LIFE INSURANCE CORPORATION REGULATIONS, 1959 [1]

 

 

PREAMBLE:

 

Inexercise of the powers vested in it under Sub-Section (2)of Section 49 of the Life Insurance Corporation Act, 1956, and with the previous approvalof the Central Government, the Life Insurance Corporation of India makes the following Regulations:

 

PRELIMINARY:

 

1.�������� These Regulations may be called the Life Insurance Corporation Regulations, 1959.

 

2.�������� In these Regulations unless there be something in the subject or context��������� inconsistent�� therewith:

 

(i)�������� � The Act� shall mean the Life Insurance Corporation Act, 1956;

(ii)������� � The Insurance Act� shall mean the Insurance Act, 1938as applied to the Corporation;

(iii)������ �The Chairman� shall mean the Chairman for the time being of the Corporation and �Member� shall mean a Member for the time beingof the Corporation;

(iv)������ �The Corporation� shall mean the Life Insurance Corporation of India;

(v)������� �Executive Director� shall mean any officer of the Corporation appointed as an Executive Director and so designated.

 

All words and expressions used herein and not defined in these Regulations, but defined in the Act or in the Insurance Act shall have the meanings respectively assigned to them in those Acts.

 

MEETINGS:

�����������

3.�������� The Corporation shall meet at such time and place as the Chairman may from time to time determine.But there shall be a meeting of the Corporation once at least in every three months.

 

4.�������� The Chairman shall call a meeting ofthe Corporation on a requisition signed by at least three members.

 

[2] 5.���� Not less than 15 days notice of each meeting shall be given to the Members . If it shall become necessary to convene an emergency meeting, notice of not less than 3 days shall be given to every Member in order to enable him to attend. Any accidental omission to give any such notice to any of the Members shall not invalidate any resolution passed at any such meeting.

 

6.�������� The Chairman shall preside at all meetings of the Corporation. In his absence the Members may elect one of themselves to preside over the meeting.

 

7.�������� ( i)������� Five Members personally present shall be a quorum for a meeting

and no business shall be transacted unless the quorum requisite be present at the commencement of the meeting.

(ii)                Ifwithin half an hour from the time appointed forholding the meeting the quorum is not present, the meeting shall stand adjourned to a time, date and place to be decided by the Chairman which should be within a week of such meeting.

(iii)               If at such adjourned meeting also the quorum is not present within half an hour from the time appointed for holding the meeting, the Members present shall be the quorum.

 

8.�������� The Chairmanmay with the consentof the meeting adjourn the same from time to time. Without the consentofthe Chairman no business other than that which is included in the Agenda shall be transacted at any adjourned meeting. It shall not be necessary to give notice of an adjourned meeting .

 

9.���� All matters submitted to the Meeting shall be decided by a majority of Members present and voting and in case ofequality ofvotes, the Chairman shall have a casting vote in addition to the vote to which he may be entitled as a Member.

 

10.������ No resolution shall be deemed to have been duly passed by the Corporation by circulationunless the resolution has been circulated in draft, together with the necessary papers, if any, to all the members then in India (not being less in number than the quorum fixed for a meeting of the Corporation), and to all other Members at their usual address in India, and has been approved by suchof the Members as are then in India, or by a majority of such of them , as are entitled to vote on the resolution.

 

11.������ All decisions shall as far as possible be recorded in the form of resolutions and an entry of such decisions in the book of proceedingsof the Corporationshall be conclusive evidence of the fact that such decisions were taken by the Corporation. �����������

 

[3]12.����� The proceedingsof every meeting of the Corporation shall be circulated to the Members on or before the date of the next Meeting.

 

EXECUTIVE COMMITTEE:

 

13.������ The Executive Committee shall consist of the Chairman and not more than four other members , who will be appointed by the Corporation.

 

14.������ The term of office ofevery member of the Executive Committeeother than the Chairman shall be the period ending on the 31st day of August, following his appointment.

 

15.������ The Corporation may nominate any one of its Members to serve on the Executive Committee during the absence on leave for a period of not less than one month of a member of the Executive Committee. The member so nominated shall vacate office on the expiry of leave of the original member or on his resuming his seat on the Executive Committee, whichever is earlier.

 

16.������ (i )����� The Chairman or any other member of the Executive Committee

duly authorised by the Chairman shall preside over the meetings of the Executive Committee.

(ii)������� The procedure at the Meetings shall be as may be decided upon by the Executive Committeefrom time to time.

(iii)������ Three members personally present shall be quorum for a meeting and no business shall be transacted unless the requisite quorum be present at the commencement of the meeting.

[4](iv)����� If within half an hourfrom the time appointed for holdingthe meeting the quorum is not present, the meeting shall stand adjourned to a time, date and place to be decided by the Chairmanwhich shall bewithin a week of such meeting and which shall be intimated to the members so far as may be telephonically or telegraphically.

(v)������� If at such adjourned meeting also the quorum is not present within half an hour from the time appointed for holding the meeting the members present shall be the quorum.

 

17.������ In addition to the powers and authorities expressly conferred on the Executive Committee by these Regulations or otherwise, the Executive Committee shall have power and authority to exercise all such powers and do all such acts and things as the Corporation is entitled to exercise and do subject, nevertheless , to the provisions of the Act and of these regulations and of any other regulations from time to time made by the Corporation provided, however, that no regulations so made shall invalidate any prior acts of the Executive Committee which would have been validif such regulations had not been made.

 

18.������ Without prejudice to the generalpowers conferred in the last preceding regulationand the other powers conferred by these Regulations, it is hereby expressly declared that subject to such limitations and directives as may, from time to timebe imposed or givenby the Corporation, the Executive Committeeshall have the following powers, that is to say:

 

(i)�������� To grant , issue and enter into any Policies of Assuranceand any deeds or other instruments and anytransactions for any purpose within the scope of these regulations in such form, to such effect, upon such terms , based uponsuch tables or calculations and in such manner as the Executive Committee may think fit, provided that the above powers shall extendto enable the grant of policies on the participatingprinciple or on any system of credit; the grant of policiesjointly by way of substitution for other policieswhether substituted or not; the grant of policies absolutely or partiallyindisputable; the revival of or confirmation of the forfeited policies; the variation of any policyalready in force; the grant of policies on survivorship and on any other contingencieswhatever and generallyany transactions in the businessof life assurance, capital redemption or annuitiesor other business authorized by the Act and upon any conditions which the Executive Committee may think advisable;

(ii)                To acceptthe surrender of any insurance or annuity and to purchase or redeem any insurance or annuity and to waive the forfeitureof any insurance on such terms as the Executive Committee may think fit;

(iii)               To make any arrangements for reassuring risks undertaken by the Corporation or for sharing risks undertaken by other insurers;

(iv)              To appoint and at their discretion remove agents, to determine their duties, to fix their emoluments, to require security in such instances and of such amount as they may think fit, to make, vary and repeal from time to time Standing Orders for regulation of the recruitment of agents and the terms and conditions of their employment;

(v)                With the advice of the Investment Committee, to lend on mortgage on the security of or to purchase or otherwise acquire for the Corporation any immovable or movable properties, rights or privileges, which the Corporation is authorized to acquire under the Act , at or for such price or consideration and generallyon such terms and conditions as they may think fit and in any such purchase or other acquisition to accept suchtitle as they may believe or may be advised to be reasonably satisfactory; and to sell, let on lease , or otherwise dispose of or grant rights over any such immovableor movable property rights or privileges;

(vi)              To purchase or otherwise acquire all kinds ofmovable articles; chattels and things and to sell, dispose of or otherwise deal with the same in the course of the business of the Corporation;

(vii)����� To institute, conduct, defend, compound or abandon any legal proceedings by or against the Corporation or its Officers, or otherwise concerning the affairs of the Corporation , and also to compound and allow time for payment or satisfaction of any debts due and of any claims or demands by or against the Corporation and to refer any differences to arbitration and observe and perform any awards made thereon;

[5](viii) ��� To scrutinize proposals for inclusion in the budget and to have the budget prepared for presentation to the Corporation and to exercise financial control over the affairs of the Corporation and ensure that the expenditure incurred is not in excess of the budget sanctioned by the Corporation;

(ix)              To act on behalf of the Corporation in all matters relating to bankrupts and insolvents ;

(x)                To make and give receipts , releases and other discharges for moneys payable to the Corporation and for the claims and demands of the Corporation;

(xi)������ To determine from time to time who shall be entitled to sign ,on ������������������������ the Corporation�s behalf,bills, notes, receipts, acceptances,

endorsements, cheques, dividend warrants, releases, contracts and documents, and to give the necessaryauthority for such purpose;

(xii)             From time to timeto make, vary and repeal Standing Orders for the regulation of the business of the Corporation; all such Standing Orders shall be placed before the next meeting of the Corporation;

(xiii)           To subscribe and contribute or otherwise to assist or to guarantee money to Charitable , benevolent , religious, scientific, national or other institutions or subjects which shall have any moral or other claim to support or aid by the Corporation, either by reasons of locality of operation, or of public and general utility or otherwise;

(xiv)           At any time and from time to time , by Power of Attorney under the Seal of the Corporation, toappoint any person or persons to be the Attorney or Attorneysof the Corporation for such purposes, and with such powers, authorities and discretion (not exceeding those vested in the Executive Committee under these Regulations ) and for such period and subject to such conditions asthe Executive Committeemay, from time to time , think fit;

(xv)            For or in relation to any of the mattersor otherwise for the purpose of the Corporation , to enter into all such negotiations and contracts , and execute and do all such acts, deeds and things in the name and on behalf of the Corporation as they may consider expedient;

(xvi)           To procure the Corporation to be registered or recognised in any foreign country or place and for such purposes make such investments and deposits as may be required by the laws ofsuch country or place.

 

INVESTMENT COMMITTEE:

 

19.������ The Investment Committee shall consist of the Chairman and [6]{ not more than seven other members of whom not less than three} shall be Members of the Corporation. All suchmembers will be appointed by the Corporation.

 

20.������ The term of office of every member of the Investment Committee other than the Chairman shall be the period ending on the 31st day of August, following his appointment.

 

21.������ The Corporation may nominate any of its members or any other person who has special knowledge and experiencein financial matters , to serve on the Investment Committee during the absence on leave for a period of not less than one month, of a member of that Committee. The member so nominated shall vacate office on the expiry of leave of the original member or on his resuming his seat on the Investment Committee, whichever is earlier.

 

[7]22.��� Subject to such limitations or directions as may be imposed or given by the Corporation, the Investment Committee shall advise the Corporation in matters relating to the investment of its funds including entering into an agreement or understanding with any person whether incorporated in oroutsideIndia in relation to such investments.

 

23.����� (i)�������� The Chairman or any other member of the Investment Committee

duly authorisedby the Chairman shall preside over the meetings of the said Committee.

(ii)                The Investment Committee shall meet as often as may be necessaryand such meetingsshall be governed by the procedure that may be decided upon from time to timeby the said Committee.

(iii)               Four members , of whom at least one shall be a Member of the Corporation , personally present shall be a quorum for a meeting and no business shall be transacted unless the requisite quorum be present at the commencement of the meeting.

[8](iv)����� If within half an hourfrom the time appointed for holding the meeting the quorum is not present, the meeting shall be adjourned to a time, date and place to be decided by the Chairman which shall be within a week of such meeting and which shall be intimated to the members so far as may be , telephonically or telegraphically.

(v)������� If at such adjourned meeting also the quorum is not present within half an hour from the time appointed for holding the meeting, the members present shall be the quorum.

 

[9]24.��� The Investment Committee shall meet at least twice at Calcutta and at least once at Madras and Delhi , duringa financial year.

 

�� [10]24(a)The fees and travelling and daily allowances payable to a member of the Investment Committee , who is not a member of the Corporation or an officer of the Central Govt., shall be the same as those applicableto members of the Committee,who are members of the Corporation.

 

����������� 25, 26, 27, 28, 28A, 28B, 28C, 29, 30 and 31 deleted.[11]

 

CHAIRMAN:

 

�� 32.[12](a)�������� The Chairman shall be the Chief Executive and shall , subject to such general or special directions as the Corporation or any of its Committees may , from time to time give , exercise all such powers as may be exercised and do such acts and things as may be done by any of the Committees of the Corporation appointed under Sub-Sections (1) and (3) of Section 19 of the Act.

�����������������������

Any action taken by the Chairman shall be reported by him, to the appropriate Committee on or before the date of the next meeting.

�����������������������

(b)               The Chairman , in his capacity as the Chief Executive , shall carry out the advice of the Investment Committee in regard to investments of the funds of the Corporation . It shall , however, be open to the Chairman to reserve the question of any such advice on any particular item, for consideration by the Corporation and in that case such item shall be reserved for consideration by the Corporation.

 

33.������ In an emergency, the Chairman shall be competentto exercise all the powers of the Corporation.

 

Any action taken by the Chairman shall be reported by him ,as soon as may be , to the Corporation.

 

GENERAL:

 

[13]34.��� Proceedings of all the Committees of the Corporation shall be circulated to all the members on or before the date of the next meeting of the appropriate Committee and shall also be placed before the Corporation for record and where necessary, for information.

 

35������� ( i )������ Any Committee will be entitled to co-opt a member for any

meetingof the Committee provided that such co-opted member while entitled to take part in the discussions, shall not have the right to vote and shall not be counted on the quorum.

(ii)������� If a member wishes to attend a meeting of any committee of which he is not a member, he will be entitled to do so , provided that while taking part in the discussions, he shall not have the right to vote and provided further that he shall not be entitled to any allowance normally payable to a member of the Committee.

 

36.������ ( i)������� The Chairman shall , at the instance of any Committee of the

Corporation, arrange for joint meeting of two or more Committees to deal with any matter of common interest or interlinked relationships and the resolution passed by or the decision taken at such joint meeting shall be deemed to be a resolution or decision of each of such Committees.

 

The proceedings of such joint meeting shall be deemed to be the proceedings of such committees.

 

(ii)                The Chairman or any other member of one of such committees duly authorized by the Chairman shall preside over the joint meetings of such committees

(iii)               Four members personally present shall be a quorum and no business shall be transacted unless the requisite quorum be present at the commencement of the meeting. Such four members shall include at least one member of each of the different committees of which the joint meeting is held.

[14](iv)���� If within half an hour from the time appointed for holding any such joint meeting, the quorum is not present, the meeting shall stand adjourned to a time , date and place to be decided by the Chairman, which shall be within a week of such meeting and which shall be intimated to the members, so far as may be, telephonically or telegraphically.

(v)������� If at the adjourned meeting also the quorum is not present within half an hour from the time appointed for holding the meeting, the members present shall be the quorum.

 

[15]37��� The Managing Directors (including any Acting Managing Director) may with the approval of the Chairman and with the prior sanction of the Corporation or any Committee of the Corporation, delegate or sub-delegate to any Class I Officer or as the case may be , to an employee not below the rank of Higher Grade Assistant/Section Head all or any of the powers authorities and discretions which may be necessary for the efficient conduct of the business of the Corporation.

 

�� ���38. [16]( i)���� The Managing Directors of the Corporation (including any Acting

Managing Director) and the Executive Directors at the Central Office of the Corporationmay, both within India and in all territories outside India, institute , conduct, defend and represent the Corporation in all suits, appeals, applications and execution proceedings by or against the Corporation or to which the Corporation may be a party and in additionthey may make all such petitions, applications and representations and sign and execute all appearances and warrantsof attorney for engagementof advocates, solicitors, notaries and other legal professional persons and sign and verify all pleadings , memoranda of appeal , petitions, counter petitions, representations, applications, cross-objections, applications for execution and alllegal documents of whatsoever nature and make all affidavits and declarations and give all sanctions and consents on behalf of the Corporation and accept service of writs of summons and all other processes of Court of Judicial or semi-judicialbodies. The Managing Director may delegateany of the authorities aforesaidto any officer of the Central Office not below the rank of Asst. Divisional Manager.

 

(ii)                The Managing Directors of the Corporation (including any Acting Managing Director )both within India and in all territories outside India may make such petitions, applications and representations and give all such guarantees and undertakings as may become necessary in the course of the business of the Corporation to the Governmentof India, the Government of the States of India or any departments of such Governments, and after first obtainingthe approval of the Governmentof India to all Governments or departments thereof outside India and to all publicand statutory bodies or judicial or semi judicial officers either within or outside India and particularlyto enable the Corporation to carry on the business of life insurance in allterritoriesoutside India and to comply with the statutory requirements prevailing in such territories.

 

TERRITORIAL LIMITS OF THE ZONES:

 

[17]39.���� The territorial limits referred to in Sub-section(3) of Section 18 of the Act for each of the Zones shall be as follows:

 

Name of the Zone

Stateof

 

1.�� Central

i)                     Madhya Pradesh

 

2.�� Eastern

i)           Arunachal Pradesh

ii)          Assam

iii)        Bihar

iv)        Manipur

v)         Meghalaya

vi)        Mizoram

vii)      Nagaland

viii)     Orissa

ix)         Sikkim

x)          Tripura

xi)         West Bengal

xii)       Union Territories of Andaman and Nicobar Islands.

 

3.Northern

i)           Haryana

ii)          Himachal Pradesh

iii)        Jammu & Kashmir

iv)        Punjab

v)         Rajasthan

vi)        Union Territories of Chandigarh & Delhi

 

4.�� North Central

i)           Uttar Pradesh

 

5.�� Southern

i)           Kerala

ii)          Tamil Nadu

iii)        Union Territories of(a) Lakshadweep (b)Pondicherry (other than district of Yanam)

6.��� South Central

i)           Andhra Pradesh

ii)          Karnataka

iii)        Union Territories of The district of Yanam in the U.T. of Pondicherry

7.�� Western

i)           Goa

ii)          Gujarat

iii)        Maharashtra

iv]��� Union Territories of (a) Dadra and Nagar Haveli. 17(i)[b) Daman and Diu]

 

40.������ The Corporation may delegate any of its powers in relation to the affairs and business within the territorial limits of each Zone to the respective Zonal Managers.

 

[18]41.���� [The seven Zonal Managers of the Corporation at its Zonal Offices at Bhopal, Bombay, Calcutta, Delhi, Hyderabad, Kanpur and Madras ] may institute, conduct and defend and representthe Corporation in all suits, appeals, applications and execution proceedings by or againstthe Corporation or to which the Corporation may be a party in all courts of their respective Zones to which decrees passed by the Courts in their respective Zones and in the case of execution proceedings also in all courts situated outside their respective Zones to which decrees passedby the Courts in their respective Zones may have been sent for execution.And for the purposes aforesaid they may sign and execute all appearances and vakalatnamas for engagements of advocates, solicitors and other legal professional persons and sign and verify all pleadings, memoranda of appeal, cross objections, applications for executions, petitions, counter petitions and all legal documentsof whatsoever nature and make all affidavits for and on behalf of the Corporation and to accept service of writs ofSummons and other processes of the Court. The Zonal Managers may delegate any of the authorities aforesaid to any other officer of the respective Zonal Offices or any Divisional or Branch Office of the Corporation in their respective Zones.

 

ZONAL ADVISORY BOARDS:

 

42.������ ( i )������ The Board constituted under Section 22(2) of the Act shall be

known as Zonal Advisory Boards.

(ii)                Each Zonal Advisory Board shall consist of not less than eight and not more than twelve persons to be nominated by the Corporation to represent the various areas of each Zone , one of whom shall be the Zonal Manager who shall be an ex-officio member of the Board.

[19](iii)���� The term of office of each member shall be two years or such shorter period as may be specifiedby the Corporation, provided, however, that in the event of resignation , disqualification or death of a member, the Chairman may fill in the vacancy by nominating another person for the remainder of the term.

(iv)              The Corporation shall appoint one of the members of each Zonal Advisory Boardto be the Chairman of that Board.

(v)                The Zonal Advisory Board shall meet at such time and place as may be determined by the Zonal Manager in consultation with the Chairman of the Zonal Advisory Board from time to time. But there shall be not less than two meetings in a year.

(vi)              The Zonal Advisory Boardshall be competent to discuss and review all matters of policy affecting the proper development of the life insurance business within the territorial limits of the Zone and make recommendations thereon. But only general lines of policy shall be discussed and it shall not be competent for the Zonal Advisory Board to review or discuss matters relating to any individual employee or policyholder of the Corporation.

(vii)             The remuneration and allowances payable to Members of the Zonal Advisory Boardsshall be as follows:

[20](a)���� a fee of (Rs.1000/-) for attending each meeting of such Board as well as for visits to other places in connection with the affairs of the Corporation.

(b)               Travelling allowance for journeys performed in connection with the work of the Board at the rate admissible to the officers of the first grade in the service of the Government of India: Provided that every such member shall when travelling by rail be entitled to travel by air-conditioned accommodation if such accommodation is available, and

[21](c)���� The daily (halting) allowance on duty at the following rates namely:

 

(i)                  daily (halting) allowance as admissible to the highest grade officer of the Corporation

(ii)                actual expenses of lodging charged by the hotel other than a 5 star hotel and an amount at the rate not exceeding the daily allowance specified in (i) above as and by way of boarding and incidental expenses

 

Note:�� The total duration of tour for which daily (halting) expenses are admissible will be calculated from the actual time or departure of the train or flight from the place of residence of the Member by the last available train or flight up to the time of the return thereto by the first available train or flight after completion of official business.

 

����������� The above provisions are applicable to non-official members of the Zonal Advisory Boards only.

 

(viii)           No business shall be transacted at any meeting of the Board unless there is present a quorum of not less than 1/3rdof the total number of members of the Board , provided that if at any meeting there is not a sufficient number of members present to form a quorum, the meeting shall stand adjourned to the same time and place on the following working day, when no quorum shall be necessary.

(ix)              The proceedings of each meeting of the Zonal Advisory Boardshall be forwarded to the Central Office of the Corporation.

(x)                A member shall be disqualified for being nominated or continuing to be a member of a Zonal Advisory Board if �

a)                  he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;

b)                  he is an un-discharged insolvent;

c)                  he has applied to be adjudicatedas an insolvent and his application is pending;

d)                  he has been convicted by a Court in India of any offence involving moral turpitudeand a period of five years has not elapsed from the date of expiry of the sentence.

43.������ ( i )������ The Corporation may establish a Policyholders� Council for each

���������������������� Divisional Office.

���������� 21A(ii) ������ Each Policy holders council shall consist of Five Members as representatives of the policyholder, resident of the area served by the Divisional Office and nominated by the Corporation. Out of the Five Members, one shall be a woman, one from Scheduled Caste/Scheduled Tribe and one a consumer activist.

(iii)               The term of office of each member shall be two yearsprovided, however, that in the event of resignation, disqualification or death of a member, the Chairman may fill in the vacancy by nominating another personfor the remainder of the term.

(iv)              Policyholders Council shall meet at least twice every year at such time and place as the Divisional Manager may decide and the Divisional Manager shall preside over the meetings of the Council.

(v)                The remuneration and allowances payable to Members of the Policyholders Councils shall be as follows:

[22](a)���� A fee of (Rs.500/-) for attending each meeting of such council as well as for visits to other places in connection with the affairs of the Corporation.

(b)������� Traveling allowance for journeys performed in connection with the work of the Council at the rate admissible to the officers of the first grade in the service of the Government of India; Provided that every such member shall when traveling by rail be entitled to travel by air-conditioned accommodation if such accommodation is available and

[23](c)���� The daily (halting) allowance on duty at the following rates, namely;

( i)������� daily (halting) allowance as admissible to a highest grade officer of the Corporation.

(ii)                actual expenses of lodging charged by the hotel other than a five star hotel and an amount at the rate not exceeding the daily allowance specified in������ ( i )above as and by way of boarding and incidental expenses.

Note: �� The total duration of tour for which daily (halting) expenses are admissible will be calculated from the actual time for departure of the train or flight from the place of residence of the member by the last available train or flight up to the time of the return thereto by the first available train or flight after completion of the official business.

The above provisions are applicable to non-official members of the Policyholders Council only.

�����������

(vi)������ Policyholders Councils shall discuss all matters which may be referred to them by the Divisional Manager but it shall not be competent for any such council to discuss matters relating to any individual employee or policyholder of the Corporation.

(vii)����� The proceedings of meetings of Policyholders Councils shall be forwarded by the Divisional Manager to the Zonal Manager and the Central Office of the Corporation.

(viii)����� A member shall be disqualified for being nominated or continuing to be a member of a Policy holders Council ,if �

a)      he has been found to be of unsound mind by a Court of competent jurisdiction and the finding is in force;

b)      he is an un-discharged insolvent;

c)      he has applied to be adjudicatedas an insolvent and his application is pending;

d)      he has been convicted by a Court in India of any offence involving moral turpitudeand a period of five years has not elapsed from the date of expiry of the sentence.

 

�� [24]43A����������� (i )������� The members of the Employees and Agents Relations

Committee constituted under Sub-Section (3) of Section 22 of the Life Insurance Corporation Act for each Zonal Office shall be nominated by the Corporation as provided under Rule 14 oftheLife Insurance Corporation Rules,1956. The termof office of the members of the Employees and Agents Relations Committee shall be as laid down in Rule 15 of the Life Insurance Corporation Rules, 1956. Any casual vacancies in Employees� and Agents Relations Committee shall be filled in as provided in Rule 16 of the Life Insurance Corporation Rules, 1956.

(ii)                Each Employees and Agents Relations Committee shall consist of 12 members of whom six shall be Corporation�s representatives drawn from officers belonging to Class I and the remaining shall be the representatives of employees and agents consisting of one from employees belonging to Class II, three from employees belonging to Class III and IV and two from agents. The Chairman of the Committeeshall be an officer of the rank of Dy. Zonal Manager or Senior Divisional Manager.

(iii)               The Committee shall meet at such place and time as may be decided from time to time by the Chairmanof the Committee but there shall be not less than two meetings in each calendar year.

(iv)              A meeting of the committee shall also be called if there be a requisition signed by not less than five members.

(v)                Not less than 15 days noticeof each meeting shall be given to the members. If it shall become necessary to convene an emergency meeting, sufficient notice shall be given to every member in order to enable him to attend. Any accidental omission to give any such notice to any of the members shall not invalidate any resolution passed at such meeting

(vi)              (a) ������ The Employees and Agents Relations Committee

shall advise the Zonal Manager on matters relating to the welfare of the employees and agents of the Corporation and/or which are likely to promote amity and good relations between them and the Corporation and which fall within the scope of his authority.

(b)               It shall not be competent for the Committee to review and discuss matters which relate to individual grievances of employees or agents or development Officersof the Corporation.

(c)                In case of difference of opinion as to whether or not any matter sought to be raised at a meeting of the Committee falls within the scope and/or functions of the Committee�s work, the decision of the Chairmanshall be final.

(d)               Any recommendations of the Committee not acted upon by the Zonal Manager shall be reported back to the Committee as soon as possible.

(vii)             No business shall be transacted at any meeting of the��������� Committee unless there is present a quorum of not less than 5 of whom at least two shall be representatives of the employees and agents.

(viii)           If within half an hour from the time appointed for holding any meeting the quorum is not present, the meeting shall stand adjourned to a time ,date and place to be decided by the Chairman which should be within a week of such meeting.

(ix)              If at the adjourned meeting also the quorum is not present within half an hour from the time appointed for holding the meeting the members present shall be the quorum.

(x)                The agenda for a meeting should be circulated to all the members at least a week prior to the date of the meeting . Any accidental omission to circulate the agenda to any member shall not invalidate any resolution passed at such meeting.

(xi)              The Chairman may with the consent of the meeting adjourn the same from time to time. Without the consent of the Chairman no business other than that which is included in the agenda shall be transacted at any adjourned meeting.

(xii)             All matters submitted to the meeting shall be decided by a majority of members present and voting and in case of equality of votes, the Chairman shall have a casting vote in addition to the vote which he may be entitled as a member.

(xiii)           a)�� ����� A member shall be disqualified for being

nominated or continuing to be a member of an Employees and Agents Relations Committee on cessation of service with or discontinuance of agency of the Corporation as the case maybe,for any reason whatsoever.

(b)������� Notwithstanding what is stated hereinabove, any�� representative of employees and agents who fails to attend two consecutive meetings shall forfeit his membership, unless the Committee otherwise directs.

(xiv)           Members attendingthe meeting of the Employees and Agents Relations Committeeshall be treated as on duty for the days of meeting and the to and fro journeys and shall be eligible to traveling and daily allowances as per the rules of the Corporation applicable to them from time to time.

(xv)����� The proceedings of each meeting of the Employees and Agents Relations Committee shall be forwarded by its Chairman to each member of the Committee as also to the Chairman of the Corporation.

 

 

 

MISCELLANEOUS:

 

��� 44.�� All amounts received on behalf of the Corporation by any Officer or employee shall immediatelybe credited to the appropriate bank account of the Corporation.No employee or officer of the Corporation shall deal with any amounts received by him on behalf of the Corporation in any other manner whatsoever.

 

 

��� 45.�� Payments on behalf of the Corporation shall be made only by the officers duly authorised in this behalf by Standing Orders and out of the amounts placed at the disposal of such officers for this purpose.

 

[25]46.�� In addition to the audit to be carried out by the Auditors appointed under Section 25 of the Life Insurance Corporation Act, 1956, the accounts of all the offices of the Corporation shall be regularly auditedby the Internal Auditorswho shall be full-time employees of the Corporation. A summary of the reports of the auditors shall be placed before the Executive Committee as soon as possible after the close of each financial year.

 

����������� Provided that in the case of offices of the Corporation outside India, the Internal Auditors need not be full-time employees of the Corporation .

 

[26]47.��� Every office of the Corporation in India shall be inspected at least once a year by Inspecting Officers who shall be working under the control and supervision of a Managing Director or an Executive Director. A summary of the report of the Inspecting Officer shall be placed before the Executive Committee as early as possible after the inspection has been carried out.

[27]48.��� All policies issued by the Corporation shall be signed by the Divisional Managers or other officers or Superintendents (or Higher Grade Assistants) at the Divisional Office (or the Branch Office) who may from time to timebe authorized for the purposeby the Executive Committee .

 

49.���� All contracts required by Law to be in writing may be signed by any officer duly authorised in this behalf by the Executive Committee or by any constitutedAttorneys of the Corporation.

 

50.        The Life Insurance Corporation Regulations, 1956 are hereby repealed.

 

***********************

 

1/1/2007



[1] Published in Gazette of India , Part IV dated 13-2-1960.

[2] Published in Gazette of India, Part III Section 4 dated 11-4-1992.

[3] Notified in Gazette of India Part III Section 4 dated 11.4.1992.

[4] Notified in Gazette of India, Part III Section 4 dated 11.4.1992.

[5] Notified in Gazette of India Part III Section 4 dated 19-6-1971.

[6] Notified in Gazette of India Part III Section 4 dated 5.3.1977.

[7] Notified in Gazette ofIndia Part III Section 4 datedMay 9, 1998.

[8] Notified in Gazette of India Part III Section 4 dated April 11,1992.

[9] Notified in Gazette of India, Part III Section 4 dated 19.6.71.

[10] Notified in Gazette of India Part III Section 4 dated 03.5.1969

[11] Notified in Gazette of India Part IV dated 24.9.1966.

[12] Notified in Gazette of India Part III Section 4 dated April 11,1992.

[13] Notified in Gazette of India Part III Section 4 datedApril 11, 1992.

[14] Notified in Gazette of India Part III Section 4 dated April 11, 1992.

[15] Notified in Gazette of India Part III Section 4 dated April 11, 1992.

[16] Notified in Gazette of India Part III Section 4 dated April 11, 1992.

[17]��� Notified in Gazette of India Part III Section 4 dated October 3,1992.

17(i) Notified in Gazette of India Part III Section 4 dated 07.10.1992

[18] ����������� Notified in Gazette of India Part III Section 4 dated 3.10.92.

[19] ����������� Notified in Gazette ofIndia Part IV Section 4 dated 19.6.1965.

[20] ����������� Notifiedin Gazette of India Part III Section 4 dated May 26. 2006.

[21] ����������� Notified in Gazette ofIndia Part III Section 4 dated 14.3.1990.

21A &[22] ���� Notified in Gazette of India Part III both dated February 28, 2005.

[23] ����������� Notified in Gazette ofIndia Part III Section 4 dated 14.3.1990

[24] ����������� Notified in Gazette ofIndia Part IV dated18.11.1961.

[25] ����������� Notified in Gazette of India Part IV dated 19.6.1965.

[26] ����������� �������������������-------do---------

[27] ����������� Notifiedin Gazette ofIndia Part III Section 4 dated 6.8.1983.