(iv) To act as examiners, set up question papers and prepare model answers for
Universities and other examining bodies including the ‘Federation of Insurance
Institutes’. (Refer Cir.No.Admn.Trg./ZDBU-1/64 dated 28.3.1964)
(v) Part-time work in connection with the educational work connected with
Insurance in Public Institutions not run for profit ;
5. Notwithstanding anything stated above where an employee was already having part-
time employment prior to the Appointed Day and sanction was given for continuance
of the same, such employment may be allowed to be continued subject to what is stated
in Para 3. However, no fresh request for any new part-time employment should be
entertained from such employees except for cases covered under para 4.
6. Remuneration for Part-T ime W
Part-Time ork :
Work
Regarding the remuneration for part-time work of the employee, the general principle
would be that an employee may be permitted to retain a recurring or a non-recurring
fee or more than one such fee put together upto an amount of ` 4,000/- in one calendar
year and where the recurring or non-recurring fee or fees received in one calendar
year is/are in excess of this amount, one-third of the total of such fee or fees shall be
paid to the Corporation provided that the total amount of such fee or fees retained by
the employee is not reduced below ` 4,000/-. This however would not apply to the part-
time work referred to in sub-paragraph (iv) of paragraph 4 above.(refer
Cir.No.Admn.Trg./ZDBU-1/64 dated 28.3.1964 & ZD/935/ASP/99 dated 31.08.1999).
7. Tenure of Permission:
Where permission for undertaking or continuing part-time work is granted, the
Competent Authority should grant it only for a specified period so that the matter
could be reviewed on the expiry of the period to guard against this being made a regular

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 profession, side line or business.
8. Remuneration for Departmental Test:
Test:
In case where an employee is asked to set Question papers or value Answer Papers in
connection with the Promotion tests,Recruitment Tests or any other Examinations
held by the Corporation, the provisions of Staff Regulation 29 do not apply as it is the
work of the Corporation.The remuneration received by the employee for such work
may be retained by them.

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 CHAPTER 21
PART-TIME WORKMEN
ART-TIME
(Ref.: C.O. Circular Dept. Per/ER/CIR. No.ZD/766/ASP/92 dt. 26.3.92 & Wage Revision Rule
2010)
1. Casual Leave : 10 days in a year
2. Privilege Leave : One day for every completed month of service.
Accumulation may be allowed upto 30 days.
3. Sick Leave : At the rate of 10 days (Half-Pay) for each completed year
of service subject to the maximum of 160 days (Half-pay)
throughout the entire service period.
4. Maternity Leave : Female part-time employees will be eligible for
Maternity Leave for a maximum period of six months,
to be availed of on two occasions of 3 months each. The
same is admissible only after completion of two years
of continuous service. The other terms and conditions
of maternity leave including adoption of child as
applicable for permanent employees is also applicable
to them.
5. Festival Advance : One month’s salary being received by them as festival
advance subject to a maximum of ` 8,500/- (interest-free)
recoverable in 10 equal monthly instalments. (ZD/1168/
ASP/2010 dt 03.11.2010 of Per/ER Deptt.)
6. Uniforms : Eligible for 3 sets of terecott uniforms in two years. In
the first year two sets of uniforms will be supplied. In
the second year one set of uniform will be supplied &
so on so that the number of sets supplied in two
consecutive years is equal to three.
7. Woollen uniform : Wherever the Office supplied one woollen uniform to
their full time Class IV employees once in two years
the regular part-time workmen will also be supplied
with one woollen uniform at such place once in two
years. The Office which supplied only woollen Jersey to
full-time employees will also supply woollen Jersey to
regular part-time workmen.
8. Supply of shoes/chappals : i) A pair of shoes/chappals will be supplied once in two
years. They may be allowed to purchase a pair of
shoes at a cost not exceeding ` 650/- or a pair of
Chappals not exceeding ` 350/-. They have to submit
receipt for purchase of shoes or chappals to the office
for claiming reimbursement.
ii) They may also be allowed to purchase two pairs of
socks every year at a cost not exceeding ` 55/- per
pair.

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9. Supply of umbrella : Reimbursement to the extent of actual cost of the
umbrella not exceeding ` 200/- per umbrella on
production of duly paid bill every alternate year.
10. Washing Allowance : To be paid ` 90/- p.m (w.e.f. 1.8.2007). If he remains
absent and/or avails of leave or does not attend Office
for the whole of the calendar month, no Washing
Allowance shall be paid in respect of that month. The
payment of Washing Allowance is subject to their
wearing clean/washed uniforms.
11. Flood Advance : a) Workman having 4 hrs of duty per day-` 12,500/-
b) Workman having 3 hrs of duty per day-` 9,375/-
c) Workman having 2 hrs of duty per day- ` 6,250/-
All the conditions applicable to Corporation’s regular
full time employees for grant of flood advance and its
recovery will be applicable to regular part-time workmen
also.(The revision is effective from 26.07.2005 as per
ER.Dept’s Cir.No.ZD/1073/ASP/2005 dtd.21.11.2005)
12. Facilities for family
planning :
Leave : i) Six days Special Leave for undergoing sterilisaion
operation (Vasectomy or Salpingectomy)
ii) Fourteen days Special Leave for female workmen for
undergoing non-puerperal sterilisation.
iii) One day Special Leave to female workmen who had
I.U.C.D. insertion.
Benefits : i) Reimbursement of surgical fees in respect of
vasectomy subject to a maximum of ` 100/-
ii) Reimbursement of surgical fees in respect of
Tubectomy performed on female workmen or on the
life of regular part-time workmen upto a maximum
of ` 200/-.
Incentives : A cash incentive of ` 250/- will be paid to a regular part-
time workman or their spouses with not more than two
children, who undergo vasectomy/ tubectomy operation.
13. Medical Benefit : Regular Part-time workmen will be eligible for cash
medical benefit proportionate to the number of hours
work fixed per day. Group Mediclaim Insurance Scheme
has been approved , effective from 01.07.2009 (Ref:: Cir
No. ZD/1134/ASP/2009 dt. 03.07.2009.) This Scheme is
applicable to a) All confirmed employees of the
Corporation serving anywhere in India. B) Retired
regular part-time employees who specifically opt to join
the scheme and staying in India.

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14. Provident Fund : The benefit will be at 10% on the basic pay component
of the wages fixed in their cases having regard to the
number of hours of work per day.
15. Normal Grade Increment : Regular part-time workmen are entitled to normal grade
increment in their respective scales of pay on pro-rata
basis, having regard to the number of hours of duty fixed
per day. The normal grade increments are to be granted
for each year of service (from 1.1.82 or date of
appointment, if later).
16. P.L. Encashment : P.L. encashment while in service is not allowed for
regular part-time employees.
17. Fixed Personal Allowance
Allowance: Eligible for FPA on pro-rata basis as applicable for
Permanent employees.
18. tagnation Increments
Stagnation : Eligible for stagnation increments once in two years ,
subject to maximum of seven such additions as
applicable for permanent employees intheir respective
scale of pay on pro-rata basis, having regard to the
number of hours of duty fixed per day.The sanction of
stagnation increment is subject to satisfactory work
records, leave records, etc as applicable to permanent
employees.
19. Group Insurance Benefits : Part -time employees are not covered under our GSLI
Scheme and GTIS Scheme. However Part-time
employees (Class IV) are covered for a sum assured of
` 2 lacs under the New G.I Scheme w.e.f 01.12.2004
subject to other eligibility conditions ( Ref : CO Circular
letter Ref:Per/ER-A/G 471 dated 17.11.2004) if they have
opted for the scheme and premium at ` 50/- being
recovered.
20. P.L.L.I : Part-time employees are eligible for PLLI on pro-rata
basis.
21. Gratuity : Regular part-time employees are entitled to payment
of Gratuity as per the provisions of the Gratuity Act.
22. Pension : If opted for pension, regular part-time employees are
eligible for pension on pro-rata basis for service after
01.01.1982 or date of appointment whichever is later.
Defined Contribution Pension Scheme: All the
regular part-time employees on permanent basis joining
the services of the Corporation on or after 01.04.2010
are to be covered by Defined Contribution Pension
Scheme. ( Ref: ER/A/Pension dtd 18.08.2010 and
CO Cir ref: CO/ER/Pen/10-11/L002 dtd 08.03.2011.)

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 CHAPTER 22
EMPLOYER’S CERTIFICATE
CERTIFICATE
The Competent Authority may issue the Employer’s Certificate to the employees who desire
to avail of housing loan from the Corporation or for standing surety to other employees availing
of the same. However, in case of employees who desire to avail of loan from any other Financial
Institution or for standing surety to other employees, friends, family members etc availing
the same, the purpose for which the certificate is issued should be made very clear in the
certificate itself adding that in the event of default, the Corporation will not be liable to
recover the amount from the salary or any other dues payable to the employee. Further, a
covering letter should also be issued to the employee alongwith the Employer’s Certificate
drawing the employee’s attention to the provisions of Regulation 34 and 35 of the (Staff)
Regulations,1960, under which he/she will render himself/herself liable for disciplinary action
in case a contingency arises on account of the failure of the employee or the principal debtor
(in case of standing surety) to pay up the loan contracted.
RAISING OF PERSONAL LOANS FROM PRIVATE / PUBLIC FINANCIAL
PRIVA
INSTITUTIONS AND BANKS.
Some of our employees are raising Personal Loan from Private / Public Financial Institutions,
Credit Society, Banks, etc. without prior permission of the Competent Authority. They are
submitting the irrevocable letter of Authority to LIC Office to remit the loan dues / instalment
to the Branch concerned of these offices and also to recover the entire amount of loan with
interest thereon from the Terminal Dues in case of default. Our offices are not permitted to
acknowledge such letter of authority or to act upon such authority.
Such employees should be made aware of the provisions of Staff Regulation and likely
consequences employee will have to face in this regard.
1) Regulation - 34 of (Staff) Regulation, 1960, lays down restrictions on borrowing by the
employee which reads as under:-
34(2) No employee shall, save in the ordinary course of business with a bank or a firm
of standing, borrow money from or otherwise place himself under pecuniary obligation
to any person within the local limits of his authority, or any other person with whom he
is likely to have official dealings, nor shall he permit any member of his family, except
with the previous sanction of the Competent Authority, to enter into any such
transaction. Provided that an employee may accept a purely temporary loan of small
amount, free of interest, from a personal friend or relative or operate a credit account
with a bonafide tradesman.
2) As per the above provisions, employee has to take prior permission of the Competent
Authority before raising loan.
3) No deductions of Loan Amount from salary are permissible except P.F. Loan, PF loan
Interest, Loan taken from Employees’ Credit Co-op. Societies/ Bank from the salary of
the employees.
4) Contravention of the above Regulations shall attract Disciplinary Action against erring
employee.
5) LIC has not entered into any corporate deal with any of the Banks for granting either
Overdraft facility or raising loan in respect of employees.

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6) LIC will not take any responsibility towards deduction of EMI from the salary of the
employee or the entire loan from Terminal Dues in case of default.
Employees should be advised to take careful note of the above provisions and should
desist from taking loan from private / public institutions and Banks, without prior
approval of the Competent Authority.
NO OBJECTION CERTIFICA TE FOR P
CERTIFICATE ASSPORT/VISA
PASSPORT/VISA
Sometimes our employees, intending to proceed abroad, apply for a “No Objection Certificate”
from the Corporation, for the purpose of obtaining a passport.
Employees must give in writing the purpose of their visit abroad. While, normally, “ No
Objection Certificate” might be issued in all cases except in the below mentioned instances, it
must be made clear to the employee in writing that the grant of such a certificate does not
mean waiver of any of the provisions of the Staff Regulations and the administrative
instructions issued by us from time to time nor could it be considered as conferring any benefit
on the employee nor agreeing to grant him/her leave for the purpose. The employee cannot on
the basis of the certificate alone, claim any concession in matters of sanction of leave nor can
he/she request us for waiver of notice period in the event of resignation.
Employees against whom disciplinary action, vigilance inquiry, police investigation or criminal
proceedings are pending or are under contemplation, should not be granted the “ No Objection
Certificate” without the prior approval of the Central Office. When referring such cases to
the Central Office, full details of the proceedings pending or contemplated against the employee
must be furnished.
Passport is now regarded as an essential means of identification and in most of the cases may
be obtained for that basic purpose and not as a travel document. When an employee applies
for “No Objection Certificate” for obtaining passport for his proposed visit to a foreign
destination or when she/he applies for “No Objection Certificate” for obtaining a visa, the
following questionnaire should be filled in by the applicant for consideration of the matter by
the Competent Authority :-
1. Name of the places where you want to visit.
2. Purpose of your visit to the foreign destination/s.
3. Whether you have got your leave sanctioned from the Competent Authority. If not,
please get the leave sanctioned and send the leave memo to us.
4. The date from which you will proceed and the probable time of your stay in
_______________.
5. Name of the City of ______________ to which you want to visit.
6. Whether you will visit the above city only or other cities also.
7. Had you previously gone there, if so, when ?
8. Had you obtained a Passport prior to this?
9. Whether the Reserve Bank of India has sanctioned the necessary Foreign Exchange
and has issued “No Objection Certificate” to you to this effect, if so, furnish us the copy
of the same.
10. Whether any Police investigation or criminal proceedings are pending against you or

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are under contemplation. The Competent Authority for issuing such certificate will be
as follows-
1) The Zonal Manager in respect of Officers-in-charge of Divisions and Officers/
employees working in the respective Zonal Office.
2) Sr/Divisional Managers-in-charge of Divisions in respect of all Officers/employees
working in their respective Divisions.
3) Chief (Audit & Inspection) in respect of all Class I Officers/employees working
in the various Audit & Inspection Departments.
4) Director/Chief (Personnel) in respect of all Zonal Managers and Class I Officers/
employees in the Central Office and Officers/employees working in Buildings
Department and Chief Engineer’s Office/s.
5) The competent Authority may delegate this power to any authority subordinate
to itself, but such subordinate authority should not be below the rank of ADM.

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 CHAPTER 23
STRIKE
The following instructions are issued for the guidance of our Offices regarding the above.
These instructions supercede the earlier instructions given in this regard.
1. i) Whenever any call for strike, bundh, etc. is given by all or of any of the Employees’
Associations, it is necessary for the Offices to issue a notice to all the employees
informing them clearly a) that their participation in such strike, bundh, etc.
will be treated as unauthorised b) that they will not be paid any salary on the
principle of “No Work - No Pay” c) that their absence will be treated as Extra-
ordinary Leave with the attendant consequences and d) that they will be liable
for disciplinary action.
ii) Where a strike call is given by any or all the Employees’ Associations, the notice
should clearly mention that all those who have no intention to join the
unwarranted and unjustified strike but wish to attend to their duties on that
day should intimate the concerned office in writing their intention to attend to
their duties and that failure to give such advance intimation may result in
rejection of their plea, if subsequently made, that they had absented themselves
for any purpose other than that of participating in the strike.
Specimen notices which are to be taken as illustrative - Refer Annexure I, II &
III - C.O. letter Ref:PER/ER/U/17/Cir dated 12.11.1998.
iii) The Officer-in-Charge has to make arrangements to see that all the gates of the
Office are kept open to ensure safe entry of all those who desire to attend the
Office on the day of strike, bundh, etc. Police protection, if necessary, is to be
sought and arranged for.
iv) Under no circumstances, the Officer-in-Charge of an Office should participate
in strike, bundh etc. or go on official tour during those days. If the various
Departments of the Office are situated in different premises, the Officer-in-
Charge in each premise or the seniormost Officer in the premises should be
present to take stock of the situation.
v) Where it is necessary, arrangements should also be made for some of the Officers
to come and stay in the Office on the night previous to the day of strike, bundh,
etc., so that they can collect the keys from the watchman and ensure that the
Office is kept open on the day of bundh/strike.
2. As regards the treatment of absence of the employees on account of strike, bundh etc.,
the following procedure may be followed:
i) Where an employee has applied for leave in advance for the day(s) of strike and
if the reasons given by him/her are acceptable to the Competent Authority, Casual
Leave/Privilege Leave/Extra-ordinary Leave, as the case may be, may be granted,
provided, however, that due to such granting of leave, the functioning of the
Office is not affected.
ii) Where an employee applies for leave after the day(s) of the strike for genuine
reasons such as on medical grounds and if the Competent Authority satisfied
with the reason for absence, Casual Leave/Privilege Leave/ Extra-ordinary Leave,
as the case may be, may be sanctioned.

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 iii) Where in spite of all the efforts made by the Office, it was not possible to keep
the Office open due to lack of police protection or violence, employees who had
given advance intimation of their intention to attend Office
on the day of strike/bundh may be treated as ‘On Duty’.
iv) Where an employee applies for leave due to failure of transport system, it may
be sanctioned, provided the distance from his residence to the place of his duty
is more than 5 kms. Otherwise his absence will be dealt with as Unauthorised.
v) Where an employee stays away from work out of genuine fear because of
apprehension of violence or disturbances, Casual Leave/Privilege Leave/Extra-
ordinary Leave, as the case may be, may be granted provided
a) he/she applies for the same on the aforesaid ground and
b) gives a declaration that he/she had no intention to participate in the strike
on to respond to the call for strike.
vi) For absence occasioned by curfew, the Competent Authority may grant
permission to employees to leave Office early; but where it is necessary to treat
the Office as ‘Closed’, a reference should invariably be made to the Zonal Office
with full details. The following guidelines may be followed on such occasions.
a) Where an Office is closed because of the imposition of curfew, under the
orders of District Magistrate etc., that day may be treated as “Closed
Day” not to be counted as a holiday if not otherwise a declared holiday.
The Central Office should be informed with full details accordingly.
b) Where curfew is imposed but the local authority doesn’t issue instructions
for closing the Office (i) and the employee is unable to attend office due
to his being in a curfew-bound area or (ii) having to pass
through such area to attend Office, Special Leave may be sanctioned by
the Officer-in-Charge of the Division/Zone in which case the Central Office
should be informed promptly giving full details. The detail of curfew may
be obtained from the respective Police Station under the seal of the
station-in-charge.
Submission of strike statistics
3. On the day of strike, bundh etc., the Zonal Office should collect the information with
regard to the number of persons who have participated in such bundh, strike etc. atleast
from the Office situated in the Zonal Headquarters and communicate the same to the
Central office over phone by 12 noon on that day itself. Zonal office should send to the
Central Office atleast on the day following the day of strike, bundh etc., a consolidated
strike statistics after receiving information regarding number of employees (i) on roll
(in various Offices) (ii) on sanctioned leave (iii) who have participated in the strike/
bundh etc. (iv) who have attended Office and ensure that the figures from (ii) to (iv)
tally with (i) for various Offices under its control.
The time schedule in respect of submission of strike statistics should be strictly followed.
The statistics in respect of all the classes of employees whether participating in strike
or not should be submitted to Per/ER Dept., Central Office - circular Ref:P/ER/A/U/
17(98) dated 18.04.1999 by telephone/fax in the prescribed proforma (annexed).

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INDEFINITE STRIKE
(Ref.: C.O. Circular Dept. Per/ER/3822/PSP/93 dt. 16.10.93)
1. In the following paragraphs general guidelines are given to cover contingencies which
may arise in the event of the continuous strike materialising.
2. These guidelines by their very nature cannot be exhaustive and are to be treated only
as illustrative. Various situations arising out of the indefinite strike taking place will
have to be dealt with by the Officers-in-Charge of the Offices in consultation with their
Controlling Offices, if need be. If consultation with the Controlling Office is not possible,
then the Officer-in-Charge should take such steps as the particular situation may, in
their opinion, warrant. No Officer of the Corporation can take a plea that in the absence
of specific instructions, steps could not be taken by him to meet a particular eventuality.
The Corporation expects that the Officers should take the decisions they
consider appropriate to meet the exigencies in the interest of the Corporation and the
maintenance of service to Policyholders.
3. The instructions regarding treatment of absence of employees on account of strike,
bundh, etc. have been given under point No.2 of C.O. Circular No. ZD/781/ASP/93 dated
January 5, 1993. The question of sanctioning of leave during the period of indefinite
strike has been further considered and the attention of the Offices is invited to the
provision in the L.I.C. of India (Staff) Regulations,1960, that leave whatever may be its
nature i.e. Casual, Privilege, Sick or of any other kind, cannot be claimed as a matter of
right. It will be for the Competent Authority to decide whether the leave asked for by
any employee is justified or not, and in anticipation of the situation which might
develop on account of the threatened strike call, to refuse or to entertain any application
for leave. It is not unlikely that a large number of employees may apply for leave in
view of the threatened indefinite strike and it has been decided that unless the
Competent Authority to sanction leave is satisfied that the leave asked for is for genuine
reasons, that is to say, for any exceptional circumstances for reasons beyond the control
of the employee which could compel the employees to take leave, no leave should be
granted. In a nutshell, the main fact that the employee is having sufficient leave to his
credit and the leave application has also been submitted in time should not weigh
with the Competent Authority in sanctioning the leave unless the grounds, as mentioned
above, are established to his satisfaction. The same principle will apply in case of
sanctioning of Casual Leave also.
4. Mass-scale Sick Leave applications from any establishment or from various Departments
of an establishment must prima facie raise suspicion in the absence of any epidemic,
notwithstanding the fact that such applications are accompanied by medical certificates.
The Competent Authority must, therefore, satisfy himself about the genuineness of
such certificates and all such mass applications should be rejected in writing and the
employees concerned advised accordingly. It is to be kept in mind that in any case
‘malingetere’ should not be sanctioned leave.
5. The above decision with respect to sanctioning of leave will apply to all classes of
employees of the Corporation.
Maintenance of service to Policyholders - Service to the maximum extent
possible to be provided.

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6. The Officer-in-Charge of the Office must ensure that atleast skeleton service is
maintained in all the Offices or Departments, as the case may be. The Officer-in-Charge
may, if need be, reallocate available staff including Officers and post them in any
Department/Office for the purpose of maintaining the skeleton service. The skeleton
service will include functions such as collection of cash and cheques, payment of claims,
loans, commission to Agents and this service be maintained to the maximum extent
possible. In this context maintenance of cash counter services should receive utmost
priority. The next in priority will include functions such as acceptance of proposals,
payment of maturity claims, issue of policies, followed by the payment of loan to
Policyholders.
7. To the extent possible and practicable, arrangements should be made for replying to
the queries of the Policyholders who may call at the Office during the strike period.
Arrangements may also be made for sending replies to urgent communications either
from Policyholders or from others and if it is not possible to secure the services of a
typist or a stenographer, replies to urgent communications may be written in hand
with a carbon copy, to be retained for the file and sent to the parties concerned. In
short, Offices should take all the necessary initiative and action to keep the Office
working as normally as possible during the period of indefinite strike.
Opening and Closing of Offices
8. It is absolutely necessary that the Offices of the Corporation remain open even when
the employees go on continuous strike. All efforts should be made by the Officer-in-
Charge of a particular Office to keep the Office open on the days of the strike and
Police protection, wherever necessary, should be obtained. It is also likely that in the
event of the strike the employees who were normally assigned the duties of opening
and closing the Offices and having the custody of the keys of the Office premises may
also participate in the continuous strike and in such an eventuality, it would be proper
to make substitute arrangements beforehand. Eventualities of a similar nature should
be foreseen and precautionary measures should be taken by all the Officers-in-Charge.
The Officers-in-Charge should also ensure that on the day previous to the day of strike,
the keys of the Office premises are handed over to them by the concerned employee/s
and necessary arrangements for opening and closing the Office may also be made by
the Officer-in-Charge. It may be possible that in some cases the Officer-in-charge may
himself have to perform this duty.
9. It may also be necessary to make arrangements for the operation of water pumps, lifts
and electric supply and for sweeping and cleaning of the Offices. If necessary, temporary
hands on daily wages might be engaged for this purpose. If possible, for attending to
the duties of Watchmen, Ex-servicemen may be engaged temporarily on daily- wage
basis. To guard the key installations or important Offices, services of the Police should
be availed of. It may also be mentioned here that a proper liaison be maintained with
the Police Authorities and they may be kept informed of the anticipated trouble well in
advance.
Precautionary measures for protection of properties of the Corporation etc.
10. Necessary arrangements should be made to enable employees to attend Office as also
for the safety of the Corporation’s properties such as records, installations, machinery,
vehicles, etc. It is expected that there will be no acts of violence. If there is any

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 possibility of violence, intimation to the Police Authorities or the District Authorities,
as the case may be should be given immediately to enable these authorities to take
appropriate measures including in certain cases, promulgation of prohibitory orders
under Section 144 of the Criminal Procedure Code in certain areas. As already
mentioned, the Officers-in-Charge should get in touch with the Police Authorities or
the local authorities and apprise them of the situation which may develop in the event
of the strike and the precautions which these authorities may have to take.
11. If any of the employees ask for any protection or inform the Office in writing that they
have no intention of participating in the strike, it may be made clear to the employees
that it will not be possible for the Office to offer any special protection. However, the
Offices should request the Police to provide protection so that our Offices can be kept
open during the period of strike and those employees who desire to attend Office are
able to do so.
Complaints from employees
12. If there are any complaints from employees attending the Office during the strike with
regard to violence, intimidation, etc., the following Guidelines may be followed:
“The question of being able to afford some protection to victims of hooliganism’’ has
been examined and it has been decided as under:
i) Where the information reveals that before, during or after Office hours a crowd
of the rowdy elements is determined to harass those members of the staff who
do not participate in the strike by gathering together at the entrances, throwing
rotten tomatoes, eggs, etc. on such members or indulge in some other forms of
intimidation which would put those employees in mortal fear, timely police
protection should be obtained.
ii) The members of the staff complaining against the Office-bearers/members of
the Employees’ Unions about intimidation, coercion, etc. should submit written
complaints together with such evidence as they may have and positively with
the names of the persons whom they are accusing of misbehaviour as also the
names of witnesses in support.
iii) In respect of incidents which may take place outside Office premises and on the
main roads, the complaining members should positively be able to identify the
harassing members and should also agree to lodge a complaint with Police. It is
only on the strength of the result of this complaint to the Police that it would be
possible for the Office to take any action against such errant Office-bearers/
members of the Union in terms of the provisions of the (Staff) Regulations;
iv) It should be made clear that it would not be possible for the Office to provide
Police protection to the members of the staff all along, i.e., from the time they
leave their homes till the time they reach the Office and thereafter
on the roads when they leave the Office. Something can only be done in respect
of incidents which take place near the entrance of the Offices, whether
immediately before the Office hours or during the lunch time or
towards the close of the Office; this of course includes harassment during actual
working hours of the Office also provided there is proper identification.

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13. Any attempt by any section of the employees to prevent the ingress or egress from the
Office premises must be foiled, wherever necessary with the assistance of the Police
and names of the employees indulging in such activities should be recorded with
available evidence for further appropriate proceedings.
Arrangement for collection of premiums
14. Arrangements may have to be made with the bankers for collection of premiums during
the strike period. The bankers may be contacted and requested to give full co-operation
in the matter of premium and other matters. Suitable notice in the Press may also be
given to the Policyholders requesting them to deposit the money with these bankers
who may be furnished with an adequate number of Temporary (Deposit) Receipt Books
or Forms of Banker’s Memorandum. It is also to be ensured that the banks to which the
collection of premium is entrusted do not consist majority of employees who also go on
strike on the same day(s).
Officers not to proceed on tour
15. Officers-in-Charge of the Divisions, Branch Managers, Asst. Administrative Officers
and other Officers should remain at the respective headquarters during the strike
period. It is also necessary that other Officers remain at their respective places of
posting during the strike period to deal with any emergency that may arise. As regards
training, none of the Officers/employees should be deputed for attending any training
course or seminar in outside institutions without the permission of the Zonal Manager.
Any nomination made should be cancelled.
Daily report to the Controlling Offices and Central Office
16. A full and complete record of attendance in the specified proforma alongwith any
additional information such as any incident of intimidation, violence, coercion, non-
peaceful demonstration etc. together with all available and possible evidence including
photographs must be carefully collected and securely stored for use as may become
necessary. Every serious occurrence/incident etc. must be reported by the Branches
through the quickest means of communication available, to the controlling Divisional
Office which in turn should immediately contact the Zonal Office. Above all, the safety
of the Corporation’s properties and records, protection to the employees wanting to
attend Office and the unobstructed entrance and exit to the public should be adequately
ensured with the help of local Police and other authorities.
17. The Divisional Office should collect all the necessary information including the strike
statistics from the Branches on a daily basis and submit a consolidated report to the
Zonal Office which in turn should consolidate the report for the entire Zone and submit
the same to the Central Office on the very same day.
Arrangements for receiving and despatching mail
18. Arrangements should be made for collection of mail from the Post Office and for
despatch of mail during the strike period.
Notice to employees
19. A notice to employees to be displayed on the lines directed by higher Offices.

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 PROFORMA OF STRIKE ST
STAATISTICS
Annexure

Sr. Office/ On Roll Total On Leave Total Present/ Total On Total % of Total Whether Remarks
No. Division On Tour Strike Strike the office
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) was kept (14)
open (13)
Class Class Class Class Class
I 2 3 4 I 2 3 4 I 2 3 4 I 2 3 4 I 2 3 4

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 CHAPTER 24
WOMEN’S CELL
In the absence of enacted law to provide for the effective enforcement of the basic human
right of gender equality and guarantee against sexual harassment and abuse, more particularly
against sexual harrasment at work places, the Supreme Court has laid down the guidelines
and norms for due observance at all work places until a legislation is enacted for the purpose.
The most important guideline laid down by the Supreme Court to be followed by employers is
the constitution of an appropriate complaints mechanism to be created for redress of the
complaints made by the victims. At Divisional Offices/Zonal Offices/Central Office, a complaint
committee is required to be constituted. It should consist of three members preferably women,
of which one will be from a NGO (Non Governmental Organisation) or any other body familiar
with the issue of sexual harrasment. The committee should be headed by a woman member.
There is no specific period of tenure of the committee members. However, the office has to
reconstitute the committee replacing the member/ s if any arising out of transfer, promotion
or otherwise. The DM/SDM in-Charge of Divisions, ZM in-Charge of Zones and ED (E&OS)
may take suitable action to constitute a Committee in the respective offices. In Central Office,
a lady officer has to be appointed as a Liaison Officer for women’s cell. The names of the
committee members should be displayed on the intranet site.
All the offices are required to maintain a complaint register in the following proforma and
send the monthly statement to their controlling offices in the same proforma. The complaint
entered in the register should be disposed of as early as possible but not later than six months
from the date of entry into the register. The committee should submit its report on each of
the complaint entered in the complaint register.
The grievance relating, basically to the discrimination or atrocities against women employees
and matter relating to deprivation of women’s right and non compliance of policy decision,
can be taken up with the Cell. This forum should not be utilised as a channel for raising issues
of service conditions common to both sex and where there is no discrimination against the
employee by reason of being women.
The Liaison Officer would, inter-alia, help:
a) to facilitate LIC in providing necessary assistance / co-operation to the National
Commission for Women.
b) to look into complaints relating to non-compliance with Statutory/Constitutional
provisions and safeguards for women employees.
c) to look into the complaints regarding injustice, discrimination, atrocities against women
employees.
d) to collect necessary details and facts regarding such complaints and report to Executive
Director (Personnel).
e) to monitor action taken for redressal of complaints made by women employees.

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Register of Complaints regarding Sexual Harassment and other forms of violence
or coercion in the work place as shown below is to be maintained.
Particulars of Subject Date On Date On Follow Final Remarks
Complaint matter of which which up action action
received. complaint Complaint Complaint taken taken
was received was
by department attended to
(1) (2) (3) (4) (5) (6) (7)
Ref Dt. Source

Circular: ZD/774/ASP/92 dt 17.09.1992

Circular: 3849/ASP/97 dt 28.11.1997
Circular: ZD/1145/ASP/2010 dt 04.02.2010.

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 CHAPTER 25
GUEST HOUSE RULES
The Corporation has come out with Guest Houses at several places, primarily for the
convenience of Officers and employees on official tour to these places. This facility cannot be
claimed as a matter of right.
GUEST HOUSE CHARGES
For LIC employees.
Place Single Occupancy Multiple Occupancy
AC Room Ordinary AC Room Ordinary
Headquarters 6/- 5/- 4/- 3/-
At Branch : Headquarters - 5/- - 3/-

For Outsiders (w.e.f. 01/04/2001)

(w.e.f.
Place Single Occupancy Multiple Occupancy
AC Room Ordinary AC Room Ordinary
At Zonal 200/- 160/- 120/- 80/-
At Branch : Headquarters — 80/- — 60/-

Charges for Inspection Rooms :

Single Occupancy 3/- per head.
Double Occupancy 2/- per head.
The following persons are allowed L.I.C. employees rates for Guest house facility.
1) Retired employees of L.I.C.
2) Families of existing employees who accompany L.I.C. employee or otherwise.
3) Family members of retired employees only when they are accompanied by retired employees.
4) National Insurance Academy employees either from L.I.C./G.I.C. or Outside.
5) As per C.O. circular ref: DD/ZD/31/78/Dev./Ag/96-R dated 12.10.1978, Club Member
Agents at each level (Chairman’s, Z.M’s, D.M’s or B.M’s Clubs) would be permitted to
stay at Guest Houses, if any, of the L.I.C. maintained in the area of the respective
Offices. Guest House facility is also extended to the members of the Corporation/Zonal
Advisory Boards, PH Council Members and also to Chairman’s Club Members and Zonal
Manager’s Club Member agents. Members of the Corporation/Zonal Advisory Boards
and PH Council Members can be provided Guest Houses at employees’ rates only
during their tenure. All such Officials on personal visit too can be accommodated,
provided, need for Officer on duty is not there.
DMR and ZMRs can be similarly provided with Guest House facility at employees
rates during their tenure and at outsiders rates after their retirement.
Employees who are allotted out of class accomodation (higher) in Guest House should
be charged outsiders’ rates except when they are on official tours.

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OTHER GENERAL RULES
1) The family for this purpose will mean wife/husband , dependent children and dependent
parents residing with and wholly dependent on the officer/employee. In other words
“family” for the purpose of guest house facility would be same as family defined in the
Leave Travel Concession Instructions.
2) Employees transferred from one station to another may be allowed Guest House
accommodation up to a period of not exceeding one month with normal guest house
charges. For 2nd month normal guest house charges are payable and H.R.A. would be
withdrawn. For 3rd month the guest house charges equal to the licence fee applicable
to the cadre of the concerned employee would be charged in addition to withdrawal of
H.R.A. Beyond this period no employee should be allowed to stay in guest house.
3) Employees/Officers cannot be provided Guest House at the place of their work except
to the extent as permitted in (2) above.
4) Guest House charges for children below age 5 years need not be collected.
5) The priority for allotting the Guest house will be given to those Officers/Employees
who are in service and on duty.
Chairman’s Club Member agents will have priority over retired Officers/Employees
(who are retired as D.M. or below).
6) Officers of the rank of Secretaries of Government of India and other State Governments
or other Public Sector Undertakings travelling on duty may also be allowed Guest
House subject to availability and on payment of fees at outsiders rates.
7) Employees travelling for personal purpose may be allotted Guest House for short periods
if accommodation is available. They should vacate when required.
8) A visitor’s book, in the prescribed proforma, will be kept in each Guest House and each
person, immediately on his arrival, will enter in it his name, designation, address, the
date and time of arrival. The Date and Time of departure and the amount paid should
be filled in by him at the time of leaving.
9) All fees and demands fixed in accordance with the rules shall be paid by the occupants
before leaving the Guest house. Any irregularity or ground for claiming some exemption
from payment should be referred to the Competent Authority later after settling the
bill with the Controlling Office.
10) Since there is CMS facility, all employees should apply through their individual Email
- ids. Forwarding of request by FAX/Letters etc. should be avoided as far as possible in
view of the cost involved.
11) While making a request, the employee should clearly specify the number of days for
which guest house is required, purpose of visit, number of persons, age, relationship,
whether dependent on the employee as per the LTC rules in force. The employee
should give specific undertaking to this effect that the persons are dependent on him.
If such declaration is found to be false or incorrect at a later date, the employee shall
be liable for disciplinary proceedings under the Staff Regulations.. For other than
family members, outsider rates shall be collected.
12) E.D. (E&OS) in Central Office, Zonal Manager in Zonal centres and Sr/DM in Divisional
Headquarters are the Competent Authorities for allotment of Guest House. They can

313
 authorise any Officer not below the rank of A.O. to sanction allotment of rooms in the
Guest house.
13) The Controlling Officer is empowered to refuse accommodation in the Guest house to
any person who, on previous occassions misused or had acted in contravention of these
rules or had refused to make payment of his/her dues etc.
14) At certain Guest Houses, Tea/Coffee or Breakfast only will be allowed on payment of
the charges therefor. No food is otherwise allowed to be cooked in the Guest houses
and occupants of the rooms should not ask the attendant or bearer to prepare any food
i.e lunch or dinner for them.
15) STD Calls made by the occupants will have to be entered in the register maintained at
the guest House. Occupants are required to pay the STD call charges for calls which
are not official.
16) The occupant using the Guest House shall be responsible for any damage done to article,
equipment or furniture kept in the Guest house. He shall not do anything which will
interfere with the clean and sanitary state condition of the Guest House.
17) The Controlling Officer or any authorised Officer of the Corporation may expel any
person from the Guest house for any one or more of the following reasons.
a) If occupant is found to be suffering from any infectious or contagious disease.
b) If the occupant is found to be using the room for any immoral purpose.
c) If the occupant is found to be behaving in such a way to cause inconvenience or
nuisance to other occupants or tenants in the building.
d) If an occupant is found using the bath room or any part of the Guest House for
any purpose for which it is not intended.
e) If the occupant is found bringing a dog or such other pets in the Guest House.
f) If the occupant is found spitting in the rooms.
18) The number of Guests in each Guest House room should not exceed the number of beds
in the Guest House Room.
19) Guests will be entitled to the use of furniture furnished in the respective room in the
Guest House.
The proforma for the Guest House Visitor’s Book is as per the Annexure I of the CO
circular Ref: Sec.& Per. (E) dated 15/06/66.

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 CHAPTER 26
IDENTITY CARDS FOR RETIRED EMPLOYEES
The Competent Authority has accorded approval for issuing Identity Cards to the Retired
Employees and Family Pensioners/ Spouse/ First Eligible Member of the existing pensioners
on the following Terms and Conditions.
1. The Identity Cards will be issued to all the Retired Employees and Family Pensioners
Corporation’ss cost on submitting the photograph size 2.5 x 2 cm by the Retired
at Corporation’
Employee.
2. The Identity cards shall contain the information as per ANNEXURE-I enclosed.
3. The colour & design of cards will be as per Corporate Identity Programme (CIP).
4. The size of the Identity Card will be ‘American size- 9.3 cms(Ht) x 5.8 cms(width).
5. The Chief Manager/ Sr. Branch Manager/ Branch Manager in-charge is also authorized
to issue Identity Cards after proper verification in addition to the authorities mentioned
in our circulars Ref: OS/ Pesl / IC/ZD/CO/1/97 dated 07.05.1997 and OS/Per/IC/ZD/CO/
01/2002 dated 03.06.2002.
6. Pensioners who retired from Branch Offices & reside away from the Divisional
Head quarters, I. Card will be issued as under:
The Division will forward the I. Cards (after getting the cards prepared and photos
verified from pension file) to the concerned Branch Office with instruction to issue the
I. Cards after due verification and get signature of pensioner on the card before Chief
Manager/ Sr. BM./BM In-charge.
7. I. Cards to the employees who retired from Division/ Zonal Office will be issued by O.S.
Department of the respective office from where he/she has retired as per present
procedure.
8. All the offices have to issue Identity Cards to Retired employee and Nominee
(Family pensioner) at the time of retirement of the employee.

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 ANNEXURE-I

I.Card to Retired Employee:®

Front side : * Name of the employee, S.R.No.
* Pension File No.
* Designation at the time of retirement with word “Retd” in bracket
* Date of Retirement
* Date of Birth
* Signature of the retired employee
Back Side : * Address of Issuing Authority
* Name of the office from which retired
* Date of issue of I. Card
* Contact No.
* Residence Address
* Signature of Issuing Authority
I.Card to Family Pensioners/ Spouse/ First eligible member of pensioner(N):
Front Side : * Name of Spouse/ First Eligible Member or Family Pensioner
* Pension file No.
* Relation with the Retired employee
* Name of Retiree
* Designation at the time of retirement with word “Retd” in bracket
* Date of Retirement
* Signature of Nominee (Spouse/ First Eligible Member/ Family Pensioner)
Back side : * Address of Issuing Authority
* Name of the office from which the employee has retired
* Date of Issue of I. Card
* Contact No.
* Residence Address
* Signature of the issuing Authority

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 CHAPTER 27
CORPORATE IDENTITY
CORPORATE
To bring about consistency and uniformity in the usage of Printing & Stationery items,
Corporate Communication Department has come out with revised Corporate Identity
Programme through various folders as under :-
Folder No 1 : Corporate Flag, Corporate Anthem, Corporate Logo
Folder No 2 : Visiting Cards
Folder No 3 : Official Stationery
Folder No 4 : Wall Paintings, Hoardings, Banners & Signages.
Folder No 5 : Visiting Cards & Stationery for Club Member Agents.
Folder 1 :
CORPORA TE FLAG
CORPORATE
Specifications :
* The Corporate Flag is sky blue in colour showing the pure clear sky, its vast expanse,
serene, majestic, and beautiful.
The spectrum of rainbow colours on the left depict the diversity in unity, the bright
hues of life, hopes and aspirations of humankind. LIC Emblem comes in the centre
soaring high in the blue expanse and helping people shape their hopes and aspirations.
Flag Dimension In mm Approximate
Size Dimensions in ft. Where to be used
and inches
(Length x Width
Ratio = 3:2 )
1. 1650 x 1100 5’6'’ x 3’8'’ Bldgs & open functions
2. 900 x 600 3' x 2' For display in rooms &
closed door functions
3. 150 x 100 6'’ x 4'’ Used as table flags.

● Cloth used - Satin

Instructions for correct usage of Corporate Flag
● The flag may be displayed on the following occasions :
1) On office buildings (owned or rented) on important occasions like nationalisation
day, LIC Anniversary, etc.
2) At conference venues like Chairman’s Club Convention, Developement Officers
Convention, All India Sr. DMs’ Conference etc.
3) Other important local functions like opening of new offices, foundation laying
ceremony of LIC buildings etc.
4) Important public functions arranged by LIC.

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 5) LIC’s Sports Meet.
6) For marching parades on sports events.
7) When a new Chairman takes charge.
● Corporate Flag, when flown, shall occupy the position of honour and be distinctly
displayed. When the flag is displayed otherwise than by being flown from a staff, it
should be displayed in a manner that the Corporate Emblem is vertical and clearly
visible. When flown on a speaker’s platform, the flag shall be on a staff on the speaker’s
right as he faces the audience. The flag can also be displayed flat across the wall above
and behind the platform in a function.
● During the ceremony of hoisting or lowering the flag or when the flag is passing in the
parade, all persons present should face the flag and stand to attention. The flag
salutation will be followed by the singing of the Corporate Anthem.
● If the flag hoisting is in connection with sports meets and other ceremonial occasions,
all present shall give the pledge to the flag by repeating together the following pledge:
“I pledge my allegiance to the Corporate Flag and to the Life Insurance
Corporation of India for which it stands”
USAGE OF CORPORA TE FLAG - SOME DON’TS
CORPORATE
● A damaged or dishevelled flag shall not be displayed.
● The flag shall not be used to cover the speaker’s desk/podium.
● The flag shall not be allowed to touch the ground.
● The flag shall not be misused by allowing lettering of any kind on it.
● The flag shall not be used in any form of advertisement.
● The flag shall not be used as a receptacle for receiving, delivering, holding or carrying
anything.
● A damaged or soiled flag should not be cast aside or disrespectfully disposed off, but
shall be destroyed as a whole in private, preferably by burning.
CORPORA TE ANTHEM
CORPORATE
Official Version
Version
The revised version wherein singing time has been reframed to 1 minute 40 seconds is the
approved official version of the Corporate Anthem. Only this version is to be sung/played.
Instructions for singing /playing Corporate Anthem.
● When the Corporate Anthem is sung or played, all the people present should stand to
attention, except where it is played as a part of a film or video programme or advertisement.
● It should be sung/played at the beginning of an official function.
● If the Corporate Flag is being hoisted in the function, the flag hoisting will be followed
by singing/playing of the Corporate Anthem.
● The rendering of the Corporate Anthem may be by group singing or by playing the
cassette/CD. Singing of the Corporate Anthem should be resorted to only when we
have requisite expertise available in the form of good singers. It is generally advisable

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 to play the Corporate Anthem cassette/CD.
● The Corporate Anthem may be sung in an official function of the Corporation like All
India Sr. DMs’ Conference, various club functions, conferences organized at Zonal and
Divisional centres, functions in connection with open-ing of offices, formal functions at
various training centres like inauguration or valedictory of training programmes, sports
or athletic meets conducted exclusively by our organisation etc.
USAGE OF CORPORA TE ANTHEM-SOME DON’TS
CORPORATE
● In a national function like Republic day, Independence day etc. the National Flag is
hoisted and the National Anthem sung. On such occasions, Corporate Anthem should
not be sung.
● The longer version of the Corporate Anthem of 5 minutes 30 seconds should not be
sung/played as the same has been withdrawn.
● The prescribed tune and rhythm of Corporate Anthem as per official cassette/CD
supplied should be maintained. No change to the same shall be made under any
circumstances.
Correct usage of Corporate Logo
Logo should be used in correct geometrical proportion/scale viz. 19 units x 7 units, (whether
reduced or enlarged). It should be always depicted as mentioned in CIP folder.
Corporate Blue
Pantone shade - DS197 - 1C
Cyan 100%, Magenta 70%, Yellow 0%, Black 10%. Corporate Yellow
Pantone shade - DS5 - 1C
Cyan 0%, Magenta 20%, Yellow 100%, Black 0%.
Corporate Logo :
Corporate logo in bilingual, trilingual and regional languages should be exactly as depicted in
the new CIP folder.
FOLDER 2 :
V isiting Cards :
Folder II sets clear, concise and easy guidelines for printing of official visiting cards as below
: UNIFORMITY IN GROUPING OF OFFICIALS
Official visiting cards are provided to all class I Officers and Development Officers. For the
Corporate Identity Programme vis-a-vis uniformity in printing of visiting cards, these officials
have been divided in two groups.
Group A - Following classes of Marketing officials only :
Development Officers, ABM (S), Chief Manager/Sr/Branch Manager/Chief
Manager/Manager/ Dy. Manager (B & A.C.), Marketing Manager, Manager (Sales).
Group B - All other Class I Officers.

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UNIFORMITY IN SIZE
Prescribed size : American size - 9.2 Cms (Width) x 5.4 Cms (Height)
UNIFORMITY IN DESIGN
Prescribed Basic Designs for Group A and Group B officials are detailed inside this folder
UNIFORMITY IN COLOUR
Visiting cards will be printed in the colours shown as per design viz CORPORATE BLUE
&YELLOW & BLACK. The exact shades to be used shall be as follows :
CORPORA TE BLUE
CORPORATE CORPORA TE YELLOW
CORPORATE
Pantone shade- DS197 - 1C Pantone shade DS5 - 1C
CMYK (PROCESS COLOUR) - CMYK (PROCESS COLOUR) -
Cyan - 100% Cyan 0%
Magenta - 70% Magenta 20%
Yellow - 0% Yellow - 100%
Black - 10% Black - 0%
P.S. For ready reference of the printers, the Corporate Colours are printed
separately in CIP folder
folder.. Colour Patches can be given to the printer for proper
colour patching wherever required.
UNIFORMITY IN USAGE OF TYPE FACES
FACES
● Corporate Logo and Emblem should be exactly as depicted on the inside of this folder
of CIP.
● Type - family to be used for other matter
English - Helvetica (addresses), Garamond (Name & designation)
Hindi - Devnagri (or any matching Hind Font)
● Application in terms of point size - As diagramatically detailed in this folder of CIP.
UNIFORMITY IN USAGE OF TYPE PAPER
PAPER
Specification of paper to be used : Sinar Art Card - 300 GSM
PS :
● Use of non-tearable paper for printing of visiting cards is STRICTLY FORBIDDEN as
they are NOT environment friendly.
● Same quality paper will be used for all officials, irrespective of cadre.
UNIFORMITY IN PRINTING
Offset or Screen Printing. The Printer should match the ink shades exactly without
Corporate Colours.

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Folder 3 :
Part 3 - Official Stationery : Guidelines
The various items covered in this brochure are :
1) D.O. Letterhead
2) D.O. Letterhead/ Envelope
3) Official Letterhead
4) Internal Office Stationery
a) Note Sheet
b) Internal Office Memo
c) Continuation Copy Sheet
5) Press Release
a) Form
b) Envelope
6) Official Envelopes
Notes :
1) The existing stock of forms should not be wasted. They should be exhausted fully before
printing of fresh stock is taken up. New stock should be printed strictly according to
the guidelines given in the brochure.
2) Different designs in the brochure are in reduced form. The size depicted and the reduced
% age for various items shown in the brochure are as follows :
T ype of Stationery Actual Size Depicted Reduced to
D.O. Letterhead, Official A4 75%
Letterhead & Press Release
Form
Internal Office Stationery Legal 50%
(Note Sheet, Memo & Continuation Copy Sheet)
Envelopes
a) D.O. Letterhead/Press
Release/Official (Other 9'’ x 4'’ 70%
than Pocket size)
b) Pocket Size 6'’ x 3 1/2” 55%

Quality of Paper to be used for various items of Official Stationery

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Item of Stationery Paper Quality* Preferred Printing
Process**
A) LETTERHEADS
1) D.O
a) Chairman/M.D. 105 GSM German Alabaster
b) ZM & Selection Scale - 105 GSM German Alabaster Offset/Screen
c) DZM & S/DM I/C - 105 GSM Executive Bond
2) Official - 80/90 GSM JK Bond or Offset/Screen
Super Sunshine Paper
B ) INTERNAL OFFICE ST
STAA TIONER
TIONERYY
1) Note Sheet 80 GSM JK Bond Offset/Screen
C ) ENVELOPES
1) D.O. (White) 105 GSM German Alabaster Screen
(Chairman /MD)
2) D.O. (White) 80 GSM Ballarpur Screen /Offset Screen
(Others) White Maplitho
3) Press Release -do-
4) Official (Brown) ***
a) 6'’ x 31/2‘’ 80 GSM
b) 9'’ x 4'’ Andhra Ribbed
c) 11'’ x 5'’ Offset/Screen
d) 12'’ x 9'’ Offset/Screen
e) 14'’ x 6'’ 80 GSM Andhra Ribbed
f) 16'’ x 10'’
g) 17'’ x 14'’
* In case the exact quality of paper as specified above is not available, paper of similar
quality of an ‘A grade Mill’ may be used
** Printing Process will depend upon quantity and quality required.
*** For specific publications/communications, Central Office/Zonal Office may print White
or Brown envelopes. However, the design and colour of printing will be the same as for
D.O. Letterhead envelopes viz. in Corporate Colours only.
GUIDELINES
It is very essential to follow the standard designs portrayed in the CIP folder for various
items of official stationery. In particular, following points need to be specifically adhered to:
UNIFORMITY IN SIZE
For each item of stationery, permitted sizes are specified in the table printed with the standard
design. No other size should be used. The exact dimensions for the various standard sizes

322
specified in the brochure are as follows:
Size Width ( In mm ) Height ( In mm )
Legal 210 343
A4 210 297
1/6 195 227
1/8*# 145 227
1/8**# 227 145
● *For printing in vertical format.
● ** For printing in horizontal format viz 1/8 size internal memo and copy sheet.
● # To be taken up for printing only if absolutely necessary :otherwise usage of this size can
be avoided.
UNIFORMITY IN DESIGN
Standard designs are specified for every type of stationery in use. Standard designs have also
been differentiated on the basis of printing to be done in two languages (bilingual). Wherever
printing is to be done in Hindi and English only, the bilingual standard design should be used.
Wherever the third language (regional language) is used, trilingual standard design should
be used.
The use of languages should be in accordance with the OLI Act.
UNIFORMITY IN COLOUR
T ype of Stationery Colour to be used.
D.O. Letterhead & D.O. Letterhead Envelope Colours as per design
Bilingual/Trilingual Official Letterhead Colours as per design
Internal Office Stationery(Note Sheet,Memo Form) Colours as per design
Press Release Form & Envelope Colours as per design
Official Envelopes (White/Brown) Colours as per design

UNIFORMITY IN USAGE OF TYPEFACES

TYPEFACES
● Corporate Logo in English, Hindi and other Major Indian languages should be exactly
as mentioned.
● Name-ITC Garamond Designation-Helvetica
● Type family to be used for other matter:
English-Helvetica
Hindi-Devnagri (or any matching Hindi Font. )
Regional Language (RL)-An appropriate matching font that suits the design should be
selected.
● Application in terms of point size-As specified in the table printed with each standard
design.

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UNIFORMITY IN USAGE OF PAPER
PAPER
Please refer to CIP folder
UNIFORMITY IN PRINTING
Depending upon Quantity and keeping cost effectiveness and quality of printing in mind, the
printing process may be Screen, Offset.
Folder 4 :
WALL PAINTINGS & HOARDINGS *
PAINTINGS
SIZE
Cannot be standardised
* BACKGROUND COLOUR
Wall Paintings - White/Corporate Blue
Hoardings - Will depend upon creative (design)
* MESSAGE COLOUR
Wall Paintings - On White - Corporate Blue
On Corporate - White/Yellow
Blue Hoardings - Will depend upon creative (design)
* CORPORA TE LOGO
CORPORATE
Wall Paintings - Corporate Blue & Corporate Yellow only. Positioning of Logo &
Emblem will be as shown at ‘A’ or ‘B’ in CIP brochure only
depending upon message length/Visual (if any)
Hoardings - The Logo and Emblem should be preferably in Corporate Blue &
Corporate Yellow.
* TE LOGO
CORPORATE
CORPORA
Logo will be in the same language as the message. Logo in Hindi, English and Major
Indian languages is depicted in the CIP folder.
* VISUALS
As far as possible, the visuals for product messages should match with the ones used in
the product brochure and press ad 3.
Wall Paintings - Visuals should be used only if an artist/ painter of proven skill is
available.
Hoardings - Visuals will depend upon creative (design)

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BANNERS :
RECOMMENDED COLOUR FOR BACKGROUND AND MESSAGE WITH
CORPORA TE LOGO
CORPORATE
Background Corporate Logo Colour for Main Colour
Colour of Cloth Message Combination for
Larger Messages
White/ Off White As per original Corporate Blue Corporate Blue
Navy Blue As per original White/Yellow White/Yellow
(Logo to be
surrounded with
white casting)
GENERAL INSTRUCTIONS
● All new signages should conform strictly to the design and colour combination.
● Size of the Emblem and Logo to be used on the signage will depend upon the frontage
available viz the office facade.
● New signages should depict Logo and Emblem in Corporate Blue and Corporate Yellow
colours on a White Back-ground. The Corporate Blue and Corporate Yellow colours
have been printed separately on the right leaf of the CIP folder.
● The signage should be bilingual (Hindi and English only) or trilingual (Regional
language. Hindi and English). The use of languages should be in accordance
with the OLI Act. The Corporate logo in Hindi, English and other major Indian
languages should be exactly as depicted in the CIP folder.
● Emblem should be exactly in correct geometrical proportion.
● Under no circumstances should the Logo be broken. For other details refer to the new
CIP folder.
FOLDER 5
Visiting cards, Stationery for Club Member Agents :
It is very essential to follow the standard designs portrayed in the folder for the visiting cards
and the stationery for the club member agents. In particular, the following points need to be
specifically adhered to :
● UNIFORMITY IN SIZE
For each item of stationery, permitted sizes are specified in the table printed with the
standard design. No other size should be used. The exact dimensions for the standard
sizes specified in this brochure are as follows:
Visiting Cards : American Size - 5.4 Cms (Height) x 9.2 Cms (Width)
Size Width Height
Letterhead A4 210 mm 297 mm
1/8 145 mm 227 mm
Envelope - 9'’ 4'’
- 6'’ 3.5'’

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UNIFORMITY IN DESIGN
Standard designs are specified for the visiting cards and the stationery items in use. For
Letterhead and Envelopes, standard designs have also been differeniated on the basis of
printing to be done in two languages (bilingual) or three languages (trilingual). Wherever
printing is to be done in Hindi and English only, the bilingual standard design should be used.
Wherever the third language (regional language) is used, trilingual standard design should
be used. The use of the language should be in accordance with the OLI Act.
UNIFORMITY IN COLOUR
Except for Club Membership, MDRT logo, all other text including Corporate Logo and Emblem
on Visiting Cards, Letterheads & Envelopes is to be printed in CORPORATE BLUE only.
PS : For ready references of the printers, the colour patches for the Corporate colours and the
various Club Membership logo colours are printed separately in CIP brochure. These Colour
Patches can be given to the printer for proper colour matching, wherever required.
UNIFORMITY IN USAGE OF TYPEFACES
TYPEFACES
Corporate Logo in Hindi, English and other Major Indian languages should be exactly as
depicted on page 11 of this folder in CIP brochure.
Emblem should be exactly in the same geometrical proportion as given on page 12 of this
folder.
Type family to be used for the other matter.
English - Helvetica
Hindi - Devnagri (or any other matching Hindi Font)
Regional Languages (RL)- An appropriate matching font that fits with the design should be
selected. Application in terms of point size - As specified in the table printed with each standard
design.
UNIFORMITY IN USAGE OF PAPER
PAPER
Please refer to the front right leaf of this brochure.
UNIFORMITY IN PRINTING
Depending upon quantity and keeping the cost - effectiveness and the quality of printing in
mind, the printing process may be SCREEN or OFFSET.
QUALITY OF PAPER TO BE USED FOR ST
PAPER STAATIONER
TIONERYY AND VISITING CARDS
A) VISITING CARDS
Paper Quality - Sinar Art Cards - 330 GSM
PS : 1) Use of non- tearable paper for printing of Visiting Cards is STRICTLY
FORBIDDEN, as they are not environment-friendly.
2) Same quality paper will be used for all the club member agents.
B) LETTERHEADS
Paper Quality #
105 GSM Executive Bond

326
 Preferred Printing Process # # Offset / Screen
C) ENVELOPES
Colour - White
Paper Quality - 80 GSM Ballarpur
Preferred Printing Process # # - Offset / Screen
# In case the exact quality of paper as specified above is not available, paper of
similar quality of an ‘A’ grade mill may be used.
## Printing Process will depend upon the design, quantity and quality required.
CORPORA TE COLOURS FOR AGENTS’ CLUBS
CORPORATE
(Red, Blue, Green, Orange, Yellow)
C M Y K
YELLOW 0% 20% 100% 0%
RED 0% 100% 100% 0%
BLUE 100% 70% 0% 10%
GREEN 100% 0% 100% 20%
ORANGE 0% 70% 100% 0%
GOLD FOIL (FOR CORPORATE CLUB)

1. The logo identifying the club in the colour prescribed below shall occupy the top right
side of the card.
COLOUR NAME OF THE CLUB
GOLD FOIL Corporate Club
RED Chairman’s Club
BLUE Zonal Manager’s Club
GREEN Divisional Manager’s Club
ORANGE Branch Manager’s Club
YELLOW Distinguished Agents Club

2. The legend, “Member of the................* (The name of the club is to be mentioned) for
Agents” will be printed below the name of the Agent in the visiting cards.
3. For those Club Member Agents maintaining an office, the address and telephone number/
s of the office should be incorporated in the respective spaces provided. Wherever the
agents do not maintain an office, the address and telephone numbers of the LIC Branch
office to which the Agent is attached should be given.
4. When an agent is an MDRT member, MDRT Logo should be printed. Needless to say,
the Logo for the club membership should invariably occupy the top-position. No Logo/
Name of any other institution except MDRT is to be printed on the visiting cards and
the letterheads.

327
5. The sequence of logos to be printed in various forms of stationery should be observed
as depicted from Page 3 to 10 in CIP brochure No interchange of these positions should
be made.
6. This folder gives designs and layouts for visiting cards, letterheads and envelops for
the club member agents. As regards quantity and eligibility of various stationery types,
circulars issued by Marketing Department Central office are to be followed.

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 CHAPTER 28
OFFICE UPKEEP AND BEAUTIFICATION
BEAUTIFICATION
It is the responsibility of the Office Services Department to keep the Office premises neat
and clean so as to provide congenial atmosphere for the working staff and to present a decent
look to the visiting public.
Arrangements should be made for regular sweeping of the office floor and for mopping the
same with a wet cloth. Cobwebs should be got removed periodically. Arrangements should
also be made for cleaning the dust accumulating on and beneath the racks and files at regular
intervals.
The office sweepings should be stored in a place (which is not prone to fire hazard) and should
be disposed of by sale at periodical intervals so as to conserve space.
DRINKING WA TER
WA
Drinking water should be made available in drums with tap system. The drums should be got
cleaned every day before filling them with water. It is preferable to have the water filtered
before filling the drums.
Where water coolers are provided for drinking water, the storage tank should be got cleaned
at regular intervals with detergent powder. The water cooler should be given regular servicing
so as to avoid breakdown. The water cooler should be kept on an elevated stand or platform to
avoid rusting at the bottom thereby ensuring more life to the water cooler. Water cooler should
be provided with a voltage stabilizer.
TOILETS
The WC pans, urinal basins and wash basins, etc. should be got cleaned daily with detergent
materials.
The flooring and the dado in the toilets should be got cleaned periodically with detergent
powders. Due to frequent usage, the taps in the toilets and the wash basins begin to leak and
they should be got repaired immediately to conserve water. If the taps get choked they should
be cleaned immediately.
To avoid bad odour, exhaust fans should be provided in toilet rooms and deodorants like
naphthalene balls, odonil, etc. should be provided.
The overhead tank should be provided with a suitable cover and should be got cleaned at
regular intervals.
The pumpset and motors should be used properly and cleaned every month. Necessary grease
should be got applied to the bearings. Coupling bolts should be got tightened. Grease packing
of the pumpset or the leather diaphragm of the foot valve should be got changed, if necessary.
White washing should be got done for the Office building at periodical intervals, when the
premises is owned by the Corporation; otherwise, the matter should be pursued with
the landlord. Arrangements should be made for periodical cleaning of the window glasses,
fans, fan blades and tube lights.
LAYOUT OF OFFICE
LAYOUT
This is important because of its effect on work flow, on economy of floor space and equipments,
on employees’ comfort and impression given to the visitors. Some of the principles are:

329
a) Department which have similar functions should be placed near each other.
b) Furniture and Office equipments should be arranged in straight line symmetrical with
angular placement of desks and chairs reserved for Supervisory personnel. Employees
ordinarily should face in the same direction.
c) Aisles should be wide enough so that persons walking will not brush against desk of
the employee; clear exits and fire-escapes should be provided. Access to toilets and
water room should be unobstructed.
d) Units which utilise noisy equipments may be partitioned in order to avoid disturbance
to other units.
e) Units which have more contacts with the public should be so located as to be easily
accessible to public, without disturbing other Departments.
BEAUTIFICA TION :
BEAUTIFICATION
The customers associate the Quality of the service with the quality of the infrastructure of a
Branch Office. Hence to retain the existing customers and to attract the new prospects
(Potential Customer), it is necessary to substantially improve the physical infrastructure of
the Branches.
Apart from upkeeping of the Branches, it was felt that the thoughts should be directed to
improve the original efficiency and look of the Branches with regard to the following areas :
1. Modernisation of the Branch Offices- Physical infrastructure including, furniture, cash
counters, enquiry etc.
2. To improve upkeeping of the basic records-computerised storage, microfilming etc.
3. To improve communication system within a big Branch.
4. Facilities for customers waiting for premium deposits or for other servicing works-
space for sitting.
5. Improving the external/internal looks of the Branches so that they are more presentable
to customers/visitors.
THE PHYSICAL EVIDENCES AND THE LIC BRANCHES
The physical evidence includes the external and internal look of the Branch Office, Furniture,
Equipments, Lay-out of the Office, Cash Counters, Telephones, DP Units, Stationery, Brochures,
Advertising materials, Interior decoration, Employees’ Uniforms, Letterheads, Cheque books
and such other materials related to production and delivery of services.
The physical evidence of a Branch also includes the service environment. It sends a silent
signal to the visiting customers about its prosperity, sensitivity and concern for the customers.
CUSTOMER-ORIENT
CUSTOMER-ORIENTAATION IN THE LIC’
LIC’ss BRANCH OFFICES
The physical evidence include the external as well as the internal looks of our branches and
these should look customers’ friendly when they visit the Branch Offices.
(a) External look of the Branches
In most of our Branches, the external look needs to be improved on the following aspects:
(i) Maintenance of the Branch Office Buildings which includes the structural look and

330
 white washing.
(ii) Ecological environment of the campus where Branch premise is located. It
includes growing of small trees and flower plants in the campus to beautify it.
(iii) Cleanliness of the campus, entrance, stair-case and the proper maintenance of
the Boundary walls and the gates.
(iv) No posters on the external walls or in the passage to the Branch Office.
(v) A good sign-board at the appropriate place in the Building as a mark of
identification of the Branch Office.
(b) Internal look of the Branches
The internal look of the branches needs to be improved for the following items :
(i) The lay out of the Branch should be such that all the Departments are clearly
bifurcated for identification.
(ii) Servicing Departments should be easily approachable by the customers.
(iii) Cleanliness of the floors, tables and chairs, toilets and other equipments of the
office have an impact on the customers.
(iv) There should be a board at the entrance of the Branch Office with the names of
our employees providing specific services to the customers so that they can easily
approach them.
(v) The Management of telephone needs improvement as many customers contact
the Branch for servicing on phones only. Phone should not be kept busy for long
duration and it has to be attended promptly.
(vi) Modernisation of furniture which may take less space, should look nice and
should be utility-oriented. The Modular furniture may be one of them.
(vii) Destruction/disposal of old and unwanted papers should be undertaken regularly
to create more space in the Office.
(viii) Proper maintenance of the cash counter and arrangement to help the customers
waiting in the line for transactions.
(ix) Proper maintenance of Branch Manager’s chamber, Agents/Development Officers’
rooms and the Record rooms for the policy dockets.

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 CHAPTER 29
SECURITY AND FIRE FIGHTING MEASURES
Introduction
Security is the process of safeguarding one’s assets. These assets are property, personnel and
data/information. LIC at present, has vast range of movable and immovable properties scattered
all over India. However, in present day scenario when there are all types of threats whether
external or internal to the integrity and security of our nation and also to the public sector
organization in general and LIC in particular which is highly vulnerable due to massive public
dealing, a sound security system in our office premises has become an immediate requirement.
With the available set up, the main responsibility of watch and ward organisation is to provide
preventive and protective security on ground realities within the premises of our offices based
on the latest threat perception to our building and assets. Since the threat perception is
increasing over the years, the need of the day is to keep the physical security very strong to
counter the ever changing modus operandi of outfits /individuals having nefarious and ulterior
motives.
AIM
The aim of this security and safety policy is to analyse the existing security/safety arrangement
in LIC and overcome the existing drawbacks by modifying the system by incorporating the
latest trends in security/safety management.
General Guidelines as regards Security/Safety Organisation.
A. SECURITY OF OFFICES, EQUIPMENT AND MA TERIAL
MATERIAL
The following guidelines are to be given due attention in the security of offices, equipment
and material.
Security Measures
OFFICES
(1) Single Entry/Exit point will be ideal. Where this is not feasible, an additional entry
point can be created with proper screening facilities.
(2) All entry points and sensitive areas in the office premises should be provided with
adequate number of CC TV camera’s for surveillance within the office premises.
(3) Baggage check is mandatory at all the entry points.
(4) Visitor should be screened, regulated and their details are to be recorded by
incorporating Visitor Management System at all the entry points.
(5) Following security gadgets may be used at ZO/DO :-
(a) X-Ray baggage machine for smooth entry. Strict monitoring is to be done at all
the times
(b) Door Frame Metal Detector (DFMD) may be used for screening the personnel
while entering the premises. DFMD are to be installed at main entrance of the
premises and are to be properly manned.

332
 (c) Hand Held Metal Detector (HHMD) may be used for physically checking the
personnel entering the premises. It may also be used as per local laws in other
offices.
(d) Trolley mounted mirror may be used by the security personnel to check the cars
entering the premises.
(6) Visitors/personnel other than staff should not be allowed in canteen/recreation room.
(7) If building is of multistoried type, all sensitive floors should have access control system
incorporated at all the entry and exit points to be manned by one of the security guards.
(8) Visitor beyond visiting hours should not be permitted under any circumstances, however
any appointment after visiting hours to be intimated in advance by the respective Dept.
for special permission.
(9) Staff working beyond working hours, reporting/departing one hour after working hours
are to obtain permission and their details recorded.
(10) Security aspects of cabins, ledgers, record rooms, cupboards, filing cabinets, cash
counters, cash boxes, cash ledgers, files and documents/registers should be well defined.
(11) Collapsible gates/rolling shutters/grill doors should be provided at the main entrance.
(12) All the doors should have double locking system.
(13) Emergency exit points should be made clearly demarcated/fluorescent sign posting be
placed to show the emergency exit routes.
(14) Ensure proper key management at the time of closing of offices.
(15) Surprise checks to be carried out to check the presence of watchman on duty and
maintain the record.
(16) Quick disposal of old records to be ensured.
(17) “No smoking”, sign boards should be displayed prominently at all the floors and entry/
exit points.
(18) All vacant plots should be secured by constructing perimeter fencing or compound
walls and gates. Ownership sign boards should be displayed.
(19) Any encroachment noticed on LIC property should be evicted immediately with the
assistance of civil authorities/police.
(20) Keep close liaison with police, fire brigade and bomb disposal officials.
(21) Unusual occurrences such as Bomb threats etc. should promptly be investigated with
the help of police authorities.
(22) Any theft damage or losses should be investigated and reported to higher authorities.
(23) The Cash Counter should have a separate wire mesh cubicle for the Cashier with bolting/
latching facilities from inside. The top of the Cubicles should also be covered with wire
mesh. During transaction time, the Cashier should keep the door bolted / latched from
inside. He should keep the cash box and the door locked while going out.
(24) The cash box should be fixed to the cash counter by providing suitable attachments.
(25) Serviceable emergency lights should be provided in the Cashier’s Cabin.

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(26) Unwanted and old records should not be kept in the Cashier’s Cabin.
(27) Identity Cards
i. Ensure that I Cards are issued to each and every officer and staff of the office
which is to be displayed all the time during office hours. Wearing of I Card to be
strictly followed by everyone. Security staff at the entry points should ensure
displaying of I Card. Any violation in this respect to be reported to OS Dept.
ii. A surprise check is to be carried out once in three months and corrective action
instituted against defaulters.
iii. Staff without Identity Card may be denied entry into the office premises.
iv. Other personnel like labourers / contractors / outsourced employees are to be
issued with temporary Identity Cards valid for a specific period on the
recommendations of the departments concerned.
v. Loss of Identity Cards to be reported immediately and may be replaced on
payment of fine.
vi. All Identity Cards to be issued and signed by the Competent Authority and
records maintained.
vii. The Identity Card shall contain the following information :-
* Name of the Employee and S.R. No.,
* Signature of the Employee
* Signature of the Issuing Authority
* On the back side of the Identity Card the name of the issuing office and
blood group of the employee is to be mentioned.
viii. Identity Cards to the retired employees shall be issued to all the retired
employees as per guidelines contained in Chapter 26 of OS Manual.
(28) Security of IT Dept./Server Room/Microprocessor Room
i. All these rooms will have higher standard of security such as installing
appropriate number of CC TV cameras and access control system. Officers
authorized to hold access smart card to be identified by the superior authority.
ii. Server room should be maintained on daily basis to avoid any untoward incident.
iii. The unwanted material/documents should not be kept in area of the server rooms.
iv. Back up tapes/discs should be kept in a different building.
v. These rooms should be regularly cleaned.
vi No unwanted documents, furniture, cupboards, etc. should be kept inside these
rooms.
vii These rooms should have serviceable maximum – minimum thermometer.
viii. No smoking/no admission Boards should be displayed in front of these rooms.

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Equipments
1. Any receipt or issue of equipment to be supported by invoice/gate pass.
Invoice/gate pass is to be handed over to the security guard who would check the material
before allowing it to enter/exit.
2. Any equipment taken out for repair/maintenance to be supported by gate pass duly
signed by the Competent Authority which is to be handed over to the security guard
who would check the correctness of the details of equipment before allowing it to be
taken out of premises.
Material
Any material going out of the premises to have proper gate pass duly signed by the Competent
Authority which is to be handed over to the security guard who would check the correctness
of the details of material before allowing it to be taken out of premises.
B. SECURITY OF BUILDINGS AND LAND
1. Respective Zonal/Divisional Offices are to issue adequate and detailed orders in respect
of security of real estate as under :-
a. LIC owned building in full occupation/partial occupation by LIC and fully rented
out.
b. Staff quarter security.
c. LIC hired building in full occupation/partial occupation by LIC and leased
residential accommodation.
2. The following guidelines are to be ensured in the issuance of such detailed orders :-
a. Occupant should be responsible for security of leased residential accommodation.
b. Separate entry/exit for LIC office duly manned by watchmen in partially occupied
building.
c. Security should be set up in residential area (staff quarters) whereever felt
necessary.
d. Vacant land should be adequately fenced and provided with appropriate
signboard to avoid encroachment. The checking of vacant land atleast once in a
month and report there of regarding encroachment/misuse to be sent to Estate
Department, Central Office.
e. The ZSO should visit the real estate areas periodically and is to be assisted by
Building inspectors in the security aspects of the areas defined above.
f. Fully rented out buildings with multiple tenants should have residential
watchmen to avoid misuse and encroachment
C. SECURITY OF DOCUMENTS
1. Office documents in any form are not to be carried out of the office for any reason,
unless specifically permitted by the HOD by way of a pass to be checked at the gate.
2. Record rooms should be enclosed by wall or wire mesh and should have adequate
locking facilities.

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3. Movement of documents from / to the record room is to be well monitored and
documented.
4. Adequate pest control measures should be instituted in the record room.
5 All ledgers should be kept in lockable ledger cabinets or in a separate ledger room that
can be locked during closing hours.
6. Only authorized personnel are to be permitted in the record / ledger / docket rooms.
7. Documents for disposal are to be shredded / cut into small bits before disposal.
D. SECURITY OF KEYS/KEY MANAGEMENT
1. The safety and movement of Safe Keys / Building Keys are of paramount importance in
the overall security of the organization.
2. Adequate instructions in respect of original and duplicate keys of the following are to
be issued :-
a) Keys of buildings with Watch and Ward Staff,
b) Keys of buildings without Watch and Ward Staff,
c) Keys of Cabins,
d) Keys of Almirahs / Cupboards / Filing Cabinets,
e) Miscellaneous keys like Vehicles, Garages, Generator / Pump rooms, etc..
3. The following safety measures are to be taken into account in the detailed orders :-
a) Rotation of keys once a year,
b) Precautions against loss / breakage of keys,
c) Original sets of important keys to be held by nominated Officers,
d) Maintenance of key board to stow duplicate keys.
e) Maintenance of Key Movement Register.
E. ROLE OF SECURITY DURING STRIKE
1. As soon as the notice for strike is received or even before the symptoms can be felt the
Officer in OS Department looking after Security, viz; A.O./ Asstt. Secretary, needs to
co-ordinate the working of the Security staff and the Fire Services.
Services Preplanned
crisis management plan must be studied and evaluated in context of present situation.
2. The Officer needs to evaluate the position as regards :-
G Establishing a Control Room – if one does not already exist.
G Reinforcing access control systems.
G Fire protection.
G Assist in restoring normalcy.
3. Needless to say a good organization would readily have a crisis plan for strikes. The
Officer in charge of security should read the plan thoroughly and react to it. The plan
would have addressed the points mentioned.

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4. Deployment of additional security guards - The requirement of additional staff
should be carefully assessed. Sanction for hiring additional guards should be obtained
from the Competent Authority and Govt. Security Guards organization, if any or private
Security agencies be contacted for providing the manpower. The role assigned to them
and briefings on the same to them is a necessity.
5. Information - Constant flow of information to the Officer in charge of security is a
must. He must assess the sources that he has or can activate and what he requires.
Brief security and other concerned personnel thoroughly about the situation and arrange
for information to flow to him/her during the count down period, during the strike and
after it has been restored to normalcy.
6. Fire - Co-ordination with Government fire services is a MUST. In addition own hydrant
systems, fire pumps, hoses, PA System, fire alarm system must be checked and kept in
operational readiness. If possible, rehearsals be carried out.
7. Vehicles - During the strike period entry of vehicle shall be restricted to the valid
vehicle passholders only.
8. Control Room - All large establishments already have security control rooms. They
need to be established where they do not exist. They now need to be put on 24 hours
duty.
9. The Security officials should try and have those security officer and supervisors
on duty at the Control Room who have the ability to communicate and a proven track
record in using initiative, tact and common sense.
10. The functions required from this nerve centre are -
G To provide management with information on day to day activities, strategies
and action plans.
G To be in touch with all informants, collate information for the management.
G To keep in constant touch with law enforcement agencies, fire department and
the Government.
11. The control room shall have all essential telephone numbers, residential addresses
of key employees.
12. If there is a need to establish sub control centers then the ideal places for these can
be Corporation’s ZO/DO/BO / residences of concerned executives / guest houses, etc.
The main aim of these control centres is to facilitate collection of information and
passing of critical information to the management. To man these centers, the personnel
should be selected with great care.
13. Entry Controls - Entry prohibition has to be done physically or by barriers and strong
gates.
14. Identified V ital Areas and C ritical A reas must have entries to them manned even
Vital
if they are well inside the premises.
15. Monitoring of security personnel on duty by patrols and supervisory checks become
more important.
16. Identification of people allowed to enter must be done by ID Cards
Cards.

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17. Special passes may need to be issued for access into office areas and other important
centers.
18. Perimeters need to be established for access into office areas and other important
data centers.
19. Issue out DO’
DO’ss and DON’T
DON’Tss to all EMPLOYEES.
20. All visitors to the important people in the organization must be thoroughly screened.
Appointments should be pre-fixed and the visitors should always be under escort when
inside the office.
21. The police should be kept informed on assistance sought, if necessary.
F DUTIES OF SECURITY OFFICER AT CENTRAL OFFICE
1. To assist the Management in all security matters pertaining to all offices of LIC of
India.
2. To assist the Security Committee Central Office in the aspects of policy planning and
decision making process on security matters.
3. To apprise Management regarding latest trends in security and firefighting matters.
Keep himself updated on modern equipment available with security professionals.
4. To ensure a fool proof security environment in the Central Office and accordingly advise
on the duty pattern of watch and ward staff and security guards outsourced.
5. To be the advisor to the Central Office in respect of the following :-
a. Physical Security (Three layered i.e. inner, central and outer).
b. Fire Fighting Organisation and training.
c. Provision and maintenance of Fire Fighting Equipment.
d. Investigation of offences/incidences/breach of security as and when they occur.
6. To visit the Zonal Office as and when necessary to liaise, study, evaluate and advise the
Central Office on the existing security/FF arrangements together with recommendation
thereof.
7. Monitor security and safety preparedness at Zonal level
8. To undertake quarterly management analysis inspection of security/FF dept. Zonal
Office.
G. DUTIES OF ZONAL SECURITY OFFICER AS PER MANUAL
1) All command and control aspects of Security Officers will be in keeping with the
Organizational chart as given in Annexure I & II.
2) Security Officers are to be responsible for efficient planning, execution & coordination
of security aspects of personnel, equipments, offices and other real estates of the
Corporation in their respective jurisdiction.
3) They are to be the main advisors to the management on all matters of security and
assist in policy planning.

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 4) They are also designated concurrently as the ‘Fire Safety Officers’ of the
respective Offices and their duties will be to:
a) maintain fire fighting equipments and instruments in good working
condition.
b) lay out fire orders and fire operational plans.
c) chalk out a contingency plan and evacuation procedures.
d) impart training to all personnel.
e) attend to any other matter relating to fire safety.
5) Zonal Security Officers are to carry out regular training in the form of lectures and
demonstrations for the office staff/ security personnel of CO / Zone / Division / Branches
in respect of the following
a) Use and operative procedures of fire extinguishers
b) Knowledge of inbuilt fire fighting/fire detection/fire suppression systems, if any,
fitted.
c) Emergency alarms and evacuation procedures.
d) Emergency contact nos. and procedures thereof.
e) First Aid.
f) Measures to deal with breach of security and disaster management.
6) They are to liaise with local fire brigade and arrange for demos to all the staff in respect
of fire fighting on higher floors and evacuation drills.
7) They are to advise the Management and carry out staircase evacuation drills once in a
quarter for all the staff by using staircase only.
8) They are to maintain a healthy liaison with agencies like police, CBI, CID, Municipal
Corporation etc in order to effectively utilize their services whenever in need.
9) They are to advise on correct procedures for cash security in the offices and carry out
surprise checks to check on the same. Procedures as per existing guidelines are to be
established and streamlined.
10) They are to advise on any short falls in the overall security environment for appropriate
corrective action.
11) Security Officers are to maintain the following documentation :
a) Fire Orders
b) Security Orders
c) Record of training
d) Record of inspection
e) Appropriate check lists for emergencies like fire, floods, earthquakes, terrorism,
riots etc.
12) Inspection – Zonal Security Officers are to carry out routine inspection of all Divisional
Offices under the Zone at least once a year. Some selected Branch Offices at the

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 discretion of RM (E&OS) and some remotely located branches and branches in rented
premises may be given priority for inspection and surprise check.
13) PP Act - In the process of execution of warrant of possession issued in the name of
Officers of Estates Department, the Zonal Security Officers are to liaise with the police
authorities concerned to provide adequate police cover to the team. They are to be
fully responsible for the security cover of the team and should accompany the team, if
required.
SAFETY
Y::
GENERAL

1. All provisions of Fire Prevention and Fire Safety Act, 1986 duly amended and read
with Building bye-laws and development regulations (Guidelines for fire drill and
evacuation procedures for high rise buildings, above 15 m in height) are to be followed
in toto.
2. The Security Officer at Central Office and Zonal Security Officer is also concurrently
to be the Fire Officer charged with the following duties :-
a) Maintain fire-fighting equipment and instruments in good working condition
and ensure that adequate monitoring is done upto branch level.
b) Lay out fire orders and fire operational plans upto branch level.
c) Chalk out a contingency plan and evacuation procedures as per the category of
the building
d) Impart training to all personnel to become an effective member of fire fighting team.
e) Keep proper liaison with local fire brigade.
3. The Fire Officer should, for efficient execution of duties as above:
a) Be deputed for appropriate Training / Seminars.
b) Be provided with adequate manpower in the form of Fire Warden/Dy.Warden/
fire fighting team.
c) Be provided infrastructure / logistic support as appropriate.
d) Be provided with a specific fire control room for command, control and
monitoring of emergencies.
4. Any instance of fire is, invariably, to be reported to Central Office through Zonal Offices,
immediately on occurrence. The Fire Occurrence Report (FOR) is to be sent to the
Central Office within 8 hours of occurrence. This may be sent by any mode such as
letter, e-mail, SMS, telephone, fax etc. The detailed report is to be sent in the enclosed
proforma (Annexure III) within 15 days of fire occurrence.
FIRE PREVENTION / FIRE ORGANISA TION
ORGANISATION
1. All Multi-storey buildings should have a floor safety plan approved by the fire brigade.
2. Such fire safety plan should include Building / Floors lay outs, staircase / fire lift details,
organizational chart, duties of various personnel and details of alarms / evacuation
procedures.

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3. At the Management / Co-ordination level, the following organization to be in place :
a) Fire Committee - It should include atleast one Engineer. It will meet
(Policy Making body) at least once in 3 months, record the minutes of the
meeting and take stock of fire preventive measures.
b) Fire Wardens - To handle fire emergency on each floor.
c) Dy. Fire Wardens - To assist fire wardens.
4. All buildings should have means of communication and fire alarm for use during
emergencies.
5. Adequate sign boards at critical places like lift landings, staircase landings to be
provided.
6. Fire drill and evacuation procedures to be planned in advance and exercised at least
once in 6 months.
7. All staircases to be pressurized for buildings above 15 metres. Stair cases, being
emergency escape routes, are not to be blocked with obstructions.
8. All high rise buildings (24 Mtrs & above) should have the fire fighting arrangement in
place as per fire prevention regulation applicable to respective categories of building.
9. Basements to be adequately and separately ventilated.
10. Standby generators are to be available to provide power to staircase / corridor lighting
circuits / fire lifts / fire pumps, etc..
Additional Fire Prevention Measures :
1. Education / Awakening / Training shall be given to our employees regarding the security,
fire safety and handling of fire extinguishers. Training of all employees in elementary
fire fighting should be organized through lectures, live demonstrations and fire drills
with the co-operation of local Fire Brigade.
2. There should be adequate fire fighting equipments in good working order and sufficient
trained employees who should know how to operate them in case of need.
3. Tidiness and cleanliness in all buildings and compounds is very essential and
combustible materials should not be permitted to lie about inside the buildings.
4. Fire agency should be made responsible to carry out quarterly inspection of fire
extinguishers installed, refilled by them.
5. Before refilling the fire extinguishers, the fire extinguishers should be used for the
training purpose and refilling agency should use them in giving a demonstration to the
personnel before refilling them.
6. Manager (OS) and OS personnel should be conversant with the security and fire safety
measures and they should keep a liaison with the local Police and Fire Brigade
personnel.
7. Fire Committee is to be detailed in Divisional Office and Fire Officer to be detailed in
Branch Offices who should ensure the incorporation of fire safety measures required.
8. Holding of periodical meetings of Fire Committee for review of fire safety measures in

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 the buildings and periodical inspection of the buildings upto branch level by Zonal
Security Officer.
9. Microprocessor room/IT room is the nerve-center of the Corporation. Precious
documents which are to be preserved and back ups to be kept at two different places.
10. Action to be taken on inspection reports sent by the Zonal Security Officer and intimated
to Zonal Office for the information of the Zonal Manager.
11. It should be ensured that at the time of closing of office, all the switches of Fans, Tube
lights, Water Coolers, Room Coolers and Microprocessors and if possible main switches
are put off as generally the fire takes place due to electric short-circuit.
12. All unserviceable furniture should not be stored up near switch boards/electric rooms.
All unserviceable wooden and other inflammable articles may be collected from the
Office premises and disposed off every now and then.
13. In case of fire, immediately inform the Fire Control Room or dial 101. Explore the
possibility to maintain Hotline with nearest fire station.
14. Do not use lift in case of fire.
15. Naked flame and other electric heating arrangement in the canteen kitchen should be
properly put off before closing time.
16. Greasy rags, oil soaked materials, wood shavings, etc.. should be disposed of before
closing of office.
17. Heating appliances, naked lights etc. should not be used in the Office under any
circumstances.
18. “No Smoking” signs should be displayed in front of the Record Room, Ledger Room and
in Office Halls and entire building area to be declared as “No Smoking Zone”.
19. Important Telephone Numbers to be contacted in case of fire or emergency should be
prominently displayed on all the floors and the Control room.
20. Loose and temporary electric wiring should not be used. Additional electric connections
should be with permanent wiring. Review is to be taken once in 3 months by Engineering
department to ensure safe electrical layout in the building.
BOMB SCARE
a) The number of incidents due to bomb scare and bomb blast and willful damage of public
property by anti-social elements are on the increase. A bomb threat may be received
either through a letter or telephone call. Every effort should be made to get as much
information as possible about the bomb scare.
b) On discovery of bomb threat the operation is divided into following three parts:-
G Action on receipt of information.
G Action on detection of bomb/explosive.
G Action in case of explosion.

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Action on receipt of information
G Any employee on receipt of bomb scare call will immediately record the message, date
and time of receiving the warning.
G Inform the Police and Fire brigade.
G Sr. Officers / Head of the Department should be informed immediately.
G Branch Manager / Head of the Department will brief the Police / Fire Brigade Officials
on their arrival and render all possible assistance and co-operation.
G In case no suspicious object / bomb explosive is detected, the Branch Manager / Head of
the Department will inform all concerned.
Action on detection of Bomb / Explosive
G Give the description of the object and its location.
G Arrange evacuation of personnel.
G Arrange for electricity and gas supply to be cut off.
G Warn all concerned not to touch or disturb suspicious object / bomb
G Plan for security arrangements.
Action in case of Explosion
G Arrange for immediate disconnection of electricity.
G Inform Police / Fire Brigade if not already done.
G Arrange for evacuation from the buildings as per the Evacuation Plan.
G Arrange for medical aid and hospitalization of casualties, if any
G Warn all personnel not to go near the debris or disturb it.
G Make all adequate security arrangements.
FIRE FIGHTING PROCEDURES AND EQUIPMENTS
1. In addition to Management / Co-ordination teams, the following duty concepts at the
scene of fire are to be adequately understood and personnel trained:
a) Fire Control Officer - Senior most at the scene of fire
b) Fire fighting Party - Core team to fight fire
c) Salvage party - to remove and salvage items
d) Rescue and first aid party - to render first aid
e) Fire piquet and cordon party - to cordon off crowding, onlookers and
other unwanted
f) Traffic control party - To manage traffic and vehicle movements
2. Precautions in selection of fire extinguishers / refilling
a) Follow latest IS Code for selection.
b) Follow specification as per IS Code for particular type of extinguishers.

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c) Choice of extinguishers to be decided by Fire Committee in consultation with local fire
authorities/fire agencies registered with NSIC
d) Following Certificates essential before procurement.
(i) ISI Certificate of approval
(ii) Certificate from Deptt. of Explosives
(iii) Gas filling Certificates
e) Ensure appropriate ISO/ ISI mark on the extinguishers.
f) Ensure random (1 out of 25) sampling and hydraulic testing of extinguishers.
g) Hydraulic pressure testing to be done before refilling of all extinguishers more than 5
years old.
h) Quarterly servicing and maintenance of extinguishers to be ensured and record is to
be maintained.
3. Location of fire extinguishers:
a) To be near the exit / staircase landings as much as possible.
b) To be easily accessible and free from obstructions.
c) To be clearly visible.
d) To be minimum 750 mm. above ground level.
e) To be protected from excessive cold and heat.
f) Not to be placed where heat is generated.
g) Number of fire extinguishers are to be ascertained as per the layout of the
modified building floor. Aprox 300 to 400 sqft area to be covered by 1 x 5 Kg ABC
type.
Action to be taken in case of fire
Action will be taken as per the Standard Operating Procedure (SOP) for evacuation/fire fighting
in respective zones. SOP should include detailed procedure for evacuation/fire fighting, duties
of individual controlling officer, Fire wardens/Dy. Fire wardens and officers. The SOP is to be
followed upto Branch level.
FIRE FIGHTING EQUIPMENT AND MAINTENANCE
Requirement of fire fighting equipment for branches/ offices will be worked out depending on
their areas of occupation / need. First Aid Fire equipment such as Sand buckets / Water buckets
and fire extinguishers will be procured. Requirement for Zonal / Divisional Offices should be
addressed by the fire committee in consultation with local fire services and Zonal Security
Officer. Extinguishers of ISI certification will only be purchased.
ABC Dry Chemical Powder type 5 kg. extinguishers are to be used. In addition CO2 type 4.5
kg extinguishers are to be used for electrical fires. All obsolete type of Fire Extinguishers are
to be replaced with the latest type of Fire Extinguishers in consultation with Fire dept.
Each fire extinguisher should bear a Serial No. and they should be periodically inspected.
Pressure Type ABC extinguisher must indicate right pressure always. Regular maintenance

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contract with the supplier firm will ensure functional readiness of the equipment. Record of
inspection and maintenance will be kept at concerned branches/offices.
Refilling of the extinguishers, when expended will be carried out through the contractor as
per manufacturer’s manual. Due date for refilling is always to be written on the extinguisher.
DUTIES AND RESPONSIBILITIES OF VARIOUS FIRE FIGHTING
VARIOUS
COMMITTEES
Controlling Officer
In the event of a fire, the senior most officer present in the premises shall act as Controlling
Officer. He shall organize parties to fight the fire till such time aid from Fire Service arrives
on the scene. All members of the staff shall unquestioningly obey the order and directions of
the Controlling Officer in extinguishing the fire or helping in fire-fighting operations.
A pre-arranged Fire-fighting Party consisting of a reasonable number of staff members (about
10 in a Branch Office) shall act as a fire fighting party. Members of this party shall immediately
form up as a body and the senior person amongst them shall report to the Controlling Officer.
They shall fight the fire as per instructions from the Controlling Officer. If the fire is big, the
Controlling Officer may send more members of the staff to assist in fighting the fire effectively.
Salvage Party
A pre-arranged Salvage Party (consisting of about 5 to 10 persons in a Branch) shall form up
as a body and report to the Controlling Officer. As per instructions of the Controlling Officer,
this party shall help in removing files, records, etc.. in the priority, as directed. They shall put
the salvaged items at a safe place. A responsible person will be placed near the salvaged items
to avoid removal or looting by onlookers or hooligans.
Rescue and First-Aid Party
A pre-arranged party consisting of about 3 to 5 persons in a Branch Office shall act as Rescue
and First-Aid party. The senior person in this party shall form them as a body and report to
the Controlling Officer. The party will be equipped with a First-Aid Box. They shall rescue
the persons trapped in the fire. They shall also administer medicine or apply bandages to the
injured, preferably by a person in the party, trained to do so.
Fire Piquet and Cordon Party
A pre-arranged Fire Piquet and Cordon Party (about 3 to 5 persons in a Branch Office) shall
form up as a body. The senior person shall report to the Controlling Officer. This party will be
deployed at some vantage point, a little distance away from the scene of fire (so as not to
cause hindrance in the fire-fighting operations). They will stop any outsiders, onlookers, or
hooligans from entering the premises and trying to run away with office property or persons
trying to loot the property of the Offices.
Traffic Control Party
A pre-arranged Traffic Control Party (consisting of 2 to 3 persons in the Branch) shall form up
as a body. The senior person shall report to the Controlling Officer. The party will help to
control traffic to take alternative routes or to direct the cars and other vehicles to be parked.

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 TRAINING AND RECORDS
1. To the extent possible, all the staff should be well versed with and frequently trained
in use of portable extinguishers and fire drill procedures.
2. Evacuation drills to be exercised through the staircase at least twice in a year.
3. Fire drills to be exercised atleast once in six months.
4. Records - The following records are to be maintained and produced for inspection :
a) Record of maintenance / inspection, testing and refilling of portable fire
extinguishers.
b) Record of personnel trained in fire-fighting.
c) Record of fire drills.
d) Record of first aid training.
TRAINING OF PERSONNEL
1. Dos and Dont’
Dont’ss in respect of security are to be adequately displayed and the staff
should always be advised to :
a) Carry their I. Cards at all times,
b) Be discreet on their telephones / mobiles.
c) Report unusual / suspicious activity,
d) Guard against cyber crime,
e) Be careful about loose talk or divulging official information.
f) Refrain from entertaining salesmen, direct marketing staff, etc.. in the office.
CHECK LISTS FOR FIRST AID
I) Maintenance of First Aid Kit :
Complete kits for first aid in designated boxes under lock and key should be available on each
floor of a high-rise building. Preferably, the kit should consist of the following :-
a) All types of bandages,
b) Boric Powder,
c) Sterile dressings,
d) Band-Aid dressings,
e) Dettol / Antiseptic lotions,
f) Tablets for headaches / fever / diarrohea / pain killers,
g) Glucose.
The above should be checked once a month for correctness and indated medicines. The
Availability of the key should be marked as such on the box in block letters.
II) Bleeding :
a) Apply direct pressure on the bleeding spot with the thumb for a few minutes till the
clotting of blood is observed / bleeding stops.

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b) Apply dressing.
c) If the bleeding does not stop, rush for medical aid.
III) Burns :
a) The person in flames should be wrapped in a blanket and rolled over the ground to put
out the flames.
b) For normal burns - cool with abundant amount of water and cover with sterile dressing.
c) Rush for medical aid in case of high degree burns.
IV) Dehydration :
a) Prepare enough fluid of water with sugar and salt for intake by the dehydrated patient.
b) Check for drop in pulse.
V) Unconsciousness :
a) Shift person to well ventilated airy place.
b) Avoid crowding around.
c) Sprinkle water on the face / gently slap the face either side for awakening.
d) Check pulse.
e) In case of fits, have a bunch of keys or a metallic piece held in the palm.
f) Prevent gritting of teeth to avoid injuries.
g) Rush for medical aid.
VI) Heart Attack :
a) Check pulse.
b) Check signs of breathing.
c) Check for records of previous attacks, if available.
d) Turn face to one side and carry out artificial massaging of heart to make it tick again /
try mouth to mouth respiration.
e) Call for medical help / rush to nearest hospital.
EARTHQUAKE
One cannot expect a warning for an earthquake. But the possibilities of recurring earthquakes
of varying intensities cannot be ruled out. The following line of action is to be adhered to :
a) Make sure all personnel are warned of the possibilities of impending / recurring
earthquake.
b) Evacuate all personnel and muster them at a safe distance from the building.
c) Carry out department-wise / floor-wise head count to avoid any unfortunate trapping
of personnel within the building.
d) The process of evacuation is to be through the staircase and lifts not to be used.
e) Switch off power supply to the lifts to avoid unintended use by personnel.
f) Formulate rescue teams to be put to effective use, as and when required.

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g) If time permits plan and execute removal of portable and costly equipments from the
buildings.
h) As and when required muster and keep available equipments / tools for rescue purpose,
for use.
FLOOD WARNING
WARNING
On receipt of flood warning reports from the Press / Met Department, the following line of
action is to be followed :-
a) Inform all offices / departments of the locality / area.
b) Identify store rooms / equipment / control rooms situated in Ground floor / basement /
danger prone area.
c) Make immediate arrangements to shift such dangerously located items to safer places.
d) Identify staff quarters dangerously located and in the flood zone and make alternate
arrangement to shift families and property to safer areas.
e) Make arrangements for emergency lighting in the event of likely power failure.
f) Make plans for living arrangements for staff in the offices in the event of failure of
transportation arrangements.
g) Maintain a record of events.
h) Keep and display emergency numbers of Police / Corporation / Fire brigade Hospitals
readily available in times of need.
i) Keep the management informed of the developments / progress of the flood threat /
existing situation.
j) Ensure naked wires and electrical connection in the flood prone areas removed
sufficiently before hand to obviate electrocution possibilities.

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 ANNEXURE – I
ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL
CENTRAL OFFICE
HOD (OS/E&OS)

SECRET AR
SECRETAR
ARYY (O.S.)

CHIEF SECURITY OFFICER

DEPUTY SECURITY OFFICER

Security Desk
 
 
 

Liaison with all Deptts. of CO,

Police Authorities, Fire Brigade.

FUNCTIONAL SECURITY SUPER VISOR + GUARDS (CO)

SUPERVISOR
FIRE SUPER VISOR + TEAM (CO)
SUPERVISOR
FIRE WARDENS/DY
ARDENS/DY.. FIRE W
WARDENS/DY ARDENS
WARDENS

Co-ordination activities with

ZONAL SECURITY OFFICER

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 ANNEXURE - II
ORGANIZATIONAL STRUCTURE
ORGANIZATIONAL
ZONAL OFFICE
R.M. (E & OS)

SECRET AR
SECRETAR
ARYY (EST
(ESTAATES/OS)

ZONAL SECURITY OFFICER

SECURITY DESK

Interaction with all

Deptts. particularly
Estates/OS/IT/Engg.

SECURITY SUPER VISOR

SUPERVISOR FIRE FIGHTING SUPER VISOR
SUPERVISOR

SECURITY GUARDS FIRE FIGHTING TEAM

DIVISIONAL SECURITY OFFICERS (MANAGER – OS)

BRANCH SECURITY OFFICERS (BM / Sr

Sr.. BM)

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 ANNEXURE - III
FORMA
FORMATT OF DET AILED INVESTIGA
DETAILED INVESTIGATION TION REPORT IN CASE OF FIRE
(The Report would, interalia, include the following)
1) INTRODUCTION: Should contain general information of accident/ incident and details
of Committee investigating the cause and accountability.
2) Date, time and place.
3) Details of building.
4) Person reporting fire incident: Complete statement from officials at site to be recorded.
5) Action taken before arrival of Fire brigade.
6) Time in/out of Fire brigade.
7) Details of FIR report.
8) Fire Service Report.
9) State of Fire site and photographs (Details to include all damages)
10) Loss Assessment report (to include costing of damaged items by appropriate authority).
11) Action by insurance Company for claims, etc.
12) Approximate time for Restoration.
13) Temporary arrangement for Restoration of routine work.
14) Findings of the Fire Committee/ Investigating Officer. (To include cause and
accountability).
15) Suggestions of Fire Committee. (To include remedial measures to be taken).
16) Enclose all Annexures of details obtained from Central Administration.
17) Report is to be routed through Zonal Manager.

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 CHAPTER 30
INSTRUCTIONS REGARDING PROVISION OF CARPET
CARPET,,
CURT AIN, CROCKER
CURTAIN, Y, PLANT ETC.
CROCKERY
Over the years, in certain matters, some practices have emerged and they are not necessarily
the same in all the Zones, or even in Divisions within a Zone. With a view to bringing about
some sort of uniformity and providing kind of sanction from the Corporate Office about certain
practices and also discussing certain other practices, the following guidelines are issued :
1 PROVISION OF CARPETS IN THE OFFICES :
Acrylic carpets may be provided to the Officers in their Chambers as follows :
a. All the Officers of the rank of ZM and above, in Central Office,
b. All the Officers of the rank of ZM, in Zonal Office
c. All the Sr.DM/DM-In-Charge in Divisional Offices.
The cost of the Carpet should be reasonable and within the budget sanction.
2. PROVISION OF CURT AINS IN THE OFFICES :
CURTAINS
Curtains may be provided in all the Chambers in Zonal Offices, Divisional Offices and
Branch Offices, at a reasonable cost and within the budget sanction.
3. PROVISION OF CROCKER
CROCKERYY IN THE OFFICES :
Some suitable items of crockery may be provided to the Officers of the rank of ADM
and above in Zonal Offices, Divisional Offices and Branch Offices, at a reasonable cost
and within the budget sanction.
4. PROVISION OF PLANTS IN THE OFFICES :
Plants (preferably artificial) may be provided in all the chambers in Zonal Offices,
Divisional Offices and Branch Offices at a reasonable cost and within the budget
sanction.
5. PROVISION OF CURT AINS IN OFFICERS QUARTERS OF SR. OFFICIALS
CURTAINS OFFICIALS::
(ref CO/OS/Furniture/2010-26/2/2010)
Curtains can be provided only in the Staff Quarters of officers in the cadre of SDM and
above. However, if an officer in the cadre of Divisional manager is posted as In-Charge
of a Division, curtains can be provided in his quarters. It needs to be noted that curtains
can be provided only in Staff Quarters of these eligible senior Officials and not in rented/
own houses. However, for leased accommodation also, curtains are to be provided, as
are made available in the staff quarters for ED/ZM(S)/Chief/ZM(O)/SDM/DM-in-Charge
where ever the flat or house is taken on lease for them.
The curtains can be changed only after a minimum of 4 years. The maximum
amount that can be spent by the office on providing curtains (cost of cloth,
stitching,fixing, etc) once in 4 years is as follows:
Cadre Amount
Sr. DM/DM in-Charge ` 15000/-
Chief/ZM (O) ` 20000/-

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ED/ZM(S) (Staying in < 1500 sq.ft. flat) ` 30000/-
ED/ZM(S) (Staying in > 1500 sq.ft. flat) ` 50000/-
Further, these senior officials can be reimbursed washing charges in respect of the
curtains once in six months. The amount of reimbursement, which shall include the
cost of washing, removing and refixing the curtains etc, is as follows:
Cadre Amount
Sr. DM/DM in-Charge ` 1500/-
Chief/ZM (O) ` 2000/-
ED/ZM(S) (Staying in < 1500 sq.ft. flat) ` 2500/-
ED/ZM(S) (Staying in > 1500 sq.ft. flat) ` 3000/-
Needless to say that, since it is a reimbursement of actual expenses incurred subject to
the limits prescribed as above, bills/receipts need to be produced in respect of the
washing charges. The above instructions should be followed scrupulously and no
deviation should be made.

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 CHAPTER 31
STORES CODE
L.I.C. of India (Stores) Code, 1959 (as amended upto 31.07.2011)
31.07.2011)
Short title
1. This Code may be called “the Life Insurance Corporation of India (Stores) Code, 1959
(as amended up to 31.07.2011)
Date of commencement
2. It has come into force from 1st January 1959, amended up to 31st July, 2011.
Definitions
3. (a) ”Stores” shall mean furniture, office equipment , Printing & Stationery materials,
Miscellaneous items required as facilities for employees, uniforms, umbrellas,
computers and its peripherals, including, Security Services, Catering contracts,
Courier Services, Transportation services, Office Upkeep contracts including any
other facility management service contracts (worth more than ` 1,00,000/-) but
excluding building materials, motor cars, motor cycles or their parts. The items
which constitute “Stores” for the purpose of the Stores Code are enumerated in
Annexure to this code.
(b) “Stores Committee” (hereinafter referred to as the “Committee”) shall mean
the Committee duly constituted in the manner prescribed hereunder to discharge
the functions under this Code. The senior most member of the Committee will
be termed as “Chairman” and the others will be “Members” :
(i) In the case of Central Office, the Committee shall be constituted by the
Managing Director and shall consist of five officers not below the rank of
Divisional Managers of whom two shall be not below the rank of a Senior
Divisional Manager. The minimum quorum for the meeting shall be three
members of which at least one officer shall be of the rank of Sr. Divisional
Manager.
(ii) In the case of Zonal Office, the Committee shall be constituted by the
Zonal Manager and shall consist of five officers not below the rank of
Asstt. Divl. Manager of whom at least two shall be not below the rank of
Divisional Manager. The minimum quorum for the meeting shall be three
members of which at least one officer shall be of the rank of Divisional
Manager.
(iii) In the case of Management Development Centre (MDC), the committee
shall be constituted by Director, MDC, and shall consist of five officers
not below the rank of Divisional Manager of whom two shall be not below
the rank of Senior Divisional Manager. The minimum quorum for the
meeting shall be three members of which at least one officer shall be of
the rank of Senior Divisional Manager.
In the case of Zonal Training Centre, the Committee shall be constituted
by Principal, ZTC, as the case may be and shall consist of five officers not
below the rank of Asstt. Divl. Manager of whom at least two shall be not

354
 below the rank of Divisional Manager. The minimum quorum for the
meeting shall be three members of which at least one officer shall be of
the rank of Divisional Manager.
(iv) In the case of Divisional Office, the Committee shall be constituted by
the Senior Divl. / Divl. Manager –in-charge and shall consist of five officers
not below the rank of Administrative Officer of whom at least two shall
be not below the rank of an Assistant Divisional Manager. The minimum
quorum for the meeting shall be three members of which at least one
officer shall be of the rank of Asstt. Divisional Manager.
(c) ”Rate Contract” is a contract for supply of specified item of stores at specified
rates during the period covered by the contract. No quantities are mentioned
in the contract and the contractor is bound to accept any order for the specified
item at the rate specified within the contract period. As a reciprocal condition,
the Corporation undertakes to place orders for the requirement of the specified
items of stores of the offices of the Corporation covered by the contract with the
contractors only subject to certain reservations for dividing the contract between
one or more contractors, when necessary.
(d) ”Running Contract” is a contract for supply of a certain quantity (within range
of +/-25%)of stores at a specified price during a certain period
(e) ”Fixed Quantity Contract” : In this type of contract usually termed as “Acceptance
of Tender” the firms are called upon to make offers for the supply of a definite
number or quantity and they have opportunities to work out the total cost of the
tender with definite knowledge of the limitations of their liabilities. The
tenderer has to name the price at which he is willing to supply the whole quantity
or part thereof in accordance with the purchaser ’s specifications and
requirements as to the place and time of its delivery. The essential point of
these contracts is that in absence of mutual agreement or specific provisions for
termination of contract, the successful tenderers can refuse to supply anything
over and above the contractual quantity and at the same time insist that the
purchaser should take delivery of the entire quantity, if other conditions are
satisfied.
All other words and expressions used herein and not defined herein but defined
in the Insurance Act, 1938, or the Life Insurance Corporation Act, 1956, or the
Life Insurance Corporation Rules or the Life Insurance Corporation Regulations
or Life Insurance Corporation (Staff) Regulations, 1960, shall have respectively
the meanings assigned to them in these Acts, Rules or Regulations.
(f) Definition – E-procurement is transacting purchase and sale of goods and
services as also Engineering Contracts, using the medium of internet and other
electronic networks and e-tendering means floating of tenders through electronic
media, i.e. inviting tenders, processing and finalizing, through Internet.

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Who shall arrange for purchase of Stores
4. The Divisional Office shall arrange for the purchase of stationery required by the
Divisional Office and other offices under its administrative control subject to the limits
of authority specified in paragraph 5 below. The Divisional Office shall also arrange
for the printing/supply of forms/stationery and other stores which are required by the
Division as a whole, excepting those items which are ordinarily supplied by the Zonal
Office. The Zonal Office shall, from time to time, issue directions to the Divisional
Offices regarding items of stationery and printed forms which would be supplied by
the Zonal Office and items for which arrangements for purchase or printing can be
made by the Divisional Office, subject to the limits specified hereunder. Normally,
where for any item of stores quotations are invited from approved firm/s operating
outside the jurisdiction of the Divisional Office, the concerned Divisional Office shall
write to the Divisional Office within the jurisdiction of which such approved firm/s are
operating seeking information of that Divisional Office whether the said firm/s are on
their approved list and also to furnish data relating to the item under consideration
such as date of supply, quantity, rate, etc.. and take this data into consideration while
placing the papers before Stores Committee.
Explanation
Standard items of furniture and machines for which the prices have been settled / fixed
by the Zonal Office or the Central Office may be purchased by the Senior Divisional /
Divisional Manager-in-charge without any further sanction provided the amount to be
spent is within the sanctioned capital budget grant for the Division. In cases where it
is necessary to purchase a non-standard item of furniture or an item for which the price
has not been settled by the Zonal Office or the Central Office, the Senior Divisional /
Divisional Manager-in-charge at DO, Zonal Manager in-charge at ZO, Principal at ZTC,
Director at MDC and Executive Director (E&OS) at Central Office, may invite quotations
and accept the tenders in accordance with the rules prescribed in this behalf provided
the cost of purchase of any item is within the limits of authority as mentioned below :-
Sr. / Divisional Manager in-charge at Division – ` 50,000/-
Zonal Manager in-charge / Principal ZTC – ` 75,000/-
Executive Director (E&OS) / Director MDC – ` 1,00,000/-
The Central Office (IT Department) shall arrange to supply the hardware relating to
Microprocessors, PCs on the basis of proposals received through Zonal Offices. The
items not borne on the Capital Budget like floppies, printer ribbons and other
consumables of similar nature pertaining to them, except for those which are controlled
by Zonal Offices, shall be purchased by the Divisional Offices as per the procedure laid
down
Limits of Authority
5. The powers of the various officers with regard to the purchase of stores shall be as
follows, subject to the condition that the amounts spent are within the annual budget

356
 grant sanctioned by the Board :-
Limits of Authority
Rank of Officer Per article of Per tender in
office equipment, respect of all the
furniture and stores within
such other sanctioned
within items budget (other
sanctioned than IT related
budget ((`)) items) ((`))
Officers at DO
Manager (OS) 25,000 50,000
Officers in charge of a Division 1,50,000 Full
not below the rank of a
Divisional Manager
Officers at Zonal Office / ZTC
Asstt. Secretary (OS) 25,000 50,000
Secretary (OS) 1,50,000 2,00,000
RM (E&OS) 3,00,000 4,00,000
Principal ZTC 5,00,000 8,00,000
ZM In-charge 5,00,000 8,00,000
Officers at Central Office / MDC
Asstt. Secretary (OS) 30,000 50,000
Dy. Secretary (OS) 50,000 3,00,000
Secretary (OS) 1,50,000 7,00,000
Chief (E&OS) 5,00,000 20,00,000
Director, MDC 5,00,000 8,00,000
Executive Director (E&OS) 7,50,000 25,00,000
Managing Director 15,00,000 50,00,000
Executive Committee Unlimited Unlimited
Note : 1) The Chairman may exercise the powers of the Executive Committee in
urgent cases, but all such cases shall be reported to the Executive
Committee as early as possible.
2) Whenever the powers under L.I.C. of India (financial power) Standing
Orders 1960 are revised, the corresponding powers under section 5 of
the Stores Code should be revised and approved by Managing Director.
However when the powers under Store Code is revised, the corresponding
powers under L.I.C. of India (financial power) Standing Orders 1960,will
automatically stand revised.
3) For purchase of Information Technology related item of Stores and other
related matters, the financial powers as envisaged in Chapter XIV shall
be applicable.
Relaxation of limits
6. No relaxation in the above limits shall be permitted except with the special sanction of
the Chairman.

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Budget
7. The requirement of Stores for every year should be assessed and included in the Budget
of each office being submitted as per instructions issued in this behalf.
The Stores may be broadly classified as under :- Printing & Stationery, Continuous
Stationery, Furniture & fixtures, Computers and peripherals thereof., Miscellaneous
and also services viz. Security Services, Catering contracts, Courier Services,
Transportation services, Office Upkeep contracts including any other facility
management service contracts (worth more than 1,00,000/-).
Imported Stores
8. As far as possible only articles manufactured in India with Indian material should be
purchased.
Approved Firms
9. Every Office of the Corporation shall maintain a list of approved firms/dealers after
obtaining necessary information about their standing, business integrity and other
connected factors. Any dealer who desires to be placed on the approved list shall
submit his application to the appropriate office of the Corporation in such form as may
be prescribed by the Executive Director (E&OS). Separate approved lists will be
maintained for each item of stores (sub-divided further, if necessary).
Every office of the Corporation, which is required to purchase stores for their use or
for the use of any other office, shall take steps detailed hereinafter for empanelment of
firms/printers/suppliers etc. Every such office shall advertise in local newspapers and
on the web site of the concerned office, calling for applications for empanelment with
the said office. The empanelment will be separate for each category of stores, viz,
supply of stationery, printing, providing services etc.
On receipt of such applications the officer in charge of the office shall either direct the
Stores Committee or may constitute another Committee for this purpose to examine
the applications and also inspect the premises, workshop, shop etc. of the applicants.
After examination of the applications as well as onsite inspections, the Committee
shall recommend to the Officer in charge for the empanelment of firms etc. who are
found suitable. The panel shall be valid for 3 financial years, including the year in
which they were empanelled. It would be advisable for the offices to initiate the
empanelment process before the third financial year comes to an end. A firm empanelled
can be blacklisted/removed during the validity period of the panel by the Officer in
charge with the recommendation of the Stores Committee. The empanelment process
can be repeated at regular intervals of every one year or whenever required. The
Competent Authority can extend the terms of the panel by one year after recording the
reasons for doing so.
Blacklisting / Removal of the empanelled Firm from the panel
Blacklisting can be either temporary (i.e. for specified period) or permanent, depending
upon the circumstances under which the firm has been black-listed / removed.
Temporary blacklisting / removal can be confined to a specific job.
Details of the firms permanently blacklisted / removed by one office shall be circulated
to all the Offices. The firm against whom permanent blacklisting / removal action has

358
 been initiated by one office should not be considered for any job by any of the Offices of
the Corporation.
When occasion arises, quotations will be invited from approved firms / dealers only.
Where, however, the Executive Director (E &OS) at Central Office, Director at MDC,
Zonal Manager in-charge at Zonal Office, Principal at ZTC and Sr./ Divisional Manager
in-charge at Divisional Office feels that the single firm / dealer on the approved panel
may not be in a position to deliver the stores of required quantity (due to large volume
or for any other valid reason), the said officer may decide splitting of the order amongst
more than one of such authorized firms/dealers. However, bulk procurement should
be made from manufacturer, their sole selling agents or authorized dealers
Purchases not exceeding 1,00,000/-
10. Tenders should be processed through the Stores Committee only, in the case of stores
where the estimated cost of an order exceeds following limits of financial powers and
in other cases the Officers mentioned below at the various offices may place direct
orders at their discretion subject to the following limits :-
Rank of Officer Per Order ((`))
1) E.D. (E&OS) at CO / Director at MDC / ZM in-charge 1,00,000/-
at ZO / Principal at ZTC
2) Chief (E&OS) at CO, RM(E&OS) at ZO, Sr. / DM 50,000/-
in-charge of DO
3) Officers of rank of Secretary in OS Department, CO 25,000/-
4) Officers of rank of Dy.Secretary in OS Department, CO 20,000/-
and Secretary of OS Department, ZO
5) Asstt. Secretary (OS) in ZO / CO and Manager (OS) in DO 15,000/-
6) Sr. B.M. / Branch Manager in-charge 10,000/-
7) A.O. (OS) at DO / ZO / CO 5,000/-
N o t e : In the case of all such orders, care should be taken that these are placed with
firms on approved list only. In exceptional cases the order may be placed with other
firms of standing and repute. The Branch Office where no approved list is
maintained, Officer in-charge of Branch should place order only with firms of repute.
Tender Forms
11. The form in which a tender should be submitted shall be prescribed by the Executive
Director (E&OS) at CO, Director at MDC, Zonal Manager in-charge at ZO, Principal at
ZTC and Sr./ DM in-charge at DO, from time to time having regard to the nature of the
Stores to be purchased. The fee to be charged for tenders shall also be prescribed
by the Sr./ Divisional Manager in-charge, the Zonal Manager / ZTC Principal / Director
MDC or the Chief/ Executive Director (E&OS) having regard to the circumstances of
each case, subject to minimum of `100/- wherever applicable.
In respect of limited tender, in case where Tender Fees are invited at the time of
empanelment, waiver of tender fees may be granted to such empanelled firms for
submission of tender fees while responding to our enquiry.

359
 All tender forms must be sent to the empanelled firms by Registered Post AD or by
Courier Service or by hand delivery with proof of delivery.
Pre – Bid Meeting with the Vendors
Vendors
12. The competent authority at his discretion may call Pre-bid meeting with the vendors
to whom tender enquiry is sent. Wherever pre-bid meeting is necessary, a mention
should be made in the tender enquiry about holding such meeting. The pre-bid meeting
shall be held at least 10 days before closing date of the bid. The clarifications /
modifications given by the department after pre-bid meeting shall become a part of the
original tender.
The pre-bid meetings are necessary since at the time of issue of tender some technical
specifications framed by the Department may not match with what is available in the
market or may be outdated or better options may be available which can only be known
when the vendors provide us the information in such meetings.
The Executive Director (E&OS) at Central Office, Director at MDC, ZM in-charge at
ZO, Principal at ZTC, Sr. / Divisional Manager in-charge at DO, will be designated to
approve clarifications or change in tender specifications / conditions.
Advertisement for Tenders
Tenders
13. Ordinarily tenders shall be invited by open advertisement including on our website.
However, limited tenders may be called for purchases of upto ` 15 lacs. Limited Tenders
shall be invited only from among the firms / dealers in the approved list.
Apart from the traditional mode of inviting tenders through open advertisement and
on our website, e-tendering is also one of the permitted mode for inviting tenders.
Acquisition of the Stores can also be made through e-tendering.
Single Tender
Tender
14. When the Zonal Manager or the Executive Director (E&OS) at the Central Office is
satisfied that no other firm is in a position to quote, (e.g. for strictly proprietary articles
with sole agency), the system of single tenders may be adopted. The matter of adopting
the system of single tenders in a particular case or cases shall be brought to the notice
of the Stores Committee.
Repeat Orders
15. Repeat orders may be placed against a previous order within its validity period (as
prescribed while inviting tenders), provided the officers empowered to place such orders
satisfy themselves that there has been no downward trend in prices since the placing
of the original order and that the total amount of the order (i.e. original order plus the
repeat order) is within the limit of authority of the officer concerned
Post Tender
Tender Negotiations
16. There should normally be no post tender negotiations. If at all negotiations are
warranted under exceptional circumstances, then it can be with L1 only, with
appropriate recording of the reasons for the same and duly approved by In-charge of
E&OS Department at Central Office, Director, MDC and in-charge of Zonal Office /
ZTC / Divisional office.
Similarly in case of disposal of unwanted items, the post tender negotiations are not be

360
 held except with H1 under exceptional circumstances, by following the similar
procedure mentioned above.
Safe custody and opening of Tenders
Tenders
17. All tenders shall be submitted in sealed envelopes. As soon as a tender is received, it
should be entered in the Tender Received Register by the officer nominated by the
Chairman of the Stores Committee for receiving tenders. The officer receiving the
tenders must initial on the cover and put time and date thereon. The tenders shall be
kept in safe custody in closed condition in a Tender box by the receiving Officer till
they are opened as set out hereinafter. Tenders shall be opened on the same day / next
working day, following the stipulated last date for receipt of tenders by an Officer not
below the rank of an Administrative Officer who shall be authorized in this behalf by
the Chairman of the Stores Committee at such time and place and in the presence of
such Officer as may be prescribed by the Stores Committee. The Officer who is
authorized to open the tenders should see that the envelopes are pinned to the tender
itself. As soon as the tender is opened, it should be stamped with the official stamp
and date. The Officer authorized to open the tenders should arrange to number each
tender serially (machine numbering would be preferable) in his presence and initial
each tender indicating the time and date of the opening. Each page of the schedule
attached to the tender, forwarding letter or any other enclosure should also be initialed.
In addition, the schedule containing prices should also be initialed separately at the
top and bottom of each page, close to the typed, printed or handwritten matter. All the
tenders should be entered in Tender Opening Register under signatures of the Officers
authorized for opening of the tenders. All the tenders after they are opened should be
placed before the Chairman of the Stores Committee who shall, after perusal, pass
them on to the Department concerned for analysis etc.., and further processing. The
Officer-in-charge of the concerned Department or any other officer duly
authorized in this regard and who does not deal with the purchase/
procuration of stores etc. shall be personally responsible for safe custody of
the tenders. For quotations relating to floppies/printer ribbons and other consumables
of similar nature not borne on the capital budget pertaining to Microprocessor, PCs
etc. the views of Manager IT shall be obtained as to the technical suitability of the
items offered based on specifications, delivery time, etc.. prior to placing the papers
before the Stores Committee.
Whenever quotations are invited under the 2 Bid system, all the Technical Bids shall
be opened in the first instance. All Financial Bids received shall be kept together in a
large envelope and sealed. The Office Services Department shall place before the
Stores Committee details of the analysis of the Technical Bid. The Stores Committee
shall open the Financial Bids in respect of only such Technical Bids which are found
suitable.
Whenever the quotations are invited under 2 Bid system, the option shall be given to
the tenderers (one representative each) to remain present during tender opening session
for technical bids. The indication to the effect shall be given along with the date and
time of opening of the technical bids in the letter / advertisement for invitation of the
tenders. The signature of the representative of the tenderer shall be obtained in the
tender opening register.

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18. In case on opening a tender it is observed that there are alterations made therein like
correction in figures, overwriting, etc.. such alterations, if any, should be initialed legibly
by the Officer authorized to open the tender by Chairman of the Stores Committee or,
in his absence, by a senior member of the Committee to signify that these alterations
were present and observed on the tender at the time of the opening. The total number
of alterations shall be recorded on the relevant pages and be initialed by the Officers
authorized to open the tenders. No amendment to a tender should be permitted on
any account after the opening of the tender has commenced.
Acceptance of Tenders
Tenders
19. After the opening of tenders, the authorized officer shall, on the spot, prepare a
statement in quadruplicate containing full particulars of all the tenders including late
receipts. The late tenders shall not be considered. The statement so prepared together
with the original tenders shall be submitted to the Stores Committee. In deciding
upon the tender to be accepted, the Committee shall bear in mind that the lowest
tender should be accepted, provided the quality offered is up to the mark. This would,
however, not apply in cases where quotations have been called for under the two Bid
system. If, in any case, the Committee desires to recommend acceptance of a tender
other than the lowest because the quality offered is not up to the standard or for any
other reason, it shall record its recommendations setting out the reasons thereof and
submit it to the Senior / Divisional Manger in-charge / Principal, ZTC or the Zonal
Manager in-charge / Director, MDC or the Chief / Executive Director (E&OS) at the
Central Office, as the case may be, for approval. In determining the Financial Bid the
Stores Committee shall consider not only the price quoted for sale but should also
consider the amount of Annual Maintenance Charges, wherever applicable. If, in any
particular case, any of these authorities is unable to accept the recommendations of
the Stores Committee, he shall record the reason thereof in writing and give his decision
which shall be final.
Where the sanction of the Chief / Executive Director (E&OS) is necessary for the
purchase, the tenders shall be obtained in duplicate and one copy shall be forwarded
to the Central Office with an application for sanction along with a statement containing
the description of the articles to be purchased, the names of tenderers and the rates
quoted by each and the recommendations of the Stores Committee, duly endorsed by
the Zonal Manager.
Proceedings of Stores Committee
20. No business shall be transacted at a meeting of the Committee at which at least three
members are not present. The proceedings of the Committee shall be recorded in a
separate register to be maintained for the purpose. The pages of the register shall be
numbered. The proceedings shall be duly recorded and pasted on successive pages of
the register. If any page is left blank, it shall be crossed and initialed by the Chairman
of the Committee. Each page of the proceedings shall be initialed by all the members
of the Stores Committee present at the meeting and signed in full at the end.
a) The register and the original tenders shall be in the custody of the officer-in-
charge of the O.S. Department, or any other officer duly authorized by the Sr. /
Divisional Manager, Principal, ZTC, Zonal Manager, Director, MDC, E.D. (E&OS),
as the case may be.

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 b) Any member who absents himself from three consecutive Meetings of the Stores
Committee without leave of the Committee shall cease to be a member thereof.
The vacancy so caused, shall be filled up by the authority who is empowered to
constitute the Committee.
c) The authority empowered to constitute the committee may review the working
of the committee and if necessary, reconstitute the committee on the occurrence
of the following events –
i) Resignation/retirement/Transfer/Death of one or more members of the
committee.
ii) Continuous absence for the meeting of the Stores Committee by one or
more members of the committee.
iii) One or more of the committee members becoming insolvent or against
whom disciplinary action is initiated.
21. After a tender is accepted, the formal contract for the supply of stores should be entered
into. The contract should inter-alia provide for settlement of disputes that may arise
in the execution of the rate contract before the Sole Arbitrator to be appointed by the
Corporation.
Rate Contract with D.G.S. & D.
22. Wherever possible, arrangement may be made with the Director General of Supplies
and Disposals for supply of articles at Government rate contract. Supply of articles in
this manner may only be made if the price quoted in the quotations received are much
higher than the rates approved by the DGS &D.
Other Rate Contracts
23. In cases where it is not possible to enter into a rate contract through the Director
General of Supplies and Disposals, arrangements may be made for entering into rate
contract with reputed dealers for the purchase of stores which are frequently required
in large quantities after inviting tenders from approved firms/dealers by following the
normal tendering procedure. All rate contracts shall be entered into only by the Central
Office, provided, however, the Senior/ Divisional Manager-in-charge / ZTC, Principal /
Zonal Manager / Director, MDC, may enter into a rate contract for items of stationery
or printing subject to the condition that the total value of the particular item of stores
consumed in the previous year does not exceed the limit of authority of the Zonal
Manager/ Divisional Manager as specified in Column 2 of the table of limits given in
Paragraph 5. As a rule, firm prices should be stipulated in a rate contract. Provisional
price should be accepted only under exceptional circumstances and at the absolute
discretion of the Senior/ Divisional Manager-in-charge / ZTC, Principal or the Zonal
Manager / Director, MDC or Chief/ Executive Director (E&OS), depending upon the
circumstances of each case.
Running Contract
24. The running contract should be for fixed quantity, with an option to accept supply
within range of +/- 25%. In other words contractor should be legally bound to meet our
requirement from 75% to 125% of the ordered quantity at our discretion. In the case of
running contracts, care should be taken that the guaranteed quantity which is usually

363
 75 per cent of the contractual quantity is taken before the expiry of the contract. All
running contracts shall be entered into by the Senior/ Divisional Manager-in-Charge /
ZTC, Principal/ Zonal Manager / Director, MDC or by the Chief/ Executive Director
(E&OS) or by the officer duly authorized by the Senior/ Divisional Manager-in-charge
/ ZTC Principal / the Zonal Manager / Director, MDC or the Chief/ Executive Director
(E&OS) provided that the total value of the quantity stipulated in the Contract after
adding the 25 per cent margin, does not exceed the financial limits prescribed in
paragraph 5 above. Where it so exceeds, the sanction of the appropriate Competent
Authority shall be obtained.
When Rate or Running Contracts should be arranged
25. Except as otherwise provided hereinabove all purchases of stores shall be made on the
basis of a rate contract, a running contract or a fixed quantity contract only.
Earnest Money Deposit (EMD)
26. Where the contracted amount is equal to or in excess of ` 2 lacs, every tender would
have to be accompanied by an Earnest Money Deposit, to ensure that non serious
tenderers do not participate in the tendering process. The amount of EMD shall be
approximately equal to 1% of the valuation of the tender. The EMD will be payable by
Demand Draft/ Bankers Cheque. In exceptional cases, MD may waive the requirement
of obtaining EMD. The EMD will not carry any interest.
Security Deposits
27. Normally, it will be necessary to provide for security deposits where the quantum of
the order placed exceeds ` 10 lac. The contract should provide that in the event of
breach of any condition or the quality / quantity of stores supplied do not confirm to the
stipulations contained in the contract, the security deposit shall be forfeited in addition
to the Corporation seeking other relief which may be available as per law. Such
securities may be demanded as a guarantee for the due performance of the contract
awarded to a party or to safeguard the interest of the Corporation properties (raw
material, machinery, etc.) entrusted to the Contractor for the manufacture of stores
ordered from him. Security deposit in the nature of performance guarantee shall be
payable by the successful Tenderer @ 10% of the contracted value. The performance
security can be accepted either in the form of Demand Draft / Bankers Cheque, or
Bank Guarantees through Scheduled Banks. The deposits shall not carry any interest.
A proper register shall be maintained giving details of EMD, Security Deposits, date
of amount, MR/DD number and name of contractors.
Insurance of materials in the custody of contractors
28. Arrangement should be made for covering the materials belonging to the Corporation
which are in the custody of a contractor against the usual risks. In the matter of
insurance of materials in the contractor’s custody, the policy shall be to require only
those contractors whose arrangements are considered inadequate, to take out insurance
policy to cover Corporation’s properties in their possession against the usual risks.
Transit Insurance
29. The purchasing officer shall arrange for covering transit risks of stores, wherever
necessary. The supplier should also be made responsible for safe arrival of goods at
destinations.

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Payment of Bills
30. The Officer authorized to make payment in accordance with the limits of authority
shall sanction the payment only on the basis of a certificate recorded to the effect that
the stores supplied are of the quality and quantity specified in the contract and that
the quality/quantity does not fall below the contracted specifications. This certificate
shall be recorded by the officer who is in charge of stores after satisfying himself
thoroughly regarding the stores supplied. In case of breach or any lapse of contract or
any losses incurred, the same shall be recovered from the pending bills of the dealer.
S t orag e
31. The Officer-in-charge of stores in each office shall arrange for proper storage of all
stores to ensure that they are not damaged by insects, white ants, rats, etc.. or by
unfavorable weather conditions such as rain, etc.. The stores should be kept under
lock and key as far as practicable to ensure that there is no pilferage. No item of stores
shall be removed from the place of storage unless it is duly authorized by the appropriate
authority.
Books
32. Every office shall maintain books and registers in such forms as may be prescribed by
the Executive Director (E&OS) in respect of every item of stores. In particular, a stock
register shall be maintained, containing full particulars relating to the stock at the
beginning of the year, purchases and supplies during the year and the balance at the
end of the year.
Inspection of Stores
33. The Audit & Inspection Organization of the Central Office and of the Zonal Centers
shall periodically inspect the stores physically with the registers maintained and sign
the registers in token of having done so. They should also satisfy themselves that the
quality and quantity of the stores is in accordance with the contract entered into.
Relaxations
34. Except where otherwise provided no relaxation from this Code shall be permitted
without the special sanction of the Chairman.
Disposal of unwanted items
35. The Senior / Divisional Manager-in-charge / ZTC, Principal or the Zonal Manager /
Director, MDC or the Executive Director (E&OS) at the Central Office may dispose of
any unserviceable items of stores by following the procedures as outlined by the
Corporation in such manner as he may consider most appropriate in the interest of the
Corporation.
Prevention of Corruption
36. An employee found to tamper with tenders or disclose quotations or indulge in corrupt
practices or contravene this Code in any manner shall be liable for Disciplinary Action
under relative Regulations of (Staff) Regulations, 1960. In case it is found that a supplier
tries to bribe any official of LIC to get favours, he shall be liable to be penalized by
cancellation of contract and being banned / black listed from the panel.

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Penalty Clause
37. While inviting tenders for purchase of store or for entering into contracts, from firms/
dealers, the penalty clause shall be introduced, providing for recovery of penalty from
the bills of the firm / dealers in case the store supplied falls below the contractual
specifications with regard to the quality, quantity and time schedule of delivery of the
store.
The quantum of financial penalty which shall be specified separately for each tender
and shall form part and parcel of tender terms and conditions be fixed by the Executive
Director (E&OS) at Central Office, Director, MDC at MDC, the Zonal Manager in-
charge at the Zonal Office, Principal at ZTC and by Sr. / Divisional Manager in-charge
at Divisional Office. In addition to the financial penalty, the Officer in charge with the
recommendations of the Stores Committee, may cancel the tender / contract and / or
remove / blacklist such firms / dealers from the list of approved firms.

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 Annexure I
ITEMS COVERED UNDER STORES CODE
1. Furniture & Fittings,
2. Refrigerators, Water Coolers, AC Units (Window & Split), Air Coolers, T.V., Washing
Machines, Geysers, Water Purifiers, Electric Kettle,
3. Electrical Fittings & Fans,
4. Computer Hardware, PC’s, Printers, keyboard, monitors, etc..,
5. Canteen Equipment,
6. Crockery Items,
7. Duplicators including photocopier,
8. Cheque writers,
9. Franking Machines,
10. Weighing Machines,
11. Calculators,
12. Telecommunication equipments such as EPABX, Fax, Telephone instruments, mobile
phones,
13. Voltage Stabilizers, UPS, invertors,
14. Genset,
15. Note Counting Machines,
16. Misc. Capital Equipments not covered above,
17. Printing & Stationery,
a) Forms b) Paper c) Continuous stationery d) Stationery items
18. IT Consumables such as Ink cartridges, floppies, CDs, etc..,
19. Folders, leaflets,
20. Printing of Periodical Magazines (in house),
21. Diaries & Calendars,
22. Cables / Wires,
23. Switches / MCBs,
24. Fuses,
25. Spares of fittings,
(Ballast / chokes / starters / capacitors)

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26. All purchases made for contracts entered into in respect of running of office, beyond 3
months.
e.g. Security Services
Catering contracts
Courier Services
Transportation Services
Office Upkeep.

Note: In case of dispute in respect of legal interpretation of these terms and conditions
and special provisions / conditions, the English version shall stand valid.

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 CHAPTER 32
FURNITURE AND FITTINGS
A traditional office will have a variety of furniture and fittings and even in a modernized
office where modular furniture is used, need for space may be less, but still some items of
furniture will be there.
The Divisional Offices of the Corporation used to collect before 31st December every year the
requirement of furniture and fittings from each Branch Office for the following year and
prepares a budget for the entire Division for the next financial year, keeping in view of the
proposed recruitment of staff, projected opening of new offices, estimated addition as to the
number of in-force policies etc. before 31st March, every year. The budget proposals are then
submitted to the Zonal Office for sanction. However, in the closed scenario the need for all
these will be looked at more professionally with cost benefit analysis at the back of the mind.
Be that as it may, on receipt of the budget sanction from the Zonal Manager, the Divisional
Office places order with various dealers for supply of necessary items of furniture direct to
the Office concerned. Then orders are placed by the Divisional Office after taking into
consideration the quality, the rate and quantity.
When the ordered material is received, they are tallied with the invoice supplied by the Dealers.
The material is then carefully examined to see that it is received in good condition.
If the material is received in good condition, it is then entered first in the “Stock Received
Book” (F.No.4908) and recorded in the “Inventory Register” (F.No. 4908-A) filling all the columns
of the register giving full details of the furniture such as make, cost, date of acquisition, etc.
Each individual item is then given a distinctive number. This number is got painted on the
furniture items.
After this, the bills are paid either by cheque or by Demand Draft at dealer’s cost, under
intimation to Divisional Office, furnishing the distinctive number allotted to each item.
In case any material is received by transfer from some other Office of the Corporation, an
entry be first made in the Stock Received Book and the particulars like date of purchase, and
the cost of purchase, transferor Branch Code Number etc. should be entered, in the Inventory
Register (F.No. 4908-A).
The item is then, as stated above, given a distinctive number. The fact of transfer by the
transferor Office and the receipt of the transferred item by the transferee Office together
with the distinctive number of the items should be intimated to Divisional Office for its records.
At the end of each financial year, physical verification of each furniture item should be made
and a statement of such items is prepared, which should be verified with the Inventory Register.
Any discrepancy should be reconciled.
In case any item is found missing, it should at once be noted in the Register of Losses and the
matter be placed before the Competent Authority with full details of loss for further action in
the matter.
The Statement of “physical verification” should be certified by the Officer concerned.
After the physical verification is completed, a statement should be supplied to the Accounts
Department of the Office concerned showing the full details of each furniture item, its date of
acquisition, its original purchase price, the present Book Value, etc. A copy of this statement

369
as also a copy of physical verification certificate should be sent to the Divisional Office for its
records at the end of each financial year.
REP AIRS AND MAINTENANCE OF FURNITURE AND OFFICE EQUIPMENTS
REPAIRS
1. All furniture and office equipments/articles should be kept in upto-date order. If any
repairs are necessary, the same should be arranged promptly.
2. Periodical works such as polishing the wooden furniture and painting the steel furniture
should be arranged so as to maximise their lives.
3. Servicing of office equipments such as “Typewriter, Duplicator, etc.” is a `must’ for the
smooth and efficient operation and longer life. Arrangements should, therefore, be
made for regular and timely servicing to the machines. It is advisable to finalise
arrangements for repairs and servicing with the manufacturing firm or their authorised
dealer, wherever possible, as they are better equipped with know-how and are in a
position to provide genuine spare parts of the machine.
Entry of Expenses incurred for repairs to machines should be recorded in Machine Register.
This Register can be useful to give an idea of expenses incurred on repairs of each and every
article and at the time of deciding the question of repairs.
ASSETS REGISTER
This Register is maintained to record all the assets purchased/occupied by the Office. The
book contains such as date of purchase/receipt, original cost, description of the items,
depreciation and written down value for each item and for each year.
At the end of the year, we have to provide depreciation and arrive at the written down value
of each item. The written down value at the end of the financial year is obtained by subtracting
the depreciation from the previous year’s written down value (Book value). The total book
value at the closing date (31st March) will be the opening balance of the next year.
DEPRECIA TION
DEPRECIATION
This is the charge made on assets every year, to provide for the wear and tear caused each
year in order to assess the actual value of any asset at a particular time. Depreciation has to
be charged at the prescribed rate on individual items, taking care that the same is to be
charged proportionately if purchased/acquired after 15th of a month (If so
ignore that month) or purchased/acquired between 1st to 15th of a month (If so depreciation
to be charged for full month). Depreciation has to be charged on the original cost. Nominal
value of Re.1/- per item has to be retained.
DISPOSAL OF FURNITURE
When any item of furniture becomes sufficiently old and unserviceable and is having a Book
Value of Re.1/- only or when any item of furniture can no more be put to any use due to damage
etc. the matter should be placed before the Sr. Divisional Manager for permission to dispose
off the item by auction or otherwise. When the permission is received for disposal of the items
by auction or otherwise, it should be disposed off as per instructions for a reasonable price
and the matter intimated to O.S. Department of the Divisional Office and the Accounts
Department of the concerned Branch Office furnishing the amount realised and the distinctive
number of the item disposed off giving full details as to the date of disposal and the amount
realised. The sale proceeds should be credited to the respective head of account to the extent
of the Book Value. Any profit or loss on sale of the item should be appropriated to Account

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No.114021.
MACHINES
What is stated for acquisition and disposal of furniture also apply to the acquisition and disposal
of Machines.
SAFEGUARDING OF OFFICE EQUIPMENTS
Cases of theft of typewriters and ceiling fans etc., from the Offices indicate negligence on the
part of the office.
1. It is the responsibility of the respective Section to ensure that the typewriters are
checked and locked before the close of the Office. Any failure to do so, should be
immediately brought to the notice of the person concerned and the supervisor.
2. Where part-time Sweepers are appointed, the responsibility of opening and closing of
Office should not be entrusted to them but arrangements should be made to supervise
their performance.
3. Where employees are working after office hours, arrangements should be made to
ensure the closing of Office premises.
4. Rules regarding the custody of various keys should be implemented.
Microprocessors/PCs Insurance Cover
Cover..
(C.O. Circular No. MS/ZD/2/91at dtd 18TH APRIL, 1991)
Reproduced below are instructions for insuring Microprocessors/PC’s issued vide
abovementioned circular.
1. Insurance cover should be taken for normal hazard only. Extra cover for date corruption,
replacement of peripherals etc. should be taken.
2. Normal hazard cover also includes earthquake wherever the system location is under
earthquake Zone.
3. Insurance cover should be taken from the date of receipt of packages (for
Microprocessors, PCs and Peripherals) from Vendors - the date of Delivery Challan
duly signed.
4. For any additional peripherals, enhancement or Data Entry Machines, appropriate
insurance cover should be taken at the time of taking the delivery. Cost of Software/
Packages/Operating System loaded with main system or PC can be taken as total cost
of system.
5. Any other taxes, levies or duties paid for the installation of the systems should be
taken as total cost of the system, and the insurance coverage should be as under :
i) First Year Insurance cover should be taken as total amount spent on purchasing
the system. Approximately, 10.5 lacs for the D.O. configurations and ` 7.5 lacs
for Branch configuration
ii) At the end of the year, 25% of the cost of the system should be reduced and
necessary insurance cover can be taken for the next year.
iii) At the end of the second year, further 25% of the cost should be reduced from
the original cost, viz. 50% of the total cost should be taken for insurance coverage.

371
 iv) Third year onwards, insurance cover should be taken 50% of the cost of the
system.
Regarding the Consumables and Other Media:
Magnetic Tapes, floppies, Cartridge Tapes etc. falls under Revenue Accounts and hence the
insurance coverage is not necessary.
Amounts spent on site preparation will fall in the building insurance and hence Est. Dept./OS
Dept. should be consulted.
Auxiliary equipments, such as UPS, Voltage Stabiliser, Isolated Transformer, Airconditioner,
Air Curtain etc., insurance cover can be taken separately in consultation with Bldg/OS/Est.
Deptts.
Other electronic items, such as ECR, FAX, Copier and Xerox and Automax connected terminals,
where depreciation value is 30 per cent, can be treated as on par with Microprocessors and
insurance cover can be taken as stated above. If depreciation value is other than 30 per cent,
insurance coverage can be taken as per OS Dept.’s instructions.
Insurance Cover of Furniture, Fixture & Equipment, etc.
(C.O. Circular No. ED/E & OS, dtd. 25th Nov. 1998)
Reproduced below are instructions for taking insurance cover against items like duplicators/
photocopier, franking machines, weighing machines, comptometers, adding & calculating
machines, refrigerators, water coolers, airconditioners & air coolers, teleprinters/automax/
EPABX/telex/library book & canteen equipments and other items which particular Office may
deem necessary.
1) Insurance cover should be taken for normal hazard only.
2) Normal hazard cover also includes earthquake wherever the office location is under
earthquake zone.
3) Insurance cover should be taken from the date of receipt of the above items from the
dealers/suppliers - the date of Delivery Challan duly signed.
4) For the existing items of furniture, fixtures and equipments etc. the cover should be
taken on the book value of these items.
5) Any other taxes, levies or duties paid for the supply or installation of these items
should be taken as total cost of the items.
Furnishing of staff quarters:
Reference may be made to C.O. Circular, Ref: Estates: CIRNO. 27 dated 17.11.1994 for guidelines
on furniture and fittings of staff quarters allotted to Class I Officers.
However, for storage type Geysers which are being provided in Class I Officers’ quarters of
North-Central and Central Zones no hire charges are to be recovered with effect from 1.2.2006
henceforth (Ref: CO Circular Ref: OS/ OA dated 9.1.2006).

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 CHAPTER 33
TION ON CAPIT
DEPRECIATION
DEPRECIA AL ITEMS
CAPITAL
i) Incidental Expenses such as transportation charges, import duty, octroi incurred on
purchase of capital items should be capitalised.
ii) Depreciation should be charged from the date of delivery/receipt of Assets.
iii) In case of new microprocessor, depreciation is charged from the date of installation or
three months after the date of delivery, whichever is earlier.
iv) Depreciation is to be calculated on the total cost of microprocessor.
v) Depreciation for full month is calculated if asset is received on or before 15th of the
month and if purchased or received by the office after 15th of the month, depreciation
of that month should be ignored.
vi) For the first year, depreciation is calculated from the date of delivery/receipt till the
year end. vii) Depreciation is to be provided on gross book value of the asset every
year.
viii) Depreciation should be rounded off nearest to the rupee.
ix) Nominal value of ` 1 per item is to be retained for all items of assets.
x) The complete value of production of films including prints is to be written off in the
year in which the film is released. If not released the same is to be written off in
installments as per Income Tax Act.
xi) 5% on Telephone O.Y.T. is to be charged to Account Code 113102.
xii) Pocket Calculators should not be capitalised.
OLD NEW PARTICULARS RA TES OF
RATES
CODE CODE DEPRECIA TION
DEPRECIATION
1650 111690 FURNITURE & FITTINGS
1651 111691 Furniture & Fittings, including compactors 4%
1652 111692 Refrigerators, Water Coolers,
Air Conditioning Plants (window)
& Air Coolers 10%
1653 111693 Electric fittings & ceiling fans
in rented premises 5%
1654 111694 Fans (Table / Pedestal) in
rented / owned buildings 5%
1660 111700 INFORMATION & TECHNOLOGY
EQUIPMENT
1661 111701 Electronic Computers/Microprocessors, 30%
Printers (including all accessories)

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1670 111710 VEHICLES
1671 111711 Cycles 15%
1672 111712 Mobile Publicity Vans 20%
1673 111713 Staff Cars 20%
1674 111714 Jeeps 20%
1675 111715 Office Cars - Scheme VI 20%
1680 111720 OFFICE EQUIPMENT
1681 111721 Canteen Equipment 10%
1682 111722 Accounting machine - ECR 30%
1683 111723 Addressograph,Adrema &
Bradma Machines etc. 10%
1684 111724 Typewriters 10%
1685 111725 Duplicators (including photocopier/ 20%
electronic stencil machines etc.)
1686 111726 Cheque-Writers 10%
1687 111727 Franking Machine 10%
1688 111728 Weighing Machines 10%
1689 111729 Comptometers,Adding &
Calculating machines 20%
1700 111740 OTHERS
1701 111741 Telephones (OYT Scheme & other 5%
communication equipment)
1701/02 111742 Telephone instruments (EPABX &
other commn.Equipment) 10%
1702 111743 Fax Machines 10%
1703 111744 Mobile phones and other
communication equipment 30%
1704 111745 Library Books 20%
1705 111746 Library Books - Technical & Professional 20%
1706 111747 Miscellaneous Capital Equipments 10%
1707 111748 Audio Visual & other Allied Equipment for
field publicity units & Admn. Purpose
including Divisional exhibition sets. 30%
1708 111749 Production of films including prints
(before film is released) (See note (x) above)
1709 111751 Neon Signs, Glow signs, Hoardings and
other Publicity Materials 20%

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1711 111752 Engineering Department’s Equipment
costing over ` 750/- 12.5%
1712 111753 Voltage stabilizers and UPS 30%
1713 111754 Generators, DG Sets in rented premises 30%
REGISTER OF LOSSES
Sometimes financial losses occur to the Corporation due to theft, fire, and in the process of
making final payment to policy holders/claimants/Agents due to wrong/excess payments. Such
losses/missing assets are entered in this Register immediately on the loss being found out.
This is a Control Register. Follow-up should be made till the Assets lost/missed are recovered.
The relevant columns of the Register are as follows:-
Date of Date of Description of the Original date Present
entry notice of Loss/Asset etc of purchase & Va l u e
loss Original cost
1 2 3 4 5
Brief description Whether Follow Details Details Initials
as to how reported Up with of of of
found out to Police Police writing advice Competent
(with FIR & their off to Authority
Number) results Accounts Dept.
6 7 8 9 10 11

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 CHAPTER 34
STATIONER
STA Y AND PRINTED FORMS
TIONERY
The word stationery includes a wide range of articles used in Offices. They are sometimes
referred to as Table-top furniture, but it would be more correct to regard them as the tools
and implements of employees. They can conveniently be classified into the following four
categories:
1. Writing materials such as Pen, Ball-Pen, Ink etc.
2. Copying materials such as Carbons, Type-ribbons, Stencils.
3. Fastening materials such as Pins, Clips and Strings and
4. Packing materials like Envelopes, Files, Kraft Paper etc.
It is of paramount importance to make available the required stationery to each and every
employee so as to enable him to do his job, promptly and efficiently. Observance of economy is
essential at all stages.
The function of stationery unit is to arrange for economic purchase, prompt distribution, safe
storage and proper accounting of the stores.
FORMS ST
STAATIONER
TIONERYY
Cash Books, Receipt Books, Printed Registers and other printed forms come under this
category. Each form is given a separate number. The Divisional Office supplies the stationery
to the Branches. The Branches shall indent for the same and the Divisional Office shall supply
the quantities required for six months, when the stock of any form touches the level of one
month’s requirement, the Branch can indent for it for the quantity required for six
months. Thus, the Branch should always keep sufficient stock of the forms stationery and
should never go out of stock.
The Branch stationery unit shall keep a Stationery Stock Register and shall enter the quantities
received and quantities issued promptly in this Register. In the second week of every month
the stationery unit in Branch Office goes through the Stock Register and sends indent in
Form No. 440 in triplicate of the items whose stock has touched the level of one month’s
requirements. It has to indent for the quantities required for six months. The indent should
be signed by the in-charge of O.S. Department and then, the first and second copies of the
indent should be sent to the Divisional Office. Care should be taken not to indent for huge
quantities as any stock stored for more than required becomes spoiled, mutilated and brittle
in course of time, rendering it useless and thus goes waste.
The Officer or the person authorised to sign the indent form must first satisfy himself that
the stationery or the forms indented are in relation to the actual requirements of the
Departments/Offices by checking the stock of such stationery articles or forms. This will also
help him to indent the required forms judiciously. Separate forms must be used for -
i) Indenting stationery articles and
ii) Printed Forms, because the two types of stores may be attended to by different persons
in Stationery Department.
When the indented stationery forms are received from the Divisional Office, they should be
checked with the supply invoice and the duplicate copy of the supply invoice duly signed by
the Officer-in-charge of O.S. Department at the bottom should be sent to the Divisional Office
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in acknowledgement of receipt of the supply. The forms received are entered in the Stock
Register. While storing, care must be taken to guard against damage by rats, white ants and
other insects and pilferage.
Vouchers for the total cost of the items received as noted in the supply invoice are prepared
and sent to the Accounts Department of Branch Office to incorporate in the Accounts Books
and reimburse the cost of articles to the Divisional Office.
The Departments in the Branches shall indent for the Forms/Stationery and other items as
and when required in writing duly signed by authorised Officer and the stationery unit shall
supply them and enter the supplied items in the Stock Register. Balance of stock on hand
shall be arrived after each supply to enable them to send their indents to Divisional Office
when the stock reaches the point of one month’s consumption.
TABLE ST
STAA TIONER
TIONERYY
Table stationery like Paper, Envelopes and Loose Leaf Binders etc. are supplied by the
Divisional Office to Branches once in six months. The O.S. Departments of the Branches shall
very reasonably estimate their requirement of stationery items for six months and send the
Branch indent for these articles to the Divisional Office who shall consolidate the
indents, make bulk purchases at reasonable rates and supply the indented articles to the
Branches. A supply invoice in duplicate containing the articles supplied and their cost is
simultaneously sent by the Divisional Office to the respective Branches.
The Branches shall receive the articles supply as per the invoice and send the duplicate copy
of the supply invoice duly signed by the Officer-in-charge of O.S. Department to the Divisional
Office in acknowledgement of receipt of those articles.
The articles received are then safely preserved in almirahs under lock and key and are entered
in the Stock Register. The total cost of the articles as noted in the supply invoice is to be
intimated to the Accounts Department of Branch Office to pass necessary entries in the
Accounts Books and to reimburse the cost of articles to the Divisional Office.
Once in a month, the Departments in the Branches shall indent for the table stationery articles
to the O.S. Department in the Branch. The O.S. Department shall supply them and the
quantities supplied are posted in the Stock Register. The balance as per Stock Register should
always tally with the physical stock of the articles.
Utmost care should be taken to avoid wastage or extravagance in the use of stationery as the
economy in use of stationery goes a long way in reducing the management expenses and
consequently Branch expenses ratio. Local purchases should be restricted to the minimum as
they involve more cost.
VALUA TION OF CLOSING STOCK
ALUATION
At the end of the accounting year i.e. as at 31st March of the year, physical inventory of the
Forms, Stationery and Table Stationery should be taken and tallied with the Stock Register.
Discrepancies, if any, are to be reconciled. Then, the value of stock held on 31st March, should
be assessed by applying rates from the latest supply invoices. We take latest rates for this
purpose under the premise that the stock received earlier are consumed first. Then, the total
value of the closing stock is intimated to the Accounts Department of the Branch so that they
may include it in their final accounts.

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The Branches should send two copies of the statements of stock of form stationery and table
stationery separately giving the cost of each item indicating the balances as at 31st March,
every year to O.S. Department of the Divisional Office.

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 CHAPTER 35
MAIL
Every Office of the Corporation should contact the Local Head Post Office and get the post
box number allotted to it by paying the requisite fees. It should also get the post bag facility by
paying the requisite additional fees. The Office should also get its telegraphic address
registered by paying the requisite fees. Care should be taken to see that post bag and post box
facility as well as telegraphic address are renewed in time every year.
The Office should make arrangements to send one of the Sub-staff to the Post Office to collect
the daily mail. In case of post box facility, he should go with the key of the post box to bring the
mail. Where post bag is availed of, the Postal Department will place the dak in the bag carried
by the Sub-staff and will lock the same, so that the dak reaches the Office safe. When the mail
is thus brought to the Office, the Official who is authorised to receive and open the same
will open the bag with the duplicate key available with him and will pick out the covers
addressed to the Officers by name, leaving the rest to be opened by the Sub-staff in his presence.
The registered articles are checked with the list supplied by the Postal Department, in
duplicate and the duplicate copy of list duly signed in acknowledgement of the receipt of
articles is returned to the Post Office. While opening the dak, care should be taken to pin the
envelops to the letter in respect of undelivered letters, registered letters and remittances by
cheques etc. In case any envelope contains any cash or postage stamp, the Officer opening dak
makes a note on the communication of the currency notes etc. received. He will then get the
inward date stamp affixed on each communication received and while doing so, ensure
that the written portion of the communication is not defaced by the date stamp. When this is
done, the dak is divided into three categories viz. (1) Ordinary dak (2) Registered dak and (3)
Remittances and they are sent to the Inward Assistant for distribution among the Departments
of the Office. Telegrams received are also sent to the Inward Assistant after noting the time
and date of receipt.
The Inward Assistant will first sort the dak Department-wise and will get the dak numbered
serially, so that each Department gets a block of serial numbers. In case of registered speed
post dak, all the articles are numbered serially and simultaneously, noting the numbers given
to each article in the original copy of the list supplied by the Postal Department. These original
lists are filed date-wise for future reference.
The ordinary dak is entered in an Ordinary Dak Register Department-wise and noting the
serial numbers as
from........................................…to................................The registered speed post articles are
entered in a separate Registered
speed post Articles Register in serial number order, noting the Department to which it is
delivered and giving brief description of the subject matter of the communication received.
In case of telegram, the text of the telegram is entered in a register called “Telegram Received
Register” after noting the serial number on it. The Telegram Received Register will have a
separate serial number of its own.
The serial numbers for the dak (both ordinary and registered speed post) and for Telegram
Received Register will start with number one on every 1st April each year and the serial will
continue upto 31st March, next year.
The remittances received also will be numbered serially and entered in the Remittances

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Received Register and handed over to the Accounts Department for action. Undelivered
cheques and dishonoured cheques should be entered in a separate column in the Remittances
Received Register.
MONEY ORDERS :
Money Orders are usually brought by the Postman and the amount is paid either by a cheque
or cash. The Department concerned should first verify whether the Money Order pertains to
the Office and then enter each Money Order in the Money Orders Received Register date-
wise, maintaining a continuous serial number from 1 st April every year to 31 st
March of the following year. Care should be taken to see that full address of the remitter and
the particulars like policy number etc., of the remitter and amount received under each Money
Order are correctly, and legibly noted in the register. Also, it should be verified that the Money
Order coupon contains these particulars and if any coupon does not contain the
particulars they should be noted on it. The amount received under each Money Order is totalled
and when this tallies with the amount noted by the Postman as per list, the Money Orders are
discharged, coupons separated. All the coupons and the list should be sent to the Cashier
immediately alongwith the Money Orders Received Register for his acknowledgement
for receiving cash and for noting the nature of disposal given to each Money Order. The Officer-
in-charge of the Cash Department has to initial against each item entered in the MO register
individually. Efforts should be made to see that the Mos are paid by cheques only, where the
number of Money Orders received is heavy.
In case the Money Orders are paid by cheques and one of the Money Orders does not pertain
to us or if the total of the Money Orders does not tally with the amount to the cheque, all the
Money Orders should be returned with a request to present them again with a fresh cheque
for the correct amount.
In case the Money Orders are paid by cheque it is the practice with some of the Post Offices to
allow them to accumulate to a sizeable number and then send them in one bunch. Efforts
should be made to discourage this practice as it increases work load on the Office on some
days which could have been spread evenly, apart from the delay in remitting
the amount to us. Also, it is necessary to see that the Money Orders are paid regularly in view
of the fact that we consider the date of receipt of Money Order as the date of payment of
premia and not the date of booking of the Money Order by the party. Obviously, delayed
remittance by the Post Office will result in hardship to some of the Policyholders
due to lapsation of their policies.
The serial number maintained in ordinary and registered speed post letters Despatch Registers
shall be separate series, each commencing with number one on every 1st April and continuing
till 31st March next year. Care should be taken that the replenishment of postage stamps each
time is at the minimum.
In case the Office has availed of the post bag facility, all the dak should be kept in the bag and
sent to the Post Office after locking the same to ensure safe delivery at the Post Office.
FRANKING MACHINE :
For the use of the Franking Machine, the Office has to apply to the concerned Head post
Office for licence. The communications franked with postage on this machine should not be
dropped in the post box but should be handed over in the Post Office with a statement of
particulars of ascending and descending meter readings. Where there is a Franking Machine,

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postage stamps should not be used except in rare circumstances and that too with the knowledge
of the Competent Authority only. Simultaneous use of Postage stamps and Franking Machine
should not be made. On Parcels/ Heavy packages franked slips may be pasted instead of using
postage stamps.
The Postal Department allows a rebate on the postage spent in the Franking Machine at 3%
with effect from 1.4.85 (earlier 1 ½%). Postal Authorities have also started giving additional
rebate of 2% on the bulk registered mail w.e.f. 1.11.1985. Care should be taken to avail both
the rebates invariably once in every quarter.
Reducing Postal Expenses:
Since postage accounts for a substantial amount as expense, ways and means to reduce the
postal expenses should be explored and implemented.
One of the methods to reduce postal expenses could be to send our premium notices/default
notices etc by Inland Letter Card. It is preferable to get the approval of the Chief Post Master
General of the region.
Inland Letter cards of private manufacture, with perforated margin, suitably folded after
gumming one side and fastening the other two sides with not more than two bits of gummed
tape or other fasteners in such a manner as to permit without removing the fasteners, necessary
examination of the letter card, may be transmitted by post, provided the letter cards conform
to the specifications mentioned herein below:
(a) The weight of a letter card should not exceed three grams.
(b) The dimensions of a letter card, when unfolded or folded, are within the following
limits.
UNFOLDED
Maximum - 30 cm X 21 cm
Minimum - 20 cm X 14 cm
Flaps — Not exceeding 2.5 cm X 12.5 cm on one side and 1.5 cm X 7.5 cm on the other.
FOLDED
Maximum - 15 cm X 10.5 cm
Minimum - 10 cm X 7 cm
There shall be printed on the outside at the top left hand corner on the address side of every
folded letter intended for inland transmission, the words “Inland Letter card”.
Since the inland letter costs only ` 2.50 substantial savings could be achieved. Alternatively,
the “Bill Mail Service” of the Postal department could be utilized. Under the method, financial
statements like premium notices, revival letters, SSS status report etc. can be sent subject to
certain rules in this regard. Under the Bill Mail Scheme, each envelope costs ` 3/- as postage.
In cases where the policyholders/agents give the name of the bank and bank account number,
the cheques (bearing the name of the policyholder/agent along with the name of the bank and
bank account number) in payment of claims (excluding survival benefits payments made
without obtaining discharge voucher), surrenders, loans, commission and all other cheques
shall be sent by Ordinary Post, irrespective of the amount, in respect of local address.

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Letters can be sent by Couriers/Speed Post/Registered Post only if the relevant rules permit.
Important dockets or documents which need to be sent urgently can also be sent by Speed
Post/Courier etc. if permitted by the officer concerned.
Tapals meant from one office for different departments in another office and similarly tapals
from different departments of one office to another office should not be sent in separate
envelopes and they should be sent in one common cover, so that unnecessary postal expenses
can be avoided.
It is also the Corporate Policy to discourage the use of fax and to encourage the use of Corporate
Messaging Solution (CMS) wherever possible. Indiscriminate use of fax should be avoided.
Request for guest house accommodation except when it is required for official purpose should
be sent by the individual officer/employee at his cost or by CMS.
Broad Guidelines for Empanelment of Courier Agents:
Branch offices shold not select couriers on their own.The Divisional office should empanel
couriers for the Divisional office as well as for the branches under its control.
1) Obtain names of reputed couriers from:
a) Yellow Pages, b) Reputed Organisations utilising courier services. C) Agencies
seeking. D) Advertisements.
2) Call for Business Profiles from them which should be submtited within a stipulated
date for enabling us to evaluate their standing in the business. The following criterion
may be applied for the purpose.
1 Name and address of the Company
(Proprietary/Limited)Co./Public L:td. Co.)*
2 Date of Establishment.
3 Number of own offices/Distribution Network
4 Whether having own Website for tracking documents.**
5 Telephone Nos., Fax No., E Mail ID.
6 P.A.N.
7 Yearly turnover.*
8 List of Corporate clients.
9 Procedure of submitting P.O.D.s
10 Whether registered with Central Government,
Excise? If so, Registration NO***
11 Destinations covered****
*(1 & 7) Income tax returns for the last 3 years filed in the name of company may be
obtained. **(4) Should be ascertained on internet.
***(10) Obtain copies of Registration of courier with Govt. authority & Central Excise
for payment of service tax.
*(11) A list of regular destinations to be forwarded to them to be returned after
making tick marks against the destinations covered by the courier.

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Wherever possible, information, may be verified from original documents. After evaluating
the reputation of the couriers, which will help us to eliminate the less worthy, rate quotation
may be invited in sealed envelopes to be submitted within a stipulated date. The prescribed
procedure for opening tenders as per Stores code may be followed.(Quotations received after
the stipulated date should not be entertained).
Number of couriers to be empanelled may be determined on the basis of volume of Dispatch.
However it is desirable to empanel more than one courier for an office. After selection of the
couriers as per the need of the office, a letter to the selected couriers may be issued specifying
therein the following points:
1) The Period of Contract.
2) Normally consignments to Metropolis,other than Metropolis and remote areas are to
be delivered with 24 hours, 48 hours and 72 hours respectively. If the consignements
are not delivered in time (except on occasions like imposition of curfew or due to
occurrence of natural calamities like floods, etc.) or damaged in transit, a penalty shall
be imposed on the courier. The third party charges and constuction charges of the
consignment, if any shall also be recovered from the courier’s monthly bill.
3) In case of loss of documents, the agency should lodge FIR, claim insurance compensation
and fulfill every formality as deemed necessary in recovering the documents and making
good the loss suffered by the Corporation.
4) Regular submission of Proof of Delievery (POD) which should invariably bear Seal of
the Consignee and Date of delivery. Payment should not be made in respect of
consignments for which PODs are not submitted.
5) Specify the time, which the office deems fit to enable the courier to send their pick up
personnel for collecting the consignments. The pickup personnel should be provided
with proper letter of authority/identity card by the courier company.
6) In case the services of the courier are not found satisfactory, the contract may be
terminated before the expiry of the contract.
7) A copy of our empanelment letter should be returned by them duly signed under seal
as a token of their acceptance of the contract.

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 CHAPTER 36
TELEPHONES
In respect of each fixed Telephone, both residential and official lines, STD Call Registers are
to be maintained. Each trunk/STD code call booked from the telephone either private or official
should be listed in the Register with all the details as per the column of the STD Call Register.
This will help in checking the telephone bills.
Normally, all telecom service providers furnish the details of all STD calls. If itemised billing
is optional and will be provided only on payment of a prescribed fee, such option shall be
compulsorily exercised in respect of telephones in the residence of officers who are eligible
for STD facility and itemized billing should be obtained. In respect of telephones in the
residence of officials who are not eligible for STD facility, itemized billing need not be obtained.
Soon after a bill is received, the correctness of the bill should be checked and the STD calls
should be bifurcated into official and private calls. After verification, the payment voucher is
to be prepared debiting Telephone Charges Account (113102) and Private STD Call charges
Recoverable Account (111876). Any discrepancy in the billing should immediately be brought
to the notice of the service provider and got rectified.
The charges for all the private STD calls should be recovered from the concerned employees
soon after the receipt of the bill if it is not paid at the time of making the call.
To ensure timely payment of telephone bills i.e. before the due date, the utilization of Electronic
Clearing System of MTNL/BSNL may be made wherever the facility of ECS is available, to
avoid payment of late fees. There is no extra charge for this facility.
S.T.D.BARRING:
S.T.D.BARRING:
No telephone at Office or residence should have S.T.D. facility except when permissible as
per rules. At the time of application itself, a telephone without S.T.D. facility will have to be
requested from the Telecom Service Provider. If the S.T.D. facility could not be barred by the
Service provider for want of the barring equipment, a register is to be maintained for the
noting of S.T.D. calls and the telephone shall be kept under lock and key. Alternatively,
telephone instruments which has STD barring facility which are available in the market may
be purchased.
Where the barring of S.T.D. is not done to a residential line, the concerned officer will not be
entitled for excess local calls beyond the permissible limit.
To check possible misuse of STD facility, the dynamic STD locking facility should be used
instead of physical locking.
Proper control on the use of Guest House telephone to be ensured by the Guest House Keeper
by insisting on entries of call details to be made by every guest using the telephone.
SHIFTING OF RESIDENTIAL TELEPHONES:
A residential telephone cannot be shifted more than two times from the time of its installation
at the residence of a particular Officer to the date of his transfer. If any shifting is done after
second time the shifting charges shall be borne by the concerned Officer.
LIGHTNING CALL
No lightning calls are allowed to be booked from any of the telephones and if call is booked
despite the standing instructions, the trunk call charges will be recovered from the concerned
employees.
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REVIEW OF EXCESS LOCAL CALLS
In respect of the residential telephones of Class I Officers, the Officer is eligible for total
number of 2700 (3600 at all Zonal Headquarters and ‘A’ class cities) local calls per year free of
cost. This 2700/3600 limit is inclusive of the free calls allowed by the MTNL/BSNL.
In case S.T.D. facility is permitted and provided at the residential telephones, S.T.D. calls for
official purpose shall also be borne by the Corporation. The Officer concerned will maintain
a record of all S.T.D. calls in the S.T.D.Calls Register (Form No.226) and will send the same to
the office for conversion of the S.T.D. calls into ordinary calls as per rates given in the Telephone
Directory. Such converted local calls will be borne by the Corporation in addition to the limit
of 2700/3600 local calls.
Any excess calls over and above the limit of 2700/3600 and the converted Official S.T.D. calls
shall be recovered from the concerned Officer. (While applying the recovery rate the amount
paid towards the local calls to the Telephone Department should be considered).
For facilitating the yearly review, we have to contact the MTNL/BSNL a fortnight in advance
for obtaining the local call readings as at 31st March or otherwise, the period of 12 months
shall be reckoned from the earliest bill paid during the current financial year and local calls
arrived at by taking the meter reading from the first and last bills in the period. Whenever an
Officer is transferred and the phone is disconnected from his residence or allotted to someone
else the reading of local call should be obtained from the Telephone Exchange by paying
necessary fee. These readings are to be sent to the Office to which the Officer was transferred.
Similarly, where an Officer is transferred in and was allotted a residential telephone, the
readings of local calls at his previous place shall be called for and the review is to be made for
whole year. Where an Officer is provided with a telephone facility for a part of the year only,
the proportionate free calls are to be allowed and not the entire 2700/3600 calls.
As soon as the review of excess calls on the residential telephones for the year is over, the
officer concerned should be advised to pay for the excess calls. In case he does not pay within
a month from the date of intimation to pay the excess call charges, the excess calls charges
should be recovered from the salary irrespective of the fact that his representation is pending
or not. In case it is decided to waive excess calls charges or a part thereof, the amount therefore
will be refunded to the officer concerned.
WAIVER OF EXCESS LOCAL CALLS:
As per the present rules, Zonal Manager in charge of the Zone may on a representation received
from the officer concerned, waive recovery of charges in excess of the permissible limits of
2700/3600 calls by upto another 2700/3600 (as the case may be) provided that the Zonal Manager
in-Charge is satisfied, having regard to the nature of duties and performance of the officer
concerned that such excess calls could be official purposes or that the waiving of recovery
shall be justified on other grounds.
However, the excess local calls cannot be waived in respect of the following cases:
1. When the barring of STD is not done in the residential telephone of an offier who is
not eligible for STD facility, the concerned officer will not be entitled for waiver of
excess local calls.
2. When access to code 95 facility has been provided in the residence of marketing officials
who are not eligible for STD facility, the excess local calls cannot be waived.
3. Excess local calls cannot be waived, when the telephone is connected to internet. Excess
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 locall calls can be waived only if the officer gives a declaration to the effect that the
telephone was not connected to internet during any part of the year under review.
Tariff Options:
BSNL/MTNL offers a variety of tariff options on the landlines. Depending on the usage of the
telephone, suitable tariff opiton shall be selected. This will reduce the telephone bill
considerably. The tariff option chosen should be reviewed on half-yearly basis and depending
upon the increase or decrease in the number of calls made from the telephone, the tariff
option should be changed. However, it should be noted that tariff option should not be exercised
in respect of residential telephones.
STD FACILITY TO SENIOR OFFICIALS
FACILITY
The following are the guidelines to be followed:
1. For ZM and above, STD facility is allowed. No register need to be maintained. There
will be no review of calls.
2. In the case of Zonal office, Regional Managers and other officers in the rank of DM/
SDM who report directly to the Zonal Manager shall have a direct telephone with STD
facility.
3. In the case of a Divisional Office, only the Senior/Divisional Manager in-charge and
the Marketing Manager shall have a direct telephone with STD facility. STD facility
should be barred for all other Officers of the Divisional Office irrespective of their
cadre.
4. In the case of Zonal Training Centres, only the Principal shall have a direct telephone
with STD facility. No STDfacility is allowed in case of Sales Training Centres.
5. Officers in the rank of SDM and above shall have STD facility on their residential
telephones, subject to propermaintenance of STD call register. No waiver allowed in
case of non-maintenance of register.
6. Strict control should be maintained for STD Calls.
7. Register giving full details of all trunk calls, STD calls etc. should be maintained.
8. The limit of calls allowed to residential telephones is 2700 calls (3600 calls for all Zonal
Headquarters and ‘A’ class cities) which includes the free calls allowed by the service
provider.
9. Over and above the free call limit specified as above, official STD calls are allowed to
Officials provided STD calls register is maintained properly and submitted to the OS
department on monthly basis.
10. In case both the husband and wife are Officers and are eligible for residential telephone
facility, the number of free calls allowed shall be 1.5 times the number specified. It
should be noted that only one telephone shall be provided for the use of both the Officers.
11. Any telephone calls made in the excess of what is specified as and personal STD calls
should be borne by theOfficer only.
12. The rules are subject to change in instructions received from Central Office from time
to time.
13. Facility of cordless phone at residence allowed to SDMs/DM-in-charge of a Division

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 and to all Officers of the rank of Chief/ZM & above.
14. No Officer will have (except MDs & Chairman) more than one direct telephone either
a residence or in office.
ELIGIBILITY FOR MOBILE PHONES:
Purchase of Mobile handset by office for use of the rank of ZM(Ordinary & Selection) Scale:
w.e.f. 11.06.2010 officers of the rank of ZM(O) Scale will purchase their own mobile handset
but the maximum reimbursement will be limited to ` 10000/- (all inclusive). The limit will be
` 12500/- (all inclusive) for ZM(Selection Scales) rank officers. Refer C.O. Circulars dtd
11.06.2007, 11.10.2007 and 17.07.2010.
Purchase of Mobile handset by office for use of Sr. DM-in-Charge of Divisions: w.e.f. 17.07.2010
the monetary limit for purchase of a mobile handset for Sr.DM-in-Charge of a Division will be
` 6000/-(all inclusive)- Refer C.O. Circular dtd 17.07.2010
G Itemised billing which costs ` 50/- per month approximately should be invariably availed
of.
G There will be a ceiling of ` 1500/- per month including service charges for the entire
bill. Alternatively, the ceiling for the quarter can be ` 4500/-
ISD facility cannot be allowed.
G National roaming facility can be allowed for ZM and above.
G In case of loss of mobile phone, the officer will have to go for replacement at his own
cost.
G Review of Mobile phone expenses in respect of these officers should be done on quarterly
basis and the excess if any should be recovered.
I)) Reimbursement of Mobile phone bills:
It has been decided to reimburse actual mobile phone bills to eligible officials (officials other
than those from Direct Marketing Deptt) subject to the following limits:
DZM/SDM on the administrative side - ` 750/- p.m.
Regional Manager (P&GS) - ` 1500/- p.m.
Regional Manager (Banc & AC)/Micro Insurance. - ` 1500/- p.m.
Managers (P&GS) in the cadre of ADM - ` 750/-p.m.
Managers (P&GS) in the cadre of DM - ` 1000/-p.m.
BDM in the cadre of ADM - ` 750/- p.m.
BDM in the cadre of DM - ` 1000/- p.m.
Marketing Managers - ` 1250/- p.m.
Manager(Sales) - ` 1000/- p.m.
ABM(Sales) / BM/SBM - ` 750/- p.m.
CO/Zonal Security Officer - ` 500/- p.m.
Staff Car Drivers in Z.O. & C.O. - ` 500/- p.m.

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II) Reimbursement of mobile charges to marketing officials of Direct Marketing
Department will be as follows:
Sr No. DESIGNA TION OF MARKETING OFFICIAL
DESIGNATION MONTHL Y
LY
POSTED IN DIRECT MARKETING DEPTT
DEPTT.. LIMIT UPTO
(` )
1 ABM (Sales)/BM-In-Charge, Sr.BM 750/-
2 Branch-in-charge in DM’s cadre (at par with 1,000/-
Chief Manager)
3 Regional Manager (D-Mktg) in DM’s cadre 1,250/-
(at par with Marketing Managers)
4 Regional Manager (D-Mktg) in DZM cadre 1,500/-
(at par with SDM-in-charge)
(Ref: CO Circular ref: CO/OS/Mobile-phones/232-K dtd. 18.08.2009)
For officers in the cadre of SDM and above, the benefit of quarterly ceiling on reimbursement
of mobile charges as allowed for officers in-charges of Division and ZM and above can be
provided (` 2250/- per quarter).
If an officer eligible for reimbursement of monthly mobile phone charges opts for the Prepaid
Card based mobile phone facility, the reimbursement of monthly charges will be sanctioned
on the basis of the officer concerned submitting a satisfactory proof of payment made by him/
her for purchase of such a Pre-paid Card.
It may be noted that only for officers in charge of Division and officials in the cadre of ZM and
above, the office can pay the bills to the service provider directly and effect recoveries of
excess amount. For all other officials only reimbursement based on the bills/ receipts should
be allowed and the officer needs to have his/her own duly activated mobile connection including
own handset. It should also be noted that reimbursement should be done on monthly basis
and only the eligible amount per month subject to actuals should be reimbursed every month.

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 CHAPTER 37
STAFF CAR
STAFF
As per C.O. circular ref: OS/STAFF CAR dated 3/5/88, the Zonal Manager will be the Competent
Authority to sanction purchase of staff cars and also to sell old cars by following the usual
procedure for such sales. Before effecting the actual purchase of car, budget provision is
required to be made in the Annual Budget and specific financial sanction obtained.
The number of staff cars to be retained by each Zonal Office are restricted by the above-
mentioned circular save if the special sanction is obtained from the Central Office. It is also
decided that staff cars will not be provided to any Divisional office.
The revised conditions for replacement of the old staff car by a new one are as per CO.Cir.
Ref:CO/OS/B/SHN/2011-12/09 dated 21.12.2011. The gist of the same is as follows:
1) After the car has run 2 lakhs kms or after a period of 8 years from the date of purchase
whichever is earlier.
OR
2) The amount spent on repairs of the car exceeds ` 50,000/- in each of the two previous
consecutive years immediately prior to the year of disposal of the car.
OR
3) When the car meets with an accident and it is found unsafe to make further use of the
car.
Notwithstanding what is stated above, in case of conditon nos. 1 & 2 the car should
have run atleast for 5 years from the date of purchase.
The Zonal Offices must dispose of the replaced car within 3 months of the date of
purchase of the new car. On no account such a car should be continued in use after 3
months.
DISPOSAL OF STAFF CARS
STAFF
The procedure to be followed for disposal of Staff Cars is as follows:
1) Z.M. has to constitute a committee of 3 members of the cadre of D.M. & above to receive
tenders & to arrive at a floor level price for disposal.
2) The Chairman of the committee will be authorised to receive the tenders.
3) The Committee shall value the car to be disposed & submit the report in a closed cover
to R.M (E&OS). The cover is to be opened along with the tender.
4) An advertisement is to be placed in two leading dailies - one English & one local
language newspaper. The same matter can be displayed in Notice Board & in the Intranet
Site to enable participation of employees in the tender. The two newspapers (full copy
of the newspapers) carrying the advertisements should be filed.
5) Tenders with EMD of ` 5000/- to be paid by Cash / D.D only to be called for, which will
be refunded or adjusted towards the sale price after finalisation of tender.
The application form should consist of the following conditions:
I) The car is available for sale on ‘AS IS WHERE IS’ basis only to the highest

389
 bidder.
II) The Earnest Money Deposit in respect of unsuccessful bidders will be refunded
without interest after the sale is completed.
III) The successful bidder should deposit the sale price less the EMD by Cash / D.D.
only within a week from the date of receipt of the intimation of the acceptance
of offer by the Corporation. Otherwise, the EMD will have to be forfeited.
IV) Over & above the price quoted, the successful bidder should reimburse the
Corporation, the proportionate insurance premium & Road Tax (if any) for the
balance financial year & also appropriate Sales Tax (if any) in force in respective
states.
It has to be ensured that the entire process of disposal of Staff Car should be completed
within 3 months from the purchase of a new Staff Car.
After the sale is over, a declaration from the buyer is to be obtained stating that the entire
risk if required will be taken by him/her from the date of sale. All the documents in original
like R.C, Insurance, Tax token along with 2 sets of keys are to be handed over to the buyer
after obtaining acknowledgement.
The buyer may be requested to submit a copy of the R.C. Book after the name of the owner is
changed therein by means of an endorsement by Transport Department.
The sales Tax collected from the buyer is to be remitted to the Sales Tax Authority & a Certificate
stating that the Sales Tax collected has been remitted should be sent to the buyer.

390
 CHAPTER 38
LIBRAR
LIBRARYY
Books enrich people. But very few people can afford to buy all the books they would like to
read. The origin of the concept of Library can probably be traced to that. And today many
Offices have a Library of their own not only for the benefit of their employees, but for the
benefit of the Organisation because they really look forward to knowledge workers,
knowledgeable workers.
In the Life Insurance Corporation of India, barring Branch Offices, all other Offices have a
fairly good Library and the Libraries in the Central Office, Management Development Centre,
most of the Zonal Offices and Zonal Training Centres can probably boast of having a very rich
Library. To ensure that the Libraries are managed well and thereby the benefits to the
employees and the Organisation accrue to the fullest possible extent, a few norms and
guidelines are provided below:
The Competent Authority for taking decisions in the matters of Library will be the Head of
the Office. He will be assisted in decision making by a Committee. While constituting the
Committee, the Head of the Office may keep in mind the knowledge needs in varied fields.
For example, the Executive Director (E&OS) has constituted a Library Committee consisting
of people from Departments like Information Technology, Actuarial, Investment and Marketing.
A person with a literary knowledge/taste may also be included in the Committee. Official in
charge of the library may also be associated in the decision making as most of the notes may
emanate from him/her. Cadre of the Officer or Official need not be a bar.
It is expected that the libraries will function under the aegis of the OS Department of the
Concerned Office.
The meetings of the Library Committee may be need based, but the Committee should meet
atleast once in a quarter and there should be atleast three members in the Committee.
Proceedings of the meeting should be numbered and kept properly. Books should be called
from Suppliers on approval basis and put up to Library Committee for perusal and making
recommendation to the Competent Authority for final purchase within sanctioned budget,
may be after obtaining viewpoint of a knowledgeable employee.
Instructions as per Official Language Implementation (O.L.I.) provisions should be followed
while purchasing books. As per the current instructions, 50% of the budget spent for library
books should be exclusively for Hindi Books.
Books purchased should be registered in Accession Register or on P.C. preferably on P.C. to
facilitate updation.
The classification of books should be done as per DEWEY DECIMAL CODE OF
CLASSIFICATION (ddc) which is a universally accepted system for classifying books
subjectwise. In this system classification number of book is given by making reference to the
Code Book. The classification number indicates the subject of the book. The subject discussed
in the book can be found out by going through the content page of a particular book and the
book can be further classified accordingly. The classification of books helps in retrieval of
book in a short period. The purpose of classification is to collect or keep books on similar
subjects at one place which will help us to know about the extent of collection of books on one

391
particular subject. The books can be broadly classified as under :-
1. 000 - GENERALITIES
2. 100 - PHILOSOPHY AND PSYCHOLOGY
3. 200 - RELIGION
4. 300 - SOCIAL SCIENCES
5. 400 - LANGUAGE
6. 500 - NATURAL SCIENCES AND MATHEMATICS
7. 600 - TECHNOLOGY (APPLIED SCIENCE)
8. 700 - THE ARTS
9. 800 - LITERATURE AND RHETORIC
10. 900 - GEOGRAPHY AND HISTORY
Books should be arranged subjectwise & in that, authorwise. Subject, Title & Author catalogue
cards should be prepared & arranged in catalogue cabinets. List of books with details like
Accession No., Author, Title, Publisher, Cost, Year of Publication, Edition should be maintained
by library for the purpose of reference. At the time of purchase of books, library should get
10% discount as a special library discount from the supplier.
In case of loss of books at the hands of any reader, the lost book should be replaced with
original accession number. Physical verification of books should be done once at the end of
every financial year. The list of books not traceable during the annual library stock-taking
should be placed before the Competent Authority for suitable instructions on the matter. List
of such books with original cost & depreciated cost, which is calculated @ 20% per year, should
be sent to F&A Deptt. after approval of Competent Authority for necessary accounting entry.
1) All confirmed employees can become members of the Library. Retired employees can
become member as per the Circular of C.O. Ref: OS/LIB/54 dated 10.6.97 i.e. (only Pension
Holders). Two Library Cards will be given at the time of registration of Library
Membership.
2) Employees can become members of the Library of the Office they belong to.
3) If Z.O. & Divisional Offices are in the same premises, there is no need to have a different
library at Divisional Office. In such a case, Divisional Office employees can become
members of Z.O. Library.
4) Even if Z.O. & Z.T.C. are in the same premises, Z.T.C. can have a separate Library.
5) Library hours for issue & receipt of books as well as for the purpose of reading should
be recommended by the Library Committee for approval by the Competent Authority.
6) A maximum number of two books can be issued to a member at a time.
7) Books will be issued for 30 days. If any reader wants to keep any book for a longer
period, he/she can get it renewed for further 30 days if there is no request for that book
from some other member.
8) Any book issued can be called back before the expiry of the prescribed period, if required
for some special reason.

392
9) Books have to be returned within 30 days from the date of issue by all members. If any
member does not return the books within 30 days, a fine at the rate of ` 1.00 per day
should be charged upto one month.
If the books are not returned even within one month, the market cost i.e. the prevailing
rate in the market for the book & fine calculated at the above rate should be recovered
from the salary/pension of the concerned employee/pensioner. If the non-returned book
is not available in the market, it should be considered as a ‘rare book’. In such a case, an
amount to be determined by the Officer-In-charge of the Office, should be collected.
The amount should be quite heavy so that nobody can think of getting away with a rare
book by paying some small penalty. In other words, the amount should really discourage
such an attempt. No books should be issued to such a member till the recovery is made.
10) Every member will be held responsible for proper handling and maintenance of the
books drawn on his/her name.
11) Books should not be transferred from one member to another member or to a non-
member under any circumstances.
12) Books issued for official use will be for limited time as per the job requirement. In such
cases borrower, as named by the Department-in-Charge, will be held responsible for
return of the books & fine will be calculated as per rules for overdue books.
13) Books should be returned without any damage. No markings should be done on books.
If the book is damaged, the reader should be asked to replace the book and in case he
does not do that, the market cost of the book alongwith fine due should be collected
from him.
14) Books which are rare and costly should not be issued. However, when absolutely
necessary, such a book can be issued for one week’s time with special permission of
Library-in-charge. Head of the Department has to submit written requisition in such
cases.
15) Silence is to be maintained & smoking is to be strictly prohibited in the Library premises.
16) Change in address of the member shall be reported promptly.
17) Borrower has to sign on library card against the issue out for every book.
18) Purchase of newspapers & journals should be done within sanctioned budget. Follow
up action should be taken if budget has not been allotted. The Library Committee will
recommend the newspapers and journals to be purchased within sanctioned budget
for the approval of the Competent Authority.
19) In case books get torn out or soiled due to improper handling or even because of normal
use or they become obsolete or outdated, such books should be weeded out & disposed
off. the Library Committee should recommend the name of books to be weeded out to
the Competent Authority.
20) A refundable deposit of ` 100/- will be collected from the member who wishes to borrow
any text books required for Insurance Institute of India, Actuarial etc. examination.
The employee student borrowing such books will also have to produce the certificate
or fee-slip showing that he/she is a bonafide student appearing for the examination.
The books of above category will have to be returned, within 30 days & if not returned,
fine will be collected at the rate of Re.1.00 per week for 2 weeks reckoned from the due

393
 date of return. If the books are not returned even after a further two weeks’ time, i.e.
within 45 days from the date of borrowing, the full market cost of the book and fine
calculated at the rate mentioned above will be recovered from the defaulter.
21) Library should be informed about the transfer/retirement/resignation/death of any
employee under the jurisdiction of the Concerned Office. OS Department should obtain
No-dues Certificate from the Library before the settlement of final dues.
22) Library Committee can recommend for the withdrawal of the library facilities to any
member who has misused the privileges given or broken any of the above rules.

394
 CHAPTER 39
PERIODIC STATEMENTS
STA
OFFIC
OFFICEE SER VICE
SERVICE
VICESS DEP ARTMENT
DEPARTMENT
BRANCH OFFICE PERIODICAL ST
STAATEMENTS & RETURNS TO
DIVISIONA
DIVISIONALL OF FICE
OFFICE
S l . Name of the Statement/ P e r i o d i c i t y Due Date From Re m a rks
No. Return BO to DO
01 WSR for P&IR Dept. Monthly 7th of the following To DO/P&IR
month
02 WSR for OS Dept. Monthly 7th of the following To DO/OS
month
03 PF Deduction Statement Monthly 7th of the following To ZO/PF
(alongWith Cheque) month
04 Monthly Statement on Monthly 7th of the following To DO/P&IR
IndustrialRelations month
05 Statement of Monthly 7th of the following To DO/BSU
complaintsTo DO month
06 Monthly Register of Monthly 5th of the following To DO/P&IR
Badliworkers for month
temporary appointments
07 Monthly statement of Monthly -do- TO DO/P&IR
increments & OS
08 Statement of deductions Monthly -do- To DO/OS
of group term Premiums
under GSLI Scheme
09 OS/Advance against TE Monthly -do- -do-
(Pending for more
than 2 months)
10 Statement of Un- Monthly -do- TO DO/P&IR
authorised absence & OS
11 Meal Coupon- Annexure D Monthly 10th of the following TO DO/OS
month
12 HFL Deduction & Monthly 1st of the following TO DO/OS
Reconciliation Statement month
13 Fixed Assets Schedule Quarterly 10th of the following TO DO /OS
22(Generated through month
module)
14 Statement showing Basic Hly 7th October and TO DO/OS
Pay of employees opted (September 7th April
for Pension and March)

395
 S l . Name of the Statement/ P e r i o d i c i t y Due Date From Re m a rks
No. Return BO to DO
15 PL Valuation Statement Yearly 2nd January TO DO/OS
(Generated through
module)
16 Basic salary-wise Yearly 30th April To DO/OS
distributionOf employees
17 Salary disbursement -do- 30th April To DO/OS
statement forThe year
18 Statement of Inventory -do- -do- -do-
Furniture& Fittings
19 Stock of Printed and -do- -do- -do-
TableStationery
20 Review Statement of -do- -do- -do-
ResidentialTelephones
of Officers
21 Statement of employees -do- 10th April -do-
covered under mediclaim
22 Fixed Assets Schedule 22 -do- 20th April -do-
& 10(generated through
module
Divisional Office to Zonal Office and Zonal Office to Central Office
S l . Name of the Statement / P e r i o d i c i t y Due Date Due Date Re m ar k s
No. Return F ro m DO
rom From ZO
t o ZO t o CO
01 Work Status Report Monthly 7th of the -NA-
following
month
02 Air Travel Statement Monthly for -do- 20th of the
(List of Officers/Employees D.O & month after
who had travelled by air Quarterly the end of
during the month) for Z.O quarter
03 Statement of retirements/ -do- -do- -do-
terminal benefits settled
04 Statement of Advances Quarterly 15th of the 20th of the
against MediClaim month after month after
the end of the end of
quarter quarter
05 Annexure II Statement of Yearly 15th April 30th April.
Details of Insured Persons Separate
under Medi-claim Statement for

396
S l . Name of the Statement / P e r i o d i c i t y Due Date Due Date Re m ar k s
No. Return From DO From ZO
to ZO to CO
employee in
service and
Retired
employee
06 Annexure IV: Statement -do- -do- -do-
of Number of confirmed
employees opting for
Mediclaim (category wise)
07 Capital Budget Review Half Yly for 31st October 31st May of
Statement DO & yearly or 15 days the following
for ZO from date of year
allotment of
budget which
ever is earlier
for first Half
Year & 15th
May of the
following year
for second
Half Year
08 Statement showing progress Monthly for 7th of the 16th of the
of supply of purchase DO & Qly following month after
contracts & value in excess for ZO month the end of
of 2 crores quarter
09 Statement of Destruction Monthly 7th of the 15th of the
of old records and Disposal following following
of old items month month
10 Statement of Implementa- Monthly 7th of the 15th of the
tion of O.S Modules following following
month month
11 Statement of O/s E.W.P Monthly 7th of the 15th of the
position following following
month month
12 K.P.I of Manager(O.S) Monthly 7th of the 15th of the
following following
month month
13 Quarterly statement of Quarterly 7th of the 15th of the
Tour month after month after
the end of the end of
quarter quarter

397
S l . Name of the Statement / P e r i o d i c i t y Due Date Due Date Re m ar k s
No. Return From DO From ZO
to ZO to CO
14 Annexure “D”-Meal Coupon Monthly 15th of the 20th of the
Statistics following following
month month
15 Pension Valuation Data Yearly 7th April of 15th April of
the following the following
year year
16 P.L Valuation Data Yearly 7th January 15th January
of the year of the year
17 Review of local calls of all Yearly 31st May of -N.A-
residential telephone lines the following
of all eligible Officials of year
the Division.
EST
ESTAA TES DEP ARTMENT
DEPARTMENT
S l . Name of the Statement/ P e r i o d i c i t y Due Date Due Date Re m ar
arks
No. Return From
Fro m DO From ZO
to ZO to CO
01 Work Status Report Monthly 15 of the -NA-
following
month
02 Vacant premises and Quarterly 7th of the 15th of the Disconti-
vacantStaff Quarters month after month after nued w.e.f.
the end of the end of the 1.4.2009
the quarter quarter
03 Hiring & letting out of Quarterly -do- -NA- Disconti-
premises nued w.e.f.
1.4.2009
04 Cases pending under P.P Quarterly -do- 15th of the Disconti-
Act along with the present month after nued w.e.f.
position the end of 1.4.2009
the quarter
05 Statement of Ready Built Quarterly 7th of the -do- Disconti-
Properties month after nued w.e.f.
the end of 1.4.2009
quarter
06 Inspection of properties Quarterly 15th of the -NA-
month after
the end of
the quarter

398
S l . Name of the Statement/ P e r i o d i c i t y Due Date Due Date Re m ar k s
No. Return From DO From ZO
to ZO to CO
07 Hired Premises leased out Half yearly 15th of the -NA- Disconti-
to Class I Officers month after nued w.e.f.
the end of 1.4.2009
half year
08 Rent in arrears for more -do- -do- -do- 15th of the
than six months & action month
taken after the
end of the
half-year
09 Yearly Statement of -do- Within 15 Within 30
changes in investment of days after days after
House Properties submission submission of
of T.B T.B
10 Yearly Statement of Staff -do- 15th April 30th April
Qtrs. allotted to SC/ ST
employees
11 Inventory of properties in Yearly 15 days after 30 days after
the new proforma submission submission
of audited of audited
A/cs A/cs
12 Income, Expenditure & -do- 30th April 15 days after
Yield Percentage submission
of audited
A/cs
13. Staff Quarters position Yly 15th April DO TO ZO
14. Leased Accomodation Yly 15th April DO TO ZO Disconti-
nued w.e.f.
1.4.2009
15. TDS Yly 30th April
16. PSU Tenants Monthly 5th / 7th 10th Introd-
uced
w.e.f.
1.4.2009
17. Hiring of premises Monthly 5th / 7th 10th Introd-
uced w.e.f.
1.4.2009
18. Vacant Plots Monthly 5th / 7th 10th Introd-
uced w.e.f.
1.4.2009

399
S l . Name of the Statement/ P e r i o d i c i t y Due Date Due Date Re m a
arr k s
No. Return From DO From ZO
to ZO to CO
19. Vacant Space Monthly 5th / 7th 10th Introd-
uced w.e.f.
1.4.2009
20. P.P. Act Cases Monthly 5th / 7th 10th Introd-
uced w.e.f.
1.4.2009
21. Ready Built Premises Monthly 5th / 7th 10th Introd-
purchased during the year uced w.e.f.
1.4.2009
22. Details of Plots purchased Monthly 5th / 7th 10th Introd-
uced w.e.f.
1.4.2009
23. Leased Accommodation Monthly 5th / 7th 10th Introd
uced w.e.f.
1.4.2009
24. Vacant Staff Quarters Monthly 5th / 7th 10th Introd-
position uced w.e.f.
1.4.2009
25. Quarterly Statement of Quarterly 10th of the 15th of the Introd-
Tenancy Verification month after month after uced w.e.f.
the end of the the end of 1.7.2009
quarter the quarter
26. ATR (Important Data) Monthly 5th 10th Introd-
uced w.e.f.
August
2011

400
 CHAPTER 40
DESTRUCTION OF OLD RECORDS
Space means cost. The Space occupied by unnecessary records adds cost to the organisation.
It is, therefore, necessary that the records which are obsolete and old have to be destroyed.
The time schedule for the destruction of records has been fixed keeping in view the period for
which the records will have utility for Office use as also for any future reference in connection
with the Audit Queries, etc. The period of retention of the records has been prescribed
after taking into consideration the statutory period of retention of various records. Any
correspondence/receipts regarding the amount paid by our office towards Telephone Deposit,
EB Deposit, etc., should be preserved separately and permanently.
Time schedule for destruction of various records pertaining to O.S. Section of O.M. Department
Office is furnished hereunder.
(Ref.CP/CO/2000 dated 18.11.2000.)
Sl. Name of the Record Time Limit after which the records
No. are to be destroyed
1. Indents for supply of 1 year after the expiry of the financial
Table and Printed Stationery year to which they relate
2. Indents for forms etc. used by 1 year after the expiry of the financial
Branches (F.No.4403) year to which they relate provided there
are no outstanding Audit/Accounts
queries or if they are required for any
investigation work.
3. Supply of Printed Forms -do-
Stationery etc.(F.No.4404)
4. Stationery Receipts 2 years after the expiry of the financial
Register at BO/DO/ZO/CO year to which they relate provided there
(F.No.4902) are no outstanding Audit/Accounts
Queries or if they are required for any
investigation work.
5. Stationery Issue Register at BO -do-
(F.No.4903)and at DO/ZO/CO
6. Stationery Stock Register 3 years provided there is no O/s Audit
at BO/DO/ZO/CO (No.4402) query. It is not necessary to keep the stock
Register beyond 2 or 3 years.
7. Railway Receipt Register 3 years after the expiry of the financial year
to which it relate.
8. Copies of orders placed 2 years after the expiry of the financial year
with the suppliers to which it relates
9. Bills Received Register 3 years after the expiry of the financial year
to which it relates, provided there are no
outstanding bills to be settled.

401
10. Challans received from 3 years after the expiry of the financial year
Suppliers to which they relate, provided there is no
dispute involved
11. Copies of bills received 2 years after the expiry of the financial
from suppliers year to which they relate.
12. Proceedings of the Stores 5 years after the expiry of the financial
Committee and the relevant notes year to which they relate
there of
13. Miscellaneous correspondence 3 years after the close of the file, or after
with suppliers the settlement of bill, whichever is later.
14. Copies of note of sanctions 2 years after the expiry of financial year
obtained for the purchase of to which they relate
stationery
15. Furniture Inventory Register To be preserved permanently
(F.NO.4908)
16. Furniture Stock Register -do-
17. Furniture/Equipment movement 2 years after the expiry of the financial
advices year to which they relate or in which
the physical verification was done in
respect of the articles mentioned in the
movement advices, whichever is later,
provided the items shown in Furniture
Inventory Register (Form NO.4908) are
reconciled with records maintained by
Accounts Deptt.,
18. Copies of statement of furniture, 3 years after the expiry of the financial year
fixtures, equipment, etc. on hand as to which it relates.
at 31st March prepared by Branch,
Divisional, Zonal &Central Offices.
19. (a) Despatch Register 3 years from the close of the year to which
(Ordinary) (F.NO.4905) it relates
(b) Despatch Register -do-
(Regd.) (F.No.4907)
(c) Hand Delivery Book -do-
20. (i) Copies of stock position of 1 year after the expiry of the financial year
printed forms and Table Stationery to which they relate
as at 31st March and their value
(ii) Copies of such statements -do-
prepared & maintained at the
OS-Estb Depts.of DO/ZO/CO

402
21. Trunk Call Register 3 years after the date of last entry recorded
provided there are no outstanding Audit or
Accounts Queries in respect of any of the
calls recorded in the Register.
22. Assistant’s Inward Register 1 year after the date of last entry provided
the register is not required to be preserved
in connection with the assessment of output
of any Assistant or for any other purpose.
23. (i) Postage Register 3 years from the close of the year to which
(BO/DO) form no.3435 it relates provided there is no outstanding
Accounts/Audit or any other Queries
relating to the subject matter of the postage
account.
24. Inward Register for Telegrams 1 year from the close of the financial year
to which it relates.
25. Inward Letter Register 1 year from the date of last entry in the
(Ordy.) (F.No.4904) register
26. Inward Letter Register 3 years from the date of last entry in the
(Regd.) (F.No.4906) register.
27. Telegram Files 3 years from the close of the year to which
they relate
28. Postal Receipt File 3 years from the close of the entry to which
they relate
29. List of Registered Articles -do-
(Received from the Post office)
30. Correspondence file File may be destroyed by the Department
after considering the importance of the
matter concerned and after obtaining
sanction of the Officer-in-charge, who will
be guided by the general instructions of
O.M.Department issued already.
31. Copies of Misc.Statements 3 years after the expiry of the financial year
such as a)Festival Advance, to which it relates.
b) Cycle Advance, c)Flood Relief
Advances, etc. prepared for
closing of A/cs purpose.
32. Copies of overtime Bills -do-
33. Copies of Travelling Expenses Bills. 2 years provided there is no Audit Query.
34. (i) Copies of Salary Sheets and 3 years after the expiry of the financial year
deductions statements to which which they relate.
(ii) F.No.24 - Annual Returns To be destroyed after Income Tax
Assessment is over.

403
35. Movement Advices for the
preparation of Salary Sheets(such
as Increments)
36. Files/Registers pertaining to purchase,
sale, repairs and maintenance of Staff
Cars and Cars under Scheme No.1
37. Attendance Register
38. Late Memo/Short Leave Applications
39. Leave Applications (i)Casual Leave
(ii) Leave Application C.L.
(Not supported by Medical Certificate)
(iii) Leave Application C.L.
(Supported by Medical Certificate)
(iv) Privilege Leave
(on Medical Ground)
(v) Sick Leave
(vi) Other types of leave applications
(M.L./EOL/Leave on loss of pay etc.)
40. Personal files of the employees who
have retired/resigned/died/while in
service/ dismissed/terminated.
41. Leave Registers:
(a) Leave (other than CL) Register.
(b) Casual Leave Register
42. Periodical Returns relating to staff
statistics (i) Monthly Statement of
salaries Paid.
404
3 years after the expiry of the month to
which they relate.
3 years after the close of the financial year
in which the motor car is sold/disposed/
repair maintenance provided there are no
discrepancies in the accounts regarding
such cars as also there is no outstanding
Accts./Audit or any other queries relating
to the sale of motor cars.
Immediately after the expiry of minimum
period for which they are required to be
preserved under the local “Local Shops
&Commercial Establishment Act”.
Immediately after the Casual Leave year
is over.
Immediately after the Casual Leave year
is over
-do-
After 3 years of expiry of Casual Leave year
to which it belongs
In respect of leave on medical grounds
(particularly in respect of major diseases/
operations) the applications should be
preserved through out the service,
otherwise to be destroyed after 3 years)
-do-
-do-
5 years after the expiry of financial year in
which their retirement benefits have fully
and finally been settled or outstanding
dues are fully and finally recovered,
whichever is later.
To be preserved throughout service of the
employees and destroyed 5 years after the
employee ceases to be in services.
To be destroyed along with the Attendance
Register relating to the Casual Leave year.
6 months after the expiry of the financial
year to which they relate.
 (ii) Qly. Statements of position of -do-
staff in each class.
43. P.F.Statements to ZO and May be destroyed only after all the querries
correspondence relating thereto. raised by ZO have been replied to and then
with permission of ZO. All other
statements may be destroyed at the expiry
of 3 years from the last date of the financial
year to which they relate.
44. Statements received by the DO Destroy after one year
from the Branch Office under
Management Information System
and WSR.
45. (a) Guest House Booking Applications, After one year provided full payment is
Receipts, Bill Books, Registers, Charts, received.
Budget Control Sheets and Expense
Registers
(b) File pertaining to Guest House One year after the close of the financial year
Charges and Materials. In which accounts are cleared provided
there is no outstanding Accounts/Audit or
any other query relating to the subject
matter of Guest House charges and
materials.
46. Discharge Receipts of Pension Cell ** After three years from the expiry of
Financial Year.
47. Closed files in case of Death of both **After 8 years from the last paid entry
Pensioner & family pensioner also. if there is no dispute
48. ECS Files (Pension Cell) **After 3 years from the expiry of Financial
Year (As per Income Tax Rules)
49. Form No.16(Pension Cell) **After 4 years of the expiry of Financial
Year (As per Income Tax Rules)
50. Annual Returns Form No.24 **After 4 years of the expiry of Financial
(Pension cell) Year (As per Income Tax Rules)
51. Pension Vouchers **After 4 years of the expiry of Financial
Year (As per Income Tax Rules)
52. Courier Consignment Notes To be destroyed after one year.
and proofs of Delivery (POD)
** The Original Data of Pensioners & Family Pensioners has to be kept permanently along
with the mandate forms for ECS, Doctors Certificates, Declaration if any.

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 CHAPTER 41
MEAL VOUCHER SCHEME
The meal voucher scheme was introduced on 1st September 2010 for all the employees of the
corporation who come under the preview of LIC (Staff) Rules, 1960
MAIN FEA TURES
FEATURES
1. Scheme is applicable to all whole time employees, regular part timers including
Probationers & officers/employees who are on Deputation to LIC Offices.
2. Scheme NOT APPLICABLE TO - Temporary Employees, Senior Marketing Executives,
Financial Services Executives, employees who are appointed on ad-hoc basis & to whom
provisions of LIC (Staff) Rules, 1960 do not apply including CBSE & Actuarial
Apprentices
3. Chief Security Officer and Dy. Security Officer/Zonal Security Officer are also entitled
for the benefit w.e.f. 1.11.2010 (Letter Ref: Per/ER/A/G/M.Vouchers dated 23rd November
2010).
4. Facility of leaving office early up to an hour (which was provided vide Circular
No 3369/ASP/66 dated 16.05.1966) stands WITHDRAWN w.e.f. 1.9.2010
5. All employees have to mark their own attendance
6. Attendance for Class IV & regular part timers for whom login facility is not given, has
to be done by the Department which is responsible for attendance.
7. Maintenance of Muster roll for Class III & IV employees, etc. will also continue.
8. The benefit shall not cover the days if employee/officer avails of any kind of leave
including half day leave. It shall not cover the days when the employee/officer comes to
office late without express permission granted under special circumstances by the in
charge of the Branch in case of Branch and heads of the Departments in other Offices
(circular ref ZD/1158/ASP/2010 dated 1.09.2010). This entails two conditions (Letter
Ref Per/ER/A/G/M.Vouchers dated 25th Feb 2011):-
G Late should be related to special circumstances which are not related to personal
matters of the employee.
G There has to be an express permission from the authority as defined in the said
circular dated 1.09.2010.
9. Lumpsum amount in lieu of Meal Vouchers shall be made to the employees as per their
entitlement at places where the Meal voucher supplying Agency does not have any tie-
up arrangement/there are no outlets accepting Meal Vouchers.
Circulars Ref: CO/OS/B/GVR/2011/21 dated 1.3.2011 and Ref: CO/OS/B/GVR/2011/07
dated 4.11.2011
10. Dev. Officers will be paid Meal Voucher based on their performance as under:
Period Performance
First Qr. of F.Y. Min. 20 Policies each month
Subsequent Min. 25 Policies each month
months of F.Y.

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ELIGIBILITY AMOUNT OF MEAL VOUCHER
The Eligiblity amount of Meal Voucher as per revised rates w.e.f. 1.9.2011, vide Circular Ref:
ZD/1189/ASP/2011 dated 22/10/2011 issued by Personnel/ER Department is as under.
Cadre Eligibility amount of Meal Voucher per day
Voucher
Revised rates w.e.f. 1.9.201
w.e.f. 1.9.20111 Old rates upto 31.8.201
31.8.20111
ZM(O) & ZM(S) 220 200
SDM 190 175
DM 165 150
ADM 145 130
AO 120 110
AAO 110 100
Development Officer 100 90
HGA 90 80
Assistant /Steno /S.H. 80 70
Record Clerk 65 60
Class IV 55 50
Regular Part Time
Workmen 30 25

NO. OF ELIGIBLE DAYS IN A MONTH

DAYS
G Eligible days for payment of Meal Vouchers
= Total days in a month less [Sundays/Holidays + Leave + Period of absence of any kind
+ Late coming days + strike + on duty for examination + days for which DA is paid for
tour (excluding Sundays & Holidays]
G It is to be ensured that EMPLOYEE IS NOT PAID D.A. FOR TOUR & THE MEAL
VOUCHER FOR THE SAME DAY
G Officials / employees on local tour will be eligible for meal voucher for the day subject
to the condition that they are not eligible for daily allowance for local tour.
SETTING OF TIMINGS
G The timings to be set should be the commencement of Office hours for the respective
Offices.
G Ten minutes grace period and marking absence after one hour will be taken care of by
the system

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CONTROL REGISTER/RFM REGISTER (Cir ref: CO/OS/B/PSP/2010/13 dated 30th
Nov 2010)
G Proper control register to be maintained for RFM action for generating order for the
Meal Vouchers in the following format:
SL NAME DESIGN. SR AMT. REASON PREP. CHECK APPR.
NO. NO. ALTERED FOR ALT. BY BY BY

Register shall contain all types of corrections made in a given month while generating meal
voucher order ie. all additions, subtractions, changing status of the open entries, transfer in
actions, break down actions, exit actions, etc.
DISTRIBUTION LIST OF MEAL VOUCHERS
G The distribution list duly signed by the employee should be preserved as office records
for verification at a later date as per the regulations applicable from time to time
SAFE CUSTODY (Cir ref: CO/OS/P/PSP/001/2010/2 dated 30 th Sept 2010)
G Undistributed meal voucher booklets in respect of employees are to be sent in a sealed
envelope to F&A Department for keeping them in safe custody.
G Register to be maintained in the following format:
MONTH SR NAME DESIGN. ENVELOPE SIGN.
NO. OF EMP. CONTAINING THE
UNDISTRIBUTED
MVs HANDED
OVER TO DEPT
ON (DATE)

G If such employee does not resume the duty till 3rd working day of the following month,
the undistributed booklet pertaining to that employee should be returned to the Agency.
G Cancellation Register to be maintained in the following format:
MONTH SR NAME DESIGN. M.V.B. AMT. DT. OF DT. OF SIGN.
NO. OF EMP. FOR CANCELL FRESH
THE ATION DEMAND
MONTH .

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ST
STAATEMENTS
G A detailed consolidated report is to be sent by all Zonal Offices to Central Office O.S.
Deptt in the format given below by 15th of the following month for which Meal Vouchers
are paid/lumpsum payment is made.
- The report sent by BO to DO is to be authenticated by Branch In charge in case
of Branch Office and the report of DO is to be authenticated by Manager (OS).
- All Zones should send consolidated report to CO, OS Department duly signed
by respective Regional Manager (Cir CO/OS/B/PSP/2011/17 dated 31st Jan 2011).
MONTH NAME OF NAME CODE WHETHER IF YES IF NO,
DIVISION OF NO. SODEXO AMT. AMT. OF
OFFICE OFFICE AFFILIATE PAID LUMPSUM
IS PRESENT TO CASH
(YES/NO) SODEXO PAID IN
IN ` `

G Revised Annexure – D as per Cir. CO/OS/P/MVK/2010/6 dt. 30.10.2010 is to be sent by

15th of the following month for which the order for meal voucher is generated.
Validity of Meal Vouchers
Vouchers
G The Meal Voucher shall be valid from minimum 6 months to maximum 18 months ie the
Meal Vouchers issued in the month of June of any year shall be valid for 6 months and
the Meal Vouchers issued in the month of July any year shall be valid for 18 months.
Revalidation of meal vouchers
G For revalidation of meal vouchers concerned employee has to send the letter along
with the expired meal Vouchers to the agency through their respective office/department
within two months of expiry of the meal Vouchers. The agency will revalidate the
vouchers and dispatch the same to the concerned office.
COMPLAINTS
In case of any complaint regarding
G non-availability of affiliates
G over-charging by the affiliates
G non-acceptance of meal vouchers by the affiliates or
G any other disputes between the affiliates and the LIC employees e-mail to be sent to –
lichelpdesk.in@sodexo.com with a copy to C.O. – co_eos.mealcomp@licindia.com
Immediately after lodging the complaint, a system generated complaint number will be
received by the concerned location.
If the Agency fails to sort out the issue within 15 days from the date of receipt of complaint,
the concerned office should follow the procedure laid down in the Circulars Ref: CO/OS/B/
GVR/2011/21 dated 1.3.2011 and Ref: CO/OS/B/GVR/2011/07 dated 4.11.2011.
G Whenever complaints are received by the D.O., an officer not below the rank of AO
should be appointed by the Sr.D.M. for detail investigation. Such official should submit

409
 the report to the concerned office.
G Manager (OS) should put up the said investigation report before the Sr.D.M. along
with his/her recommendations.
G The concerned Sr.D.M. along with his/her recommendations should send the
investigation report and complaint of the office to the RM(E&OS).
G The RM (E&OS) has to put up the case to the Zonal Manager who would take appropriate
decision.
ACCOUNTING ASPECT (Cir ref: CO/F&A/CC-C-202 dated 14.9.10)
All offices have to operate proper account codes while making payment for meal vouchers or
making lump sum payment in lieu of meal vouchers
G Account codes for cash payment
Prepared through feap accounts module
112975 Payment in lieu of Meal Coupons-Class-I
112976 Payment in lieu of Meal Coupons-Class-II
112977 Payment in lieu of Meal Coupons-Class-III
112978 Payment in lieu of Meal Coupons-Class- IV & RPTE
G Account codes for Meal Voucher
Voucher
Concurrencia module generates an automatic voucher
112971 Meal Coupons-Class-I
112972 Meal Coupons-Class-II
112973 Meal Coupons-Class-III
112974 Meal Coupons-Class-IV & RPTE
Tax Deduction at source (TDS) from payments made towards meal Vouchers. (F&A
Vouchers.
Deptt circular ref: EDA/ZDB/934 dated 24.06.2010).
G 2% on total eligible amount for meal voucher has to be deducted as income tax every
month while making payment to Agency or making lump sum payment in lieu of meal
voucher.
G Tax deducted at source at prescribed rates should be deposited within the prescribed
time limit and returns of such deduction and remittance are to be filed followed with
issuance of TDS certificate in prescribed time limits.
G Any delay in this regard attracts penalty (F&A Deptt circular ref: EDA/ZDB/934 dated
24.06.2010).
G Offices are required to prepare the e-TDS return file in accordance with the electronic
data structure (file formats) prescribed by the Income-tax Department. Office can
prepare the quarterly e-TDS statements using in-house software or using latest version
of the Return Preparation Utility developed by NSDL or by using any third party
software (www.tin.nsdl.com).
G Form no 26 Q Statement in respect of Meal Voucher has to be submitted on quarterly
basis electronically.
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PERQUISITE T AX ON MEAL VOUCHER (CO F&A circular Ref: CO/F&A/T
TAX axation
CO/F&A/Taxation
Cell Cir no EDA/ZDB/941 dated 04.02.201 1)
04.02.2011)
G The perquisite tax on meal vouchers in excess of ` 100/-( Two meals per working day @
` 50/- per meal ) and has to be calculated on monthly basis (CO, F&A circular Ref: CO/
F&A/Taxation Cell Cir no EDA/ZDB/941 dated 04.02.2011).
G The tax calculation is to be done month wise and is to be remitted in the following
month along with the other TDS from salary as per Circular No. EDA/ZDB/933 dated
21/06/2010 issued by CO F&A Department.
GENERAL GUIDELINES
G Empoyees shall be granted MV for the days they are attending census duty if they are
not entitled for any TA/DA either from LIC or Census Authority.
G Only relaxation for development officer is that they can log-in at any time during the
day before close of office hours. Development Officers posted at Branch Office should
log-in at Branch Office and those attached to Satellite Offices have to log-in at Satellite
Offices through Attendance Portal for marking their attendance. Development Officers
stationed outside Branch Office Head Quarters / Satellite Head Quarters as the case
may be, will not be required to log-in as instructed vide sub-clause (v) (b) of clause (4) of
Circular No.ZD/1158/ASP/2010 dated 01.09.2010 issued by Personnel / ER Deptt..
G Apprentice Development Officer recruited from any category either selected from
Employee Category or any other categories are not entitled for Meal Vouchers. The
entitlement for Meal Voucher starts from the date of probation (Joining on Probation).
G Employees who are not entitled to any TA/DA for appearing in departmental tests will
be treated as ‘On Duty’ and are entitled for Meal Vouchers.
G The Sports persons are not entitled for Meal Voucher during the period of their
participation in any tournaments for the number of days they receive Special Sports
Allowance.
G An Employee is not entitled for Meal Vouchers during the period of Joining Time.
G Engineers posted at various project sites may be allowed to mark their presence in the
attendance register kept at the site only.
G Whenever the Designated Officer of any Office/Department is not available due to any
reason such as leave, etc., the location in-charge of such Office/Dept can nominate any
other official as designated Officer for the purpose of generation of voucher.
G Similarly whenever the location In-charge of any Office/Department is not available
for any reason then
- in case of BOs Manager (OS) of the Divisional Office
- In case of the Deptt other than OS Department Manager (OS) of the DO or
Regional Manager (OS)/(E&OS) of Zonal Office as the case may be.
- In case of OS Department of Divisional Office Regional Manager (OS)/(E&OS)
of Zonal Office.
- In case of OS Department of Zonal Office In charge of CO (OS) Deptt.
can nominate any other official as the location in-charge of such Office/department on

411
 receipt of request from the Office/department.
G All the Departments should generate the meal voucher well in advance before 5th of
every month so that even if any technical problem arises during the process the Office
would still be having 5 days for referring the same to the SDC, Pune and obtain solution
for the generation of the voucher.

412