Life Insurance Corporation of India (Payment of Gratuity to the Chief Executive and Managing Directors) Amendment Rules, 2022

(Department of Financial Services) NOTIFICATION

New Delhi, the 9th June, 2022

G.S.R. 437(E).—In exercise of the powers conferred by clause (cc) of sub-section (2) and sub- section (2B) of section 48 of the Life Insurance Corporation Act, 1956 (31 of 1956), the Central Government hereby makes the following rules further to amend the Life Insurance Corporation of India (Payment of Gratuity to the Chief Executive and Managing Directors) Rules, 1997, namely:—

1. Short title and commencement.—(1) These rules may be called the Life Insurance Corporation of India (Payment of Gratuity to the Chief Executive and Managing Directors) Amendment Rules, 2022.

(2) They shall be deemed to have come into force on the 1st day of January, 1996.

2. In the Life Insurance Corporation of India (Payment of Gratuity to the Chief Executive and Managing Directors) Rules, 1997,—

(i) rule 3 shall be renumbered as sub-rule (1) thereof and in sub-rule (1) as so renumbered, the following words and brackets shall be omitted, namely:—

“The amount of gratuity so calculated shall not be less than the amount of gratuity such person would have been entitled to, had he continued in the grade of Zonal Manager (Selection Grade), when the gratuity becomes due and payable to him:”;

(ii) in rule 3, after the Explanation to sub-rule (1) as so renumbered, the following sub-rule shall be inserted, namely:—

“(2) Notwithstanding anything contained in sub-rule (1), the amount of gratuity payable to Chief Executive or Managing Director who was in service on or after 1st January, 1996, shall not be less than the amount of gratuity that he would have been entitled to, had he continued in the grade of Zonal Manager (Selection Grade) when the gratuity becomes due and payable to him.”.

Explanatory Memorandum

1. The Central Government has accorded approval to revise the provision regarding gratuity to Chief Executive or Managing Director. Accordingly, the Life Insurance Corporation of India (Payment of Gratuity to Chief Executive and Managing Directors) Rules, 1997 is amended with effect from 1st January,1996.

2. It is certified that no officer of the Life Insurance Corporation of India is likely to be affected adversely by the notification being given retrospective effect.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i) vide G.S.R. No. 77(E), dated 14th February, 1997, and subsequently amended vide G.S.R. No. 593(E), dated 14th August, 2001, G.S.R. No. 631(E), dated 22nd September, 2004 and G.S.R. No. 478(E), dated 7th July, 2021