LIFE INSURANCE CORPORATION OF INDIA

CENTRAL OFFICE, MUMBAI

Department : Personnel/ER ‘Yogakshema’

Jeevan Bima Marg
Circular No. : 3872 /ASP/2005 Mumbai-400 021.

8th Sep., 2005

TO ALL OFFICES OF THE CORPORATION :

Re: Instructions for implementation of the Life Insurance

Corporation of India Development Officers (Revision of
Terms and Conditions of service) Amendment Rules, 2005.

Whereas the scales of pay, dearness allowance and other service conditions applicable to
Development Officers of the Corporation have been revised by the

1. Life Insurance Corporation of India Development Officers (Revision of Terms and

Conditions of Service) Amendment Rules, 2005 (hereinafter referred to as the `Amended
Revision Rules'),

2. Life Insurance Corporation of India (Special Area Allowance) Amendment Rules, 2005,

[Copies of the said Rules are appended as Appendix-I(A to B).]

the Chairman in exercise of the powers conferred on him by sub-rule (2) of Rule 51 read with
Rule 4 of the Life Insurance Corporation of India (Staff) Rules, 1960, has issued the following
instructions providing for the method of fixation in the new scales of pay and other matters
connected therewith or incidental thereto.

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1. SHORT TITLE:

These instructions shall be called the Life Insurance Corporation of India Development
Officers (Revision of Terms and Conditions of Service) Instructions, 2005.

2. DEFINITIONS:

a) "Date of Notification" means 05.09.2005.

b) "Existing officer" means a whole time salaried officer in the permanent establishment
of the Corporation who was in the service on date of notification.

c) "Existing Scales" or "pre-revised scales" means the scales which were applicable to
the Development Officers immediately before they were governed by the Amended
Revision Rules.

d) "New Scales" or "revised scales" means the scales as revised by the Amended
Revision Rules.

e) "Option under the Revision Rules" means the option referred to in sub-rule(2) of
Rule 1 of the Amended Revision Rules to be governed by the provisions of the
Revision Rules from a date not earlier than the date on which the said Rules come
into force.

f) “Period of Equitable Relief” means the period from 1st August, 2002 to 31st March,
2005 or the period within those dates during which an employee was a Development
Officer.

g) “Preceding Date” means the date next preceding the relevant date, in the case of
those who became Development Officers before 1.8.2002; and in the case of others it
shall mean the same as the relevant date.

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 h) “Relevant Date” in relation to equitable relief or other benefits admissible for the
period of equitable relief, means 1st August, 2002 if an employee became a
Development Officer on or before that date, or, if otherwise, the date on which he
became a Development Officer.

3. ELIGIBILITY:

(1) These instructions shall apply to the Development Officers who were in the whole
time salaried service in the permanent establishment of the Corporation as on
1.8.2002 and those who have joined the whole time salaried service in the permanent
establishment of the Corporation after that date.

Provided, however, that those Development officers whose resignation had been
accepted on or before the date of notification irrespective of whether they are relieved
or not or whose services had been terminated under LIC of India Development
Officers (Revision of terms & conditions of service) Rules, 1989 or Rule 39 of Life
Insurance Corporation of India (Staff) Rules, 1960, during the period between
1.8.2002 and 5.9.2005 (both days inclusive) shall not be eligible for the arrears on
account of this revision.

Provided further that the net benefits thereunder may be allowed to Development
Officers who retired from service or died on or after 1.8.2002 as if they were
governed by the Amended revision rules.

(2) For removal of doubt, it is clarified that the Amended Revision Rules and these
Instructions shall not apply to:-

(i) Apprentice Development Officers;

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 (ii) Development Officers whose services have been terminated under Rule 39 of
the Life Insurance Corporation of India (Staff) Rules, 1960 on or before the
date of notification; and

(iii) Development Officers whose services have been terminated on or after 1st
August, 2002 under the Special Rules.

4. METHOD OF FIXATION:

(1) (a) For the limited period from 1.8.2002 to the date of notification :-
Fitment in the new scales of pay set forth in the Amended Revision Rules shall be done
w.e.f. 1.8.2002 with reference to the basic pay as on 1.8.2002 in the corresponding
existing scale or as on the date of appointment, if later, as per the enclosed Fitment Chart
(Appendix-II). Subsequently as and when there is a change in the pre-revised basic pay
due to release of NGI, Stagnation Increment, Fitment on promotion etc., the fitment chart
will have to be referred to and the revised basic pay shall be fitted corresponding to the
pre-revised basic pay at every stage where change in the basic has occurred in the pre-
revised scale.

(b) After the date of notification :-

There may be no need to refer to pre-revised scales. All the changes after the date of
notification shall be effected in the revised scales of pay.

(2) In the cases of those Ex-Servicemen who have been re-appointed in the service of the
Corporation on or after 1st August, 2002 but before the date of notification, the pay fixed
in the pre-revised scales need not be reopened. Their basic pay in the revised scales will
be fixed in the same manner as is done in the case of other employees recruited by the
Corporation.

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(3) The Amended Revision Rules, 2005 provide for an option to the Officers to be governed
by the said rules from any date not earlier than 1.8.2002 and not later than the date of
publication of this notification in the official gazette. The option has to be exercised
within the time limit specified by the Corporation.

Accordingly, it has been decided that the Development Officers may be allowed to
exercise the option on or before 31.10.2005. The employees who wish to exercise the
option may exercise the same in pro forma prescribed in Appendix-III.

In case of Officers who exercise the option, the fitment of their salary in the new scales
shall be done from the date so opted.

The Development Officers shall not be eligible for the arrears on account of revision upto
the date so chosen.

For removal of doubt, it is clarified that where as on the date of implementation of

these instructions in any case the basic pay admissible as on 31st July, 2002 in the old
scale in accordance with sub-regulation 1(A) of Regulation 51 read with the Special
Rules has not been determined, the new basic pay as may be fixed under sub-clause
(1) shall be revised as soon as the basic pay admissible in the old scale as on 31st
July, 2002 is determined; and, wherever necessary, appropriate adjustments shall be
effected with regard to the salary paid after 31st July, 2002 or for any earlier period.

Normal Grade Increment

(1) On fixation in the new scale, a Development Officer shall draw his next
increment or have his basic pay re-fixed otherwise, in accordance with the provisions
of Reg. 56 read with the Special Rules and clause 18 of these Instructions read with
Rule 10 of the Amended revision Rules.

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 (2) Where the arrears in any case relate to two appraisal years, the arrears due for
various months shall form part of the annual remuneration for the respective
appraisal years in accordance with the Special Rules.

5. ADDITION TO BASIC PAY AFTER REACHING MAXIMUM OF THE SCALE

OF PAY:

The rule 4(3) of the Development Officers Revision Rules, 2005 provides for the addition
to the basic pay after reaching of the maximum of the scale of pay of Development
Officers. This rule has been amended to provide for one more addition to their basic pay.
The amended rule 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 three such additions:

Provided that no Development Officer shall be entitled to the third such addition to the
basic pay before completion of three years after drawing the second 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

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 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 the 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”;

(1) Competent authorities:

Senior Divisional Manager-In charge of the Division in case of Development
Officers working in the offices coming under the Division.

(2) Guidelines:
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 Marketing Department.

6. DEARNESS ALLOWANCE:

(1) Rule 2 (iii) of the Amended Revision Rules substitutes sub-rule(1) of Rule 5 of the
Life Insurance Corporation of India Development Officers (Revision of Terms and
Conditions of Service) Rules, 1986.

As a result of the same, the Dearness Allowance to the Development Officers shall be
paid or recovered at the rate of 0.18% of pay for every 4 points increase or fall, as the
case may be, in the quarterly average of All India Consumer Price Index above 2328
points.

(2) The pay for the purpose of calculation of dearness allowance shall include Basic Pay
and addition to the Basic Pay.

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 (3) The number of slabs for which the dearness allowance becomes payable as per the
pre-revised and revised rules has been shown in Appendix-IV.

(4) Additional dearness allowance, wherever drawn, will continue to be paid.

7. HOUSE RENT ALLOWANCE:

(1) The scales of HRA payable to Development Officers have been revised as under:

Place of posting Rate of House Rent

Allowance
i. Cities of Mumbai, Calcutta, Chennai, Delhi and Noida, 10% of Pay
Faridabad, Ghaziabad, Gurgaon and Navi Mumbai. Maximum Rs.1600/- p.m.
ii. Cities with population exceeding 12 lakhs, except those 8% of Pay
mentioned at i) above, any city in the State of Goa and Maximum Rs.1350/- p.m.
Gandhinagar.
iii. Other places. 7% of Pay.
Maximum Rs.1300/- p.m.

The population figures for the above purpose shall be as per the latest Census Report.
Further, the cities shall also include their urban agglomeration.

(2) Pay for the purpose of House Rent Allowance shall include basic pay, additions to
basic pay referred to in Rule 4 and Fixed Personal Allowance.

(3) House Rent Allowance is not payable to any officer occupying staff quarters/leased
accommodation.

(4) Officers 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. At
present it is being deducted at the rate of 2.5% of the minimum of the scale. The
revised rate of deduction shall be 1.75% of the minimum of the scale with effect

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 from 1.10.2005. Till 30.9.2005, the amount of licence fee which is being deducted
at present shall continue to be deducted.

(5) Where the husband and wife are employee(s)/Development Officer(s)/Class-I

Officer(s), whether posted at the same station or not, House Rent Allowance may
be paid to both of them as hitherto, if they are not in staff quarters or leased
accommodation.

(6) If they are 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.

(7) If any officer 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.

The charts showing classification of cities have been enclosed as Appendix-

VI(A)for HRA. The cities shall include their urban agglomerations.

8. CITY COMPENSATORY ALLOWANCE:

The revised Rule 7 lays down the rates of city compensatory allowance which will be
payable on the basis of revised pay. The city compensatory allowance at the revised rates
shall be payable w.e.f. 1.8.2002. The rates are as under:-

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 Place of posting Rate of CCA

i. Cities of Mumbai, Calcutta, Chennai, Delhi and Noida, 3% of Pay subject to

Faridabad, Ghaziabad, Gurgaon and Navi Mumbai. Maximum Rs.400/-p.m.
ii. Cities with population exceeding 12 lakhs, except those 2.5% of Pay subject to
mentioned at i) above, any city in the State of Goa and Maximum Rs.360/-p.m.
Gandhinagar
iii. Cities with population of 5 lakhs and above but not 2% of Pay subject to
exceeding 12 lakhs, State Capitals with population not Maximum Rs.300/-p.m.
exceeding 12 lakhs, Chandigarh, Mohali, Pondicherry,
Port Blair and Panchkula.

The population figures for the above purpose shall be as per the latest Census Report.
Further, the cities shall also include their urban agglomeration.

Pay for the purpose of City Compensatory Allowance shall be the basic pay plus addition
to basic pay referred to in Rule 4.

The charts showing classification of cities have been enclosed as Appendix-VI(B) for
CCA. The cities shall include their urban agglomerations.

9. HILL ALLOWANCE:

Rule 7A of the Development Officers Revision Rules, as amended, lays down the revised
rates of hill allowance with effect from 1.8.2002, which are as under:

i) Posted at places situated at a height
of 1,500 metres and over above
mean sea level.
ii) Posted at places situated at a height
of 1,000 metres and over but less
than 1,500 metres above mean sea
level, at Mercara and at places
which are specifically declared as
"Hill Stations" by Central/State
Governments for their employees.
At the rate of 2.5% of the basic pay,
subject to a maximum of Rs.270/-
per month.
At the rate of 2% of the basic pay,
subject to a maximum of Rs.210/-
per month.

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 iii) Posted at places situated at a height At the rate of 2% of the basic pay,
of not less than 750 metres above subject to a maximum of Rs.210/-
mean sea level which are per month.
surrounded by and accessible only
through hills with a height of 1000
metres and over above mean sea
level.

Pay for the purpose of grant of Hill Allowance shall include basic pay and additions
to the basic pay referred to in Rule 4 of the Revision Rules, 1986.

10. PROVIDENT FUND AND OTHER RECOVERIES:

The rate of provident fund shall continue to remain at 10% of pay. Pay for the purpose of
provident fund shall include basic pay, additions to basic pay referred to in Rule 4 and
Fixed Personal Allowance (FPA). Provident Fund and other recoveries shall be made as
per the following :

1) The Development Officers’ contributions to Provident Fund due to revision in basic

pay shall be deducted from the equitable relief and arrears payable in all cases.

2) If there are any past recoveries to be effected due to the operation of the Special
Rules or in terms of the Alteration Rules, the same shall in all cases be deducted from
the Equitable Relief and the arrears payable.

3) Income tax at the appropriate rate shall, wherever necessary, be deducted from the
equitable relief and arrears payable.

For Development Officers who are not governed by the Life Insurance Corporation of
India (Employees) Pension Rules, 1995, the difference in the employer's contribution to
provident fund has to be remitted to the provident fund authorities.

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 For Development Officers who are governed by the Life Insurance Corporation of India
(Employees) Pension Rules, 1995, the employer's contribution is to be credited to the
Life Insurance Corporation of India (Employees) Pension Fund.

As far as additional provident fund is concerned, an Officer may be allowed to make or

discontinue any additional contribution or vary the rate thereof, subject, however, to the
rules of the provident fund or to adjust towards the dues of his regular contribution as a
result of revision of scales, any additional contribution made by him from the first day of
August, 2002, or from a later date if he is governed by the new scales of pay from a date
later than the first day of August, 2002, provided that no part of any contribution already
made shall become refundable as a result thereof.

11. GRATUITY:

There is no change in the rules regarding Gratuity. However, the officers who have
retired or expired on or after 1.8.2002 shall be eligible for the difference on account of
gratuity on the basis of revised salary. It may please be noted that since the amended
revision rules are not applicable to the officers whose resignation had been accepted or
whose services had been terminated under Rule 39 of LIC of India (Staff) Rules, 1960,
between the period from 1.8.2002 to the date of notification, they shall not be eligible for
arrears on account of gratuity.

12. ENCASHMENT OF UNAVAILED PRIVILEGE LEAVE:

There is no change in the Rule of Encashment of Privilege Leave. However, the officers
who have retired or died on or after 1.8.2002 shall be eligible for the difference on
account of leave encashment on the basis of revised salary. It may please be noted that
since the amended revision rules are not applicable to the officers whose resignation had
been accepted or whose services had been terminated under Rule 39 of LIC of India

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 (Staff) Rules, 1960, between the period from 1.8.2002 to the date of notification, they
shall not be eligible for arrears on account of leave encashment.

13. FIXED PERSONAL ALLOWANCE

The revised rates of Fixed Personal Allowance payable under Rule 10A of Amended
Revision Rules are shown in Appendix-V. Other conditions in this regard remain
unchanged. These revised rates shall be effective from 1.8.2002. It may please be noted
that a Development Officer who has joined the services of the Corporation after
22.06.2000 shall not be eligible for additional increment for computerization and Fixed
Personal Allowance.

14. EQUITABLE RELIEF:

1) Notwithstanding anything contained in Clause 4, an existing Development Officer

shall be allowed to have his basic pay in the new scale fixed with effect from the
relevant date with reference to the basic pay admissible to him in the old scale on
the preceding date, for the purpose of the equitable relief and other benefits; and
the new basic pay on the relevant date shall correspond to the old basic pay on the
preceding date, as provided in the Fitment Chart.

2) On refixation in the new scale in accordance with sub-clause (1), a Development

Officer shall be allowed any increment due on the relevant date, or, if he has
incurred any liability for reduction in basic pay under Rule 7 of the Special rules,
such reduction shall be effected from the relevant date.

3) Where the new basic pay of a Development Officer is fixed in accordance with
sub-clause (1) or (2), his new basic pay on the appraisal dates subsequent thereto
shall also be refixed in accordance with the Fitment Chart with reference to the old
basic pay on each such appraisal date, for the purpose of computing the equitable
relief.

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 4) All payments by way of equitable relief to an existing Development Officer shall
be subject to the provisions of clause 18 of these instructions read with Rule 10 and
rule 10A of the Amended Alteration Rules.

5) Where equitable relief is allowed to a Development Officer in accordance with the

preceding provisions he shall also be allowed arrears of his service as a
Development Officer continues after 31st March, 2005, subject to fixation of his
basic pay from 1st August 2002 or from the date of appointment as Development
Officer whichever is later, in accordance with the Fitment Chart.

6) Wherever equitable relief or arrears or other benefits are allowed under other
provisions of these instructions to any class of Development Officers other than the
existing Development Officers, the method of fixation or re-fixation specified in
sub-clauses (1), (2) & (3) shall apply unless otherwise specified in the relevant
provisions.

15. EQUITABLE RELIEF TO FORM PART OF ANNUAL REMUNERATION:

1) The equitable relief granted to an existing Development Officer shall form part of his
ad-hoc annual remuneration and annual remuneration in the manner provided in the
following sub-clauses and his expense ratio shall be accordingly computed for
ascertaining whether he has complied with the Special Rules.

100% of the equitable relief paid to him for the period 1.8.2002 to 31.3.2003 shall
form part of the annual remuneration/ad-hoc annual remuneration for the appraisal
year commencing immediately after the date of publication of these rules and shall be
one of the following:

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 1.10.2005 to 30.09.2006
1.11.2005 to 31.10.2006
1.12.2005 to 30.11.2006
1.01.2006 to 31.12.2006
1.02.2006 to 31.01.2007
1.03.2006 to 28.02.2007
1.04.2006 to 31.03.2007
1.05.2006 to 30.04.2007
1.06.2006 to 31.05.2007
1.07.2006 to 30.06.2007
1.08.2006 to 31.07.2007
1.09.2006 to 31.08.2007

2) 100% of the equitable relief paid for the period 1.4.2003 to 31.3.2004 shall form part
of the annual remuneration/ad-hoc annual remuneration for the appraisal year next
following and this next following appraisal year shall be one of the following:
1.10.2006 to 30.09.2007
1.11.2006 to 31.10.2007
1.12.2006 to 30.11.2007
1.01.2007 to 31.12.2007
1.02.2007 to 31.01.2008
1.03.2007 to 29.02.2008
1.04.2007 to 31.03.2008
1.05.2007 to 30.04.2008
1.06.2007 to 31.05.2008
1.07.2007 to 30.06.2008
1.08.2007 to 31.07.2008
1.09.2007 to 31.08.2008

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3) 100% of the equitable relief paid to him for the period 1.4.2004 to 31.3.2005 shall
form part of the annual remuneration/ad-hoc annual remuneration for the appraisal
year next following and this next following appraisal year shall be one of the
following:

1.10.2007 to 30.09.2008
1.11.2007 to 31.10.2008
1.12.2007 to 30.11.2008
1.01.2008 to 31.12.2008
1.02.2008 to 31.01.2009
1.03.2008 to 28.02.2009
1.04.2008 to 31.03.2009
1.05.2008 to 30.04.2009
1.06.2008 to 31.05.2009
1.07.2008 to 30.06.2009
1.08.2008 to 31.07.2009
1.09.2008 to 31.08.2009

4) The current appraisal year shall be the appraisal year current on the date of
notification, and shall be one of the following:

1.10.2004 to 30.09.2005
1.11.2004 to 31.10.2005
1.12.2004 to 30.11.2005
1.01.2005 to 31.12.2005
1.02.2005 to 31.01.2006
1.03.2005 to 28.02.2006
1.04.2005 to 31.03.2006
1.05.2005 to 30.04.2006
1.06.2005 to 31.05.2006

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 1.07.2005 to 30.06.2006
1.08.2005 to 31.07.2006
1.09.2005 to 31.08.2006

Explanation: For the purpose of this clause, the expression “100% of the equitable
relief” shall mean 100% of the gross equitable relief (which shall include payment of
difference in respect of ex-gratia amount in lieu of bonus but shall be reduced by any
recovery on that account).

5) For removal of doubts, it is clarified that any arrears of salary and other allowances
relating to the period commencing on 1.4.2005 and onwards shall form part of the
annual remuneration and ad-hoc annual remuneration in the relevant appraisal years
falling during the period and there is no option to the Development Officer to take
such arrears in any other appraisal year other than the relevant appraisal years to
which they pertain.

6) For the purpose of Rule 7 of the Special Rules, the ad-hoc annual remuneration shall
be computed with relation to the pre-revision and post-revision scales wherever
applicable.
For example: If the appraisal period is 1.4.2002 to 31.3.2003 and revision by way of
equitable relief is paid from 1.8.2002, then the ad-hoc annual remuneration shall be –
The pay and allowances admissible on 1.4.2002 in the pre-revision scale multiplied
by 4 (for 4 months from 1.4.2002 to 31.7.2002); plus, the pay and allowances
admissible on 1.8.2002 in revised scale multiplied by 8 (for 8 months from 1.8.2002
to 31.3.2003); plus non-profit sharing or ex-gratia bonus, traveling expenses,
reimbursement towards residential telephones, reimbursement of insurance premium
and taxes on vehicles, etc.

7) Where a Development Officer has completed ten years of service as a Development

Officer and completed 55 years of age at the commencement of the appraisal year

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 prior to 1st August, 2002, the ad-hoc annual remuneration shall be computed on the
basis of his pay and allowances applicable to him on 1st August, 2002 in the revised
scale;

8) The relevant portion of Equitable Relief granted under Rule 10 and Rule 10A of the
Amended Alteration Rules and Clause 17 of these instructions shall continue to be
taken into account wherever applicable, under the Special Rules.

9) Save as otherwise provided herein, the ad-hoc annual remuneration shall be subject to
the provisions of Rule 7 of Special Rules.

16. RE-FIXATION OF BASIC PAY –REVERTED STAFF:

His basic pay on reversion to Class III shall be the basic pay applicable to him in Class III
on the date of such reversion had he not been recruited as a Development Officer.

17. RETIRED, DIED OR TERMINATED DEVELOPMENT OFFICERS:

1) Where a Development Officer, who is entitled to the benefit of these Instructions

and consequent payment of equitable relief, arrears and other benefits has retired
from service on or before the date of these Instructions, the entire amount due to
him shall be paid in cash; if any Development officer who is so entitled to any
payment be dead while in service or after retirement, the amount payable shall be
paid to the person or persons entitled thereto subject to compliance with the legal
requirements specified in the relevant provision of the Corporation in such cases.

2) No payment by way of Equitable Relief shall be allowed to a Development Officer

whose services have been terminated under the Special Rules.

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19. PENDING APPRAISALS:

1) In case where appraisals have not been finalized or appraisals have been finalized
but not implemented for various reasons, equitable relief or arrears of salary may
be paid “on account” only. The fixation in such cases may be related to whatever
basic pay a Development Officer was drawing as on 1st August 2002 and thereafter
it would continue to be related to whatever basic pay he was drawing from time to
time.

2) As soon as appraisals in such cases are finalized and implemented, the “on account
payment” shall be suitably adjusted.

20. APPLICATION OF STAFF RULES:

Subject to the provisions of the Alteration Rules, all the provisions of the Staff Rules and
the Special Rules shall continue to apply.

21. COURT CASES:

Where a Development Officer has moved any Court of Law in a Writ or other
proceedings in connection with the Scheme of Work Norms and obtained a stay as a
consequence of which we are bound to continue him on the same basic pay and
allowances as he was drawing on the date of the stay order, these Alteration Instructions
shall not be implemented in his case without reference to the appropriate legal forum.

22. PARADEEP PORT ALLOWANCE:

Every Development Officer posted at office(s) in Paradeep shall be paid "Paradeep Port
Allowance" at the increased rate of Rs.75/- p.m. with effect from 1.10.2005 which shall
not rank for any purposes but, as per rule 10C, shall form part of ad-hoc remuneration
and annual remuneration under the Special Rules. The said allowance shall be paid as

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 long as the employee is posted in Paradeep and shall be discontinued on his transfer to
another place.

23. SPECIAL AREA ALLOWANCE

The Central Govt. has vide a separate notification dated 5.9.2005, also amended the Life
Insurance Corporation of India (Special Area Allowance) Rules, 1988 revising the rates
of Special Area Allowance. The amendment has also come into force w.e.f. 1.8.2002.
The conditions regarding release of the said allowance shall remain unchanged.

24. PRODUCTIVITY LINKED LUMPSUM INCENTIVE(PLLI):

A) One time lumpsum cash incentive for the period from 1.4.2003 to 31.3.2005:

As per the amended Rule 10B all Development Officers of the Corporation shall
be eligible for one time lumpsum cash incentive of 1% of the pre-revised wage
bill of Development Officers as on 1.8.2002 for a period from 1.4.2003 to
31.3.2005. The manner in which the payment is to be made was to be decided by
the Corporation. Accordingly, it has been decided to make the above payment to
the Development Officers as under :

For the period from 01.04.2003 to 31.3.2005 (2 year period):

One time payment of Rs 1905/- per Development Officer.

The above payment shall be made subject to the conditions mentioned in the
NOTE hereinbelow:

B) Productivity Linked Lumpsum Incentive for the financial years 2005-2006,

2006-2007, 2007-2008 and 2008-2009:

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 The above rule also provides for Productivity Linked Lumpsum Incentive for the
financial years 2005-2006, 2006-2007, 2007-2008 and 2008-2009 subject to
satisfying the parameters specified in the Appendix to the Rule. The manner in
which the said payment is to be made shall be decided by the Corporation. While
the scheme shown in the Appendix itself is self explanatory, following further
instructions are given regarding manner in which the scheme shall be
implemented.

i) Once the accounts of the Corporation are finalised, the Corporation shall
decide about the quantum of benefit payable, if any, for the said financial
year to the employees on or after 1st August of the next year for which
separate instructions shall be issued on year to year basis.

ii) Accordingly, the instructions regarding the payment of PLLI for the financial
year 2005-2006 shall be issued in due course.

iii) For the removal of doubts, it is clarified that the amount paid to Development
Officer as PLLI or One Time Lumpsum Payment in lieu of PLLI shall form
part of his annual remuneration / ad-hoc annual remuneration under the
Special Rules.

The payment of PLLI shall be subject to the conditions mentioned in the NOTE
here-in-below :

Note :

(1) In case of officers who have retired or expired while in service during the above
period shall get proportionate amount of One time lumpsum cash incentive /
Productivity Linked Lumpsum Incentive.

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 For example, if Mr.`X' has retired on 30.09.2002, he shall be eligible for one time
lumpsum cash incentive proportionately for 2 months only as against the total
period of 2 years (i.e. 24 months, which is the period for which it is declared) .
While calculating the benefit in case of such Officers, the fraction of the month
shall be treated as full month provided such retirement/expiry etc. was after 15th
of the month. In other cases the fraction will be ignored.

(2) The officers who have resigned or who shall resign those whose services are
terminated under Rule 39 of LIC of India (Staff) Rules, 1960, shall not be
eligible for this benefit.

(3) The officers who have joined in middle of the year will be eligible for
proportionate benefit of One-time Lumpsum Cash Incentive/Productivity Linked
Lumpsum Incentive. The method of calculations shall be made as above. The
period of probation shall be counted for this purpose.

(4) 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.

(5) Where a Class-III employee is appointed as Development Officer during the

financial year, he shall get proportionate benefit of PLLI. If such Development
Officer takes charge within first 15 days of the month he shall be paid the PLLI
corresponding to the benefit payable to the Development Officer from the said
month and if he takes charge of the said post in the later half of the month, he

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 shall be paid the PLLI corresponding to the Development Officer from the next
month.

25. DEVELOPMENT OFFICERS APPOINTED FROM EXISTING CLASS-III

EMPLOYEES AFTER 1.8.2002:

Development Officers who have been appointed from the existing Class-III employees
after 1.8.2002 may be paid the arrears from the date of fixation in scale of pay of
Development Officer. Provided, however, that where such Development Officer has
exercised the option to be governed by the Development Officer Revision Rules from the
date of such appointment or any date later than the date of appointment, he shall not be
paid the arrears on account of revision of Class-III/Class-II Revision Rules upto the said
date.

26. SUBSISTENCE ALLOWANCE:

There is no change in the rules governing Subsistence Allowance. However, in view of

the revision in the scales of pay and allowances the Subsistence Allowance paid on or
after 1.8.2002 may be reviewed and difference, if any, paid.

27. DEVELOPMENT OFFICERS WHO HAVE DIED, RETIRED AFTER 1.8.2002:

Development Officers who have died or retired (retirement includes Voluntary

Retirement under Rules 19(2A) of (Staff) Rules, 1960, Rule 31 of LIC of India
(Employees) Pension Rules, 1995 and Compulsory Retirement under Rule 19(3) of
(Staff) Rules, 1960) after 1.8.2002 may be paid the arrears due on account of revision
upto the date of cessation of their service.

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28. STRIKES, WALK-OUTS, ETC.:

Suitable recovery on account of strikes, walk-outs, etc. may be made while paying the
arrears.

29. MEDICLAIM, GROUP TERM INSRURANCE SCHEME(GTIS), 1997 AND

GROUP SAVINGS LINKED INSURANCE SCHEME(GSLI):

As a consequence of the revision of pay scales, the categories of Mediclaim Benefit,

Group Term Insurance Scheme(GTIS) and Group Savings Linked Insurance
Scheme(GSLI) have been revised as under:

a) Group Mediclaim:

Category Pre-revised Pay Revised Pay

I Rs.13,295/- and above Rs. 19,790/- and above

II Rs.9,421/- to Rs.13,294/- Rs. 14,241/- to Rs. 19,789/-
III Upto Rs.9,420/- Upto Rs. 14,240/-
Effective Date of revised categories: 1.4.2005.

b) Group Term Insurance Scheme(GTIS):

Category Pre-revised Pay Revised Pay

I Rs. 20,650/- and above Rs. 30,960/- and above

II Rs. 15,095/- to Rs. 20,649/- Rs. 22,590/- to Rs. 30,959/-
III Rs. 10,775/- to Rs. 15,094/- Rs. 15,970/- to Rs. 22,589/-
IV Rs. 5,625/- to Rs.10,774/- Rs.8,415/- to Rs.15,969/-
V Rs.3,210/- to Rs.5,624/- Rs.4,730/- to Rs 8,414/-
VI Below Rs.3,210 Below Rs.4,730/-

Effective Date of revised categories: 1.2.2006

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 c) Group Savings Linked Insurance (GSLI):

Category Pre-revised Pay Revised Pay

I Rs. 20,650/- and above Rs. 30,960/- and above

II Rs. 15,095/- to Rs. 20,649/- Rs. 22,590/- to Rs. 30,959/-
III Rs. 10,775/- to Rs. 15,094/- Rs. 15,970/- to Rs. 22,589/-
IV Rs. 5,625/- to Rs.10,774/- Rs.8,415/- to Rs.15,969/-
V Rs.3,210/- to Rs.5,624/- Rs.4,730/- to Rs 8,414/-
VI Below Rs.3,210 Below Rs.4,730/-

Effective Date of revised categories: 1.11.2005

`Pay' for the purpose of determining the above categories shall include -

i) Basic Pay
ii) Addition to the Basic Pay
iii) Fixed Personal Allowance
iv) All other allowances which rank for the purpose of Provident Fund contribution.
30. PENSION :

With regard to the Dearness Relief, Family Pension and Minimum Pension provided by
the Life Insurance Corporation of India (Employees) Pension Rules, 1995, instructions
shall be issued separately.

31. INSTRUCTIONS FOR PAYMENT OF ARREARS/EQUITABLE RELIEF:

The revision of various items come into force with effect from different dates as
prescribed in the Life Insurance Corporation of India Development Officers (Revision of
Terms and Conditions of Service) Amendment Rules, 2005. It has now, therefore,
become necessary to make payment of arrears on account of the revision in the scales of

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 pay and other benefits from the relevant due dates. While calculating the House Rent
Allowance, City Compensatory Allowance, care has to be taken to ensure that the
instructions contained herein are strictly followed. Broadly, payment of
arrears/recoveries would arise in respect of the following:-

a) Arrears/Equitable relief arising out of fixation in the revised scale of pay and
allowances;
b) Change in the basic pay and allowances because of grant of Normal Grade
Increment/Stagnation Increment/Promotion to the higher cadre;
c) Subsistence Allowance;
d) Difference in Encashment of Privilege Leave;
e) Fixed Personal Allowance/Difference in Fixed Personal Allowance;
f) Recovery on account of EOL, strike, walk-out, etc.;
g) Employees on sick leave on half-pay;
h) Gratuity;
i) Payment in lieu of Productivity Linked Lumpsum Incentive(PLLI) for the period
from 1.4.2003 to 31.3.2005;
j) Revision of Special Area Allowance.
k) Revision of Hill Allowance.
l) Revision of Project Allowance.

32. INCOME-TAX DEDUCTION:

In respect of Income-tax to be deducted from the arrears, the instructions issued by the
Finance & Accounts Department in this regard may be followed.

33. INFORMATION TO BE FURNISHED TO THE CENTRAL OFFICE:

After payment of arrears, the Divisional Office should furnish the information in respect
of total amount paid by the offices under their control under various components

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 mentioned in the proforma to the controlling Zonal Office. Information only in respect of
consolidated amounts paid by way of arrears under each head should be furnished and not
the amount paid to the individual employees. The Zonal Offices shall, in turn, furnish the
consolidated information in respect of the zone as a whole to the Personnel/ER
Department, Central Office. All other offices not covered by the above shall directly
furnish the information to the Personnel/ER Department, Central Office.

34. DATE OF PAYMENT:

The arrears may be paid as early as possible.

35. INTERPRETATION:
Where any doubt or difficulty arises as to the interpretation of these instructions it shall
be referred to the Chairman for his decision.

EXECUTIVE DIRECTOR (P)

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 FITMENT CHART Appendix-II
(BASIC PAY)
DEVELOPMENT OFFICER

STAGES EX REV

1 4950 7440
2 5230 7890
3 5510 8340
4 5845 8860
5 6180 9380
6 6540 9920
7 6900 10460
8 7260 11000
9 7620 11540
10 7980 12080
11 8340 12620
12 8700 13160
13 9060 13700
14 9420 14240
15 9780 14780
16 10140 15320
17 10500 15860
18 10860 16400
19 11220 16940
20 11580 17480
21 11940 18020
22 12300 18560
23 12660* 19100*
24 13020* 19640*
25 20180*

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 Appendix-III

Form of option to be exercised by the Development

Officers under Rule 1 of the Life Insurance
Corporation of India Development Officers (Revision
of Terms and Conditions of Service) Amendment
Rules, 2005

To,

Life Insurance Corporation of India,

_______________________ Office,
_____________________________
_____________________________

In accordance with sub-clause(4) of Clause 4 of the Life Insurance Corporation of India

Development Officers (Revision of Terms and Conditions of Service) Instructions, 2005, I hereby
opt to be governed by the provisions of the Life Insurance Corporation of India Development
Officers (Revision of Terms and Conditions of Service) Amendment Rules, 2005 with effect from
______________. I hereby understand and agree that no arrears shall be paid to me for the period
from 1.8.2002 to __________ on account of Amendment Rules, 2005.

________________
(Signature)
Date :

Full Name :

Designation :

S.R.No. :

Office :

Place :

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 Appendix-IV

NO. OF SLABS FOR WHICH DEARNESS ALLOWANCE PAYABLE AS PER THE

PRE-REVISED AND REVISED RULES

Period As per the pre-revised As per the revised rules

rules (Scales linked to 1740 (Scales linked to 2328
Points) Points)

August 2002 to October 2002 147 0

November 2002 to January 2003 160 13

February 2003 to April 2003 164 17

May 2003 to July 2003 163 16

August 2003 to October 2003 174 27

November 2003 to January 2004 180 33

February 2004 to April 2004 184 37

May 2004 to July 2004 186 39

August 2004 to October 2004 191 44

November 2004 to January 2005 206 59

February 2005 to April 2005 210 63

May 2005 to July 2005 212 65

August 2005 onwards 216 69

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 Appendix-V

Fixed Personal Allowance payable to

Development Officers on revision

Existing Revised
Rs. Rs.
360 540

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 APPENDIX- VI(A)

CLASSIFICATION CITIES FOR THE PURPOSE

OF HOUSE RENT ALLOWANCE

CATEGORY-I CATEGORY-II CATEGORY-III

CALCUTTA Agra All other places

(including municipal areas Ahmedabad
comprising city of Calcutta (including Bangalore
Behala, Alipore, Cossipur Tollegunge) Bhopal
Howrah, Barrackpore (including Coimbatore
N.Barrackpore) Garden Reach, Baranagore, (including
South Suburban, Muncipal Area, Dum Dum Sulur)
(including South Dum Dum) Kamarhatti,
Panibati, Kharda, Titagarh, Garulia, Gandhinagar
Bhatpara, Naihati, Bally, Uttarpara, Goa (Entire State)
Konnagar, Rishara, Serampore, Baidyabati, Hyderabad
Champdani, Bhadreshwar, Chandranagar, Indore
Hoogly Chinsuria, Budge Budge, Habra, Jaipur
Baruipur, Barasat and Uluberia Kanpur
Kochi
CHENNAI Lucknow
Ludhiana
MUMBAI Madurai
(including areas comprising within the limits ( including
of the Mumbai Municipal Corporation Tirunagar )
(Greater Mumbai) Dombvli, Kalyan, Thane,
Bhivandi, Ulhasnagar and Bassein Nagpur
Municipalities) Patna
Navi Mumbai
Pune (including Pimpri &
NEW DELHI Chinchwad)

Faridabad Surat
Ghaziabad
Gurgaon Vadodara
Noida Varanasi

Visakhapatnam
(including Gajuvaka)

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 APPENDIX- VI (B)

CLASSIFICATION CITIES FOR THE PURPOSE

OF CITY COMPENSATORY ALLOWANCE

CATEGORY-I CATEGORY-II CATEGORY-III

CALCUTTA
(including municipal areas Agra Agartala Kozhikode
comprising city of Calcutta Ahmedabad Amravati Meerut
(including Behala, Alipore, Cossipur Bangalore Aizwal Mohali
Tollegunge) Howrah, Barrackpore Bhopal Aligarh Mangalore
(including N.Barrackpore) Garden Coimbatore Allahabad Moradabad
Reach, Baranagore, South Suburban, (including Amritsar Mysore
Muncipal Area, Dum Dum Sulur) Asansol Nashik
(including South Dum Dum) Aurangabad Panchkula
Kamarhatti, Panibati, Kharda, Gandhinagar Bareilly Pondicherry
Titagarh, Garulia, Bhatpara, Naihati, Goa (Entire State) Belgaum Port Blair
Bally, Uttarpara, Konnagar, Rishara, Hyderabad Bhavnagar Raipur
Serampore, Baidyabati, Champdani, Indore Bhubanes- Rajkot
Bhadreshwar, Chandranagar, Hoogly Jaipur Hwar Ranchi
Chinsuria, Budge Budge, Habra, Kanpur Bikaner Salem
Baruipur, Barasat and Uluberia Kochi Shimla
CHENNAI Lucknow Chandigarh Shillong
Ludhiana Cuttack Sholapur
MUMBAI Madurai Dehradun Srinagar
(including areas comprising within ( including Tirunagar ) Dhanbad Thiruvanantha-
the limits of the Mumbai Municipal (including Sindri Puram
Corporation (Greater Mumbai) Nagpur and Katras) Tiruchirapalli
Dombvli, Kalyan, Thane, Bhivandi, Patna Tiruppur
Ulhasnagar and Bassein Durg-Bhilai Vijaywada
Municipalities) Pune (including Pimpri Gangtok Warngal
Navi Mumbai & Chinchwad) Gauhati
Gorakhpur
NEW DELHI Surat Guntur
Faridabad Gwalior
Ghaziabad Vadodara Hubli-Dharwad
Gurgaon Varanasi Imphal
Noida Itanagar
Visakhapatnam Jabalpur
(including Gajuvaka) Jalandhar
Jamnagar
Jamshedpur
Jammu
Jodhpur
Kohima
Kolhapur
Kota

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