The New India Assurance Company Limited

(Conduct, Discipline & Appeal) Rules 2014

Gurinder Singh
Divisional Manager
DO IV Chandigarh
M-09417473626

New India Assurance CDA Rules

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Introductory
 Model code of conduct of Bureau of Public
Enterprises
 Adopted by GIC in 1975

New India Assurance CDA Rules

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CDA Rules in Force
Afterdelinking from GIC these rules
have been adopted by New India
independently with amendments twice:
 CDA Rules 2003
 CDA Rules 2014 – The latest version.
Rules as Safeguards and panacea

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CDA Rules
Rule 1
 Short title, Commencement and Application

Rule 2
 Definitions- Family, Competent Authority,
Appointing/Disciplinary/Appellate Authority,
Board Sub-Committee (HR), Public Servant,
Retired Officer, Sexual Harassment, Work
Place etc.

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 CDA Rule-3

1. It is expected of every employee to

i. Maintain absolute integrity
ii. Maintain devotion to duty
iii. Do nothing which is unbecoming of a public
servant
iv. Conform to, abide by the above rules, observe,
comply with all orders & directions given to him
in course of official duties by any person under
whose jurisdiction or control he is placed.

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 Rule-3
2. Every employee holding supervisory post shall
take all possible steps to ensure the integrity
and devotion to duty of all the employees for
the time they are placed under his control
3. No employee shall in the performance of his
official duties act otherwise than in his best
judgment except when he is acting under the
direction of his superior which he has obtained
in writing, wherever practicable and where it is
not practicable to obtain the direction in
writing, he shall obtain written confirmation of
the direction as soon thereafter as possible.
** New India Assurance CDA Rules
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Misconduct - Defined
• Not defined in CDA Rules
• Bad or mismanagement, malfeasance or culpable
neglect of an official in regard to his office.
• Hon’ble Supreme Court of India observed in the
case Baldev Singh Gandhi Vs. State of Punjab:
“The word ‘Misconduct’ is antithesis of conduct.
Thus, ordinarily, the expression ‘misconduct’ means
wrong or improper conduct, misdemeanor etc. There
being different meaning of the expression
‘misconduct’ we, therefore , have to construe the
expression ‘misconduct’ with reference to the subject
and the context wherein the said expression occurs.”
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CDA Rule-4
Following acts of omission and /or commission are
treated as Misconduct. Only indicative not
exhaustive:
 Theft, fraud or dishonesty in connection with
business or property of the company or of
another person within the premises of the
company.
 Taking or giving bribes or illegal gratification
 Possession of pecuniary resources or property
disproportionate to known sources of income
by the employee or on his behalf by another
person which the employee cannot
satisfactorily account for.
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 Rule-4
 Furnishing false information regarding name, age,
father’s name, qualification, ability, previous
employment or any other matter either at the time
of employment or during the course of
employment.
 Acting in a manner prejudicial to the interest of the
company
 Willful insubordination or disobedience, whether or
not in combinations with others or any lawful and
reasonable order of his superiors.
 Absence without leave or overstaying sanctioned
leave for more than four consecutive days without
sufficient grounds or proper explanation.
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 Rule-4
 Habitual late or irregular attendance
 Neglect of work or negligence in the performance
of duty including malingering or slowing down of
work
 Damage to any property of the company including
interference or tampering with any safety devices
installed in or about the premises of the company
 Drunkenness or riotous or disorderly or indecent
behaviour in the premises of the Company where
such behaviour is connected with the employment
 Gambling within the premises of the establishment
 Collection without the permission of the competent
authority of any money within the premises of the
Company except as per the rules of the Company
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Rule-4
 Sleeping while on duty
 Commission of any act which amounts to a
criminal offence involving Moral Turpitude
 Absence from the employees appointed
place of work without permission or
sufficient cause
 Smoking within the premises of the office.
 Purchasing properties, machineries, stores
etc. from or selling properties etc., to the
Company without express permission in
writing from the Competent Authority

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Rule-4
 Commission of any act subversive of discipline or good
behaviour
 Abetting of or attempt at abetting of any act which
amounts to misconduct
 Sharing of computer password with others without
written sanction from the Competent Authority.
 Any wrongful/illegal activity committed through the
use of Computer/internet and/or violation of
provisions of the Information Technology Act, 2000
and /or the IT Policy of the Company, as amended
from time to time.
 Indulging in any act of sexual harassment of any
woman at workplace.
 Possession of or consuming or being under the
influence of narcotics or drugs of similar nature, in the
premises of the Company or outside such premises.
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Rule-5
Scope of an employee’s service- is a whole time employee
and will serve the Company at any place that he may be
directed
Rule-6
Employees not to seek outside employment- without
previous sanction
Rule-7
Part time work – not to seek without prior permission
from competent authority
Rule-8
Obligation to maintain secrecy– no employee either while
in service, after retirement, resignation or discharge
communicate any official document to any other person to
whom he is not authorized to do so.
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Rule-9
No employee shall give any evidence before any
committee or any other authority without prior
sanction & no employee shall criticize Company's
policy while giving such evidence. Exception attached.
Rule-10
Prohibition against participation in politics and
standing for election.
Rule-11
Participation in demonstration– no employee shall
participate in any demonstration/strike
Rule-12
No employee shall have any connection with press,
radio, TV without prior sanction. Exceptions attached.
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Rule-13
Acceptance of Gifts
• An employee of the Company shall avoid acceptance of lavish gifts
and/or frequent hospitality from any individual or firm having official
dealings with him;
• No employee of the Company shall accept or permit any member of
his family or any person acting on his behalf to accept any gift.
The impression gift shall include free transport, lodging or other service
or any other pecuniary advantage when provided by any person other
than a near relative or a personal friend having no official dealings with
the employee.
• Up to 10000/= from relatives in case of special occasions.
• Up to Rs. 7000/= from personal friends on special occasions as above
having no official dealings.
• Up to Rs. 5000/= in other cases. If gift from same person exceeds
value of Rs. 5000/= during 12 months it should be reported to
Competent Authority.
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 Rule 14 -Private Trading
 Rule 15 -Speculating in stocks, shares etc.
 Rule 16 is about restriction on borrowing and
investments
 16A is about submission of property return
 Rule 17 is about employees in debt
 Rule 18 -Employees not to be absent from duty
without permission
 Rule 19 is about absence from station

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Rule-16 A
Submission of Property Returns
•Property Return- Assets and Liabilities
•Movable and immovable property
•Annual Return-30th April of each year.
•Each recording of immovable property-prior
knowledge of Competent Authority
•Recording of Movable property if value
exceeds two months basic salary. Such return
is to be submitted within 30 days.
•Impact of non-submission
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Rule-20
Suspension

 Appropriate Authority may place an

employee under suspension
 Where a disciplinary proceeding is
contemplated or pending
 where a case against him in respect of any
criminal offence is under trial or investigation
 Employees detained in Police custody
 Retrospective effect
 Delegation
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 Rule 21
Subsistence Allowance
 Employee under suspension shall be entitled to
draw Subsistence Allowance equal to 50% of the
gross monthly salary (basic +DA+ HRA+ CCA+ any
other pay the employee was drawing before his
suspension)
 If the period of suspension exceeds more than 6
months the Subsistence Allowance may be
increased to 75% if the period is prolonged due
to reasons not directly attributable to the
employee under suspension. However this is not
the right of the suspended employee.

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 The subsistence allowance may also be reduced
to 25% if the period is prolonged due to reasons
directly attributable to the employee
 If an employee is arrested and bail is not granted
no subsistence allowance is payable till the
period the employee is under the custody of the
police.
Treatment of period of suspension

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Rule 23
 Minor penalties
 Censure
 Withholding of one or more increment
for a specified period
 Recovery from pay or such other
amount as may be due to him of the
whole or part of pecuniary loss caused
to the company by negligence or
breach of orders
 Reduction to lower stage in the time-
scale for a period not exceeding three
years without cumulative effect
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 Rule 23

 Major penalties
 Withholding of one or more increments
permanently
 Reduction to lower service or post or to a
lower time-scale or to a lower stage in a time-
scale
 Compulsory retirement
 Removal from service which shall not be a
disqualification for future employment
 Dismissal which shall ordinarily be a
disqualification for future employment.
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 Rigor Effect of Penalty

Minor Penalty
One year
Censure
No Rigor Effect (Not equivalent to exoneration or
honorable acquittal. Case of sealed cover.
Token Recovery or Recovery of Financial Loss
other than Censure
Major Penalty
Two Years

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 Rule 24
Disciplinary Authority

• In relation to Public Servant authority who has

the power to impose any penalty on him.
• Only Disciplinary Authority can take Disciplinary
Action.

How to locate Disciplinary Authority?

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 Schedule of Authorities
Category of Employees/ Appointing Disciplinary Appellate Memorial
Officers Authority Authority Authority Authority

Sub-Staff/Driver & Equiv. An Officer in An Officer in An Officer in

CMD
Cadres Scale-IV Scale-II Scale-V

Record Clerk/ Assistant & An Officer in An Officer in An Officer in

CMD
Equiv. Cadres Scale-IV Scale-III Scale-V

Sr. Assistant & Equiv.

An Officer in An Officer in An Officer in
Cadres / Superintendent / CMD
Scale-V Scale-IV Scale-VI
Development Officer

For Officers in Scale I & An Officer in An Officer in An Officer in

CMD
Scale II Scale-VI Scale-V Scale-VII

An Officer in An Officer in An Officer in

For Officers in Scale-III CMD
Scale-VI Scale-VI Scale-VII

An Officer in An Officer in Board Sub-

Officers in Scale-IV & V CMD
Scale-VII Scale-VII Committee (HR)
Board Sub-
Officers in Scale- VI & VII CMD CMD
New India Assurance CDA Rules Board
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Rule 25
Procedure for Imposing Major Penalties
No major penalty (23 e to i) can be imposed
on the employee sans following the procedure
prescribed under Rule 25 which pertains to
procedure to be adopted while conducting
Domestic Inquiry against the Charged
Sheeted employee.

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Rule 25
Procedure for Imposing Major Penalties
 Locating grounds to inquire into truth.
 Framing of Charges and providing first opportunity to the
employee.
 Taking decision on the written statement of employee.
 Appointment of IO/PO.
 Assistance of DA by the Charged Official.
 Preliminary Hearing – documents and witnesses
 Case of prosecution side.
 Case of defence
 Examination of employee.
 Written Briefs from both the sides.
 Submission of Inquiry Report.
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Rule 26
Action on the Inquiry Report
• Decision on report
• Disagreement
• Second Opportunity
• Decision on Findings-
penalty/exoneration

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Rule 27
Procedure for Imposing Minor Penalties

Delineates the procedure to be

followed to impose minor
penalties.

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 Rule 28 - Communication of order
Also SOP circular dated 14/3/2014

 Rule 29 - Common proceedings

Highest cadre Disciplinary Authority may decide

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Rule 30
Special Procedure in Certain Cases
Employees convicted on criminal charge- the Disciplinary
Authority may necessary orders of penalty without
holding inquiry.
Where the Disciplinary Authority is satisfied for reasons
to be recorded in writing that it is not reasonably
practicable to hold Inquiry in the manner provided.
Where the Disciplinary Authority is satisfied that it is in
the interests of the security of the Company, it is not
expedient to hold any Inquiry.
Where an employee has abandoned his post, the
Disciplinary Authority may consider the circumstances of
the case and pass such necessary orders thereon as it
deems fit. New India Assurance CDA Rules
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 Appeals
Rule 31 - Right to appeal pertains to
• Penalty
• Suspension

Rule 32 - Period of limitations for appeals

• Within 3 months from the date of receipt of order.

Rule 33 - Form and contents of appeal

• Addressed to Appellate Authority
• Material Statements and arguments with respectful and
proper language.

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Rule 34 - Submission of appeals
To whom to submit
An advance copy can be sent
Rule 35 - Withholding of appeals
If contravenes Rule 32 and 33
Resubmission within one month
Rule 36 - Transmission of appeals
Rule 37 - Consideration of appeals
Suspension
Penalty
 Findings, penalty quantum
 Decision on either side
Consideration not later than 6 months of the receipt

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Rule 38 -Appeal against other orders
Salary related
Rule 39 –Review
Company and CMD at its own motion
or otherwise – Rule 23 and other decisions
Rule 40 -Memorial
Within 6 months of receipt of orders so
received.

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Rule 41 - Canvassing non-official or outside
influence
Rule 42- clarifies that if any question arises
relating to interpretation of the rules it
shall be referred to Board of the Company.
Rule 43-Amendments- Board of the
Company
Rule 44-Authority to issue administrative
instructions- CMD

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Thanks

New India Assurance CDA Rules

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