Property_Manu - Final - The New India Assurance Co. Ltd.

2The New India Assurance Co.Ltd.

4The New India Assurance Co.Ltd.

The New India Assurance Co.Ltd.FOREWORDI am immensely pleased to introduce a comprehensive Manual on Property/ Estate &Establishment. This replaces the earlier compendium which was in practice and shall actas a comprehensive guide to any one handling property, estate & establishment issues.The manual painstakingly prepared, outlines the process involved ranging from lease ofpremises to outright purchase of property, refurbishing of offices, printing of stationery,maintenance & up keep etc. to be followed in accordance with Company’s circulars andCVC guidelines as amended from time to time.I am certain that this manual shall be considerably useful to the concerned officials toperform their assigned responsibilities in a fair and transparent manner.I also congratulate Property Cell and Estate/ Establishment Department team in publishingthe Manual which shall be a convenient tool in day to day functioning.With best wishes.Date : 01.12.2011Mumbai( A.R. Sekar )Director, General Manager & F.A.MANUAL ON PROPERTY, ESTATE & ESTABLISHMENT5

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The New India Assurance Co.Ltd.PREFACEIt gives me immense pleasure and satisfaction in bringing forth a comprehensive Manualprepared and compiled by Property Cell and Estate/Establishment Department headed byMr. A.K. Chanda, Deputy Gen. Manager, Mr. P.K. Sinha & Mr. S.V. Joglekar, Chief Managersand their team at HO.Like other Manuals in vogue, this Manual shall be extremely helpful to our subordinateoffices in handling property/ estate related matters properly.I am confident that the procedure/ guidelines outlined in the Manual shall be found useful byall the offices making their task easier and convenient.With Best wishes.Date : 01.12.2011Mumbai(R.K. Deka)General ManagerMANUAL ON PROPERTY, ESTATE & ESTABLISHMENT7

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The New India Assurance Co.Ltd.I N D E XPropertySl.No. Annexure No. D e s c r i p t I o n Page No.Guidelines/ Procedures for selection of 11New Premises on Lease/ on Rental/on Purchase Basis.1 (i) Annexure A” Guidelines to Tenderers for 19Submission of Tender (Office Premises)(ii) Annexure “A-1” Technical Bid Format 21(iii) Annexure “A-2” Financial Bid for outright Purchase 27Annexure “A-3” Financial Bid Format for Lease / Rental 29(iv) Annexure“I” Advertisement Draft 30(v) Annexure“II” Draft Intimation to Tender Committee Members. 31(vi) Annexure “III” Findings of Tender Committee at the time 32of opening of Main or Master envelope.(vii) Annexure “IV” Comparative Statement of Technical Bids. 33(viii) Annexure “V” Draft Forwarding letter to Inspection 35Committee Members.(ix) Annexure“VI” Inspection Report 36(x) Annexure “VII” Comparative Statement of Financial Bids. 38(xi) Annexure “VIII” Recommendation of the Chief Regional 40Manager/ Deputy General Manager.(xii) Annexure “IX” Format for Proposal for Shifting 42(xiii) Annexure “X” Revised Space Norms 452. Circulars issued by CVC,Property Cell 463. Accounting Standards (AS) 5 734. Draft of Standard Lease Agreement 795. Opinion on evidentiary value of Insurance - 86Certificates stored in electronic formatMANUAL ON PROPERTY, ESTATE & ESTABLISHMENT9

The New India Assurance Co.Ltd.I N D E XEstate and EstablishmentSl.No. D e s c r i p t I o n Page No.1 Definitions 992 Guidelines for Execution of Building Maintenance/ Civil/ Electrical/ 103Mechanical Works and Purchase Procedure for Capital Itemsa. Empanelment of Vendors for Execution of 106Maintenance Worksb. Execution of Works 125c. Execution of Work – Technical 1313 Printing, Stationery, General items, Computer stationery 135a. Instruction to Tenderer for Empanelment as Printer 139b. Application for Empanelment as Printer 142C. Specimen letter for Empanelment of Printer 144d. General Terms and Conditions - Panel Printers 1464. Furnishing 1485. Maintenance, Repairs, Replacements 15210MANUAL ON PROPERTY, ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Guidelines/ Procedures for selection ofnew Premises on Lease/ on Rental/ onPurchase basisThe tendering has to be done in TWO BIDS System i.e. ‘Technical bid’ and ‘Financial Bid’.Accordingly, the profile of the advertisement, tender documents as well as the procedures havebeen formulated and should be followed by Officials of the Regional Office in respect of acquiringNew premises for RO/DO/BO/ Transit House/Guest House on lease/ on Rent/Purchase basis.The entire process has to be carried out by RO only and it cannot be delegated to any Divisionor Branch.A tender register is to be maintained by the RO, with running serial no and unique tender referenceno of advertisement.Any proposal for shifting of existing premises would be initiated duly recommended in Annexure-”IX” by the Chief Regional Manager/ Deputy General Manager of the RO, and on receipt of inprinciple approval for hiring new premises from Head Office the following steps are to be followedby the Regional Offices:STEP 1ADVERTISEMENT & SUBMISSION OF OFFERSI. The advertisement should be released within 15 days from the date of receipt of HeadOffice approval.II.III.IV.Advertisement as per prescribed format (Annexure “I”) should be released in two widelycirculated Daily Newspapers. Out of 2 Newspapers one should be in English and anotherin local vernacular. It may be noted that only Daily Newspapers that are widely circulatedin the City/ Town where the premises is required should be chosen. This draft format(Annexure- “I”) may be modified, if so required by the Local Laws, with prior approval ofHead Office. If any city has only vernacular newspaper in circulation, the advertisementmay be published in local vernacular & in English in the same daily news paper.It should be mentioned in the advertisement that the required AREA shall be as perIndian Standard Code No. IS:3861-1975.It may be noted that while ascertaining the required CARPET AREA for an office, variousFACTORS specified in the “REVISED SPACE NORMS” (Annexure-X, a copy of whichis enclosed for ready reference) should have to be strictly followed.MANUAL ON PROPERTY11

The New India Assurance Co.Ltd.V. Approximate location or locations where the premises is intended to be situated shouldbe clearly mentioned in the advertisement issued.VI.VII.Before inserting the advertisement RO should short-list the areas/ road where the newpremises are intended to be located. It would be better still if the name of the road as wellas the name of the area are specified. If the identified road is very long, two landmarks,which are at least two kilometers away from each other, can be identified and specifiedin the advertisement. The advertisement must describe the location in detail. The finaldecision in this regard is to be left to the Regional-in-Charge, however this decisionmust be taken before publication of the advertisement.Parking:- The Company may not insist on exclusive parking slots for Divisions andBranches in metros and “A” class cities.VIII. Since all the offers should reach at Regional Office only, the address of the RegionalOffice should appear in the advertisement & the designation of the person to whomoffered are to be addressed. The time limit for submission of tenders should be clear 15days, exclusive of holidays.IX.All the offers should be invited under TWO-BID tender Procedure. Therefore, both theTender Formats “TECHNICAL BID” and “FINANCIAL BID” ALONG WITH THE“Guidelines to Tenderers for submission of Tender (Office Premises) (Annexure –”A”)should be available for distribution to the tenderers from the RO and also from theConcerned Division and the concerned Branch. This would ensure that the Tendererscan collect the formats from the concerned RO, DO and BO.X. Intending Tenderers should be handed over the following three (3) formats on request,within the stipulated time :i. Guidelines for submission of Tender (Annexure “A”)ii.iii.Format for Technical Bid (Annexure “A-1”) andFormat for Financial Bid (Annexure “A-2 &/or A-3”).XI.XII.All the Tenders should be submitted strictly as per the Guidelines (Annexure-”A”). Tenderswith any material deviation there from should be rejected summarily.All offers should be centrally received in the RO either by Registered Post or by SpeedPost or by Recorded Delivery or by Courier only.XIII. As and when the offered envelopes (duly sealed by the Tenderer & superscribed ‘Offerfor Office Premises’) are received in the RO, the Receiving Department should place theDate Stamp on the envelopes and should drop the envelope (without opening the same)in the Tender Box. This practice would avoid causing complications on account ofinadvertent opening of the offers before the due date.12 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.STEP - 2TENDER COMMITTEEi. All tenders should be opened only by the Regional Tender Opening Committee consistingof 3 members preferably :1. Two Officers from RO, at least one Officer from the Establishment Dept. & one fromAccounts at RO.2. An Officer from Internal Audit Department, R.O.ii.iii.iv.It is, therefore, imperative for the Regional Office to form a Regional Tender Committee,if not already constituted.The main (Master) envelopes of each Tender should be opened at the first hour of thenext working day following the last date fixed for submission of Tenders.The time limit stipulated at (iii) above should be strictly adhered to.v. If any of the Committee Members from RO is unable to attend on account of any unavoidablecircumstances, the Chief Regional Manager / Deputy General Manager ofconcerned RO can nominate another Officer of the same rank as the absentee memberof the Tender Committee in writing.vi.vii.viii.Any member of I.A. & I.D. Cell at RO should ensure his presence on the schedule date ofthe opening of the Tender.All Committee Members should be intimated in writing (as per Annexure –II) well inadvance to ensure their presence on the stipulated date of opening of tenders.All Committee Members should be provided with a copy of these “Guidelines / Procedurefor Selection of New Premises on lease / on Rental / Outright Purchase Basis.STEP -3OPENING OF TENDERSi. Before opening of tenders all Members should put their signature and date on all theenvelopes.ii.After opening of the Master Envelopes the Tender Committee should examine whetherall the envelopes contain TWO envelopes (“Technical Bid” & “Financial Bid”) duly sealedand super scribed as per guidelines for submission of tender and record their findings inthe prescribed form “Findings of the Tender Committee at the Time of opening of theMain (Master) envelopes” (Annexure-III).MANUAL ON PROPERTY13

The New India Assurance Co.Ltd.iii.The Tender Opening Committee shall open only the “TECHNICAL BIDS” of the validtenders and should put their Signature & Date on:1. All the envelopes superscribed as “Technical Bid”2. All the pages of the “Technical Bids”.iv.The Tender Committee should record the findings of the “Technical Bids” in the prescribedform “Comparative Statement of Technical Bids (Annexure –IV)” This statement is forshort-listing the premises for inspection by RO Inspection Committee.v. Short-listing of the offers :-a. The Tender Opening Committee should prepare a shortlist of the offers.b. Normally all the offers received should be short-listed. Offers should be rejected atthis stage only on account of one or more of the following reasons:-i. If the premises is not located in the areas specified in the advertisement.ii.If the area of the premises offered exceeds / falls short by more than 10% of thearea advertised.iii. Any other reason, which the tender opening Committee members feel, is strongenough to make the offer unacceptable. However, this decision must be unanimous. Ifthe decision is not unanimous, the premises should be short listed for inspection. Thereason/s for rejecting any offer must be very clearly recorded, stating full reasons indetail.vi.vii.If the advertisement failed to generate sufficient response or suitable premises could notbe selected from the offers received, fresh Tenders may be invited.The short-listed offers (which meet with the company’s requirements) should be forwardedto the “RO Inspection Committee” on the same day in the prescribed format “Annexure –V” along with following documents:1. Copies of “Technical Bids” of short-listed tenders.2. Copy of Advertisement.viii.All the unopened envelopes containing the Financial Bids should be kept in safe custodytill the receipt of Inspection Committee’s report.14 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.STEP - 4INSPECTION COMMITTEE- FUNCTIONi. RO Inspection Committee specifically formed for this purpose by Chief Regional Manager/Deputy General Manager should consist of :-1. Regional-In-Charge/ Manager or Deputy Manager in Charge of the department.2. Company’s Engineer (where available)3. An officer from Internal Audit Department, RO.4. Concerned Divisional Manager5. Concerned Branch Manager, if applicable.ii.iii.iv.The Inspection Committee should inspect all the short-listed premises within 7 DAYSfrom the date of opening of “Technical Bid”.Before inspection of the short-listed premises prior intimation should be given to thelandlords fixing the date & time for inspection by the Inspection Committee.The Landlords should be advised to produce following original documents at the time ofinspection:1. Title deed of the premises2. Supporting documents for commercial use of the premises wherever applicable,3. Sanctioned plan & Occupancy Certificate4. Fire Safety Certificate (in case of Multi-storied building).v. It is reiterated here that the selection of the new premises has to be done under 2 bidssystem and the opening of “Financial Bids” depends on the re-commendation for apremise which should be in absolute terms (e.g. the premises is reasonably suitable,hence “RECOMMENDED”), thereby leaving no rooms for any ambiguity/ confusion inthe matter of opening of the related “Financial Bid” by the Tender Committee. Thereforethe Committee should avoid recommendations like “this premises is most suitablepremises.” What is expected from the Committee is to state in categorical terms whetheror not the premises falls within acceptable parameters. The recommendation for premisesshould also not be in any order of preference.vi.REJECTION: - If a premise is found unsuitable, the reasons should be clearly mentionedin the report. For example writing, “Rejected because the premises is not situated inMANUAL ON PROPERTY15

The New India Assurance Co.Ltd.hygienic surroundings” is not sufficient. The note must describe in detail why thesurroundings are considered un-hygienic. Moreover, rejection must be unanimousvii.viii.ix.Current market rate of rent of the shortlisted premises are to be obtained from LIC PanelValuer before opening financial bids.The Inspection Committee should submit their report to the “Tender Committee” withinTHREE DAYS of the Inspection in the prescribed format “Annexure –VI”.Form in Annexure-VI should be used for comparison among separate premises.STEP -5OPENING OF ‘FINANCIAL BIDS’ BY TENDER COMMITTEEi. The Tender Committee on receipt of the “Inspection Reports” from the InspectionCommittee should segregate the “Financial Bids” of the “Recommended” premises.ii.iii.iv.It should be noted that the “Financial Bids” of the offers rejected by the InspectionCommittee as well as those rejected during first Screening (Step-3) should not be openedat all. Therefore, segregation of Financial Bids is necessary to avoid inadvertent openingof “Financial Bids” of the Rejected Offers.Market rate of rent or valuation of the premises offered on sale should be obtained froma LIC empanelled valuer for all the recommended premises only prior to the opening ofthe commercial bids.The Tender Committee shall open only the “FINANCIAL BIDS” of the valid OFFERS i.e.premises recommended and should put their Signature & Date on:1. All the envelopes superscribed as “Financial Bid”2. All the pages of the “Financial Bids”.v. The Tender Committee should prepare a “Comparative Statement” from the “FinancialBids” in the prescribed format “Annexure-VII”.vi.vii.From the above process the Lowest of the Tenders (L-1) should be the recommendedpremises.Their recommendation in Annexure-VII should be submitted to Chief Regional Manager/Deputy General Manager within TWO DAYS from the receipt of the Inspection Reportsfrom the Inspection Committee.16 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.STEP - 6RECOMMENDATION BY DEPUTY GENERAL MANAGER /CHIEF REGIONAL MANAGERi. After receipt of the Lowest of the Tenders (L-1) from the Tender Committee, a MeasurementCertificate of the selected premises should be obtained by the RO from a LIC PanelValuer or a surveyor with requisite qualificaitons certifying that the carpet area has beenmeasured as per the IS 3861-1975 formula. The measurement certificate should beobtained within 7 working days from the receipt of recommendation (L-1) from the TenderCommittee.]ii.iii.iv.Title Clearance Certificate of the recommended premises should be obtained from aCompetent Advocate within 7 working days from the receipt of recommendation (L-1)from the Tender Committee.The RO Negotiation Committee Member(s) should negotiate ONLY with the L-1 Tendererfor further reduction of Rent and other charges, keeping in view the prevalent marketrent (Rent being paid by Banks / Public Sector Undertakings having their offices in thearea may be taken into consideration).It may be noted here that negotiation with other than L-1 tenderer is prohibited. In thisconnection, the relevant excerpt from CVC’s instructions dated 18.11.98 is quoted forready reference: “As post-tender negotiations are the main source of corruption, posttender negotiations are banned with immediate effect except in the case of negotiationswith L1 (i.e. lowest tenderer).”v. If the L-1 Tenderer backs out, there should be retendering in a transparent & fair manner.vi.vii.viii.The final recommendation should be prepared in the prescribed format Annexure –VIII.RO should forward their recommendation to HO Property Cell in Annexure-VIII.The following papers should be enclosed along with Annexure –VIII:1. Copy of the advertisement showing the name of News paper & date ofadvertisement.2. Copies of all the Tender Documents including rejected Offers.3. Measurement Certificate of the selected premises (L-1) issued by a LIC PanelValuer certifying that the carpet area has been measured as per IS 3861-1975 formula.4. Valuation report on rent/sale price of the selected (L-1) premises from theLIC empanelled Valuer.5. Title Clearance Certificate of the recommended premises from a CompetentAdvocate.6. Copy of the Annexures from I to IX, duly completed.MANUAL ON PROPERTY17

The New India Assurance Co.Ltd.STEP -7“EXECUTION OF LEASE DEED & SURRENDER OFOLD PREMISES”.i. On receipt of the approval for hiring of new premises from Head Office, RO should advisethe concerned office to execute & register the standard lease deed as per Company’sFormat without any delay & to shift immediately to the New Premises (A copy of theStandard Lease Deed forms part of the manual).ii.iii.iv.RO should examine the draft lease deed to ascertain as to whether all the terms andconditions are correctly reflected in the deed.If the Owner does not agree with the Company’s standard lease deed, the same wouldhave to be referred immediately to Head Office specifically mentioning the nature ofmodification/ alteration/ inclusion etc. proposed in detail.To avoid future complications, it is suggested that all formalities including execution &registration of Lease Deed be completed before shifting to the new premises.v. In any case Rent / Advance should not be released without execution of the lease deed.vi.At the time of surrendering of old premises, RO should ensure that all the outstandingdues/ advances have been properly adjusted/ refunded & acknowledgment obtained inwriting from the landlord of having taken possession of the premises.STEP – 8“REGISTRATION OF SALE DEED IN CASE OFPURCHASE OF PROPERTY”On receipt of approval for purchase of any immovable property such asapartment / flat / commercial space, sale / conveyance deed to be registered inconsultation with a Competent Advocate & care is to be taken to include rights ofpassage / use of common amenities / parking / taxes / other outgoings etc.Utmost transparency should be maintained in the selection process.HHHHH18 MANUAL ON PROPERTY

TENDERERSThe New India Assurance Co.Ltd.Annexure ‘A’Guidelines To Tenderers for Submission of Tender(Office Premises on lease / rent / outright sale)Tenderers are advised to study the following procedures carefully before submission of Tenders:-1. It is proposed to follow the TWO BID Tender System for this Tender and this BID should besubmitted in the prescribed formats (Annexure- “A-1”, “A-2” / “A-3”):i. “TECHNICAL BID” (Annexure – “A-1”) in ONE COVER duly sealed. This BID is meantonly for all technical details of the Offered Premises e.g. address, area,quality ofconstruction, floor, ventilation, surroundings, electrical load available,water supply, parkingfacilities, term of lease, its renewal and other terms and conditions etc.Please note that rent / advances / maintenance charges etc. should not be indicated inthe Technical Bid.ii. Separate sealed covers should be used for A-2 & A-3 (Financial Bid). This Bid ismeant only for all Financial Details of the Offered Premises e.g. sale price/rent/ rate,maintenance charges, air conditioning charges, generator set charges, taxes if any tobe borne by the Company, rent escalation on renewal, advances if any etc.2. All the points in the Tender Forms (Technical & Financial Bids) are to be answered only .Tenderer is expected to furnish all information required in both the BIDS. Failure to furnishall information required by the BIDS (Annexure –“A1” & “A-2” & / or “A-3”) in every respectmay result in to rejection of the TENDER.3. Tenderer should put full signatures on all the pages of the Tender Forms.4. Over writing/ white inking of any word/ figure in the Tender Forms, unless duly authenticatedby the Tenderer, are liable to be rejected at the option of the Company.5. Separate Tender Forms should be used for separate premises, e.g. if a Tenderer wants tooffer more than one premises then separate Tender Forms should be used. If any tendereroffers the same premises on rent / lease as well as on outright sale basis, separate tenderform should be used (both Technical & Financial)6. The tender should be submitted by the tenderer by Registered Post/ Speed Post/ RecordedDelivery/ Courier.7. Since TWO BID Tender System is to be followed, 3 covers should be used forsubmission of Tender as detailed below:I. Cover – “1” for Technical Bid.a. “TECHNICAL BID” duly completed and signed should be put in thiscover with tender reference number.MANUAL ON PROPERTY19

. The cover should be sealed properly with lac.The New India Assurance Co.Ltd.c. The Cover should be superscribed as: “T E C H N I C A L B I D ” “Offer forOffice Premises – Lease / Rent” OR “Offer for premises for Sale” tenderreference number___________.d. Tenderer’s Name & Address should be written below the superscription.II.Cover –”2" for Financial Bid.a. “FINANCIAL BID” duly completed and signed should be put in this covertender reference number.b. The cover should be sealed properly with lacc. The Cover should be superscribed as: “F I N A N C I A L B I D” .....tenderreference number. “Offer for Office Premises – Lease / Rent” OR “Offer forpremises for Sale”d. Tenderer’s Name & Address should be written below the superscription.iii.Cover –”3" (containing both the above BIDS).Both the Technical Bid Cover & Financial Bid Cover, prepared as above, are tobe put in this Cover. Use separate cover for “Offer for premises on Lease / Rent” &“Offer for premises on Sale”.a. The cover should be sealed properly with lacb. The Cover should be superscribed as: “PLEASE PLACE IN TENDER BOXTO BE OPENED ONLY BY TENDER COMMITTEE” “Offer for OfficePremises on Lease/ Rent” or “Offer for premises on Sale” and tenderreference number__________.c. Tenderer’s Name & Address should be written below the superscription.8. Sealed Offers prepared in accordance with the procedures enumerated above should besent only by Registered Post/ Speed Post/ Recorded delivery/ Courier and should reach onor before the prescribed date & time to the Address mentioned in the Advertisement. AnyTender received after the date specified in Advertisement will be rejected.9. After Technical Bids are opened and evaluated, a list of short-listed Tenderers will beprepared. The short-listed Tenderers will be contacted for inspection of the premises.10. The Company reserves the right to accept any bid or to annul the Tender Processand reject all bids at any time without assigning any reason thereof.HHHHH20 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Tender Reference No.-__________TECHNICAL BIDAnnexure ‘A’ 1Terms and conditions for Rent / Lease / Purchase of Office premises at….………TERMS & CONDITIONS1. The terms and conditions are forming a part of the tender to be submitted by the offererto the Company.2. Company reserves the right to accept or reject any or all the tenders without assigningany reason thereof.3. Tender document received by the Company after due date and time given shall berejected.4. All tenderers are requested to submit the tender documents including TECHNICALBID AND FINANCIAL BID duly filled in with the relevant documents / information atthe following Address :- (Address of the office, where tenders are to be accepted is tobe given).5. All columns of the tender documents must be duly filled in and no column should bekept blank. All the pages of the tender documents are to be signed by the authorizedsignatory of the tenderer. Any over writing or use of white ink is to be duly initialed bythe tenderer. The Company reserves the right to reject the incomplete tenders.6. Rent after execution of deed shall be paid to the landlord by Account payee chequesonly and no brokerage shall be paid to any broker.7. Income tax and other statutory clearance shall be obtained by the vendors at theirown cost as and when required.8. The offer should remain valid at least for a period of 6 months to be reckoned from thedate of advertisement.9. There should not be any deviation in terms and conditions as have been stipulated inthe tender documents. However, in the event of imposition of any other condition,which may lead to a deviation with respect to the terms and conditions as mentionedin the tender document, the vendor is required to attach a separate sheet marking “listof deviation”.MANUAL ON PROPERTY21

The New India Assurance Co.Ltd.10. The tenderer shall submit tender documents in separate sealed envelopes mentioningas ‘Technical Bid’ and ‘Financial Bid’ and enclose both in one envelope super scribedas ‘Tender for office premises at …………………..(specify location)’.11. Separate tender forms in original are to be submitted for each proposal/location. NoXerox copies will be entertained. The Technical Bids will be opened in the presenceof tenderers at ———————————————on a date & time intimated to alltenderers. All tenderers are advised in their own interest to be present on that date, atthe specified time.12. Canvassing in any form will disqualify the tenderer.13. The short-listed vendors will be informed by the Company for arranging site-inspectionof the offered premises.22 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.To,Annexure ‘A’ 1(Contd.)The New India Assurance Co. Ltd.Ref - Your advertisement in -_____ newspaper / Company’s website on _____ for requirement ofpremises at ______ on Rent / Lease / Purchase.Tender Reference no.1. Details of Builder / Owner:-i. Name :ii. Address & Phone no. :2. Marketability of Title Deeds of the vendor :a) Solicitor’s/ Advocate’s Name & Address :b) Whether detailed report of the Solicitor/Advocatefor marketability of titles is enclosed :c) Whether the premises offered is free from litigation / encumbrance3. Details of the property offered :-i. Full address of the premises offered :ii.Usage of property (As approved by Competent Authority)a. Commercial :b. Residential & Commercial :c. Shopping Centre :iii. No. of floors in the building :iv. At which floor the premises is offered :(Preferably the offered premises should be on a single floor)v. Area of premises offered :a. Super Built – up Area : _________sq.ft.b. Built- up Area : _________sq.ft.c. Carpet Area : _________sq.ft.MANUAL ON PROPERTY23

The New India Assurance Co.Ltd.vi.a) List of common area as included for the purposeof computing Super Built-up Area.b) Details of the parking facilities available. :c) Whether cross ventilation is available. :vii. a) Year of the Construction of the Building :b) Estimated life span of the building :viii. Specification of the construction / material used :i) Class of Construction :ii) Type of constructiona) RCC framed structure :b) Load bearing walls :c) Any other :iii) Clear height from floor to ceiling (in ft.) :iv) Earth quake resistance level of construction :ix Period of lease offered :4. Details of land/ site:-i. Tenure of the landa) Free hold :ii.b) Leasehold :a. If leasehold give residualPeriod of lease & name of title holders. :b. Annual lease rent & amount :Size/ Dimension of the plot in ft.a) Frontage :b) Depth :C) Other sides :iii. Area of the plot :iv.a) Covered area : ______ sq.ft.b) Open area : ______ sq.ft.Whether the building has underground / overhead water storage tank : Yes/No24 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.v. Any established easements regarding rightof way/ passage for mains of water/ electric:vi.Does the site or portion fall within railway/National Highway/ underground cable/Metrotraverse site : Yes/Novii. Layout of the building enclosed : Yes/No5. Details of the locality:-i. Address and locality in whichthe property is situated :ii. Character/ Type of locality : a / b / c / d / ea. Residential b. Commercial c. Shopping complexd. Industrial e. Slumiii. Whether the locality is prone tohazards like inundation / flood, etc. : Yes/Noiv. Locality’s proximity to the following place in kms:a) Railway station :b) Market/ supermarket :c) Hospital :d) Bank :e) Bus stand :6. a.) Details of boundary and adjacent buildings b.) Premises Offeredi) Boundary of the Property :a) North : b) East :c) South : d) West :7. Amenities Providedi) Provision for no. of toilets :ii) a) No of phases of electricity connection : (Single / Two / Three Phase)b) Standards of earthing arrangement :iii) Facilities for 24 hours water supply : Yes/NoMANUAL ON PROPERTY25

The New India Assurance Co.Ltd.iv) Safety and Security arrangement : Yes/Nov) Fire Exit : Yes/Novi) Availability of space on roof of the building for installation of V-SAT : Yes/No8. Common Facilities Provided :i) Car parking space : Number of Vehiclesii) Scooter/Motor cycle parking space : Number of Vehiclesiii) Lifts and their Nos. :iv) Generator for emergency : Yes/Nov) Anti Lightening Device/ Lightening Arresters : Yes/Novi) Security arrangements : Yes/Novii) Proper sanitary / sewerage system : Yes/No9. Details, of Plans /Blue Prints/ Sanctioned plan :i) Whether the plan of the Propertyis sanctioned by Competent Authority : Yes/Noii) If sanctioned, please enclose copy ofapproved land / site plans : Attached / Not Attachediii) Whether occupancy / completion certificate obtained : Yes/No10. Provision of proper arrangement of Fire safety :i) Are the safety measures taken : Yes/Noii) If yes, give details of arrangements :iii) No Objection Certificate has been achieved / : Yes/Nosecured from fire control Authoritiesiv) If yes, produce copies of proof certificates : Attached / Not Attached11. List of annexures :Signature(Owner/ Authorized Representative)PLACE :DATE :PS : All pages should be signed.[ Tenderers are advised in their interest to not to leave any of the aforesaid columns blank under anycircumstances. Tenderers are also required to enclose layout plans of the premises on offer ].HHHHH26 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Annexure ‘A’ 2Financial bid for outright Purchase by the CompanyTo,The New India Assurance Co. Ltd.,Tender Reference No.Ref – Your advertisement dated ____ in _____ newspaper / Company’s website with regard topurchase of premises at __________, I / We offer you the premises described below for sale :1. Details of the property sold earlier :a. Any other purchaser who has already booked space in any part of the building. Ifso, please furnish the following details:a. Rate at which the premises was bookedb. Period when it was bookedb. Whether any part of the premises have been sold to any Public Sector Unit? Ifso, please furnish the following details:a. Rate at which the premises was soldb. Period when it was soldc. Details of cost pertaining to the maintenance of the complex and other facilities,payments towards formation of society and other outgoes.d. Whether apartment, Society proposed, is to be registered or is already inexistence.MANUAL ON PROPERTY27

The New India Assurance Co.Ltd.* All tenderers are mandatorily required to fill up all columns in the tables below asper the specifications advised.2. OFFER ON OUTRIGHT SALE :Full address Super built Built up Carpet area Sale price of the Total Saleof the up area in area in (as defined in premises (to be Pricepremises sq. ft. sq. ft. India mentioned in Rs.offered on Standard Whethersale Code No. on Super Built-upIs : 3861-1975) area / Built upIn sq. ft. area or Carpetarea)in Rs.3. Any concession:If any concession to offer, write in details :4. Time period of Possession/ Penalty Clause:i. When possession is promised :ii. Penalty clause for not handing over the propertyon the committed date @ 18% per annum on thetotal amount of advance.iii. Defects Liability Clause :6. Any other condition vendor wants to mention:Signature(Owner/ Authorized Representative)ADDRESS :PHONE NO :PLACE :DATE :PS: All pages should be signed.HHHHH28 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.FINANCIAL BID FOR LEASE / RENTALAnnexure ‘A’ 3Tender Reference No.To,The New India Assurance Co. Ltd.,Ref – Your advertisement dated ____ in _____ newspaper / Company’s website with regard tolease of premises________ I / We offer you the premises described below on lease basis asunder :1) ADDRESS OF THE PREMISES OFFERED2) CARPET AREA OF THE PREMISES OFFERED3) MONTHLY RENTAL IN RS. PER SQ. FT. PER MONTH ON CARPET AREA4) MAINTENANCE CHARGES PER SQ. FT. / PER MONTH / ON CARPET AREA5) ANY OTHER TAXES / CESS / CHARGES6) TOTAL OF 3, 4 & 5 ABOVE (RENT)7) PERIOD OF LEASE (MINIMUM 9 YEARS WITH RENEWAL ON EVERY 3 YEARSOR 10 YEARS WITH RENEWAL ON EXPIRY OF 5 YEARS)8) PERIODICAL ENHANCEMENT IN % (AFTER EVERY 3 OR 5 YEARS ASAPPLICABLE)9) REGISTRATION CHARGES TO BE BORNE EQUALLY ON 50:50 BASISDECLARATION:1. I / We are aware that the ‘RENT’ (no 6 above) mentioned above will be inclusive of allamenities including parking space, other conveniences provided by the landlord, municipaltaxes, rates / surcharges & cess etc.2. It is my / our duty to pay the statutory liabilities / dues in relation to the premises offeredabove, to the appropriate authority within the due date & the Company shall have noother responsibility other than payment of the rent as mentioned above.Signature(Owner/ Authorized Representative)Date:Place:MANUAL ON PROPERTYHHHHH29

The New India Assurance Co.Ltd.Annexure ‘I’Advertisement Draft(Address : RO address to be given here)COMMERCIAL SPACE ON OWNERSHIP/ LEASE BASIS AT ____________Tender Reference No.Sealed offers (Technical and Financial) are invited for acquiring on lease/ purchase ofcommercial space of _________ approximately carpet area in (specify the area) with 24 hrs.drinking water supply and 3 phase electricity connection, in a ready state of possession, with carparking facilities preferably. Interested parties may submit their offers in sealed envelopementioning ‘Technical Bid’ and ‘Financial Bid’ placed in an envelope super scribed “Offer ofPremises for ________” addressed to _____________________________along with copies ofduly approved plan, title deed, layout of the building etc. at the above mentioned address latestby ______________________.The tender documents can be collected from the office (address mentioned above) between10.00 a.m. to 1.30 p.m. and 2.00 to 5.30 p.m. from Monday to Friday excluding Saturday andSunday and any other holiday. The tender forms can also be downloaded from website http://newindia.co.in.The Company reserves the right to reject all or any of the offers in full or in part without assigningany reason thereof.Sd/Chief Regional Manager/ Dy. Gen. ManagerDate :HHHHH30 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Annexure IIIntimation to Tender Committee MembersTender Reference No.Ref.No. _________/New Premises/ Tender/ Dated_________ToShri _______________________ (Member from RO)Shri _______________________ (Member from RO)Shri _______________________ (Member from I.A. & I.D.)Re. Opening of Tender for New Premises.As per Guidelines for Selection of New Premises, the Tenders have to be opened within the 1 sthour of the next working day of the last date fixed for receiving the completed Tender Offers.As such, the date for opening of Tenders is fixed on _____________ at 10.30 a.m. A copy of thesaid Guidelines has already been provided to you.Hence, you are requested to remain present at RO on the above mentioned date and Time foropening of tender.SIGNATUREName & Designation:__________________Officer-in charge of Estate & Establishment Deptt.Date :(This letter should be issued to each committee member on the date of Advertisement)HHHHHMANUAL ON PROPERTY31

The New India Assurance Co.Ltd.Annexure IIIFindings of Tender Committee at the time ofOpening of Main or Master envelope.Date of Opening:Tender Reference No.Tenderer-1 Tenderer-2 Tenderer…..1 Name of the Tenderer2 Date of Receipt of Tender3 Mode of receipt of Tender4 Whether the envelope forTechnical Bids have beenDuly sealed/superscribed?5 Whether the envelope forFinancial Bids have beenDuly sealed/superscribed?6 Any other papers foundin the Main envelope7 Remarks: Just write “OK”or “REJECTED” whicheveris applicable.8 Reasons for rejectionsTender Committee Member’s Name, Designation & SignatureDateHHHHH32 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Comparative Statement Of Technical BidsAnnexure IVTender Reference No.The following information should be given strictly as per Technical Bids.Date of Opening: __________Tederer-1 Tenderer-2 Tenderer-…..1 Name of the Tenderer2 Address of the Tenderer3 Location of the proposedPremises4 Carpet Area and lease period offered5 Whether commercialuse permitted6 Hall Type/ Room Type7 Whether well ventilated8 Whether in commercial Area ?9 Number of toilets10 Whether 24 hour watersupply available?11 Separate Electric Meter &adequate load available to runFan/ Computer/Light etc.12 Fire Safety Devices(in case of Multistory)13 Lift service (in case ofMultistory)14 Whether separate entrance availableMANUAL ON PROPERTY33

The New India Assurance Co.Ltd.15 Parking facilities fora. Cars (Number)b. Two Wheelers (Number)16 Remarksi. Whether recommendedfor inspection (yes/no)ii. Rejected Not recommendedfor Inspection due tofollowing reasons :-a. Premises is too Largeb. Premises is too smallc. Location not as per advt.d.e.Tender Committee Member’s Name, Designation & SignatureDateHHHHH34 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Annexure VForwarding letter to Inspection Committee MembersTender Reference No.Ref. No. _________/New Premises/ Tender/ Dated_________To,Shri _______________________ (Member from RO)Shri _______________________ (Member from RO)Shri _______________________ (Member from I.A. & I.D.)Re. :: Inspection of Premises.The following premises total___________ numbers may please be inspected within 7 days fromthe date of this letter and report thereon should be submitted in the enclosed format within THREEDAYS from completion of the inspection of all the premises.Sl.No. Address of the Premises Name of the landlord Contact No.1.2.3.SignatureDeputy Gen. Manager/Chief Regional ManagerEnclosures 1. Photocopies of the Related Technical Bids.2. Copy of Inspection Report Format &3.Copy of the Guidelines for Hiring/ Purchase of new premises containing 8 stepsThis letter should be issued preferably on the next day of opening of Technical bidHHHHHMANUAL ON PROPERTY35

The New India Assurance Co.Ltd.Annexure VIInspection Report Of The Premises Situated AtTender Reference No.Date of Inspection::_______We, the Inspection Committee Members, have visited & inspected the below mentioned premises& the report is as under :Tender 1 Tender 2 Tender 31 Full address of the premises offeredand whether it is in a commercial area2 Number of floors in the building3 Floor offered4 Amenities Provideda. Number of toiletsb. Running water supply::c. Ventilationd. Lift & fire fighting equipmentse. Parking facilities:-i. Car parking (Number)ii. Motor cylces/Scooter (Number)5 Separate Electric Meter withadequate load capacity (Yes/No)36 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.6 Design of premises (Hall type/ room type)7 Type/ class of construction8 i. Whether the premises is readyfor occupation?ii. If not when will it be ready for occupation.9 Recommended as suitable :-10 Not recommendeddue to following reasons e.g.a.b.c.Inspection Committee Member’s Name, Designation & SignatureDateNote : Specific reasons for rejection should be given with all possible details.Merely writing “Not suitable” is not sufficient.HHHHHMANUAL ON PROPERTY37

The New India Assurance Co.Ltd.Annexure VIIComparative Statement of Financial BidsSubsequent to the inspection of the premises on _____ the financial bids of the premises foundsuitable by the committee were opened on ______ & the comparative statement is as under :Tenderer-1 Tenderer-2 Tenderer-3…..1 Name of the Tenderer2 Address of the Tenderer3 Location of the proposedPremises(On Lease)4 Rent quoted per sq. ft. p.m. Rs. Rs Rs5 Maintenance charges quoted Rs. Rs Rs.6 Any other charges per month Rs. Rs. Rs.Total outgo per month (4+5+6) Rs. Rs. Rs.7 Security deposit/Advances Rs. Rs Rs.( On Sale )8 Rate per sq. ft. (Built up /Carpet area) Rs. Rs. Rs.9 Maintenance charges (if any) Rs. Rs. Rs.10 Rent valuation by LIC Rs. Rs Rsempanelled Valuer38 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Therefore, the Tender submitted by Shri ______________________________in respect of property located at ____________________________________ isis the lowest (i.e. L1 ) in respect fo Tender Reference No.Tender Committee Member’s Name, Designation & SignatureDate :HHHHHMANUAL ON PROPERTY39

The New India Assurance Co.Ltd.Annexure VIIIRecommendation Of The Deputy General Manager/Chief Regional Manager1. Name & Code of the Office to be shifted :2. Name of the proposed landlord3. Address of the proposed premises4. Carpet area measured by architect5. Whether the title deed verified(Report of Competent Advocate enclosed)6. Sanctioned plan for commercial use7. Outgo per month : As per financial bid After negotiationRs. Rs.i. Rent :ii. Maintenance :iii. Any other charges :Total outgo per month :8. i. Interest free Security Deposit :ii. Sharing of registration expenses : _________% ________%9. Terms & conditions to be reflected inthe proposed lease deed e.g. :i. Period of lease/ tenancy :ii.Renewal terms withenhancement of rent :40 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.After following the due procedure prescribed for selection of a premise, I / We recommend foracquisition of the above premises on the terms & conditions as specified above.Submitted to Head Office for approval.Place : ______________Date :SignatureName : Dy. Gen. Manager/ Chief Reg. ManagerEnclosures:-1. Copy of the advertisement.2. Copy of the tenders received.3. Copy of the Valuation Report.4. Copy of the title deed clearance of the Competent Advocate.5. Copy of the layout of the premises.6. Copy of the Inspection Report.7. Photgraph of the premises, depicting view of inside as well as outside of thepremises.HHHHHMANUAL ON PROPERTY41

Annexure IXThe New India Assurance Co.Ltd.Format for Proposal for ShiftingTO BE FILLED UP BY REGIONAL OFFICERe : Shifting of________R.O./D.O./B.O. premises(code) under_____RO to a suitable new premise.A. PROPOSAL : To accord approval for the following:B. BACKGROUND:OurR.O./D.O./B.O. is occupying the existing premises sinceon the following terms and conditions:1. Name of the Landlord2. Location of the premises3. Carpet area4. Rent :A Rent paid at the time oftaking the premises inB Increased rent afterRate per Sq.Ft Increase Percentage Total Amount1 st renewal2 nd renewal3 rd renewal4 th renewal5. Security deposit Equivalent to …………. Months rent.6. Advancei) Amount of Advance paidii) Whether the Advance isadjusted OR not ?7. Lease terms42 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.C. SPECIFIC REASONS FOR SHIFTING :1.2.(To be substantiated with the photographs of the existing premises)D. BUSINESS EXPERIENCE FOR THE LAST 5 YEARS & NEXT YEARS TARGET:1. Last 5 years data :Year Premium Incurred claims Management Operating surplus/CostdeficitAmt. Ratio Amt. Ratio Amt. Ratio2. Target for the current year :E. CATEGORYWISE STRENGTH OF THE EMPLOYEES VIS-À-VIS REQUIREMENT OFACTUAL CARPET AREA AS PER NORMS:Category Present Area as per Total area Area of existingStrength norms (sq.ft) sq.ft. premisesDGMChief RegionalManager/R.M.Sr. D.M.ManagerDy. ManagerA.M./A.O.Dev. OfficerClass III & IVTOTAL : ‘A’Add : 25% on A for future expansion, records, salvage,lunch & recreation, toilets & passage ‘B’Add : 150 sq. ft for BO & 200 sq. ft. DO for Agents Training Centre ‘C’TOTAL OF A, B & C____________MANUAL ON PROPERTY43

The New India Assurance Co.Ltd.F. REASONABILITY OF THE PROPOSED RENT :i) The rent being paid by any Public Sector Unit inthe same building where R.O. proposes to shift the Office. :ii)iii)Prevailing market rent of similar premises in thelocality preferred for the new office. :Opinion from a Competent Advocate inrelation to fixation of rent, if the matter goes to court :G. SPECIFIC RECOMMENDATION OF REGIONAL OFFICE :Date :(SIGNATURE OF DGM/ CHIEF REGIONAL MANAGER)HHHHH44 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Annexure XREVISED SPACE NORMSRevised (in sq.ft. carpet area)DGM-In-charge of Regional office 200Chief Regional Manager In-charge of RO / RM 200Sr. Divisional Manager / Manager 160Deputy Manager / Divisional Manager 150Asstt. Manager / Admn. Officer 70Development Officer 60Class III & IV 50Total ‘A’Add 25% on ‘A’ (for future expansion, records, salvage, lunch, recreation, toilets &passage ) ‘B’ & 150 sq. ft. for BO & 200 sq. ft. for DO for Agents Corner ‘C’.Total A, B & C.Note :The above space specified is only indicative in nature and subject to change depending onsituation, available space etc. in an office. In case of installation of modular furniture, thesame shall depend on the layout of the premises.HHHHHMANUAL ON PROPERTY45

CVC GuidelinesThe New India Assurance Co.Ltd.Property Cell/HO/05/SK/165June 3, 2005___________ROKind Attn.: __________________AGM/RMRe : Central Vigilance Commission’s Directives on use of website in Public Tenders.Please find enclosed copies of following circulars by CVC, Govt. of India on above mentionedsubject.Sr.No. Reference No. Date1 98/ORD/1 18.12.032 98/ORD/1 11.2.043 98/ORD/1 2.7.044 005/VGL/7 28.2.055 98/ORD/1/3653 Nil6 6DD-5CTE-6 08.07.99RO is advised to go through the same in detail and ensure strict compliance.Kindly acknowledge the receipt.(R. Ravindrakumar)ManagerSk/smita/ho-33346 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.NO. 98/ORD/1CENTRAL VIGILANCE COMMISSIONSatarkta Bhavan, Block AGPO, Complex, I.N.A.New Delhi -110023Dated the 18 th December 2003Subject : Improving Vigilance Administration: Increasing Transparency inProcedure / Sale etc.The Commission is of the opinion that in order to bring about greater transparency in theprocurement and tendering processes there is need for widest possible publicity. There are manyinstances in which allegations have been made regarding inadequate or no publicity andprocurement officials not making available bid documents, application forms etc in order torestrict competition.Improving vigilance administration is possible only when system improvements are made toprevent the possibilities of corruption. In order to bring about greater transparency and curb themalpractices mentioned above the Central Vigilance Commission in the exercise of the powersconferred on it under section 8(1) (h) issues following instructions for compliance by all govt.departments, PSUs, Banks and other agencies over which the Commission has jurisdiction.These instructions are with regard to all cases where open tender system is resorted to forprocurement of goods and services or for auction /sale etc. of goods and services.i. In addition to the existing rules and practices regarding giving publicity of tenders throughnewspapers, trade journals and providing tender documents manually and through postetc. the complete bid documents along with application form shall be published on thewebsite of the organization. It shall be ensured by the concerned organization that theparties making use of this facility of website are not asked to again obtain some otherrelated documents from the department manually for purpose of participating in the tenderprocess i.e. all documents upto date should remain available and shall be equally legallyvalid for participation in the tender process as manual documents obtained from thedepartment through manual process.ii.The complete application form should be available on the website for purposes ofdownloading and application made on such a form shall be considered valid forparticipating in the tender process.MANUAL ON PROPERTY47

The New India Assurance Co.Ltd.iii.iv.The concerned organization must give its website address in the advertisement / NITpublished in the newspapers.If the concerned organization wishes to charge for the application form downloaded fromthe computer then they may ask the bidding party to pay the amount by draft/chequesetc. at the time of submission of the application form and bid documents.While the above directions must be fully complied with, efforts should be made by the organizationsto eventually switch over to the process of e-procurement/ e-sale wherever it is found to be feasibleand practical.The above directions are issued in supersession of all previous instructions issued by the CVCon the subject of use of website for tendering purposes. These instructions shall take effect from1 st January 2004 for all such organizations whose websites are already functional. All otherorganizations must ensure that this facility is provided before 1 st April 2004.(P. Shankar)Central Vigilance CommissionerTo1. The Secretaries of All Ministries/ Departments of Government of India2. The Chief Secretaries to all Union Territories3. The Comptroller & Auditor General of India4. The Chairman, Union Public Services Commission5. The Chief Executives of all PSEs/Public Sector banks/ Insurance Companies/ AutonomousOrganizations/ Societies.6. The Chief Vigilance Officers in the Ministries/ Departments/ PSEs/ Public Sector Banks/Insurance Companies/ Autonomous Organizations/ Societies7. President’s Secretariat/ Vice-President’s Secretariat/ Lok Sbha Secretariat / Rajya SabhaSecretariat/ PMO48 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.NO. 98/ORD/1GOVERNMENT OF INDIACENTRAL VIGILANCE COMMISSIONSatarkta Bhavan, Block AGPO, Complex, I.N.A.New Delhi -110023Dated the 11 th February 2004OFFICE ORDER NO. 10/2/04ToAll Chief Vigilance OfficersSubject : Improving Vigilance Administration – Increasing transparency inprocess – use of website – regarding.procurement/ tenderIn CPWD, MCD, Civil Construction Division of Post & Telecom departments and in many otherdepartments/ organizations, there is system of short term tenders ( by whatever name it is calledin different organizations), wherein works below a particular value are undertaken withoutresorting to publicity as is required in the open tenders. This practice is understandable becauseof cost and time involved in organizing publicity through newspapers. In all such cases, noticecan be put on the website of the department as it does not take any time compared to givingadvertisements in the newspapers and it practically does not cost anything. This will benefit thedepartment by bringing in transparency and reducing opportunities for abuse of power. This willalso help the organizations by bringing in more competition.In view of the reasons given above, the Commission has decided that instructions given in theCommission’s circular (No.98/ORD/1 dated 18.12.2003) for the use of website will also apply toall such works awarded by the department/ PSEs/ other organizations over which the Commissionhas jurisdiction.( Balwinder Singh)Additional SecretaryMANUAL ON PROPERTY49

NO. 98/ORD/1CENTRAL VIGILANCE COMMISSIONThe New India Assurance Co.Ltd.Satarkta Bhavan, Block AGPO, Complex, I.N.A.New Delhi -110023Dated the 2 nd July 2004OFFICE ORDER NO. 43/7/04Subject : Improving Vigilance Administration – Increasing transparency in procurement/sale etc. – use of website – regarding.The Central Vigilance Commission has issued a directive on the above subject vide its OrderNo.98/ORD/1 dated 18 th December 2003 making it mandatory to use website in all cases whereopen tender system is resorted to. These instructions have been further extended vide OfficeOrder No.10/2/04 dated 11.2.2004 to tenders of short-term nature (by whatever name it is calledin different organizations). Various organizations have been corresponding with the Commissionseeking certain clarifications with regard to the above directives. The main issues pointed out byorganizations are as follows:Size of tender documentsIssue 1In cases of works/procurement of highly technical nature, tender documents run into severalvolumes with large number of drawings and specifications sheets, etc. it may not be possible toplace these documents on website.Clarification : These issues have been discussed with the technical experts and in their opinion,there is no technical and even practical difficulty in doing the same. These days almost all theorganizations do their typing work on computers and not on manual typewriters. There is nosignificant additional effort involved in uploading the material typed on MS Word or any otherword processing softwares on the website irrespective of the number of pages. The scanning ofdrawings is also a routine activity. Moreover if the volume and size of tender document is so largeas to make it inconvenient for an intending tendering party to download it, they always have theoption of obtaining the tender documents from the organization through traditional channels. TheCommission has asked for putting tender documents on website in addition to whatever methodsare being presently used.50 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Issue : 2Issues connected with Data Security, Legality and Authenticity of Bid documents.Certain organizations have expressed apprehensions regarding security of data, hacking ofwebsites etc. They have also pointed out that certain bidding parties may alter the downloadeddocuments and submit their bids in such altered tender documents which may lead to legalcomplications.Clarification: This issue has been examined both from technical and legal angles.Technically a high level of data security can be provided in the websites. The provisions of digitalsignatures through Certifying Authority can be used to ensure that in case of any forgery oralteration in downloaded documents it is technically feasible to prove what the original documentwas. There was sufficient legal provisions under IT Act to ensure that e-business can be conductedusing the website. A copy of the remarks given by NIC on this issue is enclosed herewith.Issue 3Some organizations have sought clarification whether website is also to be used for proprietaryitems or items which are sourced from OEMs (Original Equipment Manufacturers) and OEMs(Original Equipment Suppliers).Clarification: It is clarified that Commission’s instructions are with regard to goods, servicesand works procured through open tender system, so these instruction do not apply to proprietaryitems and items which necessarily need to be procured through OEMs and OESs.Issue 4Do the instructions regarding short term tenders given in the CVC Order No.98/ORD/1 dated 11 thFebruary 2004 apply to limited tenders also?Clarification : In many organizations goods, services and works which as per laid downnorms are to be procured/ executed through open tender system many times due to urgency aredone through short term tenders without resorting to wide publicity in newspapers because oftime constraint. In all such cases short term tenders (by whatever name it is called) etc. shouldalso be put on the website of the department as it does not involve any additional time or cost.Regarding applicability of these instructions to limited tenders where the number of suppliers/contractors is known to be small and as per the laid down norms limited tender system is to beresorted to through a system of approved/ registered vendors/ contractors, the clarification isgiven below.MANUAL ON PROPERTY51

Issue 5The New India Assurance Co.Ltd.Some organizations have pointed out that they make their procurement or execute their workthrough a system of approved/ registered vendors and contractors and have sought clarificationabout the implications of CVC’s instructions in such procurements/ contracts.Clarification: The Commission desires that in all such cases there should be wide publicitythrough the website as well as through the other traditional channels at regular intervals forregistration of contractors/ suppliers. All the required proforma for registration, the pre-qualificationcriteria etc. should be always available on the web site of the organization and it should bepossible to download the same and apply to the organization. There should not be any entrybarriers or long gaps in the registration of suppliers/ contractors. The intervals on which publicityis to be given through website and traditional means can be decided by each organization basedon their own requirements and developments in the market conditions. It is expected that it shouldbe done at least once in a year for upgrading the list of registered vendors/ contractors.The concerned organization should give web based publicity for limited tenders also except foritems of minor value. If the organization desires to limit the access of the limited tender documentsto only registered contractors/ suppliers they should be ensured that passwords to all registeredcontractors/ suppliers. But it should be ensured that password access is given to all the registeredcontractors/ suppliers and not denied to any of the registered suppliers. Any denial of passwordto a registered supplier/ contractor will lead to presumption of malafide intention on the part ofthe tendering authority.To( Balwinder Singh )Addl. Secretary.1. The Secretaries of All Ministries/ Departments of Government of India2. The Chief Secretaries to all Union Territories3. The Comptroller & Auditor General of India4. The Chairman, Union Public Services Commission5. The Director, Union Public Service Commission6. The Chief Executives of all PSEs/Public Sector banks/ Insurance Companies/Autonomous Organizations/ Societies.7. The Chief Vigilance Officers in the Ministries/ Departments/ PSEs/ Public SectorBanks/ Insurance Companies/ Autonomous Organizations/ Societies8. President’s Secretariat/ Vice-President’s Secretariat/ Lok Sbha Secretariat / RajyaSabha Secretariat/ PMO52 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.No.005/VGL/7Government of IndiaCentral Vigilance CommissionSatarkta Bhawan, Block – ‘A’,G.P.O. Complex, INANew Delhi 110023Dated the 28th February 2005Office Order No. 09/02/05Sub:Improving Vigilance Administration: Increasing transparency in procurement/ sale etc.Use of Web site for tenders containing classified/ secret documentation.The Central Vigilance Commission had issued a directive vide order No. 98/ORD/1 dt. 18.12.03on the use of web site for publicizing open tenders pertaining to the procurement and/ or auction/sale of goods and services. The directions included making the complete bid documents (alongwith drawings etc.) available on the web for the prospective bidders to down load and use fortender participation. Certain apprehensions have been received in the Commission regardingproviding open web publicity to classified/ secret documents. These classified/ secret documentsmay include:(i)(ii)(iii)Overall layouts of strategic installations like nuclear/ atomic energy installations,refineries, power plants, research and defence installations etc.Process schemes or process flow diagrams (e.g. for a refinery) which require priorapproval of the process licensor before they are provided to the individual bidder.Technology/ design details which may be proprietary to a particular firm and requirespecific approval of the technology provider prior to making them available to the bidders.2. The Commission has considered the representations and is of the view that for suchopen tenders which consist of documents of classified/ secret nature, the organizations may goin for pre-qualification of the bidders in the first stage of the tender. Once the bidders are prequalifiedthe complete tenders including the classified/ secret documents which form a part ofthe tender may be made available to them for submitting their techno-commercial and price bids.The process of pre-qualification will involve publicizing the Notice Inviting Tenders, which couldinclude the particulars of the tender along with the complete pre-qualification requirements. ThisNotice Inviting Tender would follow all the procedures of publicity that are normally followed foropen tenders including publicity on the web site. Once the suitability of the bidders has beenassessed through the responses received against the pre-qualification notice, complete tenderswill be issued to the pre-qualified bidders. The Organizations may adopt/ follow their ownprocedures of maintaining secrecy of the classified/ secret documents, which form a part of theseMANUAL ON PROPERTY53

The New India Assurance Co.Ltd.tenders. Thus only the select group of qualified bidders would be in possession of the classified/secret documentation. It may however be ensured that:(i)(ii)(iii)Such procedure is followed only for the tenders, which contain classified/ secretdocumentation, after obtaining the approval of the competent authority for this purpose.The NIT (having pre-qualification conditions) conforms to all extant instructions/ guidelinesfor ensuring a transparent tendering.Adequate opportunity and time is given to the pre-qualified bidders to bid for the work.Once the bidders have been pre-qualified, no further rejection takes place on the groundsof not meeting the pre-qualification criteria, in the later stages of the tender.3. The post pre-qualification process of the tender may involve separate technical andfinancial bids. The pre-qualified bidders may be issued tenders directly or through web. In orderto limit the access to the detailed tender documents on the web site at this stage, a passwordaccess can be resorted to. Organizations who need to put defined tendering procedures in placefor such tenders in consultation with the CVO of the Organization, prior to operating such prequalificationprocedure for tenders containing classified/ secret documents.To,Sd/-(V. Ramachandran)Chief Technical ExaminerAll CVOs of Ministries/ Departments/ PSUs/ Banks/ Insurance Cos./ AutonomousOrganizations/ Societies/ UTs.54 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.D.O. No.98/ORD/1/3653Balwinder SinghAdditional SecretaryTele: 24651017E-mail: as1@cvc.delhi.nic.inGOVERNMENT OF INDIACENTRAL VIGILANCE COMMISSIONSatarkta Bhawan, G.P.O. Complex,Block A, INA, New Delhi 110023Dear Sh. GuptaThis has reference to the earlier notification No98/ORD/1 dtd. 18.12.2004 issued by CVC withregard to publishing all the tenders issued by the Ministries/ Departments/ PSUs on the Web.Although many of the Departments are already posting their tender notifications on their respectivewebsites, it shall be much easier for the vendors/ other interested visitors if they could find all thetenders at common place on the web.National Informatics Centre has developed and launched a comprehensive web based solution(http://govtenders.nic.in) for publishing Government Tenders of Ministries/ departments/organizations of central and state Governments online. We have reviewed the solution developedby NIC and found it quite useful for publishing the tenders on the Web.This solution is highly generic in nature. While on the side it provides single point access to thevendors/ bidders, it also gives the provisions of personalization to each department i.e. whenone accesses the tenders from your respective website, it shall be only show the tendersconcerning your department in the layout you would wish to present.This solution also enables the respective Departments to directly upload their Tenders Notificationonto the Web at any time and does not need any special skill. The salient features of the solutionare enclosed at Annexure.You are advised to make use of the above portal and start publishing your tender notifications onthe same so that vendors/ bidders/ other interested visitors are able to access the sameconveniently at a single point. For obtaining the authorization to publish tenders of your departmentand for any further query, you may contact National Informatics Centre, New Delhi (Mrs NeetaVerma, Senior Technical Director) at wsmad@hub.nic.in or 01124363692.Regards,Sh. V K Gupta, CVO,New India Assurance Co.Ltd.87, Mahatma Gandhi Road,Fort, Mumbai–400001.MANUAL ON PROPERTYYours sincerely,Sd/-(Balwinder Singh)55

The New India Assurance Co.Ltd.AnnexureNational Informatics CentreTenders OnlineA Comprehensive solution for Publishing Tenders on the Web(http://govtenders.nic.in)Salient FeaturesGeneric Solution: Can be used for wide variety of Tender Notices. Implies no restriction ofHardware/ Software at the Department end.Personalization: While on one side it provides single point access to the vendors/ bidders, italso gives the provision of personalization to each department i.e. when one accesses the tendersfrom your respective website, it shall only show the tenders concerning your department in thelayout you would wish to present.Remote Management: The rights to directly publish and manage the Tender Notificationswithout any intermediate interface have been provisioned to the individual GovernmentDepartments. The facility is powered with strong security and authentication features.Multiple work orders can be entered and managed with the single tender notification.Variety of Search options are available based on product category, state, city/ location, sector,date etc.Automatic archival of expired tenders and archive search.Subscription Facility: Provision to register/ subscribe with the Portal to regularly receive thelatest tender notifications and announcements through email from the portal.56 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.PROPERTY CELL: HO: RB: CIR: 03: 156May 29, 2003ALL ROsKind Attn: ASST. GEN. MANAGER/ REGIONAL MANAGERRe: Procedure for acquiring new premises on lease/ rental basisYour reference is drawn to CVC circular no. 15/B dated 8 th September 1999 (copy enclosed)wherein it has been stated that press advertisement is not necessary in case of acquiring officeaccommodation with monthly rent up to Rs. 1 lac in metro town in Delhi, Mumbai, Kolkata andChennai and for other places with rent up to Rs.50,000/-. Based on these guidelines the CompetentAuthority on merits of individual cases have sometimes decided to waive placing pressadvertisement so that expenses on advertising and delay in acquiring new premises is minimized.In such cases, RO’s have been advised to search and select new premises and send theirrecommendations to HO for approval by the Competent Authority. We have been receiving variousqueries from RO on the procedure to be adopted in such cases, which evidently is devoid ofpress advertisement.In order to streamline the process and to ensure uniform practice and compliance of CVCguidelines we suggest the following steps be taken by RO on receipt of such approvals from HO:1. RO to appoint a Committee as stipulated in the Compendium of Property Cell in order toproceed in the matter.2. The Committee would identify areas in which the office is proposed to be shifted/ opened.3. Based on the locality so selected, obtain an area valuation of the locality so that a justifiablecomparison can be made later with the offers in hand.4. After the area valuation is obtained the Committee would then be required to search forpremises and select the most suitable option. While selecting premises due considerationbe given to public accessibility, office requirements like ventilation, adequacy of parking,lifts, toilets, carpet area sanctioned, reasonability of rent quoted etc. The committee to obtaindetailed offer letter from vendors enumerating all the terms and conditions including sharingof lease registration expenses, period of lease along with renewal terms, maintenanceexpenses, if any.5. After selecting the premises a competent Advocate be appointed to obtain title clearance.6. Based on a clear title the committee may then obtain 2 independent valuations specific tothe building so selected.MANUAL ON PROPERTY57

The New India Assurance Co.Ltd.7. Committee to ensure that the rent offered by vendor is reasonable and compatible withvaluation obtained, otherwise it will be difficult for us to convince the Management forapproval.8. The committee can then place it’s detailed report along with it’s recommendations beforethe Regional Incharge.We feel that after the compliance of all the above formalities the RO would be in a position torecommend suitable premises to HO who would then place the same before the CompetentAuthority for necessary approval.It may please be noted that the CVC guidelines referred above cannot be taken as standingguidelines for all cases where the lease rentals are likely to be less than Rs.50,000/- (or Rs. 1Lac as the case may be) and a decision to waive the press advertisement shall be takenindividually on the merits of each and every proposal.Sd/-(A V MURALIDHARAN)ASST.GEN.MANAGERRB/smita/mg/258 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.CIRCULAR NO.15-BNo. 6DD-5-CTE-6Government of IndiaCentral Vigilance Commission(CTE’s Organization)‘SATARKTA BHAVAN’Block-A, GPO Complex,INA, New Delhi-110023Dated the 8 th Sept. 1999OFFICE MEMORANDUMSub: Procedure for acquisition of accommodation on lease/ rental basis etc.In partial modification of this office ‘Office Memo’ of even number, dated 8.7.99, it is clarified thatpress advertisement is not necessary in case of office accommodation with monthly rent up toRs. One lakh in metro towns of Delhi, Mumbai, Calcutta and Chennai. For other placesadvertisement is not necessary for monthly rent up to Rs.50,000/-. It is further clarified that nopublicity is essential for the residential accommodation to be leased. It is also clarified that noadvertisement is necessary in case of transactions between PSU, Govt. to Govt. and Govt. toPSU.Copy to:1. All C.V.Os/ Ministries/ Deptts. / Banks/ U.Ts.2. All Chief Engineer, CPWD/ DDA/ Deptt. Telecom. (Civil Wing), Postal (Civil Wing), NDMC/AIR (Civil Wing)/ MCD /MTNL, Railways.3. The Department of Personnel & Training (Shri B. Thyegrajan, Director), North Block,New Delhi.4. The Central Bureau of Investigation (Shri N Balachandran, Joint Director (P), North Block,New Delhi.INTERNAL DISTRIBUTION5. PS to CVC/ PS to VC/ Secretary/ Addl. Secy. (H.S)/ Addl. Secy (A), Director, Coordinationand All Branch Officers.Sd/-(M K Singal)Chief Technical ExaminerSd/-(M K Singal)Chief Technical ExaminerMANUAL ON PROPERTY59

The New India Assurance Co.Ltd.CIRCULARPROPERTY CELL/HO/RB/02/765March 3, 2003.ALL REGIONAL OFFICESKind Attn. :__________________DGM / RMRe : Renewal of lease agreements of office premises.We are constrained to draw your attention to the repeatedly delayed references to HO of proposalsinvolving renewal of lease agreements in respect of our offices premises.Many times the matters are intimated after the expiry of the lease period leading to accumulationof arrears of rent & also placing us at a disadvantage while enforcing renewal terms of leaseagreement.You would appreciate that being a commercial organization it would be in our interest to bevigilant & prompt on property proposals, as such lapses may have financial & legal implications.In some cases we may have to fix responsibility for such delays.We would therefore advise utmost cautions & vigilance while dealing with renewal of leaseagreements by ensuring timely action with proper follow up with property owners.Please confirm having circulated the above to all offices under your control & ensure expeditioushandling of aforesaid matters by the concerned officials.( A. V. MURLIDHARAN )ASST. GEN. MAMAGER60 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.CIRCULARESTATE/603/9124 TH December 1991.ALL REGIONAL OFFICESKind Attn. :__________________DGM / RMRe : Outright purchase of the property for office / residence & theirRegistration.RO’s have been purchasing properties both for office & residential purpose from time to timewith the approval of HO.It has been our experience that RO do not keep us posted with development once they receiveapproval from HO. In many cases, even after obtaining physical possession of the premisesaction is not taken to get the properties transferred in Company’s name & to complete registrationformalities, mutation of the properties in records of local authorities etc. Our statutory auditorshave made a remark in our accounts in this regard.We now propose to have up to date record of all the properties purchased by the Company. Wetherefore request you to take immediate action & advise us as under :Full details of the property :(1) Address(2) Owner(3) AreaTotal cost of property :a) Purchase priceb) Registration feec) Stamp charges etc.Purpose (office / residential )Date of approval by HOMANUAL ON PROPERTY61

The New India Assurance Co.Ltd.Date of possessionDate of registrationIn case any of the properties is not registered / transferred in the name of the Company, pleaseadvise us the reason for the delay & action proposed to be taken to complete the formalities &the time by the properties transferred / registered in our name.Please also note to send quarterly report in future showing the progress in respect of compliancewith the properties already approved for purchase & which will be approved in future.You are requested to treat this matter as most urgent & important.We are also enclosing herewith the following :(1) The proforma for the premises to be purchased for office / residential / training etc.(2) Instructions for purchase of premises for staff quarters.(3) Appointment of Architect / Solicitors supervising execution of work.(4) Important details to be received from the RO’s regarding purchase of premises onownership basis.(5) Guidelines for scrutiny of various proposals received from RO’s for different types ofsanctions e.g. AC units.(6) Guidelines for proposals pertaining renovation where any outsider Architect is not involved.(7) Additional information as approved by CMD to be submitted along with the submission ofproposals to HO for purchase of Office / Residential / Training premises.(M. L. BAKSHI )MANAGER62 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.CIRCULARPROPERTY CELL-7/HO/94/COMMN/2157th July 1994.ALL REGIONAL OFFICESKind Attn. :__________________DGM / RMRe : Area norms for purchase of residential premises.It has been observed that Building & Property Cell, HO receives the proposals for purchase ofCompany owned residential premises where the area of the proposed flats is not in accordancewith the prescribed area norms.We therefore give below the present area norms in respect of Company owned premises forofficers & employees :Designation Carpet area (sq. ft. )AGM & above1500 & aboveManager 1000 – 1200Sr. Divl. Mgr./ Divl. Mgr. 750 – 900Dy. Mgr / Asst. Mgr 750 – 900AO / AAO 650 – 750CL. II & CL. III 450 – 600CL. IV 400 – 450You are requested to take note the above norms.( B. G. VAZIRANI )ASST. GEN. MAMAGERMANUAL ON PROPERTY63

The New India Assurance Co.Ltd.CIRCULARPROPERTY CELL/HO/2006/RR/HO/43710 th November 2006.ALL REGIONAL OFFICESKind Attn. :__________________DGM / CRMRe : Conformation regarding our operating offices being located in Authorized areas,conforming to local guidelines.In the wake of sealing / demolition drive in certain parts of the country undertaken by thelocal municipal bodies / under directive of the Hon’ble Supreme Court & the High Courts, ithas come to light that a few of our operating offices in these areas fall within the ambit ofsuch action by the Statutory Authorities, thereby requiring shifting permission from us on anurgent basis.In view of this you are requested to verify the status of all our operating offices under yourjurisdiction & confirm that the same are located in commercial areas, free from danger of anyaction being taken by the local authorities & as per their guidelines.Wherever it is found that there is a breach of norms as per the local guidelines it would benecessary for you to initiate action to ensure that any shift etc. of the office is taken up withHO immediately.It would not be out of place to add that Regional In Charges are required to alsosimultaneously explore the possibility of merging / closing offices wherever it is foundnecessary so as to bring down the operating cost.While taking new premises please ensure that the building identified is constructed as perthe plan approved by the Local Authority & the necessary sanctions including occupationcertificate & other relevant documents are in order, to avoid complication in future.Kindly ensure that you bestow your personal attention & revert to us immediately for oursuitable action.( S. K. MUTNEJA )GENERAL MANAGER64 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.CIRCULARPROPERT CELL/HO/SKA/05/19 th January 2006.ALL REGIONAL OFFICESKind Attn. :__________________DGM / CRMRe : Office orders Nos. 68/10/05 & 71/12/05 issued by CVC onTender Process.Please find enclosed herewith two office orders no. 68/10/05 & 71/12/05 issued by Chief VigilanceCommission (copies enclosed).RO is advised to follow the procedure contained in such orders & to take proper care whileprocessing tenders floated by our Company.( R. RAVINDRAKUMAR )CHIEF MANAGERMANUAL ON PROPERTY65

The New India Assurance Co.Ltd.005/VGL/66Government of IndiaCentral Vigilance CommissionSatarkta Bhawan, Block ‘A’,GPO Complex, INA,New Delhi – 110 023,Date : 9-12-2005Office Order No. 71/12/05Subject : Undertaking by the Members of Tender Committee / Agency.In continuation of the Commission’s directions vide order 005/VGL/4 dated 16.3.2005regarding transparency in the tender process, the Commission would advise that the memberof the Tender Committee should give an undertaking at the appropriate time, that none of themhas any personal interest in the Companies / Agencies participating in the Tender process.Any member having interest in any Company should refrain from participating in the TenderCommittee.2. CVOs should bring this to the notice of all concerned.( ANJANA DUBE )DEPURTY SECRETARYAll Chief Vigilance Officers66 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Satarkta Bhawan, Block ‘A’,GPO Complex, INA,New Delhi – 110 023,Date : 25-10-2005005/CRD/12Government of IndiaCentral Vigilance CommissionOffice Order No. 68/10/05Subject : Tendering Process – Negotiation with L-1.A workshop was organized on 27.7.2005 at Scope New Delhi, by the Central Vigilancecommission, to discuss issue relating to tendering process including negotiation with L-1. Following the deliberation in the above mentioned work shop, the following issuesare clarified with reference to para 2.4 of Circular No. 8(1) (h)/98(1) dated 18.11.98 onnegotiation with L-1, which reflect the broad consensus arrived at in the workshop.I. There should not be any negotiations. Negotiations if at all shall be an exception &only in case of proprietary items or in the case of items with limited source ofsupply. Negotiations shall be held with L-1 only. Counter offers tantamount tonegotiation & should be treated at par with negotiation.II.Negotiations can be recommended in exceptional circumstances only after dueapplication of mind & recoding valid, logical reasons justifying negotiations. Incase of inability to obtain the desired results by way of reduction in rates &negotiations prove anfractuous, satisfactory explanation are required to be recordedby the committee who recommended the negotiations. The committee shall beresponsible for lack of application of mind in case its negotiations have onlyunnecessarily delayed the award of work / contract.2) Further, it has been observed by the Commission that at times the Competent Authoritytakes unduly long time to exercise the power of accepting the tender or negotiate or retender.Accordingly, the model time frame for accruing such approval to completion ofthe entire process of Award of tenders should not exceed one month from the date ofsubmission of recommendations. In case the file has to be approved at the next higherlevel a maximum of 15 days may be added for clearance at each level. The overall timeframe should be within the validity period of the tender / contract.3) In case of L-1 backing out there should be re-tendering as per extant instructions.4) The above instruction may be circulated to all concerned for compliance.( ANJANA DUBE )DEPURTY SECRETARYAll Chief Vigilance OfficersMANUAL ON PROPERTY67

The New India Assurance Co.Ltd.PROPERTY CELL/HO/2006/NKS/HO-2/2578 th August 2006.ALL RO’SKind Attn.: Deputy Gen. Mgr./ Chief Regional managerRe : Leasing of premises for our offices.After carefully reviewing the recent trend as regards payments being made by us under the headof rent advance / security deposit, for leasing of premises for our use as offices all over, theManagement has decided that in future no payment of rent advance / security deposit will bemade as has been the prevalent practice upto now. However where such advances have alreadybeen paid the existing arrangements may continue till the time of vacation.Please also note that in future this condition is to be incorporated in the advertisement itself, orwhere the exercise is on a “search & select basis”, it is to be made aware to the prospectivetenderers to ensure that all bidders / tenderers are aware of this clause while making their offer inwriting as part of the terms offered for their premises. In case any landlord wants any rent advancethat should be at the prevailing bank rate of interest.If however, due to certain specific circumstances / reasons the tenderer insist on rent advancewithout interest to be paid then the reason for such a deviation are to be recorded with therecommendations of the Regional In-charge for consideration of the Competent Authority at HeadOffice.Please note that the above guidelines come into force with immediate effect.Kindly ensure strict compliance.GENERAL MANAGER68 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.No.05-04-1-CTE-8Government of IndiaCentral Vigilance Commission(CTE’s Organization)Satarkta BhavanINA Colony,New Delhi – 110023Dated : 8.6.2004Sub : Receipt & Opening of Tender.OFF.ORD.NO.41/6/04OFFICE MEMORANDUMIn the various booklets issued by the CTE Organization of Commission, the need to maintaintransparency in receipt & opening of tenders has been emphasized & it has been suggestedtherein that suitable arrangements for receipt of sealed tenders at the scheduled date & timethrough conspicuously located tender boxes need to be ensured.A case has come to the notice of the Commission, here due to the bulky size of documents thebid conditions envisaged submission of tenders by hand to a designated officer. However, itseems that one of the bidders while trying to locate the exact place of submission of tenders, gotdelayed by few minutes & the tender was not accepted leading to a complaint.In general, the receipt of tenders should be through tender boxes as suggested in our booklets.However, in cases where the tenders are required to be submitted by hand, it may be ensuredthat the name & designation of atleast two officers are mentioned in the bid documents. Theinformation about these officers should also be displayed at the entrance / reception of thepremises where tenders are to be deposited so as to ensure convenient approach for the bidders.The tenders after receipt should be opened on the stipulated date & time in presence of theintending bidders.( Gyneshwar Tyagi )Technical ExaminerCopy to :-All CVO’s : Ministers/Departments/PSU/Banks/UTs( Gyneshwar Tyagi )Technical ExaminerMANUAL ON PROPERTY69

The New India Assurance Co.Ltd.No.05-04-1-CTE-8Government of IndiaCentral Vigilance Commission(CTE’s Organization)Satarkta BhavanINA Colony,New Delhi – 110023Dated : 8.6.2004OFF.ORD.NO.40/06/04OFFICE MEMORANDUMSub : Mobilization Advance.In order to address the problem of misuse of mobilization advance provision in the civil & otherworks, the Commission had issued an O. M. dated 8.12.97 for grant of interest bearing ‘MobilizationAdvance’ in selected works. In view of references from certain organizations on this issue, theCommission has reviewed the issue & it has been decided to modify & add the following provisionsin the existing O. M. This may be read as addendum to the Commission’s O. M. dated 8.12.97.· If the advance is to be given, it should be expressly stated in the NIT / Bid Documents,indicating the amount, rate of interest & submission of BG of equivalent amount.· The advance payment may be released in stages depending upon the progress of thework & mobilization of required equipments etc.· There should be a provision in the contract for adjustment of advance progressively evenas the bills are cleared for payment.Copy to :-All CVO’s : Ministers/Departments/PSU/Banks/UTs( Gyneshwar Tyagi )Technical Examiner( Gyneshwar Tyagi )Technical Examiner70 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.PROPERTY CELL/HO/RB/03/CIR/57320 th October 2003.ALL RO’SKind Attn.: Asst. Gen. Mgr./ Regional managerRe : Accounting Standards (AS)-5Implication on delayed renewal of lease agreements.Your urgent & serious attention is invited to the (AS) 5 provisions (copy enclosed) under AccountingStandard as prescribed by the council of the Institute of Chartered Accountants of India. We wishto particularly refer to the ‘Prior Period items’ Clause when due provisions are to be made by theCompany for expenses which arise in the current period as a result of errors or omission in thepreparation of the financial statements of one or more prior periods.We have been time & again reminding RO’s (please refer our recent circulars dtd. 03.03.03 &29.05.03) to pay proper attention to renewal of lease agreements of our office premises but regretto find that the RO’s are still not complying with our advices & we continue to receive proposalsfor renewal of lease involving arrears of rent in respect of periods which have lapsed after expiryof lease. Some of these cases involved renewal terms already agreed which can simply beenforced without even obtaining HO approval provided the notice conveying our intention torenew the lease has been served well in time & proper follow-up is done by the Company. Evenwhere the lease terms are on ‘mutually agreed terms’ a Negotiation Committee can be constitutedafter serving notice & the outcome be sent along with prescribed format to HO for approval.Please note that our Company has already invited serious flak from the Statutory Auditors onthis issue & the Management has asked the Department to not to recommend any proposalwhich invites (AS)-5 provisions. Further in view of the repeated lapses they have advised to fixresponsibility for the delay.The Regional In charge is therefore advised to please immediately convene a meeting withRegional Accountant & Property & estate Dept. officials to ensure that adequate provisions areworked out where the Company is expected to incur arrears of increased lease rents which mayrelate to prior periods. Such figures should be shown as ‘contingent prior-period liability’ to bereflected in notes forming part of the accounts without actual provision. This practice is to beimplemented immediately so that the prospective accounts for 2003-2004 are adequatelyprotected from adverse comments under ‘AS-5’ provisions.MANUAL ON PROPERTY71

The New India Assurance Co.Ltd.This meeting should be followed up by regular co-ordination between Estate & AccountsDepartment through a system of regular reporting formats which should be sent by EstateDepartment to Accounts Department for consolidation at year end.Please also ensure that proper follow up is done by our Property & Estate Officials with DO’s/BO’s for referring renewal of lease proposals to HO within the same reference year. To keep atrack we advise the RO, Estate Department to send us without fail copies of the notice being sentto landlords conveying our intention to renew the lease. This notice is to be sent as per leaseterms before expiry of lease deed.The aforesaid would obviously not apply to properties where the rents are litigated in the Courtsfor which due care will have to be taken By the Regional Accountant in consultation with Property& Estate Department for providing ‘contingent liability’.We hope the aforesaid is understood properly & implemented by the RO’s immediately. We havealready advised RO’s on the steps to be taken by their Property & Estate Department, vide ourcircular dated 25.4.03 & the Regional In charge is advised confirm whether the needful has beendone. We would also appreciate receiving your confirmation on having convened a meeting onthe aforesaid subject & the outcome thereof.In case of any ambiguity on this issue please fell free to approach Property Cell or CentralAccounts, HO for guidance.A. V. MURLIDHARANASST. GEN. MANAGER72 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.Accounting Standard (AS) 5Net Profit or Loss for the period, Prior Period Items andChanges in Accounting PoliciesThe following is the text of the revised Accounting Standard (AS) 5, ‘Net Profit or Loss for thePeriod, Prior Period Items and Changes in Accounting Policies’, issued by the Council of theInstitute of Chartered Accountants of India.This revised standard comes into effect in respect of accounting periods commencing on or after1.4.1996 and is mandatory in nature. It is clarified that in respect of accounting periodscommencing on a date prior to 1.4. 1996, Accounting Standard 5 as originally issued in November1982 (and subsequently made mandatory) will apply.OBJECTIVEThe objective of this Statement is to prescribe the classification and disclosure of certain itemsin the statement of profit and loss so that all enterprises prepare and present such a statementon a uniform basis. This enhances the comparability of the financial statements of an enterpriseover time and with the financial statements of other enterprises. Accordingly, this Statementrequires the classification and disclosure of extraordinary and prior period items, and thedisclosure of certain items within profit or loss from ordinary activities. It also specifies theaccounting treatment for changes in accounting estimates and the disclosures to be made in thefinancial statements regarding changes in accounting policies.SCOPE1. This Statement should be applied by an enterprise in presenting profit or loss from ordinaryactivities, extraordinary items and prior period items in the statement of profit and loss, inaccounting for changes in accounting estimates, and in disclosure of changes in accountingpolicies.2. This Statement deals with, among other matters, the disclosure of certain items of net profitor loss for the period. These disclosures are made in addition to any other disclosuresrequired by other Accounting Standards.3. This Statement does not deal with the tax implications of extraordinary items, prior perioditems, changes in accounting estimates, and changes in accounting policies for whichappropriate adjustments will have to be made depending on the circumstances.DEFINITIONS4. The following terms are used in this Statement with the meanings specified:Ordinary activities are any activities which are undertaken by an enterprise as part of its businessMANUAL ON PROPERTY73

The New India Assurance Co.Ltd.and such related activities in which the enterprise engages in furtherance of, incidental to,or arising from, these activities.Extraordinary items are income or expenses that arise from events or transactions that areclearly distinct from the ordinary activities of the enterprise and, therefore, are not expectedto recur frequently or regularly.Prior Period Items are income or expenses which arise in the current period as a result of errorsor omissions in the preparation of the financial statements of one or more prior periods.Accounting Policies are the specific accounting principles and the methods of applying thoseprinciples adopted by an enterprise in the preparation and presentation of financialstatements.NET PROFIT OR LOSS FOR THE PERIOD5. All items of income and expense which are recognized in a period should be included inthe determination of net profit or loss for the period unless an Accounting Standard requiresor permits otherwise.6. Normally, all items of income and expense which are recognized in a period are includedin the determination of the net profit or loss for the period. This includes extraordinary itemsand the effects of changes in accounting estimates.7. The net profit or loss for the period comprises the following components, each of whichshould be disclosed on the fact of the statement of profit and loss:(a)(b)profit or loss from ordinary activities; andExtraordinary items.EXTRAORDINARY ITEMS8. Extraordinary items should be disclosed in the statement of profit and loss as a part of netprofit or loss for the period. The nature and the amount of each extraordinary item should beseparately disclosed in the statement of profit and loss in a manner that its impact on currentprofit or loss can be perceived.9. Virtually all items of income and expense included in the determination of net profit or lossfor the period arise in the course of the ordinary activities of the enterprise. Therefore, onlyon rare occasions does an event or transaction give rise to an extraordinary item.10. Whether an event or transaction is clearly distinct from the ordinary activities of the enterpriseis determined by the nature of the event or transaction in relation to the business ordinarilycarried on by the enterprise rather than by the frequency with which such events are expectedto occur. Therefore, an event or transaction may be extraordinary for one enterprise but not74 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.so for another enterprise because of the differences between their respective ordinaryactivities. For example, losses sustained as a result of an earthquake may qualify as anextraordinary item for many enterprises. However, claims from policyholders arising froman earthquake do not qualify as an extraordinary item for an insurance enterprise that insuresagainst such risks.11. Examples of events or transactions that generally give rise to extraordinary items for mostenterprises are:- attachment of property of the enterprise; or- an earthquake.PROFIT OR LOSS FROM ORDINARY ACTIVITIES12. When items of income and expenses within profit or loss ordinary activities are of suchsize, nature or incidence that their disclosure is relevant to explain the performance of theenterprise for the period, the nature and amount of such items should be disclosed separately.13. Although the items of income and expenses described in paragraph 12 are not extraordinaryitems, the nature and amount of such items may be relevant to users of financial statementsin understanding the financial position and performance of an enterprise and in makingprojections about financial position and performance. Disclosure of such information issometimes made in the notes to the financial statements.14. Circumstances which may give rise to the separate disclosure of items of income and expensein accordance with paragraph 12 include:(a)(b)(c)(d)(e)(f)(g)the write-down of inventories to net realizable value as well as the reversal of such writedowns;A restructuring of the activities of an enterprise and the reversal of any provisions for thecosts of restructuring;Disposal of items of fixed assets;Disposal of long-term investments;Legislative changes having retrospective application;Litigation settlements; andOther reversals of provisions.PRIOR PERIOD ITEMS15. The nature and amount of prior period items should be separately disclosed in the statementof profit and loss in a manner that their impact on the current profit or loss can be perceived.MANUAL ON PROPERTY75

The New India Assurance Co.Ltd.16. The term ‘prior period items’ as defined in this Statement, refers only to income or expenseswhich arise in the current period as a result of errors and omissions in the preparation of thefinancial statements of one or more prior periods. The term does not include other adjustmentsnecessitated by circumstances, which though related to prior periods, are determined inthe current period, e.g., arrears payable to workers as a result of revision of wages withretrospective effect during the current period.17. Errors in the preparation of the financial statements of one or more prior periods may bediscovered in the current period. Errors may occur as a result of mathematical mistakes,mistakes in applying accounting policies, misinterpretation of facts, or oversight.18. Prior period items are generally infrequent in nature and can be distinguished from changesin accounting estimates. Accounting estimates by their nature are approximations that mayneed revision as additional information becomes known. For example, income or expenserecognized on the outcome of a contingency which previously could not be estimated reliablydoes not constitute a prior period item.19. Prior period items are normally included in the determination of net profit or loss for thecurrent period. An alternative approach is to show such items in the statement of profit andloss after determination of current net profit or loss. In either case, the objective is to indicatethe effect of such items on the current profit or loss.CHANGES IN ACCOUNTING ESTIMATES20. As a result of the uncertainties inherent in business activities, many financial statementitems can not be measured with precision but can only be estimated. The estimation processinvolves judgments based on the latest information available. Estimates may be required,for example, of bad debts, inventory obsolescence or the useful lives of depreciable assets.The use of reasonable estimates is an essential part of the preparation of financialstatements and does not undermine their reliability.21. An estimate may have to be revised if changes occur regarding the circumstances on whichthe estimate was based, or as a result of new information, more experience or subsequentdevelopments. The revision of the estimate, by its nature, does not bring the adjustmentwithin the definitions of an extraordinary item or a prior period item.22. Sometimes, it is difficult to distinguish between a change in an accounting policy and achange in an accounting estimate. In such cases, the change is treated as a change in anaccounting estimate, with appropriate disclosure.23. The effect of a change in an accounting estimate should be included in the determination ofnet profit or loss in:(a)(b)the period of the change, if the change affects the period only; orthe period of the change and future periods, if the change affects both.76 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.24. A change in an accounting estimate may affect the current period only or both the currentperiod and future periods. For example, a change in the estimate of the amount of baddebts is recognized immediately and therefore affects only the current period. However, achange in the estimated useful life of a depreciable asset affects the depreciation in thecurrent period and in each period during the remaining useful life of the asset. In both cases,the effect of the change relating to the current period is recognized as income or expense inthe current period. The effect, if any, on future periods, is recognized in future periods.25. The effect of a change in an accounting estimate should be classified using the sameclassification in the statement of profit and loss as was used previously for the estimate.26. To ensure the comparability of financial statements of different periods, the effect of a changein an accounting estimate which was previously included in the profit or loss from ordinaryactivities is included in that component of net profit or loss. The effect of a change in anaccounting estimate that was previously included as an extraordinary item is reported asan extraordinary item.27. The nature and amount of a change in an accounting estimate which has a material effectin the current period, or which is expected to have a material effect in subsequent periods,should be disclosed. If it is impracticable to quantify the amount, this fact should be disclosed.CHANGES IN ACCOUNTING POLICIES28. Users need to be able to compare the financial statements of an enterprise over a period oftime in order to identify trends in its financial position, performance and cash flows. Therefore,the same accounting policies are normally adopted for similar events or transactions ineach period.29. A change in an accounting policy should be made only if the adoption of a differentaccounting policy is required by statute or for compliance with an accounting standard or ifit is considered that the change would result in a more appropriate presentation of thefinancial statements of the enterprise.30. A more appropriate presentation of events or transactions in the financial statements occurswhen the new accounting policy results in more relevant or reliable information about thefinancial position, performance or cash flows of the enterprise.31. The following are not changes in accounting policies:(a)the adoption of an accounting policy for events or transactions that differ in substancefrom previously occurring events or transactions, e.g., introduction of a formalretirement gratuity scheme by an employer in place of ad hoc ex-gratia paymentsto employees on retirement; andMANUAL ON PROPERTY77

The New India Assurance Co.Ltd.(b)the adoption of a new accounting policy for events or transactions which did notoccur previously or that were immaterial.32. Any change in an accounting policy which has a material effect should be disclosed. Theimpact of, and the adjustments resulting from, such change, if material, should be shown inthe financial statements of the period in which such change is made, to reflect the effect ofsuch change. Where the effect of such change is not ascertainable, wholly or in part, thefact should be indicated. If a change is made in the accounting policies which has no materialeffect on the financial statements for the current period but which is reasonably expected tohave a material effect in later periods, the fact of such change should be appropriatelydisclosed in the period in which the change is adopted.33. A change in accounting policy consequent upon the adoption of an Accounting Standardshould be accounted for in accordance with the specific transitional provisions, if any,contained in that Accounting Standard. However, disclosures required by paragraph 32 ofthis Statement should be made unless the transitional provisions of any other AccountingStandard require alternative disclosures in this regard.HHHHH78 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.DRAFT OF STANDARD LEASE AGREEMENTTHIS INDENTURE MADE THIS .......... day of ..................Two thousand and .............. BETWEENShri/Smt. ....................... son/wife/widow/daughter of .......... residing at Premises No................ inthe town/city of .......... in the State of ................ hereinafter for brevity called “THE LESSOR” whichterm or expression unless excluded by or repugnant to the subject, contest or meaning thereofshall be deemed to mean and include his/her heirs, executors, administrators and legalrepresentatives and assign or assigns of the ONE PART.OR...................... Company Limited an existing Company within the meaning of Companies act, 1956having its registered office at ............................. in the town/city of ............... hereinafter for brevitycalled “THE LESSOR” (which term or expression unless excluded by or repugnant to the subjectcontext or meaning thereof shall be deemed to mean and include its successor or successorsand assignor or assignors of the ONE PART.ANDThe New India Assurance Company Limited, a company incorporated under the IndianCompanies Act, 1956 having its Registered and Head Office at 87, M. G. Road, Fort, in the townof Mumbai – 400 001, and carrying on business inter-alia in the town/city of .............. in the Stateof ............... hereinafter called “THE LESSEE” (which term or expression unless excluded by orrepugnant to the subject context or meaning thereof shall be deemed to mean and include itssuccessor or successors) of the OTHER PART.WHEREAS the Lessee advertised in the News papers inviting offers for letting out office spacenot less than ............. sq./ ft. in Office area, in the city/town of ............. in the State of ...........AND WHEREAS in response to such advertisement the Lessor offered to let out office space of............... sq. ft. (approx.) of carpet area on the ...... floor of the building known as ................. in thecity/town ............... in the State of .............. (more fully described in the schedule hereunder written).AND WHEREAS the Lessor is seized and possessed of and is otherwise well and sufficientlyentitled to the said office space in the said building at the said premises No............................... inthe town/city of ..................... (please set out here short description of the space to be let out).AND WHEREAS the Lessor has agreed to grant and the Lessee has agreed to take the saidoffice space (hereinafter for brevity referred to as the “demised premises”) for a period of six/MANUAL ON PROPERTY79

The New India Assurance Co.Ltd.nine/ ten/ fifteen/ twenty/ twenty five years commencing from the ..... day of.......... 20..... and endingon ......... day of ...... 20..... at the rent of Rs. ........ per month for the first three/five years and at therent of Rs. ........... per month for first ........ (three/five/ ) years, that is to say, for the period ........ dayof ........ 20...... and at the rent increased by ........ per cent of the said rent per month for the second..... (three/ five) years that is to say for the period ...... day of ......... 20..... and at the rent increasedby ........ per cent of the said increased rent per month for the third ...... (three/five ) years, that is tosay, for the period ....... day of ........ 20..... to ..... day of ..... 20..... . (Rate of rent is expressed in persq.ft. of carpet area).NOW THIS INDENTURE WITNESSETH that in consideration of the said rent hereby reservedand of the covenants, terms and conditions herein contained and on the part of the LESSEE tobe paid observed and performed the Lessor both hereby demise unto the Lessee firstly ALLTHAT the office space containing a carpet area of ....... sq. ft. on the ...... floor of the building knownas ........... in the town/city ........... in the State of .............. being premises No. ..................................together with all rights/easements and appurtenances whatsoever belonging to or pertaining tothe demised premises and TO HOLD THE demised premises for the term of (nine/ ten/ fifteen)........years commencing from ..... day of ...... 20..... and ending on the ...... day of ..... 20..... with option forrenewal on the part of the Lessee, to be reduced to writing stamped & registered under the forcefor the being. YIELDING AND PAYING THEREFOR UNTO THE LESSOR during the said term aconsolidated rent of Rs. ..... per month for the first (three/ five) ......... years that is to say, for theperiod of ....... day of ........ 20..... and at the rent of Rs. ........ per month for the second (three/five)........ years that is to say, for the period ....... day of ..... 20..... (inclusive of all Municipal rates andtaxes and all other outgoings whatsoever in respect of the demised premises payable on orbefore the 10 th day of each and every month according to English calendar for the monthimmediately preceding.) or excluding any taxes and outgoings which shall be paid on actualswithin 7 days of receipt of intimation of the same by the Lessee from the Lessor.AND THE LESSEE DO HEREBY CONVENANT WITH THE LESSOR as follows:-· To pay the rent payable as hereby reserved in the manner herein provided.· To use the said demised premises for any of its business purposes to locate any of itsOffices, Store Room, Training Centre and such other Centre as may be deemed fit includingstaff canteen & Security Guard’s quarter, if required. The lessee shall have free right foringress & egress of its employees, customers, agents & persons interested in inter-actingwith the Lessee. The Lessee shall have the right & liberty to sub-let the whole or any partof the demised premises after giving due intimation to the Lessor but without any consentor approval from the Lessor in writing or otherwise.80 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.· The Lessee its Officers, servants, agents, visitors and customers shall be entitled tounfettered right to use in common with the Lesser and or/other tenants & occupiers of thebuilding the main entrance, staircase, common lifts, landings & other common passages& areas for the purpose of ingress to and egress form the demised premises and all otheramenities & conveniences appertaining to the demised premises & that the Lessor shallsupply filtered water at the demised premises throughout day & night & shall keep &maintain the appurtenances & appliances of & supply connection in good order foradequate supply of water for drinking, flushing, bathing & other purpose by installation ofoverhead tanks.· The Lessee shall be entitled during the continuance of the Lease to use & occupyexclusively & free of any extra or additional rent or charges sufficient space oraccommodation for ........ No. parking cars & ...... No. two wheelers within the compound orarea of the buildings in the said premises No. ............................................· The Lessee its Officers, servants, agents, visitors & customers shall be entitled to free useof lift or lifts at the said building in common with the other tenants or occupiers of thebuilding free of any charge whatsoever.· The Lessee shall comply with any carry out all requisitions of the Municipal Authorities,the Government and/or any other statutory or authorized body in respect of its business tobe carried on at the demised premises. The Lessee shall not cause to be done, permit orsuffer upon the demised premises or any portion thereof any thing which may be nuisanceor cause damage to the Lessor or the occupiers of the building or neighboring houses.· The Lessee shall not cause or allow or permit to be caused any injury or damage to thedemised premises or any part or portion thereof. If however, any damage or injury is causedto the demised premises by or through any willful act or negligence of the Lessee or itsservants or agents, the Lessee shall forthwith make good the same at its own costs &expenses. The Lessee shall not be liable for any damage or injury which may be causedto the demised premises by civil commotion , enemy actions, earth-quake, violence ofarmy or mob, fire (not caused through the negligence of the Lessee, its servants or agents)or any act of god of which is beyond the control of the Lessee.· The Lessee will deposit with the Lessor an interest free advance for a Rs. .......simultaneously with the execution of these presents. This amount would be adjustedagainst rent payable in twelve/twenty four installments, respectively, w.e.f. the rent of the1 st month.MANUAL ON PROPERTY81

The New India Assurance Co.Ltd.· To permit the Lessor, its workmen, agents, engineers & contractors at all reasonable timesin the day time during the said term on giving sufficient prior written notice therefore toenter upon to view & examine the state & condition of the demised premises or any partthereof or for attending or doing any necessary work at the demised premises or in anypart thereof.· The Lessee shall be at liberty to make any additions or alteration to the demised premisesor any part thereof as may be necessary for suitable accommodation & layout of the office,without causing any structural additional/alteration or damage to the demise premises.Such additions or alterations will be done by the Lessee at its own costs, provided that atthe time of vacating the demise premises, the Lessee shall remove all fixtures & fittings &all articles belonging to the Lessee embodied in or attached to the earth & the Lessorshall have no claim thereto, in any manner whatsoever.· The lessee shall have liberty to fix tube lights and/or other lights & fans or any otherelectrical & other apparatus and/or fitting for domestic & business propose.· After the expiration of the term of the lease or sooner determination thereof the Lesseeshall deliver up vacant & peaceful possession of the demised premises unto the Lessorin same condition as it was when let out (normal wear & tear expected).· The Lessee shall have full right & power to affix to the demised premises or outer wallsNeon-sign plate etc. & affix, display & otherwise exhibit thereon or permit or suffer to beaffixed, displayed or exhibited any Neon-sigh, sign plate etc. & upon the expiry of lease orsooner determination or otherwise shall be at liberty to remove all the materials whatsoever& howsoever affixed displayed or exhibited by it & then subsisting & the same shall remainits own absolute property.THE LESSOR BOTH HEREBY COVENANT WITH THE LESSEE as follows :· That the Lessor has full power & absolute right to grant this Lease for the period hereinbefore mentioned.· That the Lessee duly paying the said monthly rent hereby reserved & observing &performing all the covenants, terms, conditions & stipulations on its part to be observed &performed, shall hold possess & enjoy the demised premises during the said terms herebycreated without eviction, interruption, disturbance, hindrance or claim by or on behalf ofthe Lessor or any person or persons lawfully claiming through or under him/her/it.· The Lessor shall pay both the owners as well as occupiers share of the existing municipalrates & taxes & assessment payable in respect of the demises premises & anyenhancement thereof & also the land revenue, if any for the said premises.82 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.· The Lessor shall at its cost keep the demises premises, wind & water tight & shall carryout all structural or other necessary repairs as & when required & shall keep the demisedpremises in good repairs & habitable condition. The Lessor shall white wash the demisedpremises every alternate year & painting of doors & windows every three years. The Lessorshall also be liable for the maintenance, repairs, services & cleaning as also the properlighting of the common passages, paths, staircases attached to the demised premises.· The Lessor shall not let out or give Leave & License or allow any other person to use orcarry on any unusual or harmful occupation or business, in or upon any part of the demisedpremises which may cause annoyance to and/or otherwise likely to prejudice the businessof the Lessee at the demised premises.· The Lessor shall bear all Municipal & Government rates & taxes in respect of the demisedpremise. If the Lessee is ever called upon to pay any taxes or rates by any authoritiesowing to default on the part of the Lessor or for any other reason whatsoever, the Lesseeshall be at liberty to pay such rates & taxes & to recover the same by deduction and/oradjustment from the monthly rental payable by the Lessee to the Lessor in terms hereof &until such recovery, the Lessor shall pay interest at 13% per annum from the date of suchpayment by the Lessee subject however to the condition that non-payment of rent and/orany adjustment aforesaid shall not be treated as a default on the part of the Lessee so asto create a ground for eviction or otherwise which the Lessor both hereby waive as agreedupon.· The staircase leading to the demised premises together with paths, yards & entrancefrom the main road leading to the demises premises shall be kept by the Lessorunobstructed & for the use of the Lessee, its staff & clients during the period of officeworking. The Lessor should arrange proper flow of light & electricity in all the commonareas including the staircase for the use of the Lessee, its staff & clients.· The Lessee shall be entitled to fix at his own costs, counter & bring furniture, steel safes &cabinets.· If the Lessor fails or neglects to carry out the necessary repairs & perform any of theirobligations in terms of this lease & Lessee shall be at liberty to do the same on behalf ofthe Lessor on Lessor’s account & such costs which may be necessary to be incurred willbe paid by the Lessor to the Lessee on demand failing which the Lessee may recover thesame with interest thereon at the rate of interest payable under the Interest act by deductinga certain percentage of the same from the monthly rental payable to the Lessor.MANUAL ON PROPERTY83

The New India Assurance Co.Ltd.· The Lessor shall provide & maintain sanitary, latrines, urinals, lavatory with water tap,wash basins & flushing & other necessary modern appliances in the demised premises.· The Lessor shall arrange for running of the lift in the event of failure of the electricitysupply by the authorities, by proving Generator thereof.· The Lessor should make necessary arrangement to provide supply of ...... KW electricityin the demised premises, so as to unable the Lessee to use their computers to be installedby the Lessee in the demises premises.· Any notice that may be required to be served upon the parties hereto will be deemed tohave been properly & effectively served on the parties, if sent by registered post to theaddress of the party concerned, mentioned herein or to the last known address of thesame.IT IS HEREBY AGREED BY & BETWEEN THE PARTIES AS FOLLOWS :· If the monthly rent hereby reserved or any part thereof shall remain unpaid for a period ofsix months without any cogent reason or the Lessee commits breach of any of the covenantsterms or conditions on its part to be observed & performed it shall be lawful (but notcompulsory) for the Lessor to determine the lease & to re-enter the demised premises orany part thereof in the name of the whole & to take possession thereof.· In case of acquisition of the demised premises or any portion thereof by the Governmentor any other public body under the Land Acquisition Act or any other Act, Ordinance or theRule for the time being in force at any time during the subsistence of the lease the Lessorshall be entitled to such compensation money as may be awarded to the Lessor for suchacquisition & the Lessor shall be entitled to such compensation as may be awarded to itfor his lease hold interest in accordance with the provisions of law & subject to this &lease shall determine & stand canceled PROVIDED HOWEVER that in case only a portionof such demised premises is acquired, the Lessee shall have the option to surrender thelease for the unexpired period of the lease for the remaining portion of the demised premisesafter giving reasonable notice in writing to the Lessor & upon expiry of one month thereafterthe lease shall stand determined. If the Lessee wants to occupy the portion of the demisedpremises not acquired then & in such case the Lessee shall be liable to pay theproportionate rent.· In the event of the demised premises being wholly or partially destroyed by civilcommotion, enemy action, earthquake, violence of mob & fire (not caused through thenegligence of the Lessee or its servants or agents or the act of its servants in the course of84 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.employment) at any time during the subsistence of this lease , then the lease shall at theoption of the Lessee, stand determined or if so called upon by the Lessee, the Lessorshall take all steps, to reinstate repair & the Lessee shall be entitled to the whole orproportionate abatement of the monthly rent, as the case may be till the demised premisesor part thereof reinstated, repaired & made fit for occupation of the Lessee.· The Lessee shall be entitled to renew the lease for a further period of ...... years, i.e. from...... to ....... provided a written notice in that behalf is given to the Lessor within two monthsbefore the expiry of the lease. In such case the Lessor shall grant to the Lessee a renewalof the lease of the demised premises for a further period on nine/ten/fifteen years on thesame covenants, terms & conditions as herein contained except that the monthly rentwhich shall be decided at the rate mutually agreed upon.· The Lessee shall be at liberty to vacate the premises (if required) by giving due writtennotice 3 months in advance and shall not be liable for payment of any kind of penalty/compensation to the Lessors.· The lease shall be executed in duplicate. The Lessee shall pay 50% of the Stamp Duty onthe original & duplicate lease. The original lease shall be registered, 50% of the cost ofwhich shall be paid by the Lessee & 50% by the Lessor. The registered original leaseshall remain in possession of the Lessee & the signed duplicate copy thereof shall bekept by the Lessor. Each party hereto shall pay & bear its own Lawyer’s charges.IN WITNESS WHEREOF the parties hereto have executed these presents the day & the yearfirst above written.SIGNED SEALED AND DELIVEREDBY THE SAID Mr. ........................the said Lessor in the presence of :SIGNED SEALED AND DELIVEREDby Mr. ......................and Mr. ....................of the Lessee in the presence of :-HHHHHMANUAL ON PROPERTY85

The New India Assurance Co.Ltd.LEGAL OPINION ON EVIDENTIARY VALUE OF INSURANCE CERTIFICATESSTORED IN ELECTRONIC FORMATThis opinion was taken on 08.06.2011 from Ms. Mandakini D. S. Sinh, Advocate and Synopsisof the applicable provisions of IT Act 2000 and Evidence Act 1872 are given below.The Information Technology Act, 2000The Statement of Objects & Reasons, of The Information Technology Act, 2000 (hereinafter theIT Act) which guide a person in interpreting the Act or Bill, states as follows:“New communication systems and digital technology have made dramatic changes in the waywe live. A revolution is occurring in the way people transact business. Businesses and consumersare increasingly using computers to create, transmit and store information in the electronic forminstead of traditional paper documents. Information stored in electronic form has manyadvantages. It is cheaper, easier to store, retrieve and speedier to communicate. Although peopleare aware of these advantages, they are reluctant to conduct business or conclude any transactionin the electronic form due to lack of appropriate legal framework. The two principal hurdleswhich stand in the way of facilitating electronic commerce and electronic governance are therequirements as to writing and signature for legal recognition. At present many legal provisionsassume the existence of paper based records and documents and records which should bearsignatures. The Law of Evidence is traditionally based upon paper based records and oraltestimony. Since electronic commerce eliminates the need for paper based transactions, henceto facilitate e-commerce, the need for legal changes have become an urgent necessity.International trade through the medium of e-commerce is growing rapidly in the past few yearsand many countries have switched over from traditional paper based commerce to e-commerce.2. The United Nations Commission on International Trade Law (UNICTRAL) adopted theModel Law on Electronic Commerce in 1996. The General Assembly of United Nationsby its Resolution No. 51/162, dated 30 th January 1997, recommended that all Statesshould give favorable considerations to the said Model Law when they enact or revisetheir laws. The Model Law provides for equal legal treatment of users of electroniccommunication and paper based communication. Pursuant to a recent declaration bymember countries, The World Trade Organization is likely to form a work programme tohandle its work in this area including the possible creation of multilateral trade dealsthrough the medium of electronic commerce.86 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.3. There is a need for bringing in suitable amendments in the existing laws in our country tofacilitate e-commerce. It is, therefore, proposed to provide for legal recognition of electronicrecords and digital signatures. This will enable the conclusion of contracts and the creationof rights and obligations through the electronic medium. It is also proposed to provide fora regulatory regime to supervise the Certifying Authorities issuing Digital SignatureCertificates. To prevent the possible misuse arising out of transactions and other dealingsconcluded over the electronic medium, it is also proposed to create civil and criminalliabilities for contravention of the provisions of the proposed legislation.4. With a view to facilitate Electronic Governance, it is proposed to provide for the use andacceptance of electronic records and digital signatures in the Government offices and itsagencies. This will make the citizens interaction with the Governmental offices hasslefree.5. It is also proposed to make consequential amendments in the Indian Penal Code andthe Indian Evidence Act, 1872 to provide for necessary changes in the various provisionswhich deal with offences relating to documents and paper based transactions. It is alsoproposed to amend the Reserve Bank of India Act, 1934 to facilitate electronic fundtransfers between the financial institutions and banks and the Banker’s Books EvidenceAct, 1891 to give legal sanctity for books of account maintained in the electronic form bythe banks.6. The proposal was also circulated to the State Governments. They have supported theproposed legislation and have also expressed urgency for such legislation.”The relevant sections of The Information Technology Act, 2000, that are applicable to thestorage of the Insurance Certificates in the electronic format, their production andevidentiary value are extracted below-4: Legal recognition of electronic records.- Where any law provides that information orany other matter shall be in writing or in the typewritten or printed form, then,notwithstanding anything contained in such law, such requirement shall be deemed tohave been satisfied if such information or matter is –(a)(b)rendered or made available in an electronic form; andaccessible so as to be usable for a subsequent reference.5. Legal recognition of electronic signature. – Where any law provides that informationor any other matter shall be authenticated by affixing the signature or any documentshall be signed or bear the signature of any person, then, notwithstanding anythingcontained in such law, such requirement shall be deemed to have been satisfied, if suchinformation or matter is authenticated by means of electronic signature affixed in suchmanner as may be prescribed by the Central Government.MANUAL ON PROPERTY87

The New India Assurance Co.Ltd.Explanation. – For the purposes of this section, “signed”, with its grammatical variationsand cognate expressions, shall, with reference to a person, mean affixing of his handwritten signature or any mark on any document and the expression “signature” shall beconstrued accordingly.6. Use of electronic records and electronic signatures in Government and itsagencies.-(1) Where any law provides for –(a)(b)the filing of any form, application or any other document with any office,authority, body or agency owned or controlled by the appropriateGovernment in a particular manner;the issue or grant of any license, permit, sanction or approval bywhatever name called in a particular manner;(c) the receipt or payment of money in a particular manner, then,notwithstanding anything contained in any other law for the time beingin force, such requirement shall be deemed to have been satisfied if suchfiling, issue, grant, receipt or payment, as the case may be, is effected bymeans of such electronic form as may be prescribed by the appropriateGovernment.(2) The appropriate Government may, for the purposes of sub-section (1), by rules,prescribe –(a)(b)the manner and format in which such electronic records shall be filed,created or issued;the manner or method of payment of any fee or charges for filing,creation or issue of any electronic record under clause (a).6A. Delivery of services by service provider. –(1) The appropriate Government may, for the purposes of this Chapter and for efficient deliveryof services to the public through electronic means authorize, by order, any service providerto set up, maintain and upgrade the computerized facilities and perform such other servicesas it may specify by notification in the Official Gazette.Explanation. –For the purposes of this section, service provider so authorized includesany individual, private agency, private company, partnership firm, sole proprietor firm orany such other body or agency which has been granted permission by the appropriateGovernment to offer services through electronic means in accordance with the policygoverning such service sector.88 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.(2) The appropriate Government may also authorize any service provider authorized undersub-section (1) to collect, retain and appropriate such service charges, as may beprescribed by the appropriate Government for the purpose of providing such services,from the person availing such service.(3) Subject to the provisions of sub-section (2), the appropriate Government may authorizethe service providers to collect, retain and appropriate service charges under this sectionnotwithstanding the fact that there is no express provision under the Act, rule, regulationor notification under which the service is provided to collect, retain and appropriate e-service charges by the service providers.(4) The appropriate Government shall, by notification in the Official Gazette, specify thescale of service charges which may be charged and collected by the service providersunder this section:Provided that the appropriate Government may specify different scale of service chargesfor different types of services.7. Retention of electronic records. –(1) Where any law provides that documents, records or information shall be retained for anyspecific period, then, that requirement shall be deemed to have been satisfied if suchdocuments, records or information are retained in the electronic form, if –(a)(b)(c)the information contained therein remains accessible so as to be usable for asubsequent reference;the electronic record is retained in the format in which it was originally generated,sent or received or in a format which can be demonstrated to represent accuratelythe information originally generated, sent or received;the details which will facilitate the identification of the origin, destination, date andtime of dispatch or receipt of such electronic record are available in the electronicrecord:Provided that this clause does not apply to any information which is automaticallygenerated solely for the purpose of enabling an electronic record to be dispatchedor received.(2) Nothing in this section shall apply to any law that expressly provides for the retention ofdocuments, records or information in the form of electronic records.MANUAL ON PROPERTY89

The New India Assurance Co.Ltd.7A. Audit of documents, etc. maintained in electronic form. – Where in any law for thetime being in force, there is a provision for audit of documents, records or information,that provision shall also be applicable for audit of documents, records or informationprocessed and maintained n the electronic form.9. Sections 6,7 and 8 not to confer right to insist document should be accepted inelectronic form. – Nothing contained in sections 6,7 and 8 shall confer a right upon anyperson to insist that any Ministry or Department of the Central Government or the StateGovernment or any authority or body established by or under any law or controlled orfunded by the Central or State Government should accept, issue, create, retain andpreserve any document in the form of electronic records or effect any monetary transactionin the electronic form.10A. Validity of contracts formed through electronic means. – Where in a contractformation, the communication of proposals, the acceptance of proposals, the revocationof proposals and acceptances, as the case may be, are expressed in electronic form orby means of an electronic record, such contract shall not be deemed to be unenforceablesolely on the ground that such electronic form or means was used for that purpose.11. Attribution of electronic records. – An electronic record shall be attributed to theoriginator –(a)(b)(c)if it was sent by the originator himself;by a person who had the authority to act on behalf of the originator in respect ofthat electronic record; orby an information system programmed by or on behalf of the originator to operateautomatically.12. Acknowledgement of receipt. –(1) Where the originator has not stipulated that the acknowledgement of receipt of electronicrecord be given in a particular form or by a particular method, an acknowledgement maybe given by-(a)any communication by the addressee, automated or otherwise; or(b) any conduct of the addressee, sufficient to indicate to the originator that theelectronic record has been received.(2) Where the originator has stipulated that the electronic record shall be binding only onreceipt of an acknowledgement of such electronic record by him, then, unlessacknowledgement has been so received, the electronic record shall be deemed to havebeen never sent by the originator.90 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.(3) Where the originator has not stipulated that the electronic record shall be binding onlyon receipt of such acknowledgement, and the acknowledgement has not been receivedby the originator within the time specified or agreed or, if no time has been specified oragreed to within a reasonable time, then, the originator may give notice to the addresseestating that no acknowledgement has been received by him and specifying a reasonabletime by which the acknowledgement must be received by him and if no acknowledgementis received within the aforesaid time limit he may after giving notice to the addressee,treat the electronic record as though it has never been sent.13. Time and place of dispatch and receipt of electronic record. –(1) Save as otherwise agreed to between the originator and the addressee, the dispatch ofan electronic record occurs when it enters a computer resource outside the control of theoriginator.(2) Save as otherwise agreed between originator and the addressee, the time of receipt ofan electronic record shall be determined as follows, namely –(a)(i)(ii)(b)if the addressee has designated a computer resource for the purpose of receivingelectronic records,-receipt occurs at the time when the electronic record enters the designatedcomputer resource; orif the electronic record is sent to a computer resource of the addressee that is notthe designated computer resource, receipt occurs at the time when the electronicrecord is retrieved by the addressee;If the addressee has not designated a computer resource along with specifiedtimings, if any, receipt occurs when the electronic record enters the computerresource of the addressee.(3) Save as otherwise agreed to between the originator and the addressee, an electronicrecord is deemed to be dispatched at the place where the originator has his place ofbusiness, and is deemed to be received at the place where the addressee has his placeof business.(4) The provisions of sub-section (2) shall apply notwithstanding that the place where thecomputer resource is located may be different from the place where the electronic recordis deemed to have been received under sub-section (3).(5) For the purposes of this section –(a)if the originator or the addressee has more than one place of business, the principalplace of business, shall be the place of business;MANUAL ON PROPERTY91

The New India Assurance Co.Ltd.(b)(c)if the originator or the addressee does not have a place of business, his usualplace of residence shall be deemed to be the place of business;“usual place of residence”, in relation to a body corporate, means the placewhere it is registered.14. Secure electronic record.- Where any security procedure has been applied to anelectronic record at a specific point of time, then such record shall be deemed to be asecure electronic record from such point of time to the time of verification.15. Secure electronic signature.- An electronic signature shall be deemed to be asecure electronic signature if –(i)(ii)the signature criterion data, at the time of affixing signature, was under the exclusivecontrol of signatory and no other person; andthe signature creation data was stored and affixed in such exclusive manner asmay be prescribed.Explanation. – In case of digital signature, the “signature creation data” means theprivate key of the subscriber.16. Security procedures and practices.- The Central Government may, for the purposesof sections 14 and 15, prescribe the security procedures and practices:Provided that in prescribing such security procedures and practices, the CentralGovernment shall have regard to the commercial circumstances, nature of transactionsand such other related factors as it may consider appropriate.”Pursuant to section 16 of the IT Act, certain rules have been prescribed of which TheInformation Technology (Use of Electronic Records and Digital Signatures) Rules, 2004and The Information Technology (Securities Procedure) Rules, 2004 are of relevance,and the applicable sections have been extracted below.The Information Technology (Use of Electronic Records and Digital Signatures)Rules, 20042. Definitions. – In these rules, unless the context otherwise requires,-(b)“electronic record” means data, record or data generated, image or sound stored,received or sent in an electronic form or micro film or computer generated microfiche;”92 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.3. Filing of form, application or any other document. – Any form, application or anyother document referred to in clause (a) of sub-section (1) of section 6 of the Act may befiled with any office, authority, body or agency owned or controlled by the appropriateGovernment using the software specified by it and such office, authority, body or agencyshall, while generating such software, take into account the following features of theelectronic record, namely:-(a) life time;(b) preservability;(c) accessibility;(d) readability;(e) comprehensibility in respect of linked information;(f) evidentiary value in terms of authenticity and integrity;(g) controlled destructibility; and(h) augmentability.4. Issue or grant of any license, permit, sanction or approval. – Any license, permit,sanction or approval whatever name called referred to in clause (b) of sub-section (1) ofsection 6 of the act may be issued or granted by using the software specified underrule 3.5. Payment and receipt of fee or charges. – The payment of receipt of any fee or chargesfor filing, creation or issue of any electronic record under clause (a) of sub-section (2) ofsection 6 of the Act may be made in a cheque in the electronic form.Explanation. – For the purposes of this rule, “a cheque in the electronic form” has themeaning assigned to it in clause (a) of Explanation 1 to section 6 of the NegotiableInstruments Act, 1881 (26 of 1881).The Information Technology (Securities Procedure) Rules, 2004These rules were made by the Central Government for effecting the provisions of section16 of the Act. The relevant sections are extracted below:2. Definitions. – In these rules, unless the context otherwise requires,-(b)“digital signature” means authentication of any electronic record by a subscriberby means of an electronic method or procedure in accordance with the provisionsof section 3 of the Act;MANUAL ON PROPERTY93

The New India Assurance Co.Ltd.(c)“hardware token” means a token which can be connected to any computer systemusing Universal Serial Bus (USB) port;(d) “smart card” means a device containing one or more integrated circuit chips, whichperform the functions of a computer’s centre processor, memory and input or outputinterface;3. Secure electronic record.- An electronic record shall be deemed to be a secureelectronic record for the purposes of the Act if it has been authenticated by means of asecure digital signature.4. Secure digital signature. – A digital signature shall be deemed to be a secure digitalsignature for the purposes of the Act, if the following procedure has been applied to it,namely:-(a)(b)(c)(d)(e)(f)that the smart card or the hardware token, as the case may be, with cryptographic module,in it, is used to create the key pair;that the private key used to create the digital signature always remains in the smart cardor hardware token as the case may be;that the hash of the content to be signed is taken from the host system to the smart cardor hardware token and the private key is used to create the digital signature and thesigned hash is returned to the host system;that the information contained in the smart card or hardware token, as the case may be,is solely under the control of the person who is purported to have created the digitalsignature;that the digital signature can be verified by using the public key listed in the DigitalSignature Certificate issued to that person;that the standards referred to in rule 6 of the Information Technology (Certifying Authorities)Rules, 2000, have been complied with, in so far as they relate to the creation, storageand transmission of the digital signature; and(g) that the digital signature is linked to the electronic record in such a manner that if theelectronic record was altered the digital signature would be invalidated.The Evidence Act, 1872The relevant sections of the Indian Evidence Act, 1872 applicable for determining the94 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.evidentiary value of Insurance Certificates stored in the electronic format, are as follows:“22A. When oral admission as to contents of electronic records are relevant. –Oral admissions as to the contents of electronic records are not relevant, unless thegenuineness of the electronic record produced is in question.”“45A. Opinion of Examiner of Electronic Evidence. – When in a proceeding, the courthas to form an opinion on any matter relating to any information transmitted or stored inany computer resource or any other electronic or digital form, the opinion of the Examinerof Electronic Evidence referred to in Section 79-A of the Information Technology Act,2000 (21 of 2000) is a relevant fact.Explanation. – For the purposes of this section, an Examiner of Electronic Evidenceshall be an expert.”“131. Production of documents or electronic records which another person, havingpossession, could refuse to produce. – No one shall be compelled to producedocuments in his possession or electronic records under his control, which any otherperson would be entitled to refuse to produce if they were in his possession or control,unless such last-mentioned person consents to their production.”B. INTERPRETATIONOn a perusal of the law extracted above, the following position emerges:· Information stored in the electronic format and produced in court, has the same evidentiaryvalue and a presumption of being correct and true as a paper document produced fromthe custody of and by a person, in whose custody it should be in the natural course ofevents. (Secs.4, 6 and 11 of the Information Technology Act and Sec. 22A of the EvidenceAct, 1872);· Paper documents are validated by affixing signatures. The law provides for affixing digitalsignatures, which also raise the same presumption of correctness and truth as a signedand validated paper document (Secs.5 and 14 and Rules 3 and 4 of The InformationTechnology (Securities Procedure) Rules, 2004);· However, in the case of the use of digital signatures, certain norms are stipulated, whichif adhered to raise the presumption that such a document which is produced is correctand true. These norms include those that govern the use of records and signatures inthe electronic format by the Government and its agencies (Sec. 6), delivery of such recordsetc. in the electronic format by the Government and such agencies (Sec. 6A) and that thesignature criterion data, was produced from the custody of the authorised person at thetime of affixing such signature, and that it at all times is stored under the exclusive controlof such signatory and no one else (Sec. 15);MANUAL ON PROPERTY95

The New India Assurance Co.Ltd.· Such an electronic record sent by an originator to an addressee is deemed to be receivedby the addressee when it acknowledges it by a record that is automatically generated orotherwise or by the addressee’s subsequent conduct (Sec. 12);· The place of such dispatch or receipt of the electronic record is, unless agreed otherwise,generally the principal place of business of the originator and the addressee, whereeither of them has more than one place of business. Similarly the time of dispatch andreceipt is the time at which the record enters the designated computer or when nonesuch computer is designated, when it is retrieved by the addressee (Sec. 13);· Documents stored in the electronic format should be sent by the originator of the document,or on his behalf or, in the case of an automatically generated document, by a programmeinstalled by or on behalf of the originator (Sec. 11);· The provisions as to storing of electronic records and their audit are found in Secs. 7 and7A of the Information Technology Act, 2000.· Lastly, Section 45A of the Evidence Act, 1872 states that where in a proceeding anobjection as to the validity of the electronic record is raised, the court will be guided bythe opinion of the Examiner of Electronic Evidence appointed by the Government underthe provisions of the Information Technology Act, 2000.· Certain penal provisions are also enacted for deterring tampering of electronic recordsand to that end, the Indian Penal Code has been amended.C. CONCLUSIONIn the premises, and in view of the provisions of the Information Technology Act, 2000and the rules framed thereunder, and the amendments to the older laws, in particular,the Evidence act, 1872, any document or Insurance certificate stored in the electronicformat and following the guidelines stipulated under the Act, will have the sameevidentiary value as an Insurance Certificate printed or typed on paper.HHHHH96 MANUAL ON PROPERTY

The New India Assurance Co.Ltd.ESTATE & ESTABLISHMENTMANUAL ON ESTATE & ESTABLISHMENT97

The New India Assurance Co.Ltd.I N D E XEstate and EstablishmentSl.No. D e s c r i p t I o n Page No.1 Definitions 992 Guidelines for Execution of Building Maintenance/ Civil/ Electrical/ 103Mechanical Works and Purchase Procedure for Capital Itemsa. Empanelment of Vendors for Execution of 106Maintenance Worksb. Execution of Works 125c. Execution of Work – Technical 1313 Printing, Stationery, General items, Computer stationery 135a. Instruction to Tenderer for Empanelment as Printer 139b. Application for Empanelment as Printer 142C. Specimen letter for Empanelment of Printer 144d. General Terms and Conditions - Panel Printers 1464. Furnishing 1485. Maintenance, Repairs, Replacements 15298 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Estate & Establishment DepartmentDEFINITIONSFor facilitating better understanding while implementing the purchase procedure, the followingterms are broadly clarified so as to make the intention of the procedure clear lest there be anydifficulty in implementing the same.(i)(ii)(iii)(iv)(v)(vi)(vii)Civil Contract means a work order where the estimated value of the civil job ismore than 50% of the total estimated contract value.Electro Mechanical Contract means a work order where the estimated value of theelectrical/ mechanical installation job is more than 50% of the total estimatedcontract value.General Contract means a work order which can neither be grouped under civilnor electrical/ mechanical job nor purchase order.Vendor means an individual, firm, body corporate or institution who is an authorizedsupplier of office equipment/ a Licensed Contractor experienced in supplying ofoffice equipments/ installation / repairing/ construction of Building maintenancework.Manufacturer means a manufacturer of office equipment and goods to be purchasedincluding a manufacturer who may or may not have manufacturing facilities withinthe country.Channel Partner means an authorized business associate of the manufacturer ordistributor who is duly authorized by the manufacturer or distributor to bid for thegoods/ services on his behalf.Competent Authority means the authority which as per the Financial Standing orderin force is vested with the powers to sanction the job work/ purchase, proposed tobe made.MANUAL ON ESTATE & ESTABLISHMENT99

The New India Assurance Co.Ltd.(viii)(ix)(x)(xi)(xii)(xiii)(xiv)(xv)(xvi)(xvii)Consultant means an Architect or an individual, firm or corporate body appointedby the Company to render professional assistance and offer expert advice to theCompany in the nature of a service provided for the purpose of performing tasks orexecution of contract for procurement / job work.Tender document means a set of documents containing relevant information to thebidders to enable them to clearly understand the requirements of the tender andenable them to submit their tender as per requirements.Technical Bid is part of the Tender Document wherein information about the bidder’scapabilities/ expertise/ experience in executing similar job and related informationof the bidder.Commercial Bid/ Financial Bid is the part of the Tender Documents where the pricesfor the items/ services/ job are quoted based on specification prepared by theOrganization.Open Tender is a process of tendering where the Tender is thrown open to allconcerned and bids are called for through advertisement in the press and also inwebsite.Limited Tender is a process of tendering wherein invitation to participate in thetender is given to empanelled vendors who have been selected through an earlierprocess of open tendering or such vendors who have been selected for anyparticular job/ work/ purchase duly approved by the Competent Authority.Single Tender is resorted to in the case of procurement of proprietary items and thetender is directly addressed to the manufacturer or his authorized distributor/Channel partner.Earnest Money Deposit (EMD) or Tender Deposit means an amount specified inthe Tender Document, which is required to be deposited by the bidder along withthe Bids in the manner prescribed in the tender Documents.Liquidated Damages is a penalty levied on the vendor for non-performance of hisobligations under the Contract and normally levied as a percentage of the value ofthe order.CVC Guidelines are guidelines issued by the Central Vigilance Commission, NewDelhi communicated from time to time as far as it relates to this procedure.100 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(xviii) Panel :List of selected agencies for execution of works, based on prequalificationcategorywise, fieldwise, locationwise, having paid one time deposit of Rs.5000/-.The deposit without earning any interest will remain with the company so long asthe agency is retained on the panel.The panel could be for:1. Execution of original works2. Execution of repairs/ replacements/ additions/ alternations works3. Maintenance and repairs works4. Disposal of surplus items-scrap dealers/ buyers5. Stationery suppliers6. Printers7. Any service provider8. Professional advisers / consultants9. ArchitectHigher category panel agencies can be utilized for execution of lower categoryworks.xix. Retention Money :5% of the final bill is retained by the Company for a period of 3/6/9/12 monthsdepending on the nature of work. The defect liability period is to be decided by thedepartment depending upon the nature of work executed.On completion of satisfactory performance period the retention money is released.xx. Time Limit :Time Limit is the period allowed to the agency for execution of work. Time limit isthe period between the issue of work order/lineout/handing over site and takingover the site on satisfactory execution of work.xxi.Tender Cost : Cost of blank tender set.MANUAL ON ESTATE & ESTABLISHMENT101

The New India Assurance Co.Ltd.xxii.xxiii.Tendered Cost : Cost of work at the rates quoted by the Contractor.Estimated cost:Cost of work estimated by the department initially to seek the approval of theAuthority for initiating the process of execution.xxiv.Administrative sanction:Approval of the Competent Authority as per Company’s financial standing order,for execution of work in financial terms.xxv.Technical sanctionApproval of the Competent Authority as per the skill needed for the work forexecution of work in technical terms.Professional chargesCharges paid to the professionals like Project Management Consultant/Architect/Valuer/Consultant/Designer/Assessor/Advisor towards the technical servicesprovided by them.Powers to interpret/ relax/ modify provisions:If there be any difficulty in implementing the provisions of this procedure, the matter shall bereferred to the CMD, whose decision/ interpretation shall be final. The CMD may at his/ herdiscretion relax any of these requirements/ provisions, add, modify, change or alter theseprovisions as warranted by the circumstances.CVC Guidelines:The various guidelines issued by the CVC from time to time shall have an over-riding effect overthese provisions wherever applicable.HHHHH102 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Guidelines for Execution of BuildingMaintenance/ Civil/ Eelectrical/ Mechanical Worksand Purchase Procedure for Capital ItemsAscertaining Requirements:i. All purchase/ job work, must be in conformity with the requirements of the Companyand must have budget provision.ii.iii.As far as possible, the requirements for the entire financial year should be estimatedin advance and budgetary approval obtained. Repetitive individual purchases/ jobshould be avoided except in the case of emergency. While planning purchases/job work, utmost caution must be exercised to guard against redundancies.Based on requirements, details of the job to be carried out and items needed shouldbe identified and the requirements must be clearly specified in terms of the technicaldetails, measurements as well as quantity required.Specifications:i. The detailed specifications/ configuration/ description along with the quantity ofitems to be performed/ procured and estimates of expenditure shall be approvedby the Competent Authority (as per Financial Authority) before calling tenders/quotations.ii.iii.The specifications/ configuration of the job work/ items should be drawn up by thedepartment keeping in view the requirements.The specifications shall be approved by the Consultant/s wherever appointed butessentially for job work/ purchase/ value exceeding estimated cost of Rs.2 lakhs.The assistance of consultant may be taken even for job work/ purchases notexceeding Rs.2 lakhs if Department/ Office so desire and/or if there is no technicallyqualified person (Engineer).MANUAL ON ESTATE & ESTABLISHMENT103

The New India Assurance Co.Ltd.iv.The estimated cost of a job should be worked out as under:a. Estimated valueb. Contingency – Calculated at the rate of maximum 15% relating to Schedule andNon-Schedule items required for completion of the job, if any. This clause shouldbe included in General Terms and Conditions of the Contract.c. Consultant fees, if any, should be taken into account for approval from the CompetentAuthority.Tendering Process- Open/ Limited – Open TenderAll job work i.e. Revenue Expenditure exceeding Rs.15 lac and purchases i.e. CapitalExpenditure exceeding Rs.2 lacs and above should be made only through OPEN TENDER.Tenders shall be invited through the press and shall consist of two bids- Technical and Financial.Limited Tenderi. Job/ work upto Rs.15 lacs and that of purchases upto Rs.2 lacs (estimated value) may bemade through Limited Tender. The tenders for job/work shall be invited from the empanelledvendors in case such empanelment has been already done and is current and valid,otherwise empanelment should be done afresh. The panel of contractor should be updatedin every two years by including new names of the contractors who have applied forempanelment and deleting the name of those whose performance is not satisfactory. Thetender process of obtaining financial bids should be followed.ii.For extremely urgent requirements of individual job/ work/ purchase the department maydirectly purchase the same or get the job/work done by/ from any empanelled vendor/ firmof repute as described above subject to approval from CMD.Following are the criteria in determining the urgency.Urgent:· Court or similar Authority’s Order.· Ministerial Instruction/ programme· Imminent danger to human life· Safety of premises· Prevent further damage to any structure/ building due to accident.104 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.· Essential repairs to make Co. owned property fit for occupation and/or sitepreparation for installation of essential office equipment.· Sudden break-down of lift, generator, pump, bursting of water/ sanitary lines,major electrical fault, immediate fact lift/ house-keeping of office/ residentialbuilding/· Any sudden exigency subject to approval of CMD.In some of the above cases, the cost of the job may not always be possible to estimate priorto staring the work. Most of the above jobs are special in nature and require mobilization ofexpert manpower at short notice. There may be cases which require License/ expertise. Ifsituation so warrants Contractor/ Vendor/ Supplier who are not empanelled may be offeredto carry out the job. The bill for such job can be scrutinized on actual analysis of rates takinginto consideration, cost of materials, labor, incidentals, overhead and profits.iii.iv.For day to day requirement/ maintenance of individual job/ work/ purchase of value notexceeding Rs.25,000/- (Rupees Twenty Five thousand) per transaction for Head Office andRs.10,000/- for Regional Office/ Divisional Office, the department/ office may directlypurchase the same or get the job/work done by from any empanelled vendor preferably onrotational basis.In case of procurement of proprietary item where a particular firm is the sole manufacturerof the item to be purchased and if it is approved by the Competent Authority as per FSObased on the departmental note with necessary documents then quotation may be calleddirectly from the original equipment manufacturer (O.E.M.) or from minimum 3 distributors/dealers recognized by the manufacturer.HHHHHMANUAL ON ESTATE & ESTABLISHMENT105

The New India Assurance Co.Ltd.Empanelment of Vendors for Execution ofMaintenance WorksWhile empanelling vendors to be utilized for limited tenders as prescribed in this procedure, theyshould be grouped into two following categories:Category-1For Civil and allied Contracts – Engineers or firms having capabilities, experience, license andprofessionals to carry out civil jobs.Category-2For electro Mechanical and allied contracts – Engineers or firms having capabilities, experience,license and professionals to carry out electro mechanical jobs.The panel should be reasonably broad based in order to generate competitions for gettingcompetitive rates backed by efficiency and quality.For preparation of such panel advertisement should be given in three newspapers (vernacular,Hindi and English) to display advertisement for issuance of Tender Documents. The panel ofcontractors so formed should be updated in every 2 years by including new names of thecontractors who have applied for empanelment and deleting the names of those whoseperformance is not satisfactory.TENDERTender is the basic document furnishing all essential details about the work, cost, duration, locationetc. for information of the indenting contractors, to study, understand and quote the rates alongwith his willingness for executing the job, as required, if selected.The tender has to be drawn with detailed specifications of all the items along with estimatedquantity. At the prevailing market rate for these items, the tender cost should be arrived. Thetender cost is the basis for: -(1) Deciding the quantum of all blank tender form cost.(2) Deciding the quantum of earnest money deposit (EMD).106 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(3) Deciding the quantum of security deposit (SD)(4) Deciding the extent of time limit for the execution of work(5) Making analysis of offers to decide L-I for authorities competent to accept the tender.Thus, maximum care must be taken while arriving at the estimated cost put to tender.Before inviting tender, financial approval of the competent authority for the estimated cost mustbe obtained (administrative approval) and budget provision for such works is a ‘must’. The tenderprocess should begin only after having the possession of site.In exceptional cases, where a definite date of getting possession is known, to save time, tenderprocess can be initiated.In case the execution of work is within the existing operating/functioning office premises oroccupied residential premises, information must be provided in the tender notice.A clause should be incorporated in the tender about the responsibilities of the contractor duringexecution towards guarding/protecting the existing fixtures, fittings and furniture, temporarilymoving moveable items with adequate care etc.Notice Inviting Tender (NIT) must be approved by the CM/DGM/GM according to their financialauthority or as under: -CM for works up to Rs.5 lacsDGM for works up to Rs.25 lacsGM for works costing more than Rs.25 lacsThe work should not be split while inviting tenders.If it becomes essential to split based on the nature of work, separate work-wise tenders can beinvited, like tenders for civil, tenders for electrical, tenders for mechanical, tenders forcommunication, tenders for air-conditioning, tenders for lift etc. Such splitting should be approvedby the DGM.There must be a condition of co-operation in the tender of civil works, a condition of co-ordinationin the tenders of other works.Condition of co-operation means that the main civil contractor will co-operate with other contractorsfor execution of their work at appropriate stages.MANUAL ON ESTATE & ESTABLISHMENT107

The New India Assurance Co.Ltd.The condition of co-ordination means that the other contractors will execute their work inconsultation with the main civil contractor.The CM/Architect after holding detailed discussions, with all the contractors, must draw a jointaction plan for execution.Depending upon the cost of work, the tenders could be:(1) Single bid tenders i.e., only financial bids(2) Double bid tenders viz. technical bid and financial bidFurther, depending upon the cost of work, the Tender Committee can also be Single TenderCommittee and Dual Tender Committee.Normally, Tender Committee Members should be drawn from:(1) User Department(2) Accounts / Representative from Internal Audit Department.(3) From any Department at the discretion of the Management.(4) From Estate / Establishment DepartmentThe Committee should consist of at least 3 members inclusive of Accounts Department.Single Bid Tender System, other than for minor immovable property, major fixtures / fittings /furniture, technically oriented gadgets/equipments, specific unique works, for all works costingup to Rs.15 lacs can be adopted.For all other works, costing more than Rs.15 lacs, Double Bid System should be adopted.While the tenders are invited for major works, the indenting contractors must be advised to inspectthe site well in advance very carefully. If any permission is required for such inspection, it shouldbe granted.In Double Bid System, technical bid should be opened, studied, analyzed, if required inspectedand verified.The final bid from such selected bidders should then be opened for study, analysis and makingrecommendations.The Tender Committee can make recommendations for acceptance of only the lowest tender foracquisition/purchase/construction, and of the highest tender for disposal of surplus.108 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.However, if the lowest offer is more than 25% of the estimated cost, the Committee shall seekclarification from Architect/ Consultant/ Contractor before recommending the tender to CompetentAuthority.Similarly, if the highest offer is less than 20% of the estimated/reserve cost, the Committee shallseek clarification from Architect/ Consultant/ Contractor before acceptance of tender.If the Tender Committee is not in a position to either accept the lowest offer for the job (L- I) or thehighest (H-I) offer for disposal, for any reason whatsoever, the Committee will makerecommendations for retendering in a transparent and fair manner.Where the lower tender committee has made recommendations for acceptance, other than lowestfor execution and highest for disposal, detailing the reasons for such action, justifying for othercontractor, the proposal can be either considered by a higher level tender committee or the DGM/GM of Estate/Establishment Dept.Thus, the Committee would be in a position to function within the stipulated guidelines.A tender can be invited for works upto Rs.15 lacs by releasing advertisement on official website.For minor works costing less than Rs.25, 000/-, treating them as petty works, the officer in chargecan identify a suitable contractor either by open/closed quotation or by performance experiencein execution of such petty works.Work-wise EMD is not required for execution of such petty works.For all works costing between Rs.25, 000/- to Rs.2, 00,000/-, sealed quotes must be invited inthe specified manner and placed before the Committee for recommendations/acceptance.The earnest money deposit is not necessary for quotations.For contracts of routine nature where There are already approved rates & approved panel ofcontractors, work can be allotted on rotation or need basisRegular tenders must be invited for works costing Rs.2 lac to Rs.15 lacs from the contractors onthe panel by advertising on website.Open tenders should be invited for all works costing more than Rs.15 lacs on two bid basis.Each executing office must maintain a panel of suitable contractors, preferably by each RO andHO. The panel must be prepared at least once in 3 years by giving wide publication in localnewspapers. A committee either specifically formed for the scrutiny or the existing tendercommittee can go through the details furnished by the indenting contractors for preparing panel.MANUAL ON ESTATE & ESTABLISHMENT109

The New India Assurance Co.Ltd.A nominal panel money deposit is a ‘must’. So long the contractor is on the panel, the deposit willremain with the company.The panel money deposit will be : Rs.10, 000/- for works upto Rs.15 lacs and Rs. 25,000/- forworks more than Rs. 15 lacs but less than Rs. 1 crore.Either on account of withdrawal by the contractor or on account of removal of the contractor fromthe panel, the deposit should be refunded.If the contractor has been removed from the panel on account of improper execution or extremelydelayed execution or misbehavior during the execution, such contractors will be blacklisted andwould not be entitled for any future empanelment and 50% of their deposit will be forfeited.However, before blacklisting such contractors should be given an opportunity to plead their case.For such disputes CRM/DGM/GM will be the final authority.Further, names of such blacklisted contractors shall be informed to all other regions for takingappropriate action.Public Tender: For all works costing more than Rs.15 lacs, public tender notice is a ‘must’. Thepublic tender could be a detailed notice displayed in the office with a brief publication in thenewspaper or detailed publication in the paper itself. Even if the notice is displayed on the website of the company, brief notification in the newspaper is a ‘must’.The brief notice must necessarily provide basic essential information about the work such asnature of work, cost of work, location of work, time limit for the work, date of issuing of tender, lastdate for receipt of tender and validity period of the rates quoted and the Company’s RIGHT toAccept/Reject any tender without assigning any Reason.The intending contractors should be guided, advised and permitted to inspect the site verythoroughly.Tenders notified must appear in the local newspapers covering jurisdiction of the region in English,in Hindi and in local/Regional language.The tender box must carry a label showing details: name of work, opening date, closing date/closing hours.Tender box must be closed/labeled/sealed immediately after the closing hours on the closingdate by the officer.Tenders should be opened preferably in the presence of bidders.110 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Tender Committee Members have a right to inspect the sealed tender box before the beginningof the Tender Committee Meeting.The earnest money received while opening the tender box must be deposited immediately to thecompany account. Earnest money deposit of all contractors other than first, second and thirdshould be refunded immediately. Earnest money deposit of the second and third tenderer mustbe refunded within 15 days from the date of payment of security deposit by the lowest tenderer.The lowest tenderer must deposit the security deposit within 15 days, from the date of acceptanceof his tender and intimation.If the lowest tenderer fail to deposit the security deposit, his earnest money deposit should beforfeited.Maximum care must be taken to ensure refund of earnest money deposit within 30 days of all thecontractors. However, in case of certain conditions of policy nature the Management is not in aposition to execute such planned works or a situation may arise wherein execution of such worksis not necessary or in case where the Management is restrained by the Government in executingsuch works, the entire tender process should be cancelled and earnest money deposit shouldbe refunded to all the contractors..While refunding the earnest money deposit, the reason for cancellation of tender process mustbe clearly explained.If the L-I backs out, by forfeiting his EMD, the price-bid process should be cancelled and freshprice-bids should be called from short-listed contractors.For no reason, a pre-qualified bidder should be disqualified in future stages of consideration andthe set of criteria notified in the tender notice should be the only criteria for selecting the bidder.Security Deposit ; Security Deposit should be equivalent to 5% of the estimated cost. For minorworks, security deposit equivalent to 5% should be taken before issuing the work order.For major works, half of security deposit, i.e. 2-1/2% of the estimated cost can be demandedbefore issuing the work order and the balance 2-1/2% can be recovered during the payment ofrunning account bills at 10% of the bill amount.The security deposit is to be refunded on expiry of three months from the date of payment of finalbill unless specifically mentioned otherwise.While making payment of every running bill, an amount equivalent to 5% should be held asretention money.MANUAL ON ESTATE & ESTABLISHMENT111

The New India Assurance Co.Ltd.The retention money, depending upon the nature of work should be refunded after 3 months/6months/1 monsoon/1 year.The retention money is to be refunded after satisfactory performance of the works executed andrectification of defects noticed during that period.Public Tender Notice: The public tender notice could be either for issuing directly blank tenderset based on the details furnished by the contractor in his application or for pre-qualification ofcontractors.If the notice is for pre-qualification, the intending contractors:-(1) Must have carried out works during the last 3 years amounting to more than or atleastequal to the estimated cost OR during the past 3 years, the contractor must have executedatleast one work costing more than 50% of the estimated cost.(2) Registrations with Government organization, if any, must be furnished.(3) Registration with Income Tax Dept must be furnished (PAN).(4) Copies of I.T. Returns of the previous financial year must be furnished.(5) Details of manpower – skill-wise(6) Nature of his Company and the necessary copy of Power of Attorney of the actingExecutive.(7) Earnest Money Deposit.The Committee while considering the applications for pre-qualification, details should be verified& should also inspect some of the major works executed to assess the standard of execution.The notified PQT (Pre-Qualification Tender) criteria should not change. The comparative statementshould be prepared & signed by tender-opening committee members.On considering all the details, the Committee/Dept should identify suitable contractors to bekept on panel for issuing price-bids.The deposit amount of the paneled contractors will not be refunded till the entire tender processis completed.Once a bidder has been pre-qualified, no further rejection at any stage for any reason shouldtake place.112 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.All the contractors must submit tenders duly completed in 2 bids in 4 envelopes. First envelopecontaining earnest money deposit.Second containing technical bid. Third envelope containing financial bid.The fourth envelope containing all these 3 envelopes.Suggestive technical bids should be considered only of those contractors who have submittedthe requisite earnest money deposit in the specified manner.Normally, conditional tenders should not be entertained. However, if the contractors having seenthe site of execution, location, terms and conditions, specifications, details of indented items tobe executed, prevailing local strategic conditions, environment, restrictions on movements ofvehicles, trucks, goods, machinery, equipment, availability of specified equipments on hire etc.,may indicate either his requirements or his conditions in the technical bid:All such suggestions, recommendations, conditions, requirements should be considered by theCommittee.The Committee should also hold detailed discussions on such conditions of contractors pooledin to arrive at possible practical requirements. After drawing common agreeable terms andconditions, all the contractors should be requested to submit their revised offer, which would beover and above or below in financial terms of their financial bid submitted.The Committee should consider financial bids along with revised offer.The tender of L-I must be accepted.To facilitate smooth execution of work, if required, negotiations can be held with L-I contractorsprior to issue of acceptance letter or work order.In case the L-I backs out, the entire price-bid process should be cancelled and fresh price-bidsshould be invited ,unless specifically decided otherwise by the competent authority (not belowthe rank of General Manager).While the tenders have been invited, a minimum of 15 days of notice period must be available forall works costing more than Rs.15 lacs and 7 days for all works costing less than Rs.15 lacs toenable the intending contractors to submit their offer after proper study, inspection, etc.Tender sets should be prepared very carefully. There should not be any unwanted, undesired,non-connected details. It must contain all the applicable information, terms, conditions, clauses,details etc.MANUAL ON ESTATE & ESTABLISHMENT113

The New India Assurance Co.Ltd.The tender set issued to the contractors must contain:SCHEDULE ‘A’(1) Details of all the materials, if any, being supplied to the contractors with terms andconditions.(2) Extent of facilities and amenities extended to the contractor with terms and conditions.(3) The facilities could be light, power, water, telephone, office space, space for site office,permission for staying, canteen, godown, security etc. etc.SCHEDULE ‘B’(1) Detailed tender with estimated items and estimated quantity.(2) Specifications(3) Mode of measurement(4) Detailed plans, elevations, sections(5) Designs(6) List of approved materials(7) List of approved manufacturer(8) Mode of payment(9) Permissible limit of variation in quantity(10) Admissibility of deviation in specification(11) Site clearance(12) Obligation of contractor towards workers, machinery, equipments, security, safeguards,precautions while executing the work(13) Amenities and facilities for the workers(14) Normal working hours(15) Establishment of site office(16) Establishment of sample room(17) Establishment of site laboratory for testing(18) Arranging for model laminated mounted plans, at the site office.114 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(19) Maintenance of site instructions book.(20) Procedure for arbitration.(21) Procedure for payment under escalation clause.TIME LIMIT :(1) Clear indication for recording the date of commencement and the date of completionshould be made.(2) Clear indication whether the time limit is inclusive or exclusive of monsoon should bemade.(3) Permissible extension in time limit without any extra compensation/penalty should beindicated.(4) Quantum of compensation/penalty to be imposed for further extension in time limit shouldbe indicated.(5) Maximum limit of compensation/penalty should be indicated.(6) Clarification about escalation in accepted tender rate either on account of material indexor labor index should be indicated, along with the basis being adopted for consideration.VARIATION IN QUANTITY :Generally, there should be no variation in quantities of executed items of work. But if thisoccur, the same should be explained by Contractor/ Architect/ Consulting Engineer &necessary permission of Chief Regional Manager/ Deputy General Manager/ GeneralManager needs to be obtained.(1) Extra items, if required, should be executed at the prevailing market rate. However, thequantum of such extra item executed should not exceed 15% of the sanctioned estimatedcost.(2) Deviation in specification will not be entertained except for compelling situations.CORRIGENDUM :(1) In case for any reason, there is a necessity to issue any corrigendum to the tender noticereleased earlier, for indicating changes, modifications etc. the same corrigendum mustappear in the same newspapers where the original tender notice had been published.(2) The intimation should be made available immediately to all the contractor who haveMANUAL ON ESTATE & ESTABLISHMENT115

The New India Assurance Co.Ltd.contacted the Department either for purchasing the Blank tender or for obtaining thedetails.(3) The corrigendum should also be on company’s website.The blank tender sets duly bound, secured, paged and stamped issued to the contractors mustbe submitted duly filled in, each page initialed, duly signed. There should not be any inclusionsor removals from the tender set.The tender committee while opening the tenders should initial on envelopes and number themas 1/6, 2/6 etc. All the envelopes within the main envelopes must also be numbered in the samesequence. The first and last pages of the main tender set must also be numbered similarly.All the Committee Members must initial all the pages where the contractor has filled in his rates.While initialing each page, the details filled in must be observed carefully and if any over-writing,non-writing or conditional writing is noticed, the first committee member initialing that page mustmention the same either on the top or the bottom of the page. The remaining committee membershaving noticed it, must also initial likewise.While initialing all the important pages of the tender contract, a statement of tendered cost asworked out by the contractors must be prepared and signed by all the committee members.The contractors, who have been allowed to be present while opening the tenders, must alsosign this statement. If possible, arithmetical check of all the calculations should be madeimmediately and if any corrections are noticed in the tendered cost arrived at, a revised correctedstatement should be prepared and signed not only by the committee members but also by thecontractors.In case the contractor has not quoted for a particular item, either ‘in words or in figures’, and alsohas not arrived at the amount, then the item should be treated as free of cost. A specific mentionshould be made in the work order if this happens to be a L-I tender.In case there is a discrepancy in the rates quoted in figure and word and the amount has notbeen worked out, then the rate quoted in ‘WORDS’ is to be taken as CORRECT RATE.The accepted tender must be preserved very carefully and if required Xerox copies of the acceptedtender can be made available to the contractor, to the Accounts Dept,, to the Site in-charge, tothe consultants etc.At any point of time, under any circumstances, no attempts should be made to bring the cost of116 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.L-I within the sanctioned limit either by deleting execution of some items or by reducing thequantum of some items.Further, no other works should be included along with this tender except for those extra items.MODE OF PAYMENT :For all major works in absence of any specific terms & agreement , following will apply: -(1) First R-A Bill equivalent to 30% when 50% work had been executed.(2) Second R-A Bill equivalent to 30% when 80% work had been executed(3) Third R-A Bill equivalent to 30% when 100% work had been executed(4) Fourth R.A/Final Bill the balance less 5% after verification and Release of SecurityDeposit.(5) 5% retention money to be released after 3/6/9/12 months.Tenders should not be invited without obtaining administrative approval, financial sanction ofthe competent authority for the estimated cost.The estimated cost should include actual cost for the estimated quantum of items at the prevailingmarket/estimated rates with provision of 15% contingency and 6% towards professional charges.Thus, all sanctions will be about 21% more than the actual estimated cost. The cost put to tenderwill be the actual estimated cost.The tender should not be issued unless a competent professional in the field has technicallyapproved the proposal.In case the Company has on its own the competent professional in the field, he will approve thetender. In case they do not have such expertise, they should hire the services of a professional.Normal execution of major works is subject to obtaining approval of the local statutory authoritieslike the Municipal Corporation, Development Authorities etc.The details for obtaining such approvals will have to be submitted by licensed/registeredengineers/ cost has been certified as most realistic. For according approval for work with anydeviation so far as mode of payment is concerned G.M. shall be the Competent Authority.MANUAL ON ESTATE & ESTABLISHMENT117

The New India Assurance Co.Ltd.TENDERING PROCEDURE ;All major works costing more than Rs.15 lacs:(1) Tender Notice will be for the specific work(2) Tender notice to be approved by the competent authority;(3) Financial sanction of the competent authority for the actual estimated cost, contingenceprovision of maximum 15%, cost of professional services, other known related expensesas per location(4) Proposed design, drawing, specifications, standard have been approved by thecompetent authority(5) The work is technically sanctioned by the professional expert and concurred by GM/DGM/CM of the Department.(6) Notice should appear in the newspapers of English, Hindi and regional language(7) Minimum 15 days of tender notice is a ‘must’.(8) Notice should also be given on Company’s website(9) Copies of tender notice to be displayed on web-site for execution of major works(10) The tender notice is for PQT – Pre-Qualification of Tenderers.(11) Based on the information, the Committee should identify deserving contractors for issuingthe regular tender.(12) The tender should be issued to selected contractors for identifying a suitable L-I.(13) If by chance for any reason L-I backs out, tender should be reinvited from remainingselected contractors. If by chance in the second exercise also L-I backs out, freshretendering process should be made or based on merits of the case,matter to be referredto competent authority.(14) The tenders will be in 2 parts with technical bid and financial bid.(15) The technical bid is only for indicating/requesting either improvement or modifications inthe terms and conditions laid down towards payment, scope of amenities and facilitiesoutlined in the tender and for additional consideration necessary for timely execution ofwork.(16) The financial bid should be without any condition, except discount/rebate.118 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.B. Medium Works costing Rs.2 lac to Rs.15 lacs:(1) Tender notice issued as per procedure should be placed on official website.(2) If for any reason L-I backs out his earnest money deposit would be forfeited and thereshould be retendering in a transparent and fair manner. In retendering process thebacked out tenderer should not be considered.C. Minor Works costing Rs.25,000/- to Rs.2,00,000/-.(1) Tender notice to be issued.(2) Tenders issued to contractors on rotation basis, on annual panel.(3) Posting on company’s website is recommended.(4) L-I is to be identified by the Tender CommitteeD. Petty Works: costing Rs.5,000/ to Rs.25,000/-.(1) Quotations to be invited from the contractors on annual panel.E. Petty Works costing less than Rs.5,000/-.(1) Work to be entrusted to suitable petty contractors on the annual panel.(2) Panel contractors should be rotated(3) As far as possible all panel contractors must get a job during the year.Basically, tender processing is for identifying one single suitable external agency against manyintending for execution of work for the company. As such, maximum care must be taken. Furtherthe entire activity should be as transparent as possible.The Department should maintain a Tender Register. The Register must provide information aboutname of work, tender notice number and date, names of newspapers in which it was published,date of publication, opening date, date of opening of tender, number of blank tenders issued,number of tenders received in tender box, number of tenders without EMD, names of TenderCommittee Members present for the opening of tender, names of contractors present for theopening of tender, details of offers as quoted by the contractors, details of offers as verified by theDepartment and the name of L-I.The Department should maintain a Register of Contractors on annual panel. Names of allcontractors category-wise selected for the panel must appear in the Register. Details of contractorsMANUAL ON ESTATE & ESTABLISHMENT119

The New India Assurance Co.Ltd.including office address, residential address, contact details etc.The panel should be reviewed once in 3 years and based on the review appropriate entries mustbe incorporated in the Register.Similarly a Register for empanelment of architects and other professional experts category-wisemust be maintained.The Department should ensure the Quorum of tenders/tender committee members.Where the tenders are invited from the contractors on annual panel, minimum 3 tenders must bereceived.At least 3 members is a ‘must’ for the functioning of the Committee.The blank tender sets even when an architect has been engaged should be prepared and issuedto the intending contractor by the Department. A Register of Issue of Tenders should also bemaintained by the Department.In case of major works, the architect must furnish one set of all required details and sufficient setsof drawings for the preparation of blank tender sets.The architect should also go through the tender before the Department issues the same to thecontractors.As per the guidelines of CVC, the Department must furnish QPR (Quarterly Progress Report) tothe Vigilance Department for the works under execution, as detailed below:-(1) Civil Work costing more than Rs.100 lacs(2) Electrical/Mechanical Works costing more than Rs.30 lacs(3) Stores and Purchase costing more than Rs.200 lacs.(4) Consultancy/Service Contract: 2 Major WorksWhen tender notice on PQT basis has been issued, identification of selected contractors isrequired to be made.Further, availability of contractors in metro areas and non-metro areas are different. As such, theDepartment can looking into the conditions, locality, circumstances, type of work etc. identifysuitable number of contractors for following works:l Civil worksl Electrical Works120 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.l Mechanical Worksl Gadgets, Equipments etc.l Specialized Equipments, Technical-oriented gadgetsl Solely manufactured items, If found suitable by the Technical Evaluation CommitteeWhere the tender notice has been issued on PQT basis, the contractors can furnish technical bidbased on their own format. However, if the nature of work warrants, a prescribed format can bedevised by the Department and issued to the contractorOnly the selected contractors should be issued with prescribed tender form for submitting financialbid at the price, depending upon the scale prescribed.Limited / Unlimited Tenders:As far as possible, minimum 3 bids should be available for proper evaluation and selection of L-I. In case 3 bids are not received permission of G.M. needs to be obtained.MODEL FLOW CHART OF OPEN TENDER PROCESSINGIn principle approval from the Competent Authority as per FSO in force(i)(ii)(iii)Draft of advertisementEligibility Criteria for qualifying in Technical BidTender specifications/tender documents including Bill of quantities, drawings etc.(i), (ii) and (iii) to be prepared by the department /office based on recommendation of theConsultant if appointed.To be approved by CRM/DGM at RO and DGM at HO (Cost of advertisement must be approvedby the Competent Authority as per FSO)Advertisement published and also displayed in websiteIssue of tender documentsOffers receivedChecking of the master envelopes, preparation of statement and opening of master envelopesOpening of technical bids, its evaluation, preparation of statement selection of qualified biddersand recommendation for opening financial/ commercial bids of the qualified short listed bidders.MANUAL ON ESTATE & ESTABLISHMENT121

The New India Assurance Co.Ltd.Opening of Financial/ Commercial Bids of the qualified Bidders, evaluation, preparation ofComparative Statement and selection of L-1 biddersNegotiation with the L-1 Bidder, if necessary as per CVC guidelines and confirmation in writingfrom the L-1 bidder about the reduced price, if agreed.Detailed note along with the above information to the Competent Authority for obtaining actualfinancial approval as per rate quoted and accepted by the L-1 Bidder plus contingencies whereverapplicable and also for approval of release of work order.CONSULTANTConsultant is required by the Company due to lack of in-house expertise in technical matters inmost of the offices. The appointment of Consultant must be done in transparent manners andthey must have accountability to the Company while rendering services. They should not beused as shield to evade responsibility. Consultant should be appointed in case of open tender.For other job work beyond Rs.2 lakh Consultant/ Architect may be considered for appointmentonly in case of non-availability of in-house expertise.i. Empanelment of ConsultantOur Company normally executes civil and electro-mechanical jobs. So Consultant shouldbe empanelled for these two categories.For empanelment advertisement should be given in newspaper as display advertisementfor issuance of application form for empanelment. The application format should be devisedin such a manner to collect inter-alia the following information supported by documentaryevidence.lTechnical QualificationlExperience in particular fieldlCredentials for supervision/ executing jobs from well established organizationlLatest Income Tax return with PANlService tax registration No.Such applications should be scrutinized by Tender Committee and the panel so formedmust be approved by GM (E)/ RO Incharge. The panel should be updated in every threeyears by including new names who have applied for empanelment under respective categorybased on their eligibility and deleting the names of those whose performance is notsatisfactory.122 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.ii.Appointment of ConsultantConsultant for any particular job/works, if required, should be appointed from the panel soconstituted, for the job/purchase value which does not require open tendering. The feesshould not exceed 4% value of job. The job value means the net amount of bill payable tothe selected vendor/ contractor retention money, penalty need not be deducted from the billamount to arrive at the fees payable to Consultant. However, for any additional job, the feesto be considered separately at the same rate on the additional job value.iii.Job Profile to the ConsultantPreparation of job/work specifications, estimate drawing, layout plan, bill of quantities, tenderdocuments etc. according to requirement of the Company in consultation with theDepartment Officials assist in selection of vendors from whom tenders have been received(i.e. evaluation of technical and financial/commercial bids). Overall supervision of the jobduring the entire period of execution on periodical intervals and/or as required by theCompany, checking and certification of works, checking of bills raised by the selectedvendors, right upto answering CVC/ CAG queries, if any.iv.Payment of feesConsultant’s fees will be released in phases:-a) 25% on completion of estimate/ preparation of tender documents.b) Balance amount will be released progressively against each running/final bill.v. MiscellaneousThe performance of the Consultant should be watched. They should not be taken as granted.This will avoid possible collusion with the vendor, biased recommendation, undue benefitto the vendor. Penalty clause for deficiency in service should be mentioned in the terms ofreference.vi.vii.viii.‘For execution of job of estimated value upto Rs.1 Crore the services of the empanelledConsultants (for the category of the job for which they are empanelled) may be utilizedwithout inviting any quotation.For execution of job of estimated value above Rs.1 crore or the limit prescribed for theexisting panel (whichever is lower) Consultant should be deputed through Open Tender(press advertisement) following two bid system.Services of the Consultant may be utilized for job value below Rs.2 lakhs if the situation sodemands on the nature and type of jobMANUAL ON ESTATE & ESTABLISHMENT123

The New India Assurance Co.Ltd.ROs where panel of Consultants/ Architects does not exist they may utilize the panel ofLIC/PSU Banks and Insurance Companies/ other PSU/ Government Departments for jobvalue upto Rs.50 lakhs. The concerned RO shall prepare a panel of their own based onreference from such offers as mentioned above and applications may be obtained fromsuch Consultants along with the documentary evidence in support of their eligibility andcredentials. On scrutiny of the applications received the concerned RO will finalise thepanel and get it approved from the RM/DGM. Such panel may be utilized for job value uptoRs.50 lakhs. Quotations may be obtained from such Consultants for any particular job orjobs and the lowest bidder may be awarded the job.Note: Consultants fees may not exceed 4% of the actual cost of job executed.HHHHH124 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Execution of WorksThe actual execution of work falls under the purview of the executing department viz. Estate/Establishment/Property.On finalization of L-I by following the entire tender process scrupulously, the steps to be taken forexecution of work begins.If the accepted tendered cost is within the original sanctioned amount by the competent authorityor within 25% of excess of the administratively approved cost, the letter of acceptance of tenderto the contractor can be issued. If it exceeds 25% of tendered cost ,the same may be acceptedafter getting clarification from Architect / Consultant & subject to GM,s approval.A letter of acceptance of tender should be issued only after payment of prescribed security deposit.The security deposit could be for the entire amount, wherein in due course the earnest moneydeposit would be refunded or the security deposit could be for the balance amount by retainingthe earnest money deposit as part of the security deposit.The tender agreements should be signed by both the concerned parties in witness of architect/professional consultant if any appointed for the work. The site should be handed-over to thecontractor.The amenities and facilities being made available to the contractor should be listed and theconcerned departments should be informed.A detailed discussion should be held with the contractor, their site engineers/architects/designengineers/structural engineers if any involved for the work and should draw a regular time-tablefor the execution of the works..Either a bar chart or CPM/PERT (critical part method/part evaluation review technique) shouldbe drawn and displayed at the office/site. For all major works detailed plans mounted on boardsshould be displayed. If possible, models of the structure should also be prepared and kept atwork site.A Site Inspection/Instructions Book should be kept at the work site. Due care must be taken toensure that :(1) Method being adopted for measuring the quantum of work executed, either on quantitybasis or stage basis should be decided, for release of payment of R.A. Bills; along with therelease of payment of contractor, payment of Architect can also be released.MANUAL ON ESTATE & ESTABLISHMENT125

The New India Assurance Co.Ltd.(2) If the payment is on stage basis, a drawing showing the stages for releasing the paymentshould be made and displayed in the site office..(3) For all major works a sign board should be installed furnishing the essential details aboutthe work viz. name of the work, duration of execution, date of commencement, estimateddate of completion, name of the contractor, name of the professional expert, name of theofficer -in-charge, telephone numbers of the officer- in-charge at site.(4) If the contractor is entitled for grant of mobilization advance and has requested for thesame, mobilization advance should be released upto 25% of the accepted tender costagainst submission of Irrevocable Bank Guarantee executed for an equal amount from areputed nationalised bank operating in the proximity of the office and entering intomobilization advance agreement wherein compensation for delayed execution is outlined.(5) Actual date of commencement of work must be kept on record.(6) A set of approved materials along with sample of such materials should be available in thesite office.(7) If the contractor requests for material advance, it can be considered by the CM based onthe recommendations of the architect provided:-(a) The materials which are actually required for the execution of work has been brought.(b)(c)The material is of approved qualityThe quantity is of approved estimated quantity(d) The advance will not exceed 75% of actual purchase cost. (e) The contractor willinsure and ensure materials at site.(8) Once in a week Manager of the Dept./architect/contractor along with the site-in-charge/engineer should jointly inspect work.(9) Wherever necessary, the materials should be got tested from the appropriate testinglaboratories and reports are kept in the site office.(10) The method adopted for making payment to the workers/laborers by the contractor shouldbe outlined and notified in the site office.(11) As the work progresses, based on the quantum of work, running account payment shouldbe released to the contractor, based on the recommendations of the architect.126 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(12) CM/DGM/GM/or any Officer nominated by G.M. of the Department are the competentauthorities for releasing the payment of the contractor.(13) For releasing payment for the works, the Officers shall exercise their authority as perFinancial Standing Order 2005, amended from time to time unless specific approval fromCMD/G.M. is obtained.(14) Release of running payments to the contractors is normally based on recording ofmeasurement based on joint measurements and effecting percentage check by the seniorexecutives. However, it would be appropriate if the CM inspects the work to get satisfiedwith the standard of execution vis-à-vis quantum of execution of work for releasing runningaccount bills based on the recommendations of the architect.(15) Atleast once the DGM should inspect the work costing more than Rs.5 lacs to Rs.50 lacs.(16) GM should inspect atleast once where the work involved is more than Rs50 lacs.(17) If the contractor is bound to provide Performance Guarantee for certain items likewaterproofing, the quantum of such items should be identified for retaining 10% of the costwhile releasing the final bill.(18) The number of installments for releasing the Performance Guarantee Deposit would bethe same number of years the contractor has guaranteed the performance, i.e. if the work isguaranteed for 10 years, each year installment of 1% would be released.(19) Based on the items executed, the defect liability period should be decided in advance. Itcould be 3/6/9/12 months or it could be one monsoon.(20) Normally, the work is supposed to be executed as designed and tendered. However, incase there are certain items requiring to be executed, such items can be executed as extraitems.(21) Extra items means items which will have to be executed by the same contractor for theexecution of main work, and without execution of such items it will not be possible to executethe items in the accepted tender.(22) The quantum of such extra items should not exceed 15% of the estimated cost.(23) The rate agreed for execution of extra items will be based on material cost, labor cost andsame quantum of overhead cost, which was adopted by the contractor while quoting forthe main work.(24) Extra items up to Rs.10,000/- can be approved by the CM.MANUAL ON ESTATE & ESTABLISHMENT127

The New India Assurance Co.Ltd.(25) Extra items costing more than Rs.10, 000/- up to Rs.50,000/- must be approved by theDGM and above Rs.50,000/- must be approved by G.M.(26) There could be necessity for executing some items, but do not fall under the category ofextra items, but may be found economical if executed along with the main work. Suchitems are known as ‘similar items’.(27) The rates for similar items could be:(a)(b)Accepted and paid rates for execution of any work through any contractor duringthe year by the Department, orAccepted and paid rates for the work executed by the contractor for any Governmentorganization in that locality during the year.(28) Variation in quantity should be within the limit. If the variation in quantity for any item iswithin 10% of the estimated quantity, the CM could approve the same.(29) If the variation is more than 10%, but less than 20%, the same can be approved by theDGM.(30) If the variation is more than 20%, the GM must approve such variations.(31) There should not be any deviation in the specification to the extent possible.(32) If the deviation in specification becomes necessary, such a deviation should not be in theform of indirect financial help to the contractor.(33) Such deviation in specifications within the estimated cost of such items could be approvedby the CM.(34) If such deviation in specification involves incurring additional expenditure upto 10%, thesame should be approved by the DGM.(35) If the deviation in specification is more than l0%, but less than 25%, the GM of theDepartment can approve. If it is more than 25% CMD must approve.(36) All consideration for deviation in specification must be based on factual details, realisticcondition, need for such execution based on recommendations of the architect/ professionalengaged for the work.(37) The Vigilance Department normally treats the execution of work by deviation in specificationas an effort to help the contractor to gain financially and feels as unfair practice.128 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(38) As such action of the Department should be as transparent as possible while decidingitems under deviation of specifications.(39) A continuous study of the work based on the quantum of work approved should be made tocheck whether the entire expenditure would be within the originally sanctioned cost.(40) The concerned authorities must be kept informed on all increases in work, from time totime.(41) Final Bill can be released only on obtaining revised sanction, if necessary, for the totalexpenditure based on final bill of contractor and professional expert .(42) If any deposits have been paid to local organizations for execution of work, like temporarydeposit for water connections, temporary deposit for power connection etc., the contractorshould arrange for refund of such deposits prior to releasing the retention money.(43) The retention money should be released to the contractor on expiry of defect liability periodon joint inspection of work along with the architect.(44) Release of retention money would be only after payment of Performance Guarantee Depositif required for the work.(45) The information should be displayed on the website of the Company.(46) If the work is in the category of quarterly reports, a copy of the report should be sent to theVigilance Dept. without fail.(47) If the work is on ‘threshold value’ category, one time information should be kept on websiteand updated during the process of execution (Normally works costing more than Rs.2lacs).(48) The site must be got cleared by the contractor before releasing the final bill.(49) If the work is costing more than Rs.1 crore for civil work while clearing the site, all thesamples, models, test reports, equipments, measurements etc. should be preserved at asuitable place to enable the Department for arranging such required details if the engineers0f CTE inspect the work.(50) Time limit is the essence of contract. There could be some delay during the actual executionon account of various reasons.(51) If the delay is on account of statutory requirements, the CM should grant extension in timelimit.MANUAL ON ESTATE & ESTABLISHMENT129

The New India Assurance Co.Ltd.(52) If the delay is on account of contractor, in arranging material, labor, equipment, machinery,fixtures, fittings et c. and the same is within 5% of time limit or l5 days the same can beapproved by the Manager based on the recommendations of the architect.(53) If the delay is more than 15 days, but less than 45 days, the same can be approved by theChief Manager.(54) If the delay is more than 45 days, extension in time limit as requested by the contractor canbe considered by the DGM /GM either (a) without imposing any compensation forextension in time limit based on the realistic compelling prevailing situation or (b) maygrant extension with compensation.(55) Quantum of such compensation should not exceed 25% of security deposit. If the contractorfails to execute the work even after the grant of Extension in Time Limit with the impositionof fine by giving Notice, the contract depending upon the situation may be terminated andthe security deposit should be forfeited. Fresh tenders may be invited for execution ofbalance work.(56) During execution of work approved by the competent authority, no further works should beincluded along with the main project, being sanctioned by other executives of lower cadrefrom their financial authority.(57) If there is a necessity to execute some minor work within the authority of other executives,the same should be done only after execution of the main work by the contractor andsettlement of his final bill.HHHHH130 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Execution of Work – Technical(1) All works are to be executed only after obtaining administrative approval (Financialsanction) and Technical sanction.(2) The Financial sanction is by the authorities of the organization being in-charge of theDepartment and it will be according to the Financial Standing Order of the Company.(3) The Technical sanction is by a person who is technically qualified in the field. If the GM/DGM/CM/M of the Department executing the work are technically qualified persons,they should accord technical sanction for works falling within their limit as per theFinancial Standing Order.(4) Where a non-qualified engineer is the Head of the Department, in the rank of CM orwhere the works are costing more than Rs.5 lacs, even when the Department Head is inthe rank of CM is a qualified engineer; it will be preferable to engage the services of anexternal professional expert for vetting the proposals technically.(5) As such, all works costing more than Rs.l lac may be executed with the help of an externalprofessional expert in absence of adequate inhouse expertise.(6) Technical sanction is a certification for the proposed work being in order.(7) Each operating office must maintain a panel of Architects for execution of works. Thepanel should be category-wise:Category ‘A’ –Category ‘B’ -Category ‘C’ -Works costing not more than Rs. 5 lacs.Works costing more than Rs.5 lacs, but costing not more than Rs.50 lacsWork costing more than Rs.50 lacs, but costing not more than Rs.100 lacs.(8) For all works costing more than Rs.100 lacs, suitable professional architect should beidentified on open tender basis(9) A detailed tender notice should be published in Leading newspapers for pre- qualificationof Architects to be kept on annual panel(Empanelment Notice to Architects).(10) The pre-qualification tender should be in 2 bids(a)(b)Technical BidFinancial BidMANUAL ON ESTATE & ESTABLISHMENT131

The New India Assurance Co.Ltd.(11) The intending architects must furnish complete details about their educationalqualifications, work experience, specialized fields, major works executed in the last 5 to10 years.(12) The financial bid should be towards the scale of fees and the stages of release of payment.(13) A committee should be constituted for the scrutiny of pre-qualification applications.(14) Based on the information available, if required, they should also inspect some of theworks executed under their supervision.(15) Based on the category of the architect and based on the quantum of works executed bythem in the last 3 years, a panel of these architects should be prepared category-wise.(16) The architects must have been responsible for the execution of works under theirsupervision atleast one work equivalent to 30% of the category in which they are to beregistered, i.e. if an architect has executed a work costing above Rs.1.65 lacs, he can beconsidered to be in the panel of Category ‘A’ (Rs.5 lacs limit).(17) The panel should be reviewed on 3 yearly basis either for deletion, or for up gradation.(18) The architect identified for the work should also be requested to specify whether:(a)(b)(c)(d)They have understood the work requirements, have inspected the site and areconversant with the location and surroundings and would be in a position to provideall the required services in all the fields for proper execution of the work.In case they are not in a position to render complete services, they should clarifythe fields in which additional experts like electrical engineer, mechanical engineer,communication engineer, lift engineer, air-conditioning engineer, horticulturespecialist, structural engineer, design engineer etc. are required and estimatedquantum of expenses that would be involved should be indicated.The architect should also indicate whether the cost of such services would beabsorbed by them from their professional charges or would have to be paidseparately to the consultants on his recommendations.The architect should also suggest atleast 2 to 3 names of such experts whoseservices would be required for the execution of work.132 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.(e)Further, the architect having inspected the site, should analyze the nature of work,the quantum of supervision, and indicate whether any additional expense arerequired to be paid to him towards the inspection visits or any arrangements areto required to be made for supervision work.(19) The total payment of professional charges to be released to the architect would not exceedthe quantum indicated in the financial bid submitted while application for pre- qualificationhad been invited.(20) Each work is of different nature and stages for release of payment is altogether different.(21) The architect is an external professional expert who would be representing the companyand would be functioning on behalf of the Department. More or less for all purposes hecan be treated as CM of the Department. Keeping this in mind, a suitable expert shouldbe identified.(22) On identification of suitable architect the work should be entrusted to him for planning,designing, detailing, rough estimating, specifying etc.(23) On holding detailed discussion with the architect, the Department should finalise theplan for execution.(24) Based on the final plan, standard, the architect should arrive at the actual cost of execution.(25) Based on the cost furnished by the architect, financial sanction of the competent authorityshould be obtained.(26) Based on the tender set prepared by the architect, further action towards execution ofwork by the Department should be initiated.(27) The architect will be associated with the work till the release of retention money andanswering CVC queries if any of the successful contractor on expiry of defect liabilityperiod.(28) Special precaution should be taken by the Department to ensure that the variation inexecution of work is within the limits and in case there is a wider variation in executionand quantum of final bill of the contractor has increased, the quantum of professionalcharges of the architect shall increase proportionately.MANUAL ON ESTATE & ESTABLISHMENT133

The New India Assurance Co.Ltd.(29) As far as possible, the architect should be local.(30) The work to be executed in the locality is required to be approved by the local authority,based on the designs submitted by the architect, registered with them. As such, theprofessionals will have to be local.(31) If the work calls for detailed study by structural engineers and design engineers, theprofessional charges towards their services could be included in the professional chargesof the architect, i.e. the professional charges of the architect are inclusive of all consultationcharges irrespective of the number of professionals involved therein unless specificallymentioned otherwise..HHHHH134 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Printing, Stationery, General Items andComputer StationeryPrintingPanel consisting of adequate number of reputed printers having modern facilities, expertise,capabilities, financial background, manpower, storage space should be constituted.There should be two categories of Printers and accordingly panel should be constituted.Category ‘A’ Printers – for executing multi color jobs and quality jobs.Category ‘B’ Printers – for executing ordinary jobs like forms register etc.For preparation of panel advertisement should be given in three newspapers (vernacular, Hindi& English) for issue of tender papers as display advertisement. Tender papers should be preparedto elicit maximum material information about the intending vendor and also mentioning termsand conditions for empanelment.About 15 days time must be given from the date of issue of advertisement in the newspaper tillsubmission of tenders. Sealed tenders should be invited along with Earnest Money andsupporting documents. Earnest Money of Rs.5000/- to Rs.2500/- should be asked for Category‘A’ and category ‘B’ vendors respectively. Earnest Money of the qualified vendors should bekept as security deposit till such time they are in the panel and will bear no interest.The sealed tenders submitted by the intending applicants will be scrutinized by a committee (asdescribed below) with the help of the department concerned.The number of printers selected to be optimum keeping in view the quantity of job of that particularOffice/Department.After initial short-listing Officers from the Office/ Department (having experience and capabilitiesof doing such job) shall visit the premises of the shortlisted printers and submit report whichshall contain information, inter-alia the following:1. Existence of the Printers2. Genuinity of information given by the Printer in the tender3. Market reputation which may be verified from the documents like work orders etc.4. Any other relevant informationMANUAL ON ESTATE & ESTABLISHMENT135

The New India Assurance Co.Ltd.The Committee after scrutinizing the documents/ information given by the vendor and also theinspection report submitted shall finalize the panel with the assistance of the concernedDepartment. Such panel should be approved by DGM(E) in HO and Chief Regional Manager inRO.Any agent, mediator, representatives etc should not be selected under any circumstances.The panel so constituted shall be valid for a period of two years. Since constitution of panelinvolves expenditure by way of advertisement and also substantial amount of manpower, thevalidity of the panel may be extended further subject to satisfactory performance of the vendorsand submission of valid/ current Trade License, Sales Tax & Income Tax returns. However, inevery two years panel should be revised and unsuccessful printers are to be deleted from thepanel.The validity of the panel for extended period must be approved by DGM at HO/ Regional Inchargein RO.After finalization of the panel, the EMD of the unsuccessful printers should be returned and thoseof the empanelled Vendors will be kept as security deposit. The EMD and SD will bear nointerest which must be specifically mentioned in the tender document.Empanelment letters should be issued to the successful printers. Such letter must be very clearand unambiguous and the following points must be mentioned in order to avoid any futurecomplications.1) Validity period of the panel.2) The S D will bear no interest.3) The empanelment is subject to satisfactory performance of the Printer.4) The Company is not subject to any terms, conditions, stipulations imposed/ to be imposedby the printer.5) The Company reserves right to de-panel any Printer without assigning any reason/s bygiving thirty days notice in writing. Similarly any Printer may withdraw from the panel bygiving thirty days notice.6) The Printer should participate in all Tender process when called for.7) The validity period of empanelment may be reduced or extended if so felt by the Company.8) Reference of the terms and conditions of tender paper issued & submitted.136 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Issue of Tender to the empanelled printers (Price Bid)i. On receipt of requisition from any department for printing of a specified item or as perrequirements of the establishment dept. a note should be prepared mentioning the totalfinancial involvement for printing of that particular item/s for getting financial approval.ii.iii.iv.To arrive at the estimated financial involvement the department will consider price ofsimilar items printed in earlier occasions and based on their experience. They may consultexisting vendors to arrive at more accurate figure. This is to be followed since the Companydo not have own specialist/ Consultant of this field.Before issuance of tenders, approval must be obtained from the concerned Authorityhaving Financial Authority as per F.S.O. The department must ensure that there is sufficientbudget for the items proposed to be printed.After receiving financial approval the department shall prepare financial bid. The Bidmust specifically contain quantity, size, process of printing, color, unit quality of paper,tax and other incidental expenses.v. About seven days time should be given to the empanelled printers to submit their bids.The last date of submission of the bids should be on any working day preferably by 2.00p.m. and as far as possible the bids should be opened on the same day at 2.30 p.m.vi.vii.viii.Only financial bid may be called for. There is no need for two bid system.The bids so submitted will be opened by Tender Committee. The members of theCommittee will sign all the papers including envelopes and prepare a comparison chartof the prices quoted by the bidders with the assistance of Department/Office concerned.The entire process should be recorded in writing in the Minute Book and signed by allmembers of the Committee. Based on evaluation, the Competent Authority may placeorder to the L1 bidder.There may be certain items, the requirements of which can not be ascertained accuratelyin advance. For example, letter head pads, memo pads, envelopes, visiting cards, DOpads etc. Further keeping stock in the office for same items will require space and thereare possibilities of materials being damaged/ soiled.For such items financial bid may be asked from the empanelled printer asking the rateper unit. For example rate per 100 pcs of visiting card, rate per 1000 pcs of envelope etc.The specification of each item should be clearly mentioned in the Financial Bid. Ratesquoted for such items will be valid for six months/ 1 year. An indication may be given fortotal requirements also in order to get more competitive rates and for the sake ofMANUAL ON ESTATE & ESTABLISHMENT137

The New India Assurance Co.Ltd.transparency. A specimen of such financial bid is given afterwards which may be suitablyamended according to requirements.ix.Before final printing, the department concerned or the establishment must approve thematter, design, layout etc. based on such approval, the concerned printer may finallyprint the particular item. In the challan for acknowledgement the vendor must mentionorder number and date of order amongst others.De-panelment of Printer – A printer may be de-paneled, if so felt by the concerned department/office in any one of the following circumstances:a) Non participation in 50% of the tenders in a year.b) Inability to supply items as per rates agreed terms and conditions quoted.Year means- 12 months from the date of issuance of empanelment letter and so on for the nextperiods.The above points should be included in the tender for empanelment and also in the empanelmentletter.For depanelment a note should be prepared by the department stating the reasons fordepanelment supported by evidence and be submitted before the Competent Authority i.e. DGMfor HO/ Regional Incharge for RO.In case of genuine mistake/difficulty department may be condoned by the Competent AuthorityDGM for HO and Regional Incharge for RO after obtaining written clarification and also undertakingthat such things will not recur in future.Processing of Bill- The vendor should submit bill mentioning the order particular and enclosingthe original challan which has been signed by the office. The department should check the billwith reference to the order and verify that the bill is in conformity with the particular order i.e.rates, units etc. The department should also verify the specification, quality of the paper supplied,colour coding, etc. Necessary marking/ endorsements should make in the copy of order and thechallan. All such bills should be entered in a register mentioning the relevant particulars and acopy of the bill should be kept in record before sending to Accounts department for payment.HHHHH138 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Instruction to Tenderer for Empanelment as PrinterTender No. Date :The New India Assurance Co. Ltd. ______________________ Office (thereunder called“Company”) invites applications for empanelment of Printer to undertake various types of printingjobs.Category ‘A’ Printer : Having multi-color off-set printing machine with all allied infrastructure tocarry out multi-color and quality jobs.Category ‘B’ Printer : Having all infrastructure to carry out ordinary jobs (other than as mentionedin Category A above).ELIGIBILITY CRITERIAa. Must have the necessary machines and infrastructure to carry out printing job (for thecategory of job for which empanelment is sought)b. Must have necessary arrangements and other facilities like binding, packaging etc.c. Must have three years experience in the field of similar type of printing.Application should be submitted as per enclosed forms along with the following documents:-i. Photo copy of valid Trade License issued by the appropriate Authority to carry out thebusiness of Printingii. Photocopy of latest Income tax Returniii. Photocopy of latest Sales tax/ VAT returniv. Earnest Money :-For Category ‘A’ Printers : Rs.5000/- (Rupees five thousand only)For Category ‘B’ Printers : Rs.2500/- (Rupees two thousand five hundred only)Earnest Money in the form of Demand Draft/ Pay Order/ Banker’s Cheque drawn infavor of ‘The New India Assurance Company Ltd. payable at ________________ mustbe submitted along with the application.The Printers who will be selected and empanelled the EMD of such Printers, will bekept as security deposit and will bear no interest. EMD for unsuccessful applicantswill be returned without any interest.MANUAL ON ESTATE & ESTABLISHMENT139

The New India Assurance Co.Ltd.OTHER INFORMATION/ TERMS AND CONDITIONS1. The selected Printers shall be eligible to participate in tenders for jobs of estimatedvalue up to Rs.2 lakhs (Rupees Two Lakhs only). Category ‘A’ printer shall be eligible toparticipate for multicolor job and special quality.Jobs as would be decided by the Company Category ‘B’ Printers shall be eligible toparticipate for ordinary jobs.2. Those who do not have their own Printing Press need not apply.3. One Printer may apply for both Category i.e. Category ‘A’ and ‘B’. In that case they haveto submit separate applications and separate Earnest Money.4. All the documents submitted must be clearly legible and duly signed and stamped bythe Applicant.5. The Company reserves absolute right to accept or reject any or all the Tenders withoutassigning any reason/s whatsoever.6. Application without Earnest Money shall liable to be rejected.7. The Company reserves the right to inspect the premises of the Printer and/or ask forany other document and/or originals for inspection.8. Any reference/ inspection of premises of Printer from our end shall not deem to beconfirmation of empanelment by the Company.9. Decision of Company about Category of job i.e. ‘A’ and ‘B’ is final.10. The empanelment shall be for a period of two years which may be extended or reducedas per discretion of the Company.11. The Company reserves the right to depanel Printer in the following circumstances (anyone):-i. Non participation in 50% of the Tenders in a yearii.iiiInability to supply materials as per rate quoted.Inability to comply with general terms and conditions for panel printer.Year means- 12 months from the date of issuance of empanelment letter and so on forthe next periods.140 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.12. If on verification/inspection it is found that any information or documents submitted byan Applicant is false, fabricated or incorrect, the application of such tenders shall berejected.13. The selected Printer may at their option, withdraw from empanelment by giving thirtydays notice in writing. The Company may also depanel a Printer by giving thirty daysnotice in writing without assigning any reason/s.14. The Company may ask for further information/ documents if necessary.Properly sealed envelope superscribing “Application for empanelment of Printers, Category______” containing all documents and EMD should be dropped in the Tender Box kept at ouroffice premises within 2.00 p.m. of _________________________________________(Signature)Name :Designation :Encl. : as aboveHHHHHMANUAL ON ESTATE & ESTABLISHMENT141

The New India Assurance Co.Ltd.Application for Empanelment as PrinterAPPLICATION FOR EMPANELMENT AS PRINTER WITH THE NEW INDIA ASSURANCECOMPANY LIMITED________________ OFFICEFOR JOBS OF ESTIMATED VALUE UP TO RS.2 LAKHS1. Type of Printers for which application is made i.e.Category A or B2. Name & address of the Printer3. Telephone / Fax/ Mobile No.4. Name of Contact person with Phone no.5. Year of Establishment6. Type of firm (sole proprietorship/ partnership/Limited Company/ Others)7. No. of employees8. Area/ space of the Press9. Machines detailsSl.No. Type of Machines No. of Machines Remarks if any10. Turnover/ sales relating to Printing Jobs during the last three financial years.YearAmount (Rs.)142 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.11. Names and address of top 5 clients12. Details of documents submitted :i)ii)iii)and so on13. Details of EMD submitted.DeclarationI/We declare that the statement/ information given above are true and documents submitted aregenuine. If it is found by The New India Assurance Co. Ltd. that any information as given above isincorrect and/or any documents submitted is false, the Company may reject my/our application.Signature :Name :Stamp :MANUAL ON ESTATE & ESTABLISHMENT143

The New India Assurance Co.Ltd.Specimen letter for empanelment of PrinterThe New India Assurance Company Ltd.Ref. No. Date :To____________________________Dear Sir,Re : Your empanelment as Printer-Category - A/ B (strike out which ever is not applicable)This has reference to your application dated _____ for empanelment as Printer for execution ofjob with this office. This empanelment is subject to the following terms and conditions.1. You are eligible to participate in tenders for the Category of jobs as mentioned above forestimated value upto Rs.2 lakhs2. The empanelment will be for a period of 2 years from today. However, the Companyreserves the right to reduce or extend the validity period of the empanelment.3. The security amount deposited with the Company shall carry no interest.4. Continuance of your empanelment shall, inter-alia depend on your satisfactoryperformance.5. Imposition of any terms and conditions from your end shall not be acceptable. In suchevents, the Company reserves the right to discontinue your empanelment.6. The Company reserves the right to depanel your name under the following circumstances(any one):-i. Non participation in 50% tenders in a yearii.iii.Inability to supply materials as per rate quoted.Inability to comply with general terms & conditions for Panel Printer , enclosed herewith.[(Year means - 12 (twelve) months from the date of this letter and so for the next period.)]144 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.7. You will submit to the Company the copies of the current valid documents like TradeLicense, Sales Tax & Income Tax return, the validity of which will expire during the currencyof your empanelment.We are enclosing Money receipt no. _________ dated _______ for Rs._____________ asagainst EMD submitted by you which has been kept as security deposit and shall bear no interest.This empanelment is further subject to terms, conditions etc of the Tender under reference andgenuineness of the documents/information submitted by you.This letter is sent in duplicate, kindly return a copy duly signed and stamped as a token of youracceptance.Thanking you.Yours faithfully,Signature:Name:Designation:Encl: as above(This draft empanelment letter may be used for Stationery/ General Order Suppliers/ other vendorsafter making necessary amendments to suit particular requirement).HHHHHMANUAL ON ESTATE & ESTABLISHMENT145

The New India Assurance Co.Ltd.General Terms and Conditions - Panel Printer1. Application of Rates : Quotation rates once approved by competent Authority shall remainin force for at least for a year of approval irrespective of the quantity by way of repeat orderplaced from time to time as per office requirement Quotation rates are to be submittedinclusive of free door delivery charges, Transportation, octroi charges & Taxes.2. Placement of Order : On approval of the quotation rates an informal work order shall beplaced with the printer with a request to submit the proof of the items as per requirement.3. Proof Reading Schedule on receipt of the informal work order printer shall be requiredto comply with the following : Submission of 1st proof within 7 days on receipt of theinformal work order .Submission of final corrected 2nd proof on receipt of the same within 3 days . It is clarifiedthat in the event of noncompliance of proof reading schedule, informal work order placedwith the printer automatically stands cancelled and management reserves the right to placeorder with other printer at their discretion.4. Placement of Final work order : Upon satisfactorily meeting with the proof reading schedule,final work order shall be placed with the printer and the same will be conveyed to therespective depts,. Specimen of material to be printed will be supplied by the concernedDept., Printers to note that the purchase order will be given .5. Imprint : It will be imperative on the part of the printer to imprint on each and every itemprinted. Printer shall also ensure that Imprint should indicate printers name, quantity printedand the year and month together with the Company’s name and logo as advised /suppliedby the Company.6. Quality control : Quality of the paper used by the printer shall be the same as approved bythe management at the time of acceptance of quotation. The Printer shall maintain the samequality of the paper through out the contract period.Quantity in packing should be accurate as indicated in order. In the event of any discrepancyeither in quality of the paper used and/or the quantity supplied on spot inspection, contract/ order executed shall automatically stands cancelled and the printer will be blacklisted.The printer shall be responsible for replacement of the correct material without additionalcost. In addition there will be penalty in the range of at least 20% of the total contract valuein case of supply of inferior quality material. The stationery items dispatched will be checkedby the concerned official of the HO/RO/DO/BO and the report of the same will be sent to thedealing department146 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.7. Delivery Schedule : Door delivery to be made to any of our office or Head Office if instructed.On approval of the final proof. Printer will be required to supply the material to our respectiveoffices as underLocal Offices within 7 daysOutstation Offices : within 10 daysEven in case of repeat order, the delivery schedule shall be the same as above. With thedelivery challan, the printer shall make available list of items supplied together with thequantity of each and every consignment and the copy of the same can be placed in bundlefor outstation offices and one copy of the same should be marked to Establishment Dept.,ofHO or RO as instructed for perusal and information8. Payment : The payment shall be made by the office placing the order after ensuring thatnecessary supply has been made and delivery challan have been authenticated by officerin charge of the office or Stationery Dept. . Payment will be made within 15 days of submissionof bills provided the same are attached with delivery challan duly signed and stamped .9. Penalty Clause : In the event of failure in delivery schedule on execution of order as statedin item No. 7 penalty clause shall be applicable @20% of the total contract value.10. The company reserves the right to accept or reject any or all the offers without assigningany reason thereof.11. Failure to fulfill the work order placed or any of the terms and conditions will result intoforfeiture of the entire earnest money / security deposit without assigning any reasons thereof.12. Refund of interest free security deposit will be considered only under very special casesand the decision for the same will be entirely the discretion of the printing committee.Place :Date :We have read the Terms and conditions as stated above (point No.1 to 12) and we herebyagree and give our consent to adhere to terms conditions as listed aboveHHHHHFor M/s.SignatureWith stamp of the printerMANUAL ON ESTATE & ESTABLISHMENT147

FurnishingThe New India Assurance Co.Ltd.After acquiring a premises, either on ownership basis or on rental basis, either for residentialaccommodation or for office purpose, or for any other purposes, it becomes necessary to provideadditional amenities, facilities, fixtures, fittings, furniture and to arrange for upkeeping andmaintenance of premises.Office premises on ownership basis:The requirements will depend on whether the premises have been built according to ourspecifications and requirements, or the premises have been built according to builder’sspecifications.On making a careful study, the requirements are to be finalized.Interior decoration will have to be executed to provide earmarked passage, place of working,cabin, storage etc. A detailed plan will have to be drawn by an Architect, appointed for the purpose,either on exclusive basis or from the annual panel. The norms for area will have to be adoptedvery carefully.All essentials must be provided and the provision should be on functional basis and may notluxury-oriented.Depending upon the style of office, the type of table, chair, side unit etc. can be decided. Havingan earmarked passage for movements and adequate space for visitors is a ‘must’.The storage area should be preferably away from the normal working area to maintain the décorof the office.Air-conditioning if sanctioned by the competent authority could be either centralized or unitized/localized.Wherever centralized AC system has been adopted, it becomes necessary to provide standbyfor power supply, either through generators or through earmarked sub-stations of the supplycompanies.In case the requirement is very large, the supply companies would be willing to install substationsto meet the demand. However, adequate area will have to be made available along withfree passage for movement.148 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Normally, 1 ton AC Unit covers an area of 1000 C.F.T. (10 x 10 x 10). However, if false ceiling atplaces is provided, the area covered by the same unit of 1 ton, would be about 140 to 150 sft.Thus, false ceiling facilities have effective, economical air-conditioning system.However, adequate care should be taken to ensure that the ceiling is in order before providingfalse ceiling in that area.All the cabins of the General Mangers/DGM/Chief Managers/ Officer-in-Charge of DO/ RO/Meeting Rooms should have the AC facility.Even though wooden wall paneling improves the AC system, looking into high cost of work, firehazard and luxury-oriented look, it should be avoided to the extent possible.Carpeting the floor also improves the AC system in addition to adding décor to the enclosures.However, looking into the cost, carpeting should be restricted to the cabins of executives in therank of DGM and above and Board Rooms/ Meeting Rooms in ROs.All the works, where the centralized air-conditioning system is decided, must be carried alongwith the interior decoration work. The window units/split units may be installed any time dependingon the requirement.The AC plant and machinery calls for annual maintenance, and maintenance should be preferablyby the manufacturer or his authorized agencies.It would be appropriate, while inviting tenders for such works, to instruct the contractors to furnisha final break-up of costs as under:-1. Supply and installation cost X%2. One year warranty period Maintenance cost Y%3. 9 years service and maintenance cost @ a % per year Z%Total 100%On commissioning of plant and satisfactory working, X% of bill can be released.On completion of satisfactory performance of one year, Y% of cost can be released.Further on yearly basis, on satisfactory performance, payment at A% can be released.Similar procedure should be adopted where the installation and maintenance of equipment isrequired to be carried out by the same agency, like telephone exchange, water cooler, AC units,coolers, fax/xerox etc.MANUAL ON ESTATE & ESTABLISHMENT149

The New India Assurance Co.Ltd.In case there is a major deviation in the proportion of cost quoted by the bidder/contractors, acareful study must be made.If the premises are on hired basis, with less than 10 years of tenure, AC system may be either onwindow or split unit basis, so that it could be easily removed and re-fixed at a new location.Further, the cost of false ceiling etc. should also be avoided.Having identified the requirements of furniture, fittings and fixtures, based on the style offunctioning, an effort should be made for standardization.Standardization would help in many ways. It adds to uniformity, it reduces procurement time, itremoves hassles in purchasing, by deciding specification, again and again.Further, standardized fixtures, fittings and furniture could be used in any office at any point oftime and will assist while vacating/surrendering the premises and ensures proper utilization ofinvestment.In addition to identifying standard manufacturer, the Committee should also standardize the type,model, size etc. of the fixture, fittings and furniture, on category basis, so that placing orders forprocuring all these at local offices becomes very simple.Equipping the office with pedestal fans, heaters, coolers, air circulators, drinking water unit, toilets,urinals, bathrooms, wash area etc. should be based on actual requirement, depending upon thelocation/area of premises/staff strength.Whatever is required basically for the employees to perform their function effectively at thatplace should be provided.However, all these requirements would fall under the category of:-(1) Regularly required by all(2) Occasionally required by all(3) Rarely required by fewWhile providing these requirements, great care should be taken to provide requirements, whichfall under category ‘Occasional’ and ‘Rarely’.While acquiring electronic/mechanical/technical equipments/gadgets, due care must be takento ensure that purchase of such items do not open the trap of specialization.150 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.Any item required to be operated only by a particular individual, will remain idle in the absenceof such expert operator. Thus, the equipment will be on leave along with the leave of the operator.Further, operation of such equipments will be at the discretion of the operator. As such, adequatecare should be taken to avoid creation of specialization trap.In case of residential premises, furniture, electrical fittings, etc. can be provided as per rules ofthe Company.Where different leasing pattern has been adopted to meet the requirements of special executives,depending upon the provision, such identified residential block can be furnished. Adequatecare should be taken to withdraw such furniture from such premises when no more required. Assuch standard furniture must be purchased so that they can be utilized at other places also.Providing fixtures and fittings in residential block should meet basic minimum requirement of theallottee for proper peaceful living. They should be functional-oriented, sturdy, long durable andeconomical and to be provided based on the norms finalized by the HR Department, which isauthorized for allotment/amenities/facilities/perks etc.Fixtures and fittings as per norms of the Company can be provided in all owned accommodationsor Company leased accommodations.However, if these are required on temporary basis, for a period of not more than 3 to 5 years,these should be easily removable and reusable fixtures and fittings.HHHHHMANUAL ON ESTATE & ESTABLISHMENT151

The New India Assurance Co.Ltd.Maintenance, Repairs, ReplacementsAll premises must be maintained on regular basis. The standard of maintenance should be toensure the premises remain more or less in the original condition. Repairs should be carried outas and when required.Replacements should be made when it is due.The maintenance could be: -(1) Routine Maintenance(2) Occasional Maintenance(3) Seasonal Maintenance(4) Annual MaintenanceMaintenance and servicing of fixtures, fittings, equipments, gadgets, plants, machinery etc. shouldbe preferably by the manufacturer or his authorized service provider. An annual maintenancecontract should be executed wherever possible.In case the original manufactures are not available or not willing, or maintenance cost is toohigh, suitable reputed local agency should be identified for the purpose.Identification of such required service provider could be on PQT basis by issuing a tender notice,depending upon the quantum of work.Adequate care should be taken while acquiring these equipments for maintenance for a periodof 5 to 10 years or for the assured life span. It would be better to replace the equipments onexpiry of such period instead of either identifying local service provider or spend heavily onrepairs and maintenance.Reasonable life span of such fixtures, fittings and furniture could be as under: -(1) All electronic-oriented gadgets: 5 years(2) All movable and running equipments: 7 years(3) All non-movable running equipments: 10 years(4) All non-running equipments: 20 years152 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.The equipment should be replaced when: -(1) An engineer/ architect certifies that it is no more worthy for the purpose(2) A repairer furnishes the bill which is more than 50% of the cost of purchase.(3) If it has worked more than the assured hours/kms/units(4) If it has performed for more than the normal assured life span replacement should be madeon proper verification.Possibility of replacement on exchange basis could also be examined.The up-keeping of premises is a day-to-day requirement.The maintenance of premises is a periodical one.External painting of all premises, at least once in 4 years preferably may be done depending onthe condition. It will not only maintain the premises well but also improve the condition of thestructure.While executing external maintenance works, necessary works like replacement of pipe lines,traps, junctions, patch repairs, removal of shrubs, plants, hangings etc. should also be carriedout.Repairs to chajja, cantilever projections, porticos, window sills, fins, pardi etc. should also becarried out.If the window shutters, ventilators or windows etc. all together are due for replacement, theseshould also be replaced along with external maintenance works, i.e. clubbing of all works requiringscaffolding for execution.Execution of external maintenance works would be premises-wise, location-wise, by invitingtender as per procedure.If necessary, technical consultants/architects may be appointed for that purpose.Internal maintenance of premises is necessary not only to provide better living conditions, butalso to arrest de-strengthening factors.Appropriate type of internal painting depending upon the size, category of the occupants, shouldbe provided.Internal painting with oil bound distemper for walls (open area) and color wash/white wash inbathroom and toilet area with oil painting for all doors, windows and grills are recommended.MANUAL ON ESTATE & ESTABLISHMENT153

The New India Assurance Co.Ltd.Instead of oil bound distemper, plastic emulsion can be provided for quarters earmarked forexecutives.Internal painting may be provided once in 3 to 4 years depending upon the condition.If the painting has been damaged very badly either on account of location conditions or on accountof limited area movement conditions or on account of attitude of occupants, providing internalpainting a bit earlier can be considered.In case two years have elapsed and the flat is allotted to a new occupant, internal painting shouldbe carried out.As far as possible, shades selected should be of common nature.A technical person to assess the reasonability can provide premature internal repainting only onsite inspection.All premises where seasonal/yearly maintenance works are required to be carried out should beidentified and arrangements for such repairs should be made well in advance.At places where one or two works of painting are to be carried out, it could be on tender basis. Ifat places such painting works are required to be carried out repeatedly, then an approved ratesystem could be adopted to ensure not only timely execution of work but also to avoidembarrassment and complicated procedural work in identifying the agency.Approved rate system could be on area basis, season basis, yearly basis, labor cost basis ordistrict schedule rate basis.The Building & Construction Department of State Governments adopt a method of arriving at areasonable rate for all works based on :-(1) Material cost(2) Labor cost(3) Lead and lift cost(4) Permissible wastage(5) Ancillary works/tools etc(6) Reasonable profit (not more than 10%)Based on these factors, a rate is arrived which is adopted for executing work on yearly basis.154 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.If the Department is having a qualified technical person, they may arrive at a schedule of ratesfor all repetitive works and get approved by the Chief Manager, based on which the works can beentrusted to any contractor on the panel. In absence of technical person, the rates may beascertained by inviting competitive quotations .Quotations for annual rates from the panel of contractors, location-wise/ item wise only for laborcharges could be invited. The contractors should also furnish coverage area for various types offinishings, like number of square feet covered by one liter of oil paint etc.The Department should finalise average coverage for various types of finishings, and also finalizedaverage labor charges which is inclusive of overhead charges, profit etc. and which could belocality-wise also.Whenever any work is to be executed, a suitable contractor from the panel may be selected toexecute the work on approved rates. With this any type of repetitive works can be carried outthrough the contractors on the panel without going through individual tendering process.In cases of steep rise, either in material or labor cost, the Department can review the situationand if required grant reasonable increase in cost for the execution of work during that year.In the Department finds it difficult to pay anything in excess of agreed approved rate, then freshquotations can be invited for finalizing rates location-wise.Normally, if the quotations are invited during April, i.e. on finalisation of budgetary proposals, therates quoted by the contractors would be most reasonable and may remain workable for thewhole year.All these approved rate systems should be for repetitive jobs of similar nature, internal repainting/repair purpose. For all external works, which would be normally once in 4 to 5 years, it should bethrough tender notice.External painting should be preferably carried out under the supervision of an architect and asuitable color scheme should be adopted to provide a proper décor.The Department can also arrive at approved rate for repetitive type of work, either on total costbasis or on labor cost basis. The exercise can be carried out once in a year and the rates approvedby the Chief Manager can be adopted for execution of all such repetitive repairs work throughoutthe year, throughout the city without much difficulty.Whenever the Department finds certain rates are not workable, a revised rate can be arrived at,either based on market rate obtained on enquiry or through quoted rates from the contractors onpanel.MANUAL ON ESTATE & ESTABLISHMENT155

The New India Assurance Co.Ltd.Further, maintenance of premises also means:-(1) Ensuring physical condition of the premises is good enough to occupy and use atall times by all type of users.(2) Ensuring utilization of such premises only by authorized persons.(3) Ensuring utilization of the premises by authorized persons for authorized purposeonly.(4) Ensuring that no premises is misused or unauthorisedly used.The Department should initiate action through concerned Departments for arresting the misuseof premises and eviction of unauthorized users.The Department can make payment of bills of contractors for execution of various works only oncertification by the Department. The certification of works could be by the CM/M/DM/AM/AO/Sr.Asst./ Asst, depending upon the nature and quantum of work.In case of LIC, works are certified by Executive Engineer (AM), Asst. Executive Engineer (AO),Asst. Engineer (AAO), Building Inspector (Sr. Asst.) and all are qualified engineers.In case of the company, the works are certified by CM/M/DM/AM/AO/Sr.Asst./Assistant and theyneed not be qualified technical persons. Further, the division of civil, electrical and mechanicalalso does not appear. The Estate Department would be responsible for certification of works ofall types of works.Wherever, the Department is having a technical expert, it becomes easy for certifying the payment.However, the Department without any technical experts, in any field, finds it very much difficult tocertify the works.As such, on posting non-technical persons to the Department, efforts should be made to providethem adequate, essential, basic knowledge in all the disciplines. It is suggested that at least 2weeks training programme for Assistant /Sr.Assts and 4 weeks training programme for officersshould be provided.The training programme could be in-house or at the identified polytechnic or engineering colleges.The staff of the Department should become conversant with day-to-day functions to enable theDepartment to effect payment to the contractors on proper certification.156 MANUAL ON ESTATE & ESTABLISHMENT

The New India Assurance Co.Ltd.The need could be seen with an example as under:-Worn-out hinges of a door have been replaced and the certification could be:llllllllllHinges have been replacedHinges have been replaced by brass hingesHinges have been replaced by ‘X’ number of brass hingesHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ sizeHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ size of ‘Z’ thicknessHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ size of ‘Z’ thickness ofplain/anodizedHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ size of ‘Z’ thickness ofplain/anodised of ‘P’ companyHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ size of ‘Z’ thickness ofplain/anodised of “P’ company in line and levelHinges have been replaced by ‘X’ number of brass hinges of ‘Y’ size of ‘Z’ thickness ofplain/anodised of ‘P’ company in line and level on returning old hingesHinges have been replaced by ’X’ number of brass hinges of ‘Y’ size of ‘Z’ thickness ofplain/anodized of ‘P’ company in line and level on returning old hinges and the door isfunctioning properly.The example is just to emphasize the absolute need of basic training for the non-technical personsworking in technical departments and enable the Department to release the payment to thecontractors properly and in time.The Department is also responsible for making payment of rent, rate, tax, development charges,service charges, monthly outgoings, non-occupancy charges for flats in Co-operative HousingSocieties, etc. in various premises and to various authorities.The payments should be made in time and where payment could not be made in time, theconcerned authority may impose some fine/ penalty/ compensation towards the delayed payment.Hence the department should be extra careful in payment of the bills to avoid any penalties.Based on the quantum of repair works carried out in the previous year, at huge/major housingcomplexes (having 20 to 25 flats), under various disciplines of civil, electrical, mechanical,MANUAL ON ESTATE & ESTABLISHMENT157

The New India Assurance Co.Ltd.plumbing, carpentry, pest control, replacement to fixtures and fittings, repairs to fixtures and fittingsetc., tenders can be invited for identifying a suitable contractor on ‘caretaker’ basis for a period ofone year. Such identified contractor would be responsible to ensure execution of all repair worksin those complexes for one year. His bills, supported by documents, to be settled on monthlybasis. The Department can also adopt reimbursement basis.In secluded and remote areas, limited repair works, urgent repair works, if any, the allottee couldbe authorized to get such works executed through any locally available contractor and seekreimbursement from the office, provided such reimbursement does not exceed Rs.500/-.HHHHH158 MANUAL ON ESTATE & ESTABLISHMENT