GROUP LEAVE ENCASHEMENT SCHEME RULES
SECTION – 1 : DEFINITIONS, ELIGIBILITY &
REQUIREMENTS
SECTION - II
: CONTRIBUTION AND SCHEME OF INSURANCE
SECTION – IV
: MISCELLANEOUS PROVISIONS
MASTER
PROPOSAL FOR GROUP INSURANCE SCHEME/SUPERANNUATION
FOR MEMBERSHIP
1. DEFINITIONS :
In these Rules, where the context
so admits, the masculine shall include the feminine, the singular shall include
the plural and the following words and expressions shall unless repugnant to
the context, have the following meanings:
i.
The Firm/Company shall mean KERALA AGRO
MACHINERY CORPORATION LTD
ii.
The Employer shall mean the Company/The Firm
as defined in (i) above and shall include by any Firm, Agency or body corporate
which may be purchase, amalgamation or otherwise take over the whole or
substantially the whole of the business of the Firm/Company to continue the
obligations of the Company/Firm under these presents and releasing the
Firm/Company from all further liabilities thereof.
iii.
“Corporation” shall mean the Life Insurance
Corporation of India established under
Section 3 of the Life Insurance Corporation Act 1956.
iv.
“Scheme or Fund” shall mean the KAMCO
LTD. Employees Group Leave Encashment
Assurance Scheme described in these Rules.
v.
“Rules” shall mean the Rules of the Scheme
as set out below and as amended from time to time.
vi.
“Employees” shall mean the employees
participating in the Leave Encashment Fund other than personal and domestic
servants and shall be deemed to include the Directors who are whole time
bonafide employee of the Company and do not beneficially own shares in the
Company carrying more than 5% voting rights in the Company.
vii.
Earned
Leave: Earned Leave shall mean leave credited to the Employees Account due to continuous employment as
defined by the Company in the valuation date submitted to the Corporation.
viii. Medical Leave: Medical Leave shall mean leave on medical
grounds credited to the Employees Account due to continuous employment as
defined by the Company in the valuation date submitted to the Corporation.
ix. “Member” shall mean an employee who has been admitted to
the membership of the Scheme.
x. “Beneficiary” shall mean the member and in case of his death his
widow, children or dependants of the member.
xi. “Effective Date” in relation to the Scheme shall mean the
01.03.2005 being the date as from which the Scheme takes effect.
xii. “Annual Renewal Date” in relation to the Scheme shall mean the
01.03.2006 and the 1st March in each subsequent year.
xiii. “Normal Retirement Date” shall mean in respect of each member
the date on which he completes the
age of 60 years for employees of Athani Unit engaged prior to 16.01.2002 and 58
years for all others.
xiv. “Salary” includes Dearness Allowance and H.R.A. if the terms of
employment so provide but excludes all other Allowances and perquisites. A day’s salary will be calculated as 1/30th
of the monthly salary.
xv. “Entry Date” shall mean (a) in relation to the Original Members
the Effective Date and (b) in relation
to new members admitted to the Scheme after the Effective Date, the Annual
Renewal Date which is coincident with or which next follows the date on which
they become eligible.
xvi. “Contribution” means any sum credited by an employer out of his
own money to the individual account of the employee and shall not include any
sum credited as interest.
2. ELIGIBILITY:
a)
“Permanent Employees
who are aged not less than 18 years and not more than 60 years” shall be
eligible to participate in the Scheme.
Employees in the above category/categories who are
in the service of the Employer on the Effective Date shall join the Scheme as
from that date. Present employees who
are not in the above category/categories on the Effective Date and employees
appointed by the Employer after the Effective Date shall join the Scheme on the
Annual Renewal Date which is coincident with or which next follows the date on
which they become eligible.
b)
No member shall
withdraw from the Scheme while he is still an employee within the
category stated above.
c)
If an employee leaves
the service voluntarily before he attains at the specified age of retirement,
the encashment of the EL/ML to the credit of the member will be payable.
3. EVIDENCE OF AGE:
Evidence of age of every employer
satisfactory to the Corporation shall be furnished before he is admitted to the
Scheme and if the age of the Member is conclusively proved latter to have been
incorrectly stated in the evidence submitted, the Corporation shall make
appropriate adjustment in the benefits having regard to its normal practice.
4. EVIDENCE OF INSURABILITY:
For the purpose of
effecting Term Assurance in respect of the Member, evidence of insurability
satisfactory to the Corporation shall be required prior to the employee’s entry
into the Scheme and on each occasion when an increase in Sum Assured is to be
granted.
1. CONTRIBUTIONS:
There shall be paid by the Employer to the
Corporation for providing the Leave Encashment benefits to the Members under a
Scheme of Insurance, in respect of each Member the contributions mentioned in
sub-paragraph (i) below annually in advance on the date of entry of the Member
into the Scheme and on the relevant Annual Renewal Dates and the contributions
mentioned in sub-paragraph (ii) below in one lump sum on the date of entry or
in not more than five equated annual instalments commencing from the date of
entry in to the Scheme.
i.
Ordinary Annual Contribution: The ordinary annual contribution shall be
such amount as shall be determined and
recommended by the Corporation for securing the benefits herein below
described. The contribution shall be 4.68% of the salary of each member and may
be varied from time to time on the basis of an evaluation of the benefits to be
made at intervals of not more that THREE YEARS. The contributions will be paid throughout the future service of
the members.
ii.
Initial Contribution: The Employer shall pay
any sums by way of initial contributions in respect of Members relating to
their past service with the Employer as shall be determine and recommended by
the Corporation for securing the benefits relating to such past services and on
paying such sums shall advise the Employer their allocation to all or specified
members.
2. SCHEME OF INSURANCE:
i.
The Employer shall enter into a Scheme of
Insurance with the Corporation for providing the benefits to the Members,
subject to the provisions of Rule 4, an Assurance will be effected on the life
of each member under One Year Renewable Term Assurance Plan for a sum assured
equal to Rs.10,000/-. The Assurance
will be renewed on the Annual Renewal
Dates for appropriate sums assured.
ii.
After appropriating the required amounts
towards the premium payable year to year for the Life Assurance benefit
received from the Employer as provided in Rule 5 the balance of the
Contributions will be held by the Corporation in the running account for the
credit of the Employer. The Corporation
will allow interest on the balances remaining in the above mentioned running
account for each financial year ending 31st March at a rate to be determined by
the Corporation at the close of the year.
iii.
When Leave Encashment becomes payable to a
member on his retirement or cessation of services, or to his Beneficiary in the
event of his death, the Corporation shall pay to the Employer the benefits
payable according to the Rules out of the balance in running account and also
under the Term Assurances in case of death.
1. BENEFITS ON RETIREMENT AT OR AFTER NORMAL RETIREMENT DATE,
EARLY RETIREMENT DUE TO ILL HEALTH AND DEATH WHILE IN SERVICE AFTER NORMAL
RETIREMENT DATE:
Upon retirement of a member on or after
Normal Retirement Date or upon whilst in service after Normal Retirement Date
or upon retirement owing to ill health or incapacitation, the benefits payable
will be equal to Encashment of the balance leave to the credit of the member.
2. BENEFITS ON DEATH BEFORE NORMAL RETIREMENT DATE:
Upon
the death of a member whilst in service before Normal Retirement Date, the
benefits payable will be equal to the total of:
i.
The
sum assured under the Term Assurance on the date of death; and
ii.
Encashment
of EL to the credit of the member.
3. BENEFITS ON LEAVING SERVICE:
Upon a member leaving the service of the
Employer after completion of one year of service the benefits payable will be
Encashment of EL to the credit of the member.
4. FORFEITURE OF ENCASHMENT OF LEAVE:
Encashment
of Leave shall be wholly forfeited in case of termination of service of the
member (i) for riotous or disorderly conduct or any other act of violence on
his part or (ii) for any act which constitutes an offence involving moral
turpitude provided such offence is committed by him in the course of his
employment.
a)
In
case of termination of service for any act, willful omission or negligence of
the member causing any damage or loss or destruction of property belonging to
the Employer Encashment of Leave payable under the Scheme shall be forfeited to
the extent of the damage or loss so caused.
b)
The
Encashment of Leave forfeited in the aforesaid manner or otherwise shall remain
in the running account only held by the Corporation to the credit of the
Employer and shall be utilised in the payments of the encashment of leave to
the eligible employees.
c)
The
encashment of leave payable in respect of any member under the Scheme shall be
paid in one lumpsum only.
1. RESTRAINT ON ANTICIPATION OR ENCUMBRANCE:
The
benefits assured under the Scheme are strictly personal and can not be
assigned, charged or alienated in any way.
Except as provided in these Rules, no member or his
Beneficiary shall have any legal claim, right or interest in the Scheme. PROVIDED ALWAYS THAT the Employer shall
administer the Scheme for the benefit of the members and their Beneficiaries in
accordance with the provisions of these Rules.
2.
JURISDICTION:
The Master Policy issued under the Scheme shall be an Indian
contract subject to the Laws of India, and to any legislation subsequently
introduced. All benefits under the
Scheme shall be payable only in India.
3. MASTER POLICY:
The Corporation will issue a single
Master Policy to the Employer to provide for the benefits to the members under
the Scheme.
4. INCOME TAX AND OTHER TAXES:
In any
case where the Corporation or the Employer are liable to account to the Income
Tax Authorities for income tax on any payment made under the Rules, the
Corporation or the Employer as the case may be shall deduct a sum equal to such
tax from any such payment made and shall not be liable to the members for the
sum so deducted.
5. APPOINTMENT OF BENEFICIARY/IES NOMINEE/S :
a) Every member shall appoint his spouse, child/children or
dependants as Beneficiary or Beneficiaries under the Rules to receive the
benefits hereunder in the event of his death.
If a member dies whilst in service the Employer shall hold the benefit
in force under the Assurance on his life UPON TRUST for payment to the
Beneficiary or Beneficiaries as shall have been appointed by the Member in
accordance with the remaining paragraphs of this Rule.
b) Every appointment made under this Rule shall be in writing signed
by the Member and attested by two witnesses and shall be according to the form
of nomination as given in Appendix (1) hereto and shall remain in full force
and affect until the death of the Beneficiary or until the same shall be
revoked in writing by the Member and a fresh appointment made in the manner
aforesaid.
c) A member may from time to time or at any time without the consent
of the Beneficiary change the Beneficiary by filling a written notice of the
change to the Employer in the prescribed form satisfactory to the Employer
whereupon and acknowledgement of the change and the registration of the name of
the new Beneficiary will be given to the Member by the Employer. The new
appointment shall take effect on the date the notice was signed whether or not
the Member is living on the date of acknowledgement of the change without
prejudice to the Corporation or the Employer on account of any payment made
before the acknowledgement of the change.
d) If
a Beneficiary shall at the time of his appointment be a minor or otherwise
under disability to give a legal receipt of discharge to the Employer the
member must at the time of such appointment as aforesaid, appoint a person who
is major and who is capable of giving a legal receipt or discharge to the
Employer and to whom the benefits are to be paid for and on behalf of such
Beneficiary.
e) If
more than one Beneficiary is appointed and in such appointment the Member has
failed to specify their respective interest, the Beneficiaries so named shall
share the benefits equally. If the
Beneficiary predeceases the Member, the interest of such Beneficiary shall
terminate and his share shall be payable equally to such of the remaining
Beneficiaries as survive the Member unless the Member has made written request
otherwise to the Employer in the prescribed form.
f)
If a Beneficiary is not appointed the
benefits shall be paid to the Members spouse, failing which to his
child/children in equal shares, failing which to his dependants in equals
shares. If the Member does not leave a
spouse, child/children or dependants, then the benefits shall be realised by
the employer and credited to the Running Account.
6. INTERPRETATION OF RULES:
It shall be a condition
of membership of the Scheme that on any question arising on any point of
interpretation of these Rules or any point relating to admission of new Members
and cessation of Membership, the decision of the Employer shall be final.
Form No. 6200 (P&G.S. Ekm)
LIFE INSURANCE CORPORATION OF INDIA
Pension and Group Schemes Unit
“JEEVAN PRAKASH” M.G.ROAD, COCHIN – 682 011
Master Proposal for Group Insurance
Scheme/Superannuation
Scheme for the eligible
employees of KAMCO LTD.
|
1.
Name of the Proposers Address: |
KAMCO LTD., ATHANI ERNAKULAM DIST, PIN –
683 585 |
|
2.
(a) Name of employer (b)
Address : Head Office Factory |
” |
|
3.
(a) Nature of Business (b) Products
manufactured (last Balance Sheet to
be sent) |
|
|
4. (a)
Is the Scheme to be administered by the Trustees? (b) Is the Scheme to be approved under any of
the Sections of Indian Income-tax Act, 1961 If so, which? (c) The Scheme to be
described as |
NO KAMCO LTD. EMPLOYEES GROUP
LEAVE ENCASHMENT SCHEME |
|
5. Does
the Proposed Scheme replace any of the existing benefits? If so, give
details, |
NO |
|
6. Date
of commencement of the Scheme? |
01.03.2005 |
|
7. What
are the conditions of the eligibility for membership of the Scheme? |
AS PER RULES |
|
8.
(a) Are a particular Section
or specified employees to be
excluded? If any, please given
names and reasons for exclusion
separately. If none stated ‘none’ (b)
Participation, by eligible employees, |
NO |
|
9. What is the normal retirement age? |
60 and 58 |
|
10. Contributions : (i)
by
the employee, if any (ii)
by
the employer (employer should contribute not less than 25% of the cost) |
BY THE EMPLOYER |
|
11. Mode
of payment of contributions: |
YEARLY |
|
12. Was a proposal for a scheme made before to
any other office of the Corporation? If so please give details |
NO |
|
13. State briefly the benefits required: (a) on death of the employee in
service (b) on leaving service (c) on total and permanent
disability (d) on retirement (e) vesting conditions for benefits |
AS PER RULES |
|
14. Give
details of any other benefits required |
NIL |
DECLARATIONS
We
request the Life Insurance Corporation of India to issue a Master Policy on the
basis of the information furnished by us and such further information which the
Corporation may require us to give for the purpose of the scheme referred to in
4 (c) above and to office the necessary assurances thereunder in accordance
with the provisions of the Rules of the said scheme, certified true copy which
is attached hereto.
It
is hereby declared that we undertake and bind ourselves to furnish to the
Corporations full particulars as may be necessary of all statements,
declarations by the eligible employees, reports and certificates in respect of
every person on whose life the assurance or assurances are to be effected under
the Master Policy in the form and manner required by the Corporation. We
further agree that this Proposal together with the particulars, statements and
declaration by the eligible employees, employer or ourselves shall form the
basis of the Master Policy. We also
agree that the assurances proposed under the scheme shall not be binding on the
Corporation until they are accepted by the Corporation in writing and the
amounts of premium due thereunder and demanded by the Corporation shall have
been duly paid.
We
confirm the accuracy of the above particulars and agree that the Master Policy
to be issued consequent upon this proposal shall be issued only on the basis
that any statement made or to be made to the Corporation and the Corporation’s
medical examiner in respect of eligible employees intended to be assured
thereunder shall be true and correct in every particular and we further agree
that any mis-statement or untrue averment, on the basis of which the assurance
have been effected on the life of any member, shall render voidable the
particular assurance or assurances in respect of which the mis-statement or
untrue averment by whomsoever has been made.
Dated at ………
On ………..
Witness:……………… …………………………………….
……………………….. Signature on
behalf of the Proposers
……………………….