Professional Documents
Culture Documents
CDA Rules
CDA Rules
CDA Rules
(1) These rules may be called the National Insurance (Conduct, Discipline and
Appeal) Rules 2012.
(2) These rules shall come into force with immediate effect and replaces
General Insurance (Conduct, Discipline & Appeal) Rules 1975. The
proceedings which were initiated and continuing under the erstwhile General
Insurance (Conduct, Discipline & Appeal) Rules 1975 shall continue to remain
operative and binding till conclusion of the proceedings initiated under the
erstwhile Rules. No provision of the disciplinary proceedings under the
erstwhile Rules shall become in-operative consequent upon coming into
operation of the new National Insurance (Conduct, Discipline & Appeal)
Rules 2012. All provisions of the erstwhile CDA Rules shall continue with the
same force as it was operative under the erstwhile CDA Rules.
(3) Save as otherwise provided, these rules shall apply to every person
appointed to any post under National Insurance Company Limited, including
officials posted on promotion from New India Assurance Company Limited,
United India Insurance Company Limited, Oriental Insurance Company
Limited, Agriculture Insurance Company Limited and General Insurance
Corporation Re except :
(4) These Rules shall also apply to a person governed by General Insurance
(Employees’) Pension Scheme 1995 to the extent provided under the said
Scheme.
2. Definitions :-
(a) ‘Act’ means the General Insurance Business (Nationalisation) Act, 1972 (57 of
1972) and subsequent amendments thereto.
(b) ‘Appellate or Appointing or Disciplinary or Memorial Authority’ means the
authorities specified in the Schedule – A, appended to these rules.
(c) ‘Board’ means the Board of the Company.
(d) ‘Board of Director’ means the Board of Directors of the Company.
(e) ‘CMD’ means the Chairman-cum-Managing Director of the Company.
(f) ‘Company’ means National Insurance Company Ltd.
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(g) ‘Competent Authority’ shall ordinarily mean the Superior Authority to whom
the employee reports.
(h) ‘Employee’ means any employee of the Company other than the casual,
work-charged or contingent staff.
(i) ‘ Family’ in relation to an employee includes : -
Explanation :
3. General :-
iv) conform to and abide by these Rules and shall observe, comply
with and obey all orders and directions which may, from time to
time, be given to him, in the course of his official duties by any
person or persons under whose jurisdiction, superintendence or
control he may, for the time being, be placed;
(2) Every employee holding a supervisory post shall take all possible steps to
ensure the integrity and devotion to duty of all employees for the time
being under his control and authority;
Explanation :
4. Misconduct :
7. Part-time work
(1) Save as provided in sub-rule (3) below, no employee shall, except with
the previous sanction of the Competent Authority, give evidence in
connection with any inquiry conducted by any person, Committee or
Authority.
(2) Where any sanction has been accorded under sub-rule (1), no employee
giving such evidence shall criticize the policy or any action of the
Company or of the Government.
(3) Nothing in this shall apply to :
(a) evidence given to an inquiry before an authority appointed by
the Government, by Parliament, or by a State Legislature, or
Company ; or
(b) evidence given in any judicial inquiry ; or
(c) evidence given at any departmental inquiry ordered by the
Company or by any authority subordinate to it or by the
Government.
Provided that
(i) An employee qualified to vote at such election may exercise his right
to vote, but where he does so, he shall give no indication of the
manner in which he proposes to vote or has voted.
(ii) An employee shall not be deemed to have contravened the provisions
of this rule by reason only that he assists in the conduct of an election
in the due performance of a duty imposed on him by or under any law
for the time being in force.
Explanation
(1) No employee shall except with the previous sanction of the Company, own
wholly or in part, or conduct or participate in the editing or managing of any
newspaper or other periodical publication.
(2) No employee shall, except with the previous sanction of the Company or any
other Authority empowered in this behalf, or in the bonafide discharge of his
duties, participate in a Radio broadcast or contribute any article or write any
letter anonymously, pseudonymously or in his own name or in the name of
other person to any newspaper or periodical.
Provided that no such sanction shall be required if such broadcast or such
contribution is occasional or is of a purely literary, artistic or scientific
character.
Provided further that this rule will not apply to any statements to the press
made by office-bearers of a registered Trade Union of the employees in any
matter which is of the nature of a trade dispute and does not contravene the
provisions of rule 8.
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(1) Save as otherwise provided in these rules, no employee of the Company shall
accept or permit any member of his family or any person acting on his behalf
to accept any gift.
Explanation
The expression ‘gift’ shall include free transport, board, lodging or other
service or any other pecuniary advantage when provided by any person
other than a near relative or a personal friend having no official dealings
with the employee.
(4) In any other case, an employee of the Company shall not accept any gifts
without the sanction of the Competent Authority if the value thereof
exceeds `1500/-.
Provided that when more than one gift has been received from the same
person / firm within a period 12 months the matter shall be reported to the
Competent Authority if the aggregate value of the gifts exceeds `1500/-.
(1) No employee shall act as an insurance agent, nor shall he allow any member
of his family to act as an insurance agent.
(2) No employee shall except with the previous sanction of the Company,
engage directly or indirectly in any trade, business, or profession.
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Explanation
Frequent purchase and /or sale of stock, shares, securities or other investment
shall be deemed to be speculation within the meaning of this rule.
1. Every employee shall submit a return of his/her Assets & Liabilities in the
form of Property Returns in the prescribed format, giving full particulars
regarding :
Explanation
(1) For the purpose of this rule an employee shall be deemed to be in debt
if his total liabilities exclusive of those which are fully secured or those
taken from the Employee’s Co-operative Credit Society exceeds his
salary for six months.
(2) An employee shall be deemed to be unable to liquidate his debts within
a reasonable time if it appears, having regard to his personal resource
and unavoidable current expenses, that he will not cease to be in debt
within a period of three years.
(1) An Employee shall not absent himself from his duties without having obtained
the permission of the Competent Authority, nor shall he absent himself in case
of sickness or accident without submitting a medical certificate satisfactory to
the Competent Authority.
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(2) An Employee who absents himself from duty without leave or overstays his
leave shall not be entitled to draw any pay or allowance during such absence
or overstay and shall further be liable to such disciplinary measures as the
Competent Authority may deem necessary. Provided, however, that the
Competent Authority may treat such period of absence or overstay, if not
followed by termination of service, as period spent on Casual Leave, Earned
Leave, Sick Leave or Leave on Loss of Pay, but the employee shall not be
entitled as of right to such treatment. Provided further that Competent
Authority may treat such absence or overstay as period spent on Leave on
Loss of Pay, irrespective of whether the employee has any other leave to his
credit or not.
(3) An employee who frequently attends the office late and / or leaves the
office early, shall in addition to such other penalty as the Competent
Authority may deem fit to impose, have one half-a-day of casual leave
forfeited for the fourth and the subsequent occasions of late attending and /
or early leaving in a calendar month. Where such an employee has no casual
leave due to him, the period of leave to be forfeited may be treated as Earned
Leave or Loss of Pay as the Competent Authority may determine.
Explanation
No employee shall absent himself from his station overnight, without the prior
sanction of the Competent Authority.
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20. Suspension
(2) Where the period of suspension exceeds six months, the authority which
made or is deemed to have made the order of suspension shall be
competent to vary the amount of Subsistence Allowance for any period
subsequent to the period of the first six months as follows:-
(3) If an employee is arrested by the Police on a criminal charge and bail is not
granted, no Subsistence Allowance is payable. On grant of bail, if the
Appropriate Authority decides to continue the suspension, the employee
shall be entitled to Subsistence Allowance from the date he is granted bail.
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Note:
For Rules 20 and 21, the “Appropriate Authority” shall be the authority
competent to impose a major penalty on the concerned employee as
specified in the Schedule provided that the Appropriate Authority in case of
Assistant, Record Clerk, Sub-Staff and equivalent cadres shall be the head
of concerned office or department.
(4) The compulsory deductions like the following are to be made from the
subsistence allowance:
(a) Income–tax / Service Tax.
(b) Licence Fee/Monthly Rent for Residential Accommodation & allied
charges, i.e. electricity, water charges etc.
(c) Repayment of Loan & advance taken from the Company.
(d) Premium for Group Mediclaim policy.
(e) Contribution towards GSLIP.
(f) Premium for LIC policies under salary saving scheme.
Note: The above listed deductions are illustrative in nature, but not
exhaustive.
In a case falling under clause (a), the period of absence from duty will be
treated as period spent on duty. In a case falling under clause (b), the period
of absence shall not be treated as period spent on duty, but the Competent
Authority may, at its discretion, grant leave for the period to the extent
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admissible to the emplo0yee under the rules. Any period of absence which
has not been treated as period spent on duty or on leave shall not count as
service for any purpose under these rules but will not constitute break in
service.
No order passed under this rule shall have the effect of compelling any
employee to refund the subsistence allowance payable under rule 21.
23. Penalties
Without prejudice to the provision of other rules, any one or more of the
following penalties for good and sufficient reasons, and as herein after
provided, be imposed by the Disciplinary Authority on an employee who
commits a breach of discipline, or who is guilty of any other act prejudicial to
good conduct :-
Minor Penalties
(a) Censure.
(b) Withholding of one or more increments for a specified period.
(c) Recovery from pay or such other amount as may be due to him of the
whole or part of any pecuniary loss caused to the Company by
negligence or breach of orders.
(d) Reduction to a lower stage in the time-scale for a period not exceeding
three years without cumulative effect.
(e) Withholding of Pension or part thereof for a specified period.
Major Penalties
(f) Withholding of one or more increments permanently.
(g) Reduction to a lower service, or post or to a lower time-scale or to a
lower stage in a time-scale.
(h) Compulsory retirement.
(i) Removal from service shall not be a disqualification for future
employment.
(j) Dismissal which shall ordinarily be a disqualification for future
employment.
(k) Withholding of Pension or reduction of pension or part thereof
permanently.
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Explanation
The following shall not amount to a penalty within meaning of this rule :-
(i) withholding of increment of an employee on account of his/her work
being found unsatisfactory or not being of the required standard, or for failure
to pass a prescribed test or examination
(ii) stoppage of an employee at the efficiency bar in a time-scale, on the
ground of his unfitness to cross the bar ;
(iii) non-promotion, whether in an officiating capacity or otherwise, of an
employee, to a higher post for which he/she may be eligible for consideration
but for which he is found unsuitable after consideration of his/her case ;
(iv) reversion to a lower grade or post, of an employee officiating in a
higher grade or post, on the ground that he/she is considered, after trial, to be
unsuitable for such higher grade or post, or on administrative grounds un-
connected with his / her conduct ;
(v) reversion to his/her previous grade or post of an employee appointed
on probation to another grade or post, during or at the end of the period of
probation, in accordance with the terms of his/her appointment ;
(1) No order imposing any of the major penalties specified in Clauses (f), (g),
(h), (i), (j) and (k) of Rule 23 shall be made except after any inquiry is held
in accordance with this rule.
(2) Whenever the Disciplinary Authority is of the opinion that there are
grounds for inquiring into the truth of any imputation or misconduct or
misbehavior against an employee, it may itself inquire into or appoint a
retired Officer or any Public Servant (hereinafter called the inquiring
Authority) to inquire into the truth thereof.
(6) The employee may take the assistance of any other employee of the
company but may not engage a legal practitioner for the purpose. In case, the
Presenting Officer appointed by the DA is a legal practitioner, the DA may also
be allowed a legal practitioner as Defence Assistant. However, employees
from other Public Sector Undertakings cannot act as Defence Assistant in any
disciplinary proceedings initiated against any employee of the Company.
(7) On the date fixed by the inquiring authority, the employee shall appear
before the inquiring authority at the time, place and date specified in the
notice. The inquiring authority shall ask the employee whether he pleads
guilty or has any defence to make and if he pleads guilty to any of the articles
of charge, the inquiring authority shall record the plea, sign the record and
obtain the signature of the employee concerned thereon. The inquiring
authority shall return a finding of guilty in respect of those articles of charge
to which the employee concerned pleads guilty.
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(8) If the employee does not plead guilty, the inquiring authority shall adjourn
the case to later date not exceeding 30 days, after recording an order that
the employee may, for the purpose of preparing his defence :
(i) inspect the documents listed with the charge-sheet ;
(ii) submit a list of additional documents and witness that he
wants to examine ; and
(iii ) be supplied with the copies of statements of witness, if any
listed in the charge-sheet .
(9) The inquiry authority shall ask the authority in whose custody or
possession the documents are kept, for the production of the documents on
such date as may be specified.
(11)On the date fixed for the inquiry, the oral and documentary evidence by
which the articles of charge are proposed to be proved shall be produced
by or on behalf of the Disciplinary Authority. The witnesses shall be
examined by or on behalf of the Presenting Officer and may be cross-
examined by or on behalf of the employee. The presenting officer shall be
entitled to re-examine the witnesses on any points on which they have
been cross-examined, but not on a new matter, without the leave of the
Inquiring Authority.The Inquiring Authority may also put such questions to
the witnesses as it thinks fit.
(12) Before the close of the prosecution case, the inquiring authority may, in
its discretion, allow the presenting officer to produce evidence not included in
the charge-sheet or may itself call for new evidence or recall or re-examine
any witness. In such case, the employee shall be given opportunity to inspect
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(13) When the case for the Disciplinary Authority is closed, the employee may
be required to state his defence, orally or in writing, as he may prefer. If
the defence is made orally, it shall be recorded and the employee shall be
required to sign the record. In either case, a copy of the statement of
defence shall be given to the Presenting Officer, if any, appointed.
(14) The evidence on behalf of the employee shall then be produced, the
employee may examine himself in his own behalf if he so prefers. The
witnesses produced by the employee shall then be examined and shall be
liable to cross-examination, re-examination and examination by the inquiring
authority according to the provision applicable to the witnesses for the
Disciplinary Authority.
(15) The inquiring authority may, after the employee closes his case, and
shall, if the employee has not examined himself, generally question him on the
circumstances appearing against him in the evidence for the purpose of
enabling the employee to explain any circumstances appearing in the
evidence against him.
(16) After the completion of the production of the evidence, the employee
and the Presenting Officer may file written briefs of their respective cases
within 15 days of the date of completion of the production of evidence.
(17) If the employee does not submit the written statement of defence
referred to in sub-rule (3) on or before the date specified for the purpose
or does not appear in person, or through the assisting officer or otherwise
fails or refuses to comply with any of the provision of these rules, the
inquiring authority may hold the inquiry ex-parte.
(18)Whenever any inquiring authority, after having heard and recorded the
whole or any part of the evidence in an inquiry, ceases to exercise
jurisdiction therein, and is succeeded by another inquiring authority which
has, and which exercises, such jurisdiction, the inquiring authority so
succeeding may act on the evidence so recorded by its predecessor, or
partly recorded by its predecessor and partly recorded by itself.
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(19)(i) After the conclusion of the inquiry, report shall be prepared and it shall
contain :
(a) a gist of the article of charge and the statement of the imputations of
misconduct or misbehavior;
(b) a gist of the defence of the employee in respect of each article of
charge ;
(c ) an assessment of the evidence in respect of each articles of charge ;
(d ) the findings on each article of charge and reason there for.
Explanation
Provided that the findings on such article of charge shall not be recorded
unless the employee has either admitted the facts on which such article of
charge is based or has had a reasonable opportunity of defending himself
against such article of charge.
(ii) The inquiring authority, where it is not itself the Disciplinary Authority
shall forward to the Disciplinary Authority the records of inquiry which shall
include:
(1) The Disciplinary Authority, if it is not itself the inquiry authority, may,
for reasons to be recorded by it in writing, remit the case to the
inquiring authority for fresh or further inquiry and report and the
inquiring authority shall thereupon proceed to hold the further inquiry
according to the provisions of rule 25 as far as practicable.
In case the charges have not been proved against the charged employee by
the Inquiring Authority and the Disciplinary Authority does not concur with
the findings of the Inquiring Authority, he may seek explanation from the
charged employee in respect of his disagreement with reasons for taking a
final decision in the matter, whether to commence a de-novo inquiry or to
impose a penalty upon receipt of such clarification from the charged
employee.
(2) The Disciplinary Authority shall, if it disagrees with the findings of the inquiring
authority on any article of charge, record its reasons for such disagreement and
record its own findings on such charges, if the evidence on record is sufficient for the
purpose.
(3) If the Disciplinary Authority having regard to its findings on all or any of the
article of charge is of the opinion that any of the penalties specified in rule
23 should be imposed on the employee, it shall, notwithstanding anything
contained in rule 27 make order imposing such penalty.
(4) If the Disciplinary Authority having regard to its findings on all or any of
the articles of charge is of the opinion that no penalty is called for, it may pass
an order exonerating the employee concerned.
All communications under Rules 23, 24, 25, 26 and 27 and copies of orders
passed there under may be delivered personally to the employee if he/she is
attending the office; otherwise they shall be sent by registered post to the
address noted in the service record. Where such communications or copies of
orders cannot be served on him/her personally or by registered post, copies
thereof shall be affixed on the notice board of the office in which the
employee is employed, and on such affixing, such communications and orders
shall be deemed to have been properly served on him.
Explanation :
For the purpose of this rule, an employee shall be deemed to have abandoned
his post if he absents himself from duty without leave or overstays his leave
for a continuous period of 90 days without any intimation there for in writing.
Every employee shall have a right of appeal to the Appellate Authority against
an order imposing upon him any of the penalties specified under Rule 23. An
appeal against an order of suspension passed under Rule 20 shall be on the
authority to which the authority which made or is deemed to have made the
order of suspension is immediately subordinate. Notwithstanding anything
contained in this rule and subject to the provisions of the act and the Rules
framed there under, no appeal shall lie against an order made by the Company
under Rule 20 or Rule 23.
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Every appeal shall be submitted through the authority which made the order
appealed against.
Provided further that a copy of the appeal may be submitted direct to the
Appellate Authority.
(1) The authority which made the order appealed against may withhold
the appeal if :
(1) The authority which made the order appealed against shall, without any
avoidable delay, transmit to the appellate authority every appeal which
is not withheld under rule 35 together with its comments thereon and
the relevant records.
(2) The authority to which the appeal lies may direct transmission to it of any
appeal withheld under Rule 35 and thereupon such appeal shall be
transmitted to that authority together with the comments of the authority
withholding the appeal and relevant records.
(2) In the case of an appeal against an order imposing any of the penalties
specified in Rule 23, the appellate authority shall consider:
Provided that :
(i) the appellate authority shall not impose any enhanced penalty which
neither such authority nor the authority which made the order
appealed against is competent in the case to impose ;
(ii) no order imposing an enhanced penalty shall be passed unless the
appellant is given an opportunity of making any representation which
he may wish to make against such enhanced penalty ; and
(iii) If the enhanced penalty which the appellate authority proposes to
impose is one of the penalties in clause (b) to (k) of Rule 23, and an
inquiry under the said rule has not already been held in the case, the
appellate authority shall itself hold such inquiry or direct that such
inquiry be held and thereafter on consideration of the proceedings of
such inquiry and after giving the appellant an opportunity of making
any representation which he may wish to make against such penalty,
pass such orders as it may deem fit.
(b) determining the salary and allowance for the period of suspension
to be paid to an employee on his reinstatement or determining
whether or not such period shall be treated as period spent on
duty for any purpose, shall lie to the authority to whom an appeal
against an order imposing upon him the penalty of dismissal from
service would lie.
(3) In the case of an appeal under this rule, the appellate authority shall
consider all the circumstances of the case and pass such orders as it
deems just and equitable.
39. Review
(2) The authority to which an appeal against an order imposing any of the
penalties specified in Rule 23 lies may, of its own motion or otherwise, call
for the records of the case in a disciplinary proceeding, review any order
passed in such a case and pass such orders as it deems fit, as if the
employee had preferred an appeal against such order.
Provided further that no action under this sub-rule shall be initiated more than
six months after the date of the order to be reviewed.
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(3) The CMD may on his own motion or otherwise call for the records of the
case of any employee in any proceedings pending before any competent
or appellate authority subordinate to him, and remit the case to any
authority in any office who, if the employee had been working in that
office, would have adequate disciplinary powers to deal with the case,
with such direction as the CMD may deem fit in the circumstances of the
case with regard to further proceedings in the case.
40. Memorial
An employee whose appeal under these Rules has been rejected by the
appellate authority or in whose case such appellate authority has enhanced
the penalty either on appeal under Rule 37 or on review under Rule 39(2), may
address a Memorial to the appropriate Memorial Authority as per schedule of
authorities within a period of 6 months from the date the appellant received a
copy of the order of such appellate authority
42. Interpretation
43. Amendments
The Board may amend, modify or add to these rules, from time to time, and all
such amendments, modifications or additions shall take effect from the date
stated therein.
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The CMD of the Company may from time to time issue instructions or
directions as may be necessary to give effect to and carry out the provisions
of these rules and in order to secure effective control over the employees.
The CVO shall refer the matters to Central Vigilance Commission falling under
its jurisdiction.
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SCHEDULE – A
SCHEDULE OF AUTHORITIES
(1) the penalty of removal from service and dismissal shall be awarded by
an authority not lower than the Appointing Authority. In such cases, the
next higher Authority shall be the Appellate Authority.