 bill no 21 of 1981 the life insurance corporation (amendment) bill, 1981 ' a billfurther'~ amend the life insurance corporation act, 1956 whereas for securing the interests of the life insufance corporation of india and its policy-holders and to control the cost of administration, it is ne<:essary that revision of the terms and conditions of service applicable to the employees and agents of the corporation should be under-s taken expeditio'usly; be it enacted by parliament in the  thirty-:second year of the republic of india as follows:-1 (1) this act may be called the life insurance corporation (amendment) act, 1981 s::jrt tileaild co::nmence· mmt 10 (2) it shall be deemed to have come into force on the 31st day of january, 1981  blot lade z in the life insurance corporation act, 1956 (hereinafter referred tc) as the principal act), in section 48,-bendment of section 4£ (a) in sub-section (2), after clause (c), the following clause abau be inserted and shall be deemed to have been inserted with effect from the 20th day of june, 1979, namely:-"(re) the terms add conditio  of service of the employees and &rents of the coll'oratlod, idcladlda' those who became  employees and agents of the corporauoa en the apl'ojdw dt dllliler  ~~t~;(b) after su\)section (2), the following sub-sections sba11 be inserted, namely:- (2a) the ~gu1ations ana other provisions as in foree 5 immediately before the commencement ot the life insurance ~ corporation (amendment) act, 1981, with respect to the terms and conditions of service of employees and agents of the corporation including those who became employees and agents of the corporation on the appointed day under this act, shall 10 be deemed to be rules made 'under clause (cc) of sub-section (2) and shall, subject to the other proviaions of this section have effect accordingly (2b) the power to make rules conferred by clause (ee) of sub-section (2) shall include-is (i) the power to give retros~ctive etrect to such rules; and (ii) the power to amend by way of aa,dition, variation or repeal, the regulations and other provisions referred to in sub-section (2a), with retrospectiv& etrect, 2q from a date not earlier than the twentjeth day of june, 1979 (2c) the provisions of clause (cc) of sub-section (2) and sub-section (2b) and any rules made under the said clause (cc) shall have effect, and any such rule made with retrospective effect from any date shall also be deemed to have had i!ilfec!t 25 'from that date, notwithstanding any judgment, decree ot"-order of any court, tribunal or other authority and notwithstanding anything contained in the industrial disputes act, 1947 or any 14 of 1947 other law or any agreement, settlement award or other instrument for the time being in force" 30 3 in -section 49 of the principal act,-amendment of section 49 (a) in sub-,section (2)-to in clause (b), the words "and the tel11\s and conditip~ of service of employees or agents" shall be omitted; '(ii) 'clause '('btl) shall be omitted; and 35 " (b)  after sub-section (2), the following sub-6ectiojs shall be in   ~ nm:81y:-"(3) every regulation made ubder this -uoj1 shall l:te!aiel, us 'soml as may ~ after it is made, before each bquse ell ~ uament, while it is in session, 'fcjl' a total period of thirtjy ~a, 40 wrtch m~y bf ,o;;oll\pt:ised j:' ~"wision o~ :i1 ~ ql" ~ore  :juccessive sessivds, and if, ,be:tolie the erpil'\y (';: tae  mediately following the session or th£· ~ccessive sesdons aforeaid, iido\h iiouhs rg'r'ee in ·makillcmy motii1icatfon ~ the ngulattgl'1 'of wh ~ agree 'that '!he l"egfflation 'sbelj)8 n,,· rs be l' de, -the !?egulaflen shall itihe!t"eafter 'have effect otuy :in jiuc~ 'iiltdiaed -4qr11l or tbe-nf ,110' "eat 'aj ~e cue may b"e'; to,  " , " ltowever, that any such modifi'cation -- or annuhnent shall be without prej udice to the validity of anything previously' done ~:-under that regulation":'-c,·· j - "( 4 (1) the life insur;;mce corporation (amendment) ordinance, ,ollst 5 1981 is hereby repealed repeal and savinc (~ notwithstanding stlc~ repeal, anything done or any action taken  un'd'e!" the "rincipttj act <ls emended by the said onlinance shall be ~cmed to have been do~c or taken under the principal act as amended by this act  stateme'lt of o~ts and reasonsin order to control the cost of administration in the interest oftbe life insurance corporation of india and its policy-holders whose premium income the corporation holds as a trustee, it became necessary for government to vest itself with powers to determi~e the terms and conditions of service of the employees and agents and streamline the salary structure hence the president promulgated on 31st january, 1981, the life insurancp corporatiqn (amendment) ordinance, 1981 to amend the life insurance corporation act, 1956 to empower the central government to frame rules regarding the terms and conditions of all claaes of employees and agents of the corporation and for matters connected therewith or incidental thereto 2 the bill seeks to replace the said ordinance - of, new delhi; - the 13th february, 1981 r venkataraman  president's recommendation under article 117 of the co:-lstitution of india[copy of letter no 65 (2) ins 111/4/31, dated the 18th february, 1981 'from shri r venkatarai'!lan, minister of finance to the secretary, lok sabha] the president, having been informed of the subject matter of tile proposed life insurance corporation (amendment) bill, 1981, recommends the consideration of the bill by lok sabha under clause (3) of article 117 of the constitution  financial memorandumsub-clause (a) of clause 2 c1f the bill seeks to insert a new clause (ee) in sub-section (2) of section 48 of the principal act to empower the central government to make rules relating to the terms and conditions of service of the employees and agents of the corporation this work which has hitherto 'heen carried out by the corporation will result in some additional workload on the central government even though every effort will be made to manage the additional workload to the extent possible with the existing staff, the possibility of some additional staff becoming necessary cannot be ruled out further some expenditure on stationery, corresp<?ndence and other connected matters will be necessary it is estimated that the additional expenditure to be incurred with regard to all these matters is not likely to exceed rs 1 lakh per annum the quantum and duration for which such expenditure will be required will be assessed in the light of the actual experience as the intention is to control the cost of administration of the corporation through the aforesaid rule-making power, the provisions of the bill may result in some reduction in expenditure on the salaries and allowances of the employees and agents of the corporation and, as hitherto, the expenditure on salaries and allowances etc of the employees and agents of the corporation will be met from au·t of the funds of the corporation 2 the provisions of the bill do not involve any other expenditure of a recurring or non-recurring nature  clause- 2 of the bill-seeks to amend' sectic1>d 4& c1f the principal act, inter azia,-(a) for empowering the central government to make with retrospective effect train· a date not earlier ~ the 20th  ciar  of june, i97s, rules with r~pec:t to the, t~ and ~di~~a of seiitice of the employees and, agents €if the life insurance corporation (vide sub-clause (a) of c1ause 2]; and -   (b) for giving o'9'ernding e1fect to stith rules by providing that such rules shall have ~ffeet notwithstanding an, judgment, decnoe or order e)f ally eour~tl"i:budal 0'1 other' authority and notwith$tatlding anytblng ·ceyrtlib!ed ill the 1dd1j~ disputes aiet, 194'7 or any other law or dily agreement, settlement, awani or other instruntent for the time bein~ in for~e [vif::n new sub-seetions (2b) a:hc!j (3c) as proposed to' b6 mserttd by sulr:l~ll_-:<b) ot said clmde2] sruch an over-riding effect is provided so that the rules can prevail o\'er the settlements under the indu~trial disputes act, 1947 which have been entered into by the corporation in the r>ast 2 matters in respect of which rules may be made tmder the aforesaid provisions pertain to matters of detail the reason for providing that the rules can be made with retrospective effect and that the rules will have over-riding effect has been explained above in the circumstances, the delegation of the legislative power is of a normal character _1iiiiiiiiii1iimlli:i ______ m ttl trandum erptaining the modification contained in the bill ;0 replace the v?e insura-nce ccrpot!ltion (am'!ndment) ordinance 1981 subject to a modification, elause ~ of the life irlsurance corporation (amen~,n~) bill, 19i1 cgi'1~pl!>ndi w da~se 3 ql ~e loife l¥urance corporation (amendment) ~ i1j!bl and the modification is for making, in accordance with the recommendations of the committee on subordinate legislation, a provision for the laying of the regulations made by the corpor&tion before both houses of parliament' '  annexure extracts from thi!: life iksurancz corporation act, 1956 (31 of 1956)   -  -18 (1)     (2) in partic'ular, and without prejudice to the generality of the :-ules foregoin~ power, such rutes may provide for all or any of the fou"owing matters, namely:- - - -   (c) the services which the chief agent should have rendered for the purpose of the proviso to section 12;   - -   , 49 (1)   - (2) in particular, and without prejudice to the generauty of the foregoing power, such regulations may provide for-(a) the powers and functions of the corporation which may be delegated to the zonal managers; (b) the method of recruitment of employees and agents of the corporation and the terms and conditions of service of such employees or agents; "," (bb) the terms and conditions of service of persons who have become employees of the corporation under sub-section (1) of section 11;  - - -  " ",  a billfurther to amend the life insurance corporation act, 1956 (shri r ven1ca"; raman, minister 01 finance) 