Date: 2021-02-09Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by clause g of sub section 1 of Section 16 read with section 17 A of the General Insurance Business Nationalization Act
Okay, I'm ready to analyze the provided policy text and generate the report.
**Report: Analysis of Amendment to the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975**
**1. Executive Summary:**
This report analyzes an amendment to the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975. The amendment, effective from July 1, 2017 (unless otherwise specified), focuses on revising and introducing new allowances for the ChairmancumManaging Director (CMD) of General Insurance companies. Key changes include revised House Rent Allowance (HRA) rates, a Transport Allowance option, and a Children Education Allowance (CEA) reimbursement scheme. These amendments aim to update the compensation structure for CMDs in the general insurance sector.
**2. Introduction:**
The purpose of this report is to provide an informative overview and analysis of the amendment to the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975, as detailed in the provided government policy text. This report will focus on the key changes introduced by the amendment and their potential impact.
**3. Policy Overview:**
* This document is an amendment to the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975.
* Core Objective(s) (inferred): The amendment's core objective appears to be to revise the compensation and benefits package specifically for the ChairmancumManaging Director (CMD) of General Insurance companies, aiming to provide updated and relevant allowances.
**4. Background and Rationale:**
The provided text suggests the amendment is necessary to update the allowances and benefits for the CMDs of General Insurance companies. The explanatory memorandum explicitly states that the Central Government has approved the revision of certain allowances for the CMDs, making this amendment necessary to align with that decision. This suggests that the previous allowance structure was deemed inadequate or outdated, necessitating the revisions outlined in the amendment.
**5. Key Provisions / Changes:**
This section details the specific changes introduced by the amendment:
* **Location of Changes:** The changes are introduced by amending the Fifteenth Schedule of the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975.
* **House Rent Allowance (HRA):**
* *Original Policy:* The original policy regarding HRA before July 1, 2017, is not detailed in the provided text. However, the text adds "up to 30th June, 2017" after the words "this Schedule" in Item VI, suggesting that HRA existed before this amendment.
* *New Provision:* With effect from July 1, 2017, if the CMD is not provided with rent-free accommodation, they are entitled to HRA at 24% of Basic Pay in a city classified as "X" by the Central Government. The HRA rate will increase to 27% of Basic Pay when Dearness Allowance (DA) crosses 25% and further to 30% when DA crosses 50%.
* *Difference/Effect:* The amendment provides a specific, tiered HRA structure for CMDs based on their basic pay and the prevailing DA rates.
* **Transport Allowance:**
* *Original Policy:* The original policy regarding Transport Allowance is not detailed in the provided text.
* *New Provision:* With effect from July 1, 2017, the CMD has the option to draw a transport allowance of Rs. 15,750 per month plus DA if they choose not to use the official car for travel between residence and office.
* *Difference/Effect:* The amendment provides an alternative transport allowance for CMDs who prefer not to use the official company car, giving them more flexibility.
* **Children Education Allowance (CEA):**
* *Original Policy:* The original policy regarding CEA is not detailed in the provided text.
* *New Provision:* With effect from July 1, 2017, reimbursement of CEA to the CMD is allowed up to a maximum of Rs. 2,250 per child per month, for a maximum of two children. If the child resides in a hostel, a hostel subsidy of up to Rs. 6,750 per child per month can be reimbursed, but both CEA and hostel subsidy cannot be availed concurrently. These limits are automatically raised by 25% every time the DA goes up by 50%. If the CMD's spouse is a government servant, only one parent can claim CEA or hostel subsidy. Reimbursement for differently-abled children is payable at double the normal rates, subject to an annual ceiling of Rs. 54,000.
* *Difference/Effect:* The amendment introduces a comprehensive CEA scheme with specific limits, provisions for hostel subsidies, DA adjustments, and considerations for differently-abled children.
* **Other Allowances:**
* *New Provision:* Payment of other allowances to the CMD, not specifically mentioned in this schedule, will be made as admissible in the case of Officers in Higher Administrative Grade on the basis of the Central Civil Services Revised Pay Rules, 2016.
**6. Target Audience and Stakeholders:**
The primary target audience and directly affected stakeholder is the ChairmancumManaging Director (CMD) of General Insurance companies.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government, specifically the Department of Financial Services under the Ministry of Finance, is responsible for framing and implementing this scheme. The General Insurance companies themselves will be responsible for the actual disbursement of the revised allowances.
* **Timelines/Procedures:** The amendments are effective from July 1, 2017, unless otherwise specified. The procedure for claiming the allowances would likely follow existing processes within the General Insurance companies, with necessary adjustments to accommodate the new provisions. The CEA also specifies that the limits shall be automatically raised by 25% every time the DA goes up by 50%, suggesting that there is a pre-defined mechanism to periodically review and adjust the CEA limits based on prevailing DA rates.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of these amendments is to provide a more competitive and attractive compensation package for CMDs in the General Insurance sector. Specifically:
* **HRA Changes:** Ensures fair housing allowance based on location and economic conditions (DA).
* **Transport Allowance:** Offers flexibility in transport options.
* **CEA:** Supports the education of CMD's children, especially differently-abled children, and adjusts with inflation.
The overall impact is likely to improve the morale and retention of CMDs and attract qualified individuals to these leadership positions.
**9. Conclusion:**
The amendment to the General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975, represents a significant update to the compensation and benefits package for CMDs in the General Insurance sector. By revising HRA, introducing a transport allowance option, and establishing a comprehensive CEA scheme, the amendment aims to provide more competitive and relevant benefits, ultimately contributing to the effective leadership and management of General Insurance companies. The retrospective effect from July 1, 2017, ensures that the revised allowances are implemented promptly.
Key Entities Referenced
New Delhi: Capital of India, location of the notification.
General Insurance Business Nationalization Act, 1972: Act under which the powers are conferred for framing the scheme.
Central Government: The governing body framing the scheme.
General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Scheme, 1975: The scheme being amended by this notification.
General Insurance Rationalisation of Pay Scales and other Conditions of Service of Officers Amendment Scheme, 2021: The name of the amended scheme.
ChairmancumManaging Director: Designation of the officer to whom certain allowances are applicable.
Central Civil Services Revised Pay Rules, 2016: Basis for payment of other allowances to the ChairmancumManaging Director.
Ministry of Finance: The ministry under which the notification is issued.
Department of Financial Services: The department within the Ministry of Finance that issued the notification.
Saurabh Mishra: Jt. Secy., signatory of the notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-10022021-225060
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CG-DL-E-10022021-225060
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 559] नई दिल्ली, मगं लिार, फरिरी 9, 2021/माघ 20, 1942
No. 559] NEW DELHI, TUESDAY, FEBRUARY 9, 2021/MAGHA 20, 1942
जित्त मत्रं ालय
(जित्त ीय सिे ा जिभाग)
अजधसचू ना
नई दिल्ली, 9 फरिरी 2021
का.आ. 611(अ).—केंद्रीय सरकार, साधारण बीमा कारबार (राष्टर ीयकरण) अजधजनयम, 1972 (1972 का 57)
की धारा 17क के साथ पठित धारा 16 की उपधारा (1) के खंड (छ) द्वारा प्रित् त िजतत यक का प्रय ग करत े ए ए साधारण
बीमा (अजधकाठरयक के िेतनमानक और सेिा की अन् य िततों का सव् यिस्ट् थीकरण) स्ट् कीम, 1975 का और संि धन करने के
जलए जनम् नजलजखत स्ट् कीम बनाती , अथाात ् :-
1. (1) इस स्ट् कीम का संज् त नाम साधारण बीमा (अजधकाठरयक के िेतनमानक और सेिा की अन् य िततों का
सव् यिस्ट् थीकरण) संि धन स्ट् कीम, 2021 ।
(2) इसमें इसके पश्चात अन्यथा यथा उपबंजधत के जसिाय इस स्ट् कीम के उपबंध 1 िलव ाई, 2017 स े प्रिृत् त ए ए समे े
िाएगं े ।
2. साधारण बीमा (अजधकाठरयक के िेतनमानक और सेिा की अन् य िततों का सव् यिस्ट्थ ीकरण) स्ट् कीम, 1975 म,ें पंद्र िीं
अनवसूची म,ें --
835 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(i) मि VI में “इस अनवसूची”, िब् िक के पच चात् “30 िून, 2017 तक” िब् ि और अंक अंत:स्ट्थ ाजपत दकए िाएंग;े
(ii) मि VI के पि च् ात्, जनम्न जलजखत अंत:स्ट् थाजपत दकया िाएगा, अथाता ् :-
“VII मकान दकराया भत्त ा
1 िवलाई, 2017, से अध् य्-स -प्रबंध जनिेिक जिसक दकराया मवत त जनिास स्ट्थान न ीं प्रिान दकया गया उसे केंद्रीय
सरकार द्वारा ‘X’ के रूप म ें िगीकृत नगर म ें मलू िते न के 24 प्रजतित की िर स े प्रजत मास मकान दकराया भत्त ा
(एचआरए) का संिाय दकया िाएगा ।
एचआरए की िर क मलू िेतन का 27 प्रजतित तब पवनरीज्त दकया िाएगा िब म गं ाई भत् ता (डीए) 25 प्रजतित स े
अजधक िाता और मलू िेतन का 30 प्रजतित तब और पनव रीज्त गा िब डीए 50 प्रजतित स ेअजधक िाता ।
VIII पठरि न भत्त ा
1 िवलाई, 2017 से अध् य्-स -प्रबंध जनिेिक, ि अन् यथा आिास और कायाालय के बीच यात्रा के जलए कायाालय
की कार का प्रय ग करन े के जलए पात्र , 15,750 रुपये प्रजतमा की िर स े पठरि न भत् ता और उस पर म गं ाई भत् ते क
आ ठरत करन े का जिकल् प गा यदि ि आिास और कायाालय के बीच यात्रा के जलए कायाालय कार का प्रय ग न ीं करत े
क ।
IX बाल जि्ा भत्त ा
(1) 1 िवलाई, 2017 स,े अध् य्-स -प्रबंध जनििे क क बाल जि्ा भत् ते की प्रजतपूतिता अजधकतम ि बालकक के
अध् यधीन अजधकतम 2,250 रुपये प्रजत बालक प्रजतमा संिाय दकया िाएगा;
परंतव य दक यदि बालक ॉस्ट्ट ल में र र ा उसे 6,750 रुपये प्रजत बालक प्रजतमा की ॉस्ट् टल
सजब्सडी प्रजतपूतिता की िाएगी, इसजलए, ालााँदक बाल जि्ा भत् ता और ॉस्ट् टल सजब्सडी में से केिल एक
ी प्रिान की िाएगी ।
(2) बाल जि्ा भत् ता या ॉस्ट् टल सजब्सडी ि बडे िीजित बालकक के जलए प्रिान की िाएगी ।
(3) उपर तत सीमाएं म गं ाई भत् ता 50 प्रजतित के ने पर प्रत् येक समय 25 प्रजतित स्ट् ित: ब़ िाएंगी ।
(4) यदि अध् य्-स -प्रबंध जनिेिक के पजत/पत् नी सरकारी सेिक , बाल जि्ा भत् ता या ॉस्ट् टल सजब्सडी के
अधीन प्रजतपूतिता उनमें से केिल एक क प्रिान की िाएगी।
(5) दि् यांग बालक के जलए बाल जि्ा भत् ता की प्रजतपूतिता 54,000 रुपये की िातिषाक सीमा के अधीन जिज त
सामान् य िर से ि रे का संिाय दकया िाएगा ।
X इस अनसव चू ी म ेंजिजनर्िष्टा ट रुप स ेसजम्म जलत न ीं दकए गए अन्य भत्त –े अध्य ्-स -प्रबधं क जनििे क क अन्य भत्त क
का संिाय ि इस अनवसूची म ें जिजनर्िष्टा ट तया उजल् लजखत न ीं दकया गया केंद्रीय जसजिल सिे ा (पवनरीज्त िेतन) जनयम,
2016 के आधार पर उच् चतर प्रिासजनक ्ेड में अजधकाठरयक के मामले म ेंस्ट् िीकाया गा ।
[फा. सं.-11012/02/2018-बीमा II]
सौरभ जमश्रा, संयवत त सजचि[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
स्ट्प ष्टट ीकारक ञापन
1. केंद्रीय सरकार ने 1 िवलाई, 2017 से कारप रेिन के अध् य्-स -प्रबंध जनििे क और कंपजनयक के अध् य्-स -प्रबंध
जनिेिकक के संबंध म ें कजतपय भत् तक के पवनरी्ण के जलए अनवम िन दकया । तिनवसार, साधारण बीमा (अजधकाठरयक के
िेतनमानक और सेिा की अन् य िततों का सव् यिस्ट्थ ीकरण) स्ट् कीम, 1975 क 1 िलव ाई, 2017 से संि जधत दकया िा र ा ।
2. य प्रमाजणत दकया िाता दक इस अजधसूचना क भूतल्ी प्रभाि दिए िाने से कारप रेिन के अध् य्-स -प्रबंध
जनिेिक और कंपजनयक के अध् य्-स -प्रबंध जनिेिकक पर क ई प्रजतकूल प्रभाि पडन े की क ई संभािना न ीं ।
ठटपण : मलू स्ट् कीम भारत के रािपत्र, असाधारण, भाग II, खंड 3, उप-खंड (ii) संख्या का.आ. 521 (अ), तारीख 17
जसतंबर, 1975 द्वारा प्रकाजित की गई थी और अजधसूचना संख्या का.आ. 672(अ) तारीख 21 निंबर,1975, का.आ.
389(अ) तारीख 1.6.1976, का.आ. 2445 तारीख 30.7.1977, का.आ. 1047 तारीख 29.3.1978, का.आ. 2110
तारीख 14.6.1978, का.आ. 3428 तारीख 16.11.1978, का.आ. 5 तारीख 20.12.1978, का.आ. 770 (अ) तारीख
15.10.1985, का.आ. 883 (अ) तारीख 9.12.1985, का.आ. 442 (अ) तारीख 27.4.1987, का.आ.138 (अ) तारीख
29.1.1988, का.आ. 782 (अ) तारीख 22.8.1988, का.आ. 572 (अ) तारीख 25.7.1989, का.आ. 751 (अ)
तारीख1.10.1990, का.आ.200 (अ) तारीख 10.3.1992, का.आ.81 (अ) तारीख 2.2.1994, का.आ.592 (अ) तारीख
30.6.1995, का.आ.521 (अ) तारीख 18.7.1996, का.आ.108 (अ) तारीख 14.2.1997, का.आ. 168 (अ) तारीख
5.3.1998, का.आ.729 (अ) तारीख 27.8.1998, का.आ. 695 (अ) तारीख 30.8.1999, का.आ.587 (अ) तारीख
22.6.2000, का.आ.781(अ) तारीख 14.8.2001, का.आ.1027(अ) तारीख 22.9.2004, का.आ. 634(अ) तारीख
4.5.2005, का.आ.1792(अ) तारीख 21.12.2005, का.आ. 2742 (अ) तारीख 26.11.2008, का.आ. 2470 (अ)
तारीख 8.10.2010, का.आ. 233 (अ) तारीख 23.1.2016, का.आ. 238 (अ) तारीख 23.1.2016 और का.आ. 370
(अ) तारीख 8.2.2017 द्वारा अंजतम बार संि धन दकया गया था।
MINISTRY OF FINANCE
(Department of Financial Services)
NOTIFICATION
New Delhi, the 9th February, 2021
S.O. 611(E).—In exercise of the powers conferred by clause (g) of sub-section(1) of Section 16
read with section 17 A of the General Insurance Business (Nationalization) Act, 1972 (57 of 1972), the
Central Government hereby frames the following Scheme further to amend the General Insurance
(Rationalisation of Pay Scales and other Conditions of Service of Officers) Scheme, 1975, namely :-
1. (1) This Scheme may be called the General Insurance (Rationalisation of Pay Scales and other
Conditions of Service of Officers) Amendment Scheme, 2021.
(2) Save as otherwise provided hereinafter, the provisions of this Scheme shall be deemed to have
come into force on the 1st day of July, 2017.
2. In the General Insurance (Rationalisation of Pay Scales and other Conditions of Service of
Officers) Scheme, 1975, in the Fifteenth Schedule,─
(i) in Item VI, after the words, ‘this Schedule’, the words and figures, ‘up to 30th June, 2017’ shall be
inserted;
(ii) after Item VI, the following items shall be inserted, namely:-4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
“VII House Rent Allowance:
(1) With effect from 1st day of July,2017, the Chairman-cum-Managing Director who has
not been provided with a rent free residential accommodation shall be paid a House
Rent Allowance (HRA) per month at the rate of 24% of Basic Pay in a city classified
as ‘X’ by the Central Government.
(2) The rate of HRA will be revised to 27% of Basic Pay when Dearness Allowance (DA)
crosses 25% and further revised to 30% of Basic Pay when DA crosses 50%.
VIII Transport Allowance:
With effect from 1st day of July, 2017, the Chairman-cum-Managing Director, who is
otherwise entitled to the use of official car for travel between residence and office, shall
have an option to draw transport allowance at the rate of Rs. 15,750 per month plus
Dearness Allowance thereon provided he does not make use of official car for travel
between residence and office.
IX Children Education Allowance:
(1) With effect from 1st day of July, 2017, reimbursement of Children Education
Allowance to the Chairman-cum-Managing Director shall be up to the maximum of
Rs. 2,250 per child per month subject to the maximum of two children:
Provided that if the child is residing in hostel, hostel subsidy shall be reimbursed
up to the maximum of Rs. 6,750 per child per month, so, however, that both the
Children Education Allowance and the hostel subsidy shall not be availed
concurrently.
(2) The Children Education Allowance or the hostel subsidy may be availed for two eldest
surviving children.
(3) The above limits shall be automatically raised by 25% every time the Dearness
Allowance goes up by 50%.
(4) If spouse of the CMD is a Government servant, only one of them shall avail
reimbursement under Children Education Allowance or hostel subsidy.
(5) The reimbursement of Children Education Allowance for differently abled children
shall be payable at double the normal rates prescribed subject to an annual ceiling of
Rs. 54,000.
X Other allowances not specifically included in this Schedule:
The payment of other allowances to the Chairman-cum-Managing Director, not
specifically mentioned in this Schedule, shall be made as admissible in the case of Officers
in Higher Administrative Grade on the basis of the Central Civil Services (Revised Pay)
Rules, 2016”.
[F. No. A-11012/02/2018-Ins-II]
SAURABH MISHRA, Jt. Secy.
EXPLANATORY MEMORANDUM
1. The Central Government has accorded approval for revision of certain allowances in respect of the
Chairman-cum-Managing Director of the Corporation and the Chairman-cum-Managing Directors
of the Companies with effect from the 1st day of July, 2017. Accordingly, the General Insurance[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 5
(Rationalisation of Pay Scales and Other Conditions of Service of Officers) Scheme, 1975 is being
amended with effect from the 1st day of July, 2017.
2. It is certified that no Chairman-cum-Managing Director of the Corporation or Chairman-cum-
Managing Director of the Company is likely to be affected adversely by the notification being
given retrospective effect.
Note: The principal Scheme was published in the Gazette of India Extraordinary, Part II, Section 3, sub-
section (ii) vide notification No.S.O.521 (E), dated the 17th September, 1975, and subsequently amended
by notification numbers S.O. 672(E) dated 21.11.1975, S.O. 389(E) dated 1.6.1976, S.O. 2445 dated
30.7.1977, S.O. 1047 dated 29.3.1978, S.O. 2110 dated 14.6.1978, S.O. 3428 dated 16.11.1978, S.O. 5
dated 20.12.1978, S.O. 770(E) dated 15.10.1985, S.O. 883(E) dated 9.12.1985, S.O. 442(E) dated
27.4.1987, S.O. 138(E) dated 29.1.1988, S.O. 782(E) dated 22.8.1988, S.O. 572(E) dated 25.7.1989, S.O.
751(E) dated 1.10.1990, S.O. 200(E) dated 10.3.1992, S.O. 81(E) dated 2.2.1994, S.O. 592(E) dated
30.06.1995, S.O. 521(E) dated 18.07.1996, S.O. 108 (E) dated 14.02.1997, S.O. 168(E) dated 5.3.1998,
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and Published by the Controller of Publications, Delhi-110054.