APPENDIX 11

APPENDIX 11

(See Chapter IV,  Article 89)

Rules for the deductions of Insurance Premia 
from the Pay/Salary Bills of the Kerala Government Employees

1. The policyholder should himself remit the first two instalments of insurance premia direct to the Life Insurance Corporation of India at the time of proposing for insurance. Only the subsequent premia will be deducted from his salary.

2.(a) Along with the proposal for insurance, the proposer should submit to the Life Insurance Corporation a Letter of Authorisation* in (Annexure ‘A’) in duplicate addressed to the Drawing Officer for deduction of premium from his salary every month. No fresh Letter of Authorisation* is required when an employee is transferred from one office to another under the Kerala Government.

*[G.O. (P) 244/76/Fin.,  dated 11th August 1976]

  (b) It is the duty of the policyholder to inform his Drawing Officer of his intention to deduct premia from his salary regularly and to ensure that the premium is deducted from his salary every month.

  (c) When the insurance proposal is completed into a policy, one copy of the Letter of Authorisation*  along with the First Premium Receipt and the Premium Deduction Book in Annexure ‘B’ will be sent to the policyholder, who  in turn, will submit the Letter of Authorisation* to his Drawing Officer.  The Drawing Officer, on receipt of his letter, should arrange to deduct  the premia regularly from the pay bills of the employee every month in advance. If any employee desires to stop the deductions, he has to make a specific request in writing to the Divisional Manager, Life Insurance Corporation of India, Trivandrum/Kozhikode†. The Life Insurance Corporation in turn will forward the request to the Pay Drawing Officer for the stopping the deductions.

*[G.O. (P) 244/76/Fin.,  dated 11th  August 1976]
†[G.O. (P) 25/77/Fin.,  dated 20th January 1977]

  (d) If due to omission or due to any reason the premium/premia for a particular month or months are not deducted, the Drawing Officer shall deduct the arrears of premia from the next pay bill provided such defaulted period does not exceed six months.

  (e) If, however, the period of default exceeds six months, the arrears of premia are to be remitted with interest direct to the Life Insurance Corporation and conditions of revival of the policy as stipulated by the Corporation are to be satisfied.

3. (a) The Premium Deduction Books shall be kept by the Policyholders concerned in their safe custody and produced to the Drawing Officers at the time of receipt of salary for noting and certifying the deduction before the end of the month.
(b) While making the deduction Drawing Officer shall enter collection in the Premium Deduction Book under his initials showing his designation and office.

4. (a) Each Drawing Officer shall maintain a Register of Insurance premia in Annexure ‘C’ in respect of all the policies or employees (in respect of permanent employees and contingent employees separately) showing the details of premium deductions for each month. The entries in this Register should be verified with those in the Premium Deduction Book of each employee and initialed by the Drawing Officer.

(b) Any addition or deletion of policy numbers due to taking up of new policies or transfers of policyholders shall be entered in this Register as soon as the event takes place with appropriate remarks.

5. Policyholders, who are Gazetted Officers drawing their own salary bills/and those who are Non-gazetted Officers drawing their salary on counter-signed bills will themselves arrange for the regular deduction of premia as detailed in rule 6 and for making appropriate entries in the Premium Deduction Book under their initials and address.

6. Premia due on the policies held by Government employees in the erst-while Public Branch of the State Life Insurance and also those taken by the Government employees in the Life Insurance Corporation of India after 1st September 1956 may be collected by recovery from their pay bills. Such recov-eries should not appear in the body of the pay bill; but to avoid needless han-dling of cash, the Drawing Officer will make an endorsement on the pay bill itself after receipting the contents as follows:—
“Pay Rs...........................................(Rupees..........................................) in cash. Pay Rs.................................(Rupees..........................................) to the credit of the Life Insurance Corporation of India (vide detailed statement attached)”.

7 (a) *The Premium Deduction Statement in Annexure ‘D’ furnishing full particulars of recoveries should be attached to the pay bill in all such cases before they are presented at the Treasury/Bank for encashment.

*[Modified vide G.O. (P) 356/93/Fin.,  dated 14th June 1993]
(b) The Premium Deductions Statements should be completed after verifying the Register of Insurance Premia maintained in the office as laid down in sub-rule (a) of rule 4 ibid. These statements shall be prepared in duplicate, the original being sent along with the pay bill to the Treasury/Bank and the duplicate retained in the office along with the office copy of the pay bill.
*NOTE:—The details of Premium recovery from each officer will not be shown in the bill, but only in the Premium Deduction Statement attached to the Bill. The Bill thus shows the gross amount of the salary including the Premia whereas the actual amount paid will only be net. The deductions will however be shown in the Acquittance Rolls and entered in the Premium Deduction Books and attested by the Disbursing Officer.   This is also necessary in order that the amount disbursed may agree with the actual amount drawn from the Treasury/Bank.
*[Inserted vide G.O. (P) No. 356/93/Fin.,  dated 14th June 1993]

8. Deleted.
[G. O. (P) 356/93/Fin., dated 14th June, 1993]

9. (a) The amounts towards Life Insurance Corporation premia adjusted in the non-banking treasuries in the Trivandrum/Kozhikode‡ Districts are being credited to the Personal Deposit Account in the name of the Life Insurance Corporation of India maintained in the District Treasury,  Trivandrum/Kozhikode‡. These amounts credited to the Personal Deposit Account are transferred to the Life Insurance Corporation of India every week after getting a receipt duly signed by them and authorising their bankers to collect the amount from the Treasury on their behalf and credit to account.
‡[G.O. (P) 25/77/Fin.,  dated 20th January 1977]

In the case of other non-banking treasuries the collections towards Life Insurance Corporation premia are being consolidated at the concerned district treasuries and the total collections at the end of every week are transferred to the Life Insurance Corporation by means of a draft drawn on the Reserve Bank of India, Trivandrum. The draft should be for the full amount of collections, as the bank charges on bank drafts will be met by the Government.
The expenditure on account of the Bank charges will be debited to the head of account “268—Miscellaneous—General Services other expenditure, Bank Commission and Contingencies”*.
*[G.O. (P) 25/77/Fin.,  dated 20th January 1977]

(b) In the banking treasuries the credits on account of the collections towards Life Insurance Corporation will be taken to the special collection account opened by the Life Insurance Corporation with the bank and a certificate of credit will be issued by the bank to the treasury.   The credit relating to Life Insurance Corporation collections will not find a place in the Treasury accounts.

10. (a) #The Treasury or Banking Treasury shall after encashment of Pay Bills detach all the deduction statements and prepare in Annexure ‘F’ a summary statement of collections pertaining to each remittance (for each salary bill separately) for the day.  The summary statement consolidated for the month, along with all the deduction statements, should be forwarded to the Divisional Manager, Life Insurance Corporation of India, Thiruvananthapuram/Kozhikode on or before 10th of the subsequent month.
#[Modified vide G.O. (P) No.356/93/Fin.,  dated 14th June 1993]
(b) In the case of Banking Treasuries, a statement of accounts (in their Current Account Ledger Folio Form) showing the totals of daily collections, withdrawals, progressive totals, bank charges etc., should be forwarded to the Accounts Department of the concerned Divisional Office, Life Insurance Corporation of India, Trivandrum or Kozhikode on or before the 10th of the subsequent month.

11. The postal charges etc., incurred by the Treasuries for rendering the accounts to the Life Insurance Corporation will be reimbursed by the Corporation. The Treasuries will sent bills periodically to the Corporation and the amounts received will be credited to Government under the appropriate heads of account.

12 *The Life Insurance Corporation will supply deduction statements for use by the Drawing Officer on indent from them.

*[Modified vide G.O. (P) No.356/93/Fin.,  dated 14th June 1993]
13. In addition to the postal charges etc., a commission of 1/8 percent will be paid to the Government calculated on the total collections remitted to the Life Insurance Corporation by the Non-Banking Treasuries. The commission will be credited to the Government half-yearly.  The State Insurance Officer will be responsible for its realisation by getting the required statistics from the Treasuries.

14.In respect of premia collections through Banking Treasuries the commission at the agreed rate will be paid by the Life Insurance Corporation direct to the State Bank of India or the State Bank of Travancore as the case may be, doing the treasury business. No commission on this account is payable to the Government by the Life Insurance Corporation.
3 The Treasury Officers should see that the premia collected on the policies of the Life Insurance Corporation of India are never taken in the treasury accounts as credit towards policies of the State Insurance Department or Postal Life Insurance.