The petitioner is a statutory body constituted under Section 18 of the U. P. Water Supply and Sewerage Act, 1975. The Group Insurance Scheme was introduced by the Life Insurance Corporation on the basis of the mutual agreement with the Life Insurance Corporation of India and the State of U. P. and consequently the State Government has issued a G.O. dated 24.5.1976. A true copy of the G.O. implementing the Group Insurance Scheme in the Local Bodies is Annexure-1 to the writ petition. The State Government has further introduced the Group Insurance Scheme in Local Bodies vide Annexure-2 to the writ petition.
Under the
Scheme the employees have to contribute Rs. 25 per month and are entitled for
the benefit as enumerated in Clause 8 of the Group Savings Linked Insurance
Scheme which has been quoted in para 8 of the writ petition. By G.O. dated
19.2.1980 and 17.3.1980 State Government has revised the contribution of the
employees. The last policy issued is dated 19.9.1995 wherein it is provided
that the renewal shall be effected each subsequent year since 19.9.1995. Copy
of the Rules of the Group Savings Linked Insurance Scheme is Annexure-3 to the
writ petition. Under the Scheme the employees of the Jal Sansthan have to pay
the contribution as stated in paras 13 and 14 of the writ petition.
The writ
petition that to the utter surprise of the petitioner the Life Insurance
Corporation issued a letter dated 15.12.1997 whereby premium of Category-D
employees was raised from Rs. 35 to Rs. 135 per month and premium of Category-B
was raised from Rs. 120 to 360 per month vide Annexure-4. Aggrieved, this
petition has been filed. A counter-affidavit has been filed by the Life
Insurance Corporation.
The Court
held that the Life Insurance Corporation is
directed to renew the policy but if it wishes to increase the rate of premium
it must give three months previous notice as provided in Clause 9 of the master
policy. The petition is allowed.
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