LIFE INSURANCE CORPORATION OF INDIA

CENTRAL OFFICE
“Yogakshema”
Jeevan Bima Marg,
MUMBAI – 400 021.

Ref: Mktg/ZD/12/2006 27.4.2006.

TO ALL ZONAL MANAGERS, OFFICERS IN-CHARGE

OF DIVISIONS, ZTCs, MDC, STCs AND AUDIT CENTRES.

Re: Insurance of Vehicles with Private Insurers

As per the present rules in force we do not allow Class I Officers (Scheme IV, V
and VI), Development Officers (Scheme II) and Agents (Scheme of Advances to Agents)
to insure their vehicles with Private Insurers.

The matter was reviewed and it has been decided as under:

1. Scheme VI vehicles should be insured with any of the Nationalized General

Insurance Companies and not with any Private General Insurance Company. No
reimbursement should be allowed to Class I Officers under Scheme VI when the
cars are insured with Private Insurers.
2. The vehicles in possession of Class I Officers (Scheme IV & V) and Development
Officers (Scheme II - Four Wheelers/Two Wheelers as the case may be) can be
insured either with any of the Nationalized General Insurance Company or any
Private General Insurance Company and as such reimbursement may be allowed
to Class I Officers and Development Officers.
3. Agents may be allowed to insure the vehicles (Four Wheelers and Two Wheelers)
either with any of the Nationalized General Insurance Company or any Private
General Insurance Company. Needless to add that no reimbursement of insurance
premium is allowed to Agents under the Scheme of Advances to Agents.

In view of the above, Paragraph 5 of the Hypothecation Deed to be executed by

the Class I Officers (Scheme IV & V)/Development Officers/Agents may be modified as
under:

“The said Motor Car/Scooter/Motor-cycle/Moped shall be insured by the

Agent/Employee with any one of the Nationalized General Insurance Company or any
Private General Insurance Company, approved by the Corporation or its authorized
Officer against the usual risk and the Agent/Employee undertakes and agrees to so insure
the said Motor Car/Scooter/Motor-cycle/Moped in the names of the Corporation and
Agent/Employee and to deliver the policy of insurance to the Corporation and to pay
premium due to respect of such policy duly and punctually and not allow such policy to
lapse and in default the Corporation shall have the right but not the obligation to pay such
premiums and debit the same to the Motor Car/Scooter/Motor-cycle/Moped. All monies
received under any such insurance mentioned in this clause shall be deposited with and
retained and held by the Corporation as its exclusive property specifically appropriated to
this security and shall be appropriated towards all moneys due and payable to the
company under the terms of this agreement.”

All the Offices are required to adhere to the above instructions scrupulously.

Executive Director (Mktg./SBU-IO/CC)