Frequently Asked Question Compiled by

Transcription

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2 Frequently Asked Question Compiled by Centre for Consumer Studies Indian Institute of Public Administration I.P. Estate, Ring Road New Delhi

3 Contents 1 Consumer Protection Act, Banking 11 3 Basic Service Bank Deposit 21 4 KYC 27 5 Type of Card 32 6 ATM Cards 36 7 Banking Ombudsman 39 8 Telecommunication 45 9 IATA and Air Transport Industry Insurance Medical Negligence Liquefied Petroleum Gas Payment of Pension Adhar Card Indian Railway Food safety Standards Occupational Health and Safety Management System Quality Council of India Airlines Education Electricity 180 3

4 I Consumer Protection Act,

5 Q. 1 What are the Important Features of the C.P. Act? - It applies to all goods and services unless specifically exempted by the Central Government. - It covers all the sectors private, public and cooperative. - It provides an additional remedy. - The provisions of the Act are compensatory in nature. - It provides adjudicatory authorities, which are simple, speedy and less expensive. - It also provides for Consumer Protection Councils at the National, State and District levels. Q. 2 What Consumers Rights are guaranteed under Consumer Protection Act, 1986? Consumer is having the following six consumer rights under the Act: 1. Right to Safety 2. Right to be Informed 3. Right to Choose 4. Right to be heard 5. Right to seek Redressal 6. Right to Consumer Education Q. 3 Who is a consumer? A person who buys any goods or services for a consideration, which has been paid or promised or partly paid and partly promised, or under any system of deferred payment also includes the user with approval of such goods or beneficiary of services. Q. 4 Who is a not a consumer? A person: who obtains goods free of charge who avails services free of charge who obtains goods for resale or for any commercial purposes who avails services for any commercial purposes who avails services under contract of service However, commercial purpose does not include use by a person of goods bought and used by him and services availed by him exclusively for the purposes of earning his livelihood by means of self-employment; 5

6 Q. 5 Is a person buying goods or hiring services for business purpose can make a complaint? No, goods or services meant for commercial purpose are excluded from the ambit of the Act unless it is meant for the purposes of earning his livelihood by means of selfemployment; Q. 6 What Constitute a Complaint? An allegation in writing made by the complainant that Any unfair trade practice or restrictive trade practice has been adopted by any trader. The goods bought or agreed to be bought suffer from one or more defects. Services hired /availed or agreed to be hired /availed suffer from deficiencies in any respect. a trader has charged for the goods or services mentioned in the complaint, a price in excess of the stipulated price. goods or services which are hazardous to life and safety of the public are being offered to the public Q. 7 Who can make complaint? A Complaint can be made by a Consumer; any Voluntary Consumer Association; the Central Government or State Government one or more consumers, where there are numerous consumers having the same interest and legal heir or representative in case of death of a consumer. Q. 8 What are Consumer Disputes Redressal Agencies? These are quasi-judicial bodies established under the Act to provide simple, speedy and cheap redressal to the grievances of the consumers. These have been established at three levels: District, State and National known as: District Consumer Disputes Redressal Forum or District Forum State Consumer Disputes Redressal Commission or State Commission National Consumer Disputes Redressal Commission or National Commission 6

7 Q. 9 Where the complaint can be filed? - Before the District Forum, if the value of the goods or services and the compensation if any claimed is up to ` 20 lakh - Before State Commission, if the value of the goods or services and the compensation if any claimed exceeds ` 20 lakhs, but is within ` 1 crore. - Before National Commission, if the value of the goods or services and the compensation if any claimed exceeds ` 1 crore. Q. 10 In which city or state should the complaint be filed? A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction the opposite party resides or carries on business or has a branch office or personally works for gain, or where the cause of action, wholly or in part, arises. the consumer cannot file complaint where he resides. Q. 11 Where the District Forum is located? A "District Forum" has been established by the State Government in each district of the State. In case of need, State Government can establish additional forums in a district. The information regarding the District Forum can be obtained from the District Collector/ District Magistrate of the District. The information regarding the address and contact details of the District Forums can be also be obtained from the website of NCDRC Q. 12 Where the State Commission is located? The State governments have established one State Commission in each state, which is mostly located in the state capital. The information regarding the address and contact details of the State Commissions can be also be obtained from the website of NCDRC Q. 13 Where the National Commission is located? The Central Government has established one National Commission, which is located in New Delhi. The Address of NCDRC is Upbhokta Nyay Bhawan, 'F' Block, GPO Complex, INA, New Delhi The detail regarding functioning of the NCDRC can be obtained from the website of NCDRC Q. 14 What is the procedure for filing the complaint? A complaint can be presented by the complainant in person or by his agent. It can even be sent by registered post along with the court fee. Normally three copies of 7

8 the complaint are required to be submitted out of which one retained for the official purpose, one is forwarded to the opposite party and one is the for the complainant. In case the number of opposite parties is more correspondingly more copies of the complaint are required. Q. 15 Does consumer needs an advocate to represent his case in the Forum? Consumer Forums are quasi judicial bodies to provide simple and speedy justice. These have been kept fee from the complicated judicial procedures. the manner is quite informal and free from the sickles of the Civil Court. there is no need for of advocate or any other pleader and consumer can himself or through his representative file and represent his complaint. Q. 16 What particulars should be furnished in the complaint? Name, description and address of the complainant; Name, description and address of the opposite party or parties; Facts relating the complaint and when and where it arose; Documents if any in support of allegations and Relief, which the complainant is seeking. Q. 17 What is the time limit for filing the complaint? The complaint shall be filed within two years from the date on which the cause of action has arisen. This would mean two years from the day the deficiency in service or defect in goods has arisen/detected. This is also known as the limitation period for filing the complaint. Q. 18 Is there a fee for making complaints before the Consumer Fora? Under the original Act of 1986, there was no requirement of payment of Court fee. However, after the amendment of 2002, a nominal fee has been introduced which the complainant has to pay for filing a complaint. The fee structure is as follows: Sl. No. Total Value of goods or services and the compensation claimed District Forum (1) Upto one lakh rupees For complainants who are under the Below Poverty Line holding Antyodaya Anna Yojana Cards (2) Upto one lakh rupees For complainants other than Antyodaya Anna Yojana card holders. 8 Amount of fee payable Nil Rs.100 (3) Above one lakh and upto five lakh rupees Rs.200

9 (4) Above five lakh and upto ten lakh rupees Rs.400 (5) Above ten lakh and upto twenty lakh rupees Rs.500 State Commission (6) Above twenty lakh and upto fifty lakh rupees Rs.2000 (7) Above fifty lakh and upto one crore rupees Rs.4000 National Commission (8) Above one crore rupees Rs.5000 Q. 19 How to make the payment of the Court fee? Every complaint filed before District Forum/ State Commission/ National Commission shall be accompanied by a fee as specified, in the form of crossed Demand Draft drawn on a nationalised bank or through a crossed Indian Postal Order drawn in favour of the Registrar of the State Commission and payable at the respective place where the State Commission or the National Commission is situated. The concerned District Forum shall deposit the amount so received. Q. 20 What reliefs are provided by Consumer Fora? The Consumer Fora can order the following reliefs: to remove the defect pointed out by the appropriate laboratory from the goods in question; to replace the goods with new goods of similar description which shall be free from any defect; to return to the complainant the price, or, as the case may be, the charges paid by the complainant; to pay such amount as may be awarded by it as compensation to the consumer for any loss or injury suffered by the consumer due to the negligence of the opposite party. The District Forum shall have the power to grant punitive damages in such circumstances as it deems fit; to remove the defects in goods or deficiencies in the services in question; to discontinue the unfair trade practice or the restrictive trade practice or not to repeat it; not to offer the hazardous goods for sale; to withdraw the hazardous goods from being offered for sale; to cease manufacture of hazardous goods and to desist from offering services which are hazardous in nature; to pay such sum as may be determined by it if it is of the opinion that loss or injury has been suffered by a large number of consumers who are not identifiable conveniently. The minimum amount of sum so payable shall not be less than five percent of the value of such defective goods sold or service provided, as the case may be, to such consumers: to issue corrective advertisement to neutralize the effect of misleading advertisement at the cost of the opposite party responsible for issuing such misleading advertisement; to provide for adequate costs to parties. 9

10 Q. 21 What if the consumer is not satisfied with the order of the Consumer Fora? Any consumer who is aggrieved by the order of a consumer forum can prefer an appeal in the higher fora within a period of thirty days from the date of the order. The appeal can be preferred: against order of the District Forum before the State Commission against order of the State Commission before the National Commission against order of the National Commission before the Supreme Court 10

11 II Banking 11

12 A. General Information Q1. How can I claim payment of deceased account / certificate holder? The claimant may be the nominee or legal heir. If there is nomination, the nominee can prefer the claim in the prescribed form alongwith death certificate. If there is no nomination, any one of the legal heirs can prefer the claim in the prescribed form [SB84]. For this death certificate and consent statements of all legal heirs are required. Claim upto one lakh can be settled. If the claim is exceeding one lakh, claims can be settled by legal evidence i.e, by probate of will or succession certificate. Q2. How to transfer accounts and certificate? For transfer of accounts- the depositor should apply in the prescribed form [SB10(b)] or manual application. The application can be given either in transferring office or transferee office. For transfer of certificates- the investor should apply in the prescribed form[nc32]. The application may be given in either of the offices. Q 3. How to open an account in post office and its requirements? To open an account [Savings Bank(SB), Recurring (RD), Time Deposit(TD), Monthly Income Scheme(MIS) SB3, SB103 (pay-in-slip) and specimen signature slip for SB and TD are required. For senior citizen accounts, separate forms are to be used. For SB account introduction is compulsory. Q 4. What is silent account and how to revive it? When there is no transaction in an SB account continuously for 3 financial years, the account will be treated as silent account. For revival, one application from the customer is required. LSG/HSG offices can revive the accounts independently. Remaining offices, HO will revive the accounts. If the balance in the silent account is less than minimum, then INR. 20/- will be debited towards service charges. Q 5. What are late payment fees for recurring deposits? The monthly deposits should be credited on any day of the month. If the monthly instalment is not credited for any particular month, then it becomes a default. The 12

13 defaulted months can be credited subsequently (for INR. 10/- denomination, 0.20 paise for each month of default) maximum 4 defaults are allowed. Q 6. What is the procedure for the issue of duplicate certificates? The investor should apply in the prescribed form for duplicate certificate in respect of lost, stolen, destroyed, mutilated or defaced certificates (NC29).The application shall be accompanied by a statement showing particulars of certificates and furnish an indemnity bond in the prescribed form with one or more sureties or with a bank guarantee is required. In case of mutilated or defaced certificates, no indemnity bond is required. Q 7. How I get duplicate passbook? Application in the prescribed form or manuscript application may be given by affixing prescribed fee in the form of postage stamp. New duplicated Passbook will be issued by sub post offices only. Q 8. What are the norms for issuing a Cheque Books? Cheque books are issued in respect of cheque accounts. In a cheque account, minimum balance should be INR. 500/- Q 9. What are the service charges for outstations cheque? Cheque realisation charges for outstation cheques. INR. 30/- for first thousand or part INR. 31/- for each additional thousand or part In case of bouncing of cheque INR. 50/- is charges as service charge. Q 10. Can Monthly Income Scheme (MIS) interest be credited to Recurring Deposit (RD) account? No. There is no provision. Interest amount can be credited to SB account and after that from SB to RD is permissible. Q 11. What is the minimum balance required for an account? Minimum balances in respect of different types of account is given below. SB(cheque account) INR. 500/- SB(non cheque account) INR. 50/- 13

14 MIS INR. 1500/- TD INR. 200/- PPF INR. 500/- Senior Citizen INR. 1000/- Q 12. How I can get encashment of certificates / account before maturity? NSCs (VIII Issue) Different Savings Accounts SB RD TD MIS Senior Citizen Source: India Post Maturity period 5 years (for certificates issued on or after ). No premature encashment possible. Can be closed at any time Premature closure permissible after 3 years - only SB rate is permissible Premature closure permissible after 6 months Premature closure permissible after 1 year Premature closure after 1 year 14

15 B. Basic Savings Bank Deposit Account (UCBs) Q 1. What is the definition of Basic Savings Bank Deposit Account (BSBDA)? All the existing No-frills accounts opened pursuant to guidelines issued vide circular UBD.BPD.Cir.No.19/ / dated November 24, 2005 and converted into BSBDA in compliance with the guidelines issued in circular UBD.BPD.Cir.No.5/ / dated August 17, 2012 as well as fresh accounts opened under the said circular should be treated as BSBDA. Q 2. Whether the guidelines issued on no-frills account with 'nil' or very low minimum balances will continue even after the introduction of Basic Savings Bank Deposit Account? No. In supersession of instructions contained in circular UBD.BPD.Cir.No.19/ / dated November 24, 2005 on No Frill accounts, banks have now been advised to offer a 'Basic Savings Bank Deposit Account' to all their customers vide UBD.BPD.Cir.No.5/ / dated August 17, 2012, which will offer minimum common facilities as stated therein. Banks are required to convert the existing 'no-frills' accounts into 'Basic Savings Bank Deposit Accounts'. Q 3. Can an Individual have any number of 'Basic Savings Bank Deposit Account' in one bank? No. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank. Q 4. Whether a 'Basic Savings Bank Deposit Account' holder can have any other savings bank account in that bank? Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings bank account in that bank. If a customer has any other existing savings bank account in that bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'. Q 5. Can an individual have other deposit accounts where one holds 'Basic Savings Bank Deposit Account? Yes. One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds 'Basic Savings Bank Deposit Account'. 15

16 Q 6. Whether the Basic Savings Bank Deposit Account can be opened by only certain types of individuals like poor and weaker sections of the population? No. The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches. Q 7. Whether there are any restrictions like age, income, amount etc criteria for opening BSBDA by banks for individuals? No. Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA. Q 8. Is the 'Basic Savings Bank Deposit Account' a part of furthering the Financial Inclusion objectives of banks? The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering Financial Inclusion objectives. All the accounts opened earlier as 'no-frills' account vide UBD.BPD.Cir.No.19/ / dated November 24, 2005 should be renamed as BSBDA as per instructions contained in paragraph 2 of our Circular UBD.BPD.Cir.No.5/ / dated August 17, Q 9. What are KYC norms applicable to BSBDA accounts? Are there any relaxations in KYC norms for BSBDAs? The 'Basic Savings Bank Deposit Account' would be subject to provisions of PML Act and Rules and RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. BSBDA can also be opened with simplified KYC norms. However, if BSBDA is opened on the basis of Simplified KYC, the accounts would additionally be treated as BSBDA-Small Account and would be subject to the conditions stipulated for such accounts as indicated in para 2.6 (iii) of Master Circular No.UBD.BPD.(PCB).MC. No.16 / / dated July 1, Q 10. Can I have a Small Account in ABC Bank as per the Government of India Notification No.14/2010/F.No.6/2/2007-E.S. dated December 16, Can I have additionally a 'Basic Savings Bank Deposit Account? No, the BSBDA customer cannot have any other savings bank account in the same bank. If 'Basic Savings Bank Deposit Account is opened on the basis of simplified KYC norms, the account would additionally be treated as a 'Small Account' and would be subject to conditions stipulated for such accounts as indicated in para 2.6 (iii) of Master Circular No.UBD.BPD.(PCB).MC.No.16/ / dated July 1, 2013 on 'KYC norms / AML Measures/ Combating of Financing of Terrorism (CFT) / Obligation of banks under PMLA, 2002'. 16

17 Q 11. What are the conditions stipulated for accounts which are additionally to be treated as BSBDA-Small Account? As notified in Govt of India notification dated December 16, 2010, BSBDA-Small Accounts would be subject to the following conditions: Total credits in such accounts should not exceed one lakh rupees in a year. Maximum balance in the account should not exceed fifty thousand rupees at any time The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month Remittances from abroad can not be credited to Small Accounts without completing normal KYC formalities Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document. Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfilment of the conditions. Q 12. What kinds of services are available free in the 'Basic Savings Bank Deposit Account? The services available free in the 'Basic Savings Bank Deposit Account will include deposit and withdrawal of cash; receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques at bank branches as well as ATMs. Q 13. of any initial minimum deposit Is there requirement while opening a BSBDA as per the circular dated August 17, 2012? There is no requirement for any initial deposit for opening a BSBDA. Q 14. Whether banks are free to offer more facilities than those prescribed for Basic Savings Bank Deposit Account? Yes. However, the decision to allow services beyond the minimum prescribed has been left to the discretion of the banks who can either offer additional services free of charge or evolve requirements including pricing structure for additional value-added services on a reasonable and transparent basis, to be applied in a non-discriminatory manner with prior intimation to the customers. Banks are required to put in place a reasonable pricing structure for value added services or prescribe minimum balance requirements which should be displayed prominently and also informed to the customers at the time of account opening. Offering such additional facilities should be non - discretionary, non- 17

18 discriminatory and transparent to all Basic Savings Bank Deposit Account customers. However, such accounts enjoying additional facilities will not be treated as BSBDAs. Q 15. If BSBDA customers have more than 4 withdrawals and request for cheque book at additional cost, will it cease to be a BSBDA? Yes. Please refer to response to the Query No. 14. However, if the bank does not levy any additional charges and offers more facilities free than those prescribed under BDBDA a/cs without minimum balance then such a/cs can be classified as BSBDA. Q 16. Whether the existing facility available in a normal saving bank account of five free withdrawals in a month in other banks ATMs as per IBA (DPSS) instructions will hold good for BSBDA? No. In BSBDA, banks are required to provide free of charge minimum four withdrawals, through ATMs and other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/emi etc It is left to the banks to either offer free or charge for additional withdrawal/s. However, in case the banks decide to charge for the additional withdrawal, the pricing structure may be put in place by banks on a reasonable, non-discriminatory and transparent manner. Q 17. Are the banks free to levy Annual ATM Debit Card charges? Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such Cards. Q 18. Whether Balance enquiry in ATMs also should be counted within the four withdrawals permitted under BSBDA? Balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs. Q 19. If a customer of BSBDA opts not to have ATM Debit card, should the bank compel the customer to accept the ATM debit card? ATM debit cards may be offered at the time of opening BSBDA and issued if the customer requests for the same in writing. Banks need not insist that a customer accepts ATM debit card. Q 20. What about customers who are illiterate or old who may not be in a position to safe keep and use the ATM debit card and PIN associated with it? Banks while opening the BSBDA should educate such a customers about the ATM Debit Card, ATM PIN and risk associated with it. However, if a customer chooses not to have an 18

19 ATM Debit Card, banks need not compel such customer to accept ATM Debit Card. If, however, customer opts to have an ATM Debit card, banks should provide the same to BSBDA holders through safe delivery channels by adopting the same procedure which they have been adopting for delivery of ATM Debit card and PIN to their other customers. Q 21. Whether Passbooks are also to be offered free to BSBDA holders? Yes. BSBDA holders should be offered passbook facility free of charge in line with our instructions contained in Circular UBD.CO.(PCB).Cir.No.15/ / dated October 16, Q 22. If a customer opens a BSBDA but does not close his existing Savings Bank Account within 30 days, are banks then free to close such savings bank accounts? While opening the BSBDA customers consent in writing be obtained that his existing non- BSBDA Savings Banks accounts will be closed after 30 days of opening BSBDA and banks are free to close such accounts after 30 days. Q 23. In certain accounts to which disbursements under MGNREGA are made weekly, the number of withdrawals may be more than four in a month of five weeks. In such cases, can banks permit five withdrawals? In BSBDA, banks are required to provide free of charge minimum four withdrawals, including through ATM and other mode. Beyond four withdrawals, it is left to discretion of the banks to either offer free or charge for additional withdrawal/s. However pricing structure may be put in place by banks on a reasonable, non-discretionary, nondiscriminatory and transparent manner. Q 24. What is the prescribed rate of interest payable on balances in such Basic Savings Bank Deposit Account? Our instructions contained in circular UBD.BPD(PCB).Cir.No.18/ / dated February 7, 2012 on Deregulation of Savings Bank Deposit Interest Rate, are applicable to deposits held in Basic Savings Bank Deposit Account. Q 25. In terms of RBI circular DPSS. CO.CHD. No. 274/ / dated August 10, 2012, if payable at par / multi-city cheques are issued to BSBDA customers based on their request, can banks prescribe minimum balance requirements? BSBDA does not envisage cheque book facility in the minimum facilities that should be provided to BSBDA customers. They are free to extend any additional facility including 19

20 cheque book facility free of charge (in which case the account remains BSBDA) or charge for the additional facilities (in which case the account is not BSBDA). Q 26. What is the time frame available to banks for converting No-Frills Account as Basic Savings Bank Deposit Account? What is the time frame available to banks for issuing ATM Cards to all the existing Basic Savings Bank Deposit Account holders? All the existing No-Frill accounts may be treated as BSBDA accounts from the date of the circular i.e., August 17, 2012 and banks may offer the prescribed facilities as per the circular such as issuing ATM card etc., to the existing No-Frill account holders as and when the customer approaches the bank. However, customers opening new accounts after the issue of our circular should be provided prescribed facilities immediately on opening of the account. Q 27. Whether the normal saving bank account can be converted into BSBDA at the request of customer? Yes. Such customers should give their consent in writing and they should be informed of the features and extent of services available in BSBDAs. Source: RBI 20

21 C. Basic Savings Bank Deposit Account Q 1. Whether the guidelines issued on no-frills account with 'nil' or very low minimum balances will continue even after the introduction of Basic Savings Bank Deposit Account? No. In supersession of instructions contained in circular DBOD. No. Leg. BC.44/ / dated November 11, 2005 on No Frill accounts, banks have now been advised to offer a 'Basic Savings Bank Deposit Account' to all their customers vide DBOD.No.Leg.BC.35/ / dated August 10, 2012, which will offer minimum common facilities as stated therein. Banks are required to convert the existing 'no-frills' accounts into 'Basic Savings Bank Deposit Accounts'. Q 2. Can an Individual have any number of 'Basic Savings Bank Deposit Account' in one bank? No. An individual is eligible to have only one 'Basic Savings Bank Deposit Account' in one bank. Q 3. Whether a 'Basic Savings Bank Deposit Account' holder can have any other saving account in that bank? Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank. If a customer has any other existing savings account in that bank, he / she will be required to close it within 30 days from the date of opening a 'Basic Savings Bank Deposit Account'. Q 4. Can an individual have other deposit accounts where one holds 'Basic Savings Bank Deposit Account? Yes. One can have Term/Fixed Deposit, Recurring Deposit etc., accounts in the bank where one holds 'Basic Savings Bank Deposit Account'. Q 5. Whether the Basic Savings Bank Deposit Account can be opened by only certain types of individuals like poor and weaker sections of the population? No. The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service available to all customers, through branches. 21

22 Q 6. Whether there are any restrictions like age, income, amount etc criteria for opening BSBDA by banks for individuals? No. Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA. Q 7. Is the 'Basic Savings Bank Deposit Account' a part of the Financial Inclusion plans of banks? The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI for furthering Financial Inclusion objectives. All the accounts opened earlier as 'no-frills' account vide DBOD Circular dated DBOD.No.Leg.BC.44/ / dated November 11, 2005 should be renamed as BSBDA as per the instructions contained in paragraph 2 of our Circular DBOD. No. Leg. BC. 35/ / dated August 10, 2012 and all the new accounts opened since the issue of our circular DBOD.No.Leg.BC.35 dated August 10, 2012 should be reported under the monthly report of the progress of Financial Inclusion plans submitted by banks to RPCD, CO. Q 8. What are KYC norms applicable to BSBDA accounts? Are there any relaxations in KYC norms for BSBDAs? The 'Basic Savings Bank Deposit Account' would be subject to provisions of PML Act and Rules and RBI instructions on Know Your Customer (KYC) / Anti-Money Laundering (AML) for opening of bank accounts issued from time to time. BSBDA can also be opened with simplified KYC norms. However, if BSBDA is opened on the basis of Simplified KYC, the accounts would additionally be treated as BSBDA-SMALL account and would be subject to the conditions stipulated for such accounts as indicated in para 2.7 of Master Circular DBOD.AML.BC.No. 11/ / dated July 2, Q 9. Can I have a Small Account in ABC Bank as per the Government of India Notification No.14/2010/F.No.6/2/2007-E.S. dated December 16, Can I have additionally a 'Basic Savings Bank Deposit Account? No, the BSBDA customer cannot have any other savings bank account in the same bank.. If 'Basic Savings Bank Deposit Account is opened on the basis of simplified KYC norms, the account would additionally be treated as a 'Small Account' and would be subject to conditions stipulated for such accounts as indicated in paragraph 2.7 of Master Circular DBOD.AML.BC.No.11/ / dated July 02, 2012 on 'KYC norms / AML standards / Combating of Financing of Terrorism (CFT) / Obligation of banks under PMLA, 2002'. Q 10. What are the conditions stipulated for accounts which are additionally to be treated as BSBDA-Small Account? 22

23 As notified in terms of Govt of India notification dated December 16, 2010, BSBDA-Small Accounts would be subject to the following conditions: i. Total credits in such accounts should not exceed one lakh rupees in a year. ii. Maximum balance in the account should not exceed fifty thousand rupees at any time iii. The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month iv. Foreign remittances cannot be credited to Small Accounts without completing normal KYC formalities v. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document. vi. Small Accounts can only be opened at CBS linked branches of banks or at such branches where it is possible to manually monitor the fulfilments of the conditions Q 11. What kinds of services are available free in the 'Basic Savings Bank Deposit Account? The services available free in the 'Basic Savings Bank Deposit Account will include deposit and withdrawal of cash; receipt / credit of money through electronic payment channels or by means of deposit / collection of cheques at bank branches as well as ATMs. Q 12. Is there requirement of any initial minimum deposit while opening a BSBDA as per the circular dated August 10, 2012? There is no requirement for any initial deposit for opening a BSBDA. 13. Whether banks are free to offer more facilities than those prescribed for Basic Savings Bank Deposit Account? Yes. However, the decision to allow services beyond the minimum prescribed has been left to the discretion of the banks who can either offer additional services free of charge or evolve requirements including pricing structure for additional value-added services on a reasonable and transparent basis to be applied in a non-discriminatory manner with prior intimation to the customers. Banks are required to put in place a reasonable pricing structure for value added services or prescribe minimum balance requirements which should be displayed prominently and also informed to the customers at the time of account opening. Offering such additional facilities should be non - discretionary, nondiscriminatory and transparent to all Basic Savings Bank Deposit Account customers. However such accounts enjoying additional facilities will not be treated as BSBDAs. 23

24 Q 14. If BSBDA customers have more than 4 withdrawals and request for cheque book at additional cost, will it cease to be a BSBDA? Yes. Please refer to response to the above query (Query No.13). However, if the bank does not levy any additional charges and offers more facilities free than those prescribed under BDBDA a/cs without minimum balance then such a/cs can be classified as BSBDA. Q 15. Whether the existing facility available in a normal saving bank account of Five free withdrawals in a month in other banks ATMs as per IBA (DPSS) instructions will hold good for BSBDA? No. In BSBDA, banks are required to provide free of charge minimum four withdrawals, through ATMs and other mode including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/emi etc It is left to the banks to either offer free or charge for additional withdrawal/s. However, in case the banks decide to charge for the additional withdrawal, the pricing structure may be put in place by banks on a reasonable, non-discriminatory and transparent manner by banks. Q 16. Are the banks free to levy Annual ATM Debit Card charges? Banks should offer the ATM Debit Cards free of charge and no Annual fee should be levied on such Cards. Q 17. Whether Balance enquiry in ATMs also should be counted within the four withdrawals permitted under BSBDA? Balance enquiry through ATMs should not be counted in the four withdrawals allowed free of charge at ATMs. Q 18. If a customer of BSBDA agrees not to have ATM Debit card should the bank give ATM debit card by force? ATM debit cards may be offered at the time of opening BSBDA and issued if the customer requests for the same in writing. Banks need not force ATM debit cards on such customers. Q 19. What about customers who are illiterate or old who may not be in a position to safe keep and use the ATM debit card and PIN associated with it? Banks while opening the BSBDA should educate such customers about the ATM Debit Card, ATM PIN and risk associated with it. However, if customer chooses not to have ATM Debit Card banks need not force ATM debit cards on such customers. If, however, customer opts to have an ATM Debit card, banks should provide the same to BSBDA 24

25 holders through safe delivery channels by adopting the same procedure which they have been adopting for delivery of ATM Debit card and PIN to their other customers. Q 20. Whether Passbooks are also to be offered free to BSBDA holders? Yes. BSBDA holders should be offered passbook facility free of charge in line with our instructions contained in Circular DBOD. No. Leg. BC.32 / / dated October 4, Q 21. If a customer opens a BSBDA but does not close his existing Savings Bank Account within 30 days, are banks then free to close such savings bank accounts? While opening the BSBDA customers consent in writing be obtained that his existing non- BSBDA Savings Banks accounts will be closed after 30 days of opening BSBDA and banks are free to close such accounts after 30 days. Q 22. In certain accounts like NREGA where disbursements are made weekly and if a month has five weeks, it may result in more than four withdrawals. In such cases can banks permit five withdrawals? In BSBDA, banks are required to provide free of charge minimum four withdrawals, including through ATM and other mode. Beyond four withdrawals, it is left to discretion of the banks to either offer free or charge for additional withdrawal/s. However pricing structure may be put in place by banks on a reasonable, non-discretionary, nondiscriminatory and transparent manner by banks. Q 23. What is the prescribed rate of interest payable on balances in such Basic Savings Bank Deposit Account? Our instructions contained in circular DBOD.Dir.BC.75/ / dated January 25, 2012 on Deregulation of Savings Bank Deposit Interest Rate, are applicable to deposits held in Basic Savings Bank Deposit Account. Q 24. In terms of RBI circular DPSS. CO.CHD. No. 274/ / dated August 10, 2012, if payable at par / multi-city cheques are issued to BSBDA customers based on their request, can banks prescribe minimum balance requirements? BSBDA does not envisage cheque book facility in the minimum facilities that it should provide to BSBDA customers. They are free to extend any additional facility including cheque book facility free of charge (in which case the account remains BSBDA) or charge for the additional facilities (in which case the account is not BSBDA). Q 25. What is the definition of Basic Savings Bank Deposit Account (BSBDA)? 25

26 All the existing No-frills accounts opened pursuant to guidelines issued vide circular DBOD. No. Leg. BC. 44/ / dated November 11, 2005 and converted into BSBDA in compliance with the guidelines issued in circular DBOD.No.Leg.BC.35/ / dated August 10, 2012 as well as fresh accounts opened under the said circular should be treated as BSBDA. Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs. Q 26. What is the time frame available to banks for converting No-Frills Account as Basic Savings Bank Deposit Account? What is the time frame available to banks for issuing ATM Cards to all the existing Basic Savings Bank Deposit Account holders? All the existing No-Frill accounts may be treated as BSBDA accounts from the date of the circular i.e., August 10, 2012 and banks may offer the prescribed facilities as per the circular such as issuing ATM card etc., to the existing No-Frill account holders as and when the customer approaches the bank. However, for customers opening new accounts after the issue of our circular should be provided with the prescribed facilities immediately on opening of the account. Q 27. Whether the normal saving bank account can be converted into BSBDA at the request of customer? Yes. Such customers should give their consent in writing and they should be informed of the features and extent of services available in BSBDAs. Q 28 Whether Foreign Banks in India are also required to open BSBDA for customers? Whether Circular dated August 10, 2012 on BSBDA is applicable to Foreign Banks having branches in India? RBI instructions/guidelines contained in circular dated August 10, 2012 on BSBDA is applicable to all scheduled commercial banks in India including Foreign Banks having branches in India. 26

27 D. Know Your Customer (KYC) Guidelines Q 1. What is KYC? KYC is an acronym for Know your Customer, a term used for customer identification process. It involves making reasonable efforts to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer s business, reasonableness of operations in the account in relation to the customer s business, etc which in turn helps the banks to manage their risks prudently. The objective of the KYC guidelines is to prevent banks being used, intentionally or unintentionally by criminal elements for money laundering. KYC has two components - Identity and Address. While identity remains the same, the address may change and hence the banks are required to periodically update their records. Q 2. Is there any legal backing for verifying identity of clients? Yes. Reserve Bank of India has issued guidelines to banks under Section 35A of the Banking Regulation Act, 1949 and Rule 7 of Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, Any contravention thereof or non-compliance shall attract penalties under Banking Regulation Act. Q 3. I want to keep a fixed deposit in a bank. Is KYC - applicable to me? Yes. KYC is applicable to customers of the bank. For the purpose of KYC following are the Customers of the bank. a person or entity that maintains an account and/or has a business relationship with the bank; one on whose behalf the account is maintained (i.e. the beneficial owner); beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction. Q 4. Is there any procedure specified for Customer Identification? 27

28 Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. Banks have been advised to lay down Customer Identification Procedure to be carried out at different stages i.e. while establishing a banking relationship; carrying out a financial transaction or when the bank has a doubt about the authenticity/veracity or the adequacy of the previously obtained customer identification data. Q 5. Once KYC requirements are complied with while opening the account, whether the bank can again ask for KYC compliance from me? Yes. To ensure that the latest details about the customer are available, banks have been advised to periodically update the customer identification data based upon the risk category of the customers. Banks create a customer profile based on details about the customer like social/financial status, nature of business activity, information about his clients business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. When the transactions in the account are observed not consistent with the profile, bank may ask for any additional details / documents as required. This is just to confirm that the account is not being used for any Money Laundering/Terrorist/Criminal activities. Q 6. I had submitted my driving licence as a proof of identity and address but still the bank asked for telephone / electricity bill. There are two aspects of Customer Identification. One is establishing identity and the other is establishing present residential address. For establishing identity, the bank requires any authentic document carrying photo of the customer such as driving licence/ passport/ pan card/ voters' card etc. Though these documents carry the residential address of the customer, it may not be the present address. Therefore, in order to establish the present address of the customer, in addition to passport/ driving licence / voters' card / pan card, the bank may ask for utility bills such as Telephone / Electricity bill etc. The detailed list of the documents that the bank can ask is given below. Features Documents Accounts of Individual Legal name and any other names used i. Passport ii. PAN card iii. Voter's Identity Card iv. Driving licence 28

29 v. Identity card (subject to the bank's satisfaction) vi. Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of bank Correct Permanent Address (i) Telephone bill (ii) Bank account statement (iii) Letter from any recognized public authority (iv) Electricity bill (v) Ration card (vi) Letter from employer (subject to satisfaction of the bank) (any one document which provides customer information to the satisfaction of the bank will suffice) Accounts of Companies Name of the company (i) Certificate of incorporation and Memorandum & Articles of Association (ii) Resolution of the Board of Directors to open an account and identification of those who have authority to operate the account (iii) Power of Attorney granted to its managers, officers or employees to transact business on its behalf (iv) Copy of PAN allotment letter (v) Copy of the telephone bill Principal place of business Mailing address of the company Telephone / Fax Number Accounts of Partnership Firms Legal name (i) Registration certificate, if registered (ii) Partnership deed (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney and their addresses (v) Telephone bill in the name of firm / partners Address Names of all partners and their addresses Telephone numbers of the firm and partners Accounts of Trusts & Foundations Names of trustees, settlers, beneficiaries and signatories (i) Certificate of registration, if registered (ii) Power of Attorney granted to transact business on its behalf 29

30 (iii) Any officially valid document to identify the trustees, settlors, beneficiaries and those holding Power of Attorney, founders / managers / directors and their addresses (iv) Resolution of the managing body of the foundation / association (v) Telephone bill Names and addresses of the founder, the managers / directors and the beneficiaries Telephone / fax numbers Accounts of Proprietorship Concerns Proof of the name, address and activity of the concern Registration certificate (in the case of a registered concern) Certificate / licence issued by the Municipal authorities under Shop & Establishment Act, Sales and income tax returns CST / VAT certificate Certificate / registration document issued by Sales Tax / Service Tax / Professional Tax authorities Registration / licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority / Department. IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of bank account. Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, etc. Any two of the above documents would suffice. These documents should be in the name of the proprietary concern. Q 7. Can my wife who is not having any address proof in her name, open an account with the bank? Yes. In such cases where the utility bills required for address verification are not in the name of the person who wants to open an account ( close relatives, e.g. wife, son, daughter and daughter and parents etc. who live with their husband, father/mother and son, as the case may be), an identity document and a utility bill of the relative with whom the prospective customer is living along with a declaration from the relative that the said person (prospective customer) wanting to open an account is a relative and is staying with him/her is acceptable. As supplementary evidence bank may ask for a letter received through post for further confirmation. Q 8. I am a daily wage earner without any document to satisfy the bank about identity and address. Can I open a bank account? 30

31 A customer belonging to low income group who is not able to produce documents to satisfy the bank about his identity and address, can open bank account with an introduction from another account holder who has been subjected to full KYC procedure provided that the balance in all his accounts taken together is not expected to exceed Rupees Fifty Thousand (Rs. 50,000/-) and the total credit in all the accounts taken together is not expected to exceed Rupees One Lakh (Rs. 1,00,000/-) in a year. The introducer s account with the bank should be at least six months old and should show satisfactory transactions. Photograph of the customer who proposes to open the account and also his address needs to be certified by the introducer, or any other evidence as to the identity and address of the customer to the satisfaction of the bank. If at any point of time, the balance in all his/her accounts with the bank (taken together) exceeds Rupees Fifty Thousand (Rs. 50,000/-) or total credit in the account exceeds Rupees One Lakh (Rs. 1,00,000/-) in a year, no further transactions will be permitted until the full KYC procedure is completed. In order not to inconvenience the customer, the bank will notify the customer when the balance reaches Rupees Forty Thousand (Rs. 40,000/-) or the total credit in a year reaches Rupees Eighty thousand (Rs. 80,000/-) that appropriate documents for conducting the KYC must be submitted otherwise operations in the account will be stopped. Q 9. Whether a certificate from my employer is sufficient as identity as well as address proof for opening an account? Banks rely on such certification only from corporate and other entities of repute provided that they are aware of the competent authority designated by the concerned employer to issue such certificate. In addition, banks also require at least one of the valid documents indicated above viz. Passport, Driving Licence, PAN Card, Voter's Identity Card etc. or utility bills for KYC purposes for opening bank account of salaried employees of corporate and other entities. Q 10. Whether the information given by me to the bank under KYC is treated as confidential? Yes. The information collected from the customer for the purpose of opening of account is treated as confidential and details thereof are not divulged for cross selling or any other similar purposes. Q 11. Whether KYC is applicable for Credit Cards/Debit Cards/Smart Cards? Yes. Application of full KYC procedure is necessary before issuing Credit Cards/Debit Cards/Smart Cards and also in respect of add-on/ supplementary cards. 31

32 Q 12. If I refuse to give information on KYC asked for by the bank, what action the bank can take against me? Where the bank is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, the bank can consider closing the account or terminating the banking/business relationship after issuing due notice to the customer explaining the reasons for taking such a decision. E. Types of Cards Q. 1: How many types of cards are available to a customer? Ans: Cards can be classified on the basis of their issuance, usage and payment by the card holder. There are three types of cards (a) debit cards (b) credit cards and (c) prepaid cards. Q. 2: Who issues these cards? Ans: Debit cards are issued by banks and are linked to a bank account. Credit cards are issued by banks / other entities approved by RBI. The credit limits sanctioned to a card holder is in the form of a revolving line of credit (similar to a loan sanctioned by the issuer) and may or may not be linked to a bank account. Prepaid cards are issued by the banks / non-banks against the value paid in advance by the cardholder and stored in such cards which can be issued as smart cards or chip cards, magnetic stripe cards, internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, etc. Q. 3: What are the usages of debit cards? Ans: The debit cards are used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) both domestically and internationally (provided it is enabled for international use). However, it can be used only for domestic fund transfer from one person to another. Q. 4: What are the usages of credit cards? Ans: The credit cards are used for purchase of goods and services at Point of Sale (POS) and E-commerce (online purchase)/ through Interactive Voice Response (IVR)/Recurring transactions/ Mail Order Telephone Order (MOTO). These cards can be used domestically and internationally (provided it is enabled for international use). The credit cards can be used to withdraw cash from an ATM and for transferring funds to bank accounts, debit cards, credit cards and prepaid cards within the country. 32

33 Q. 5: What are the usages of prepaid cards? Ans: The usage of prepaid cards depends on who has issued these cards. The prepaid cards issued by the banks can be used to withdraw cash from an ATM, purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) and for domestic fund transfer from one person to another. Such prepaid cards are known as open system prepaid cards. However, the prepaid cards issued by authorised non-bank entities can be used only for purchase of goods and services at Point of Sale (POS)/E-commerce (online purchase) and for domestic fund transfer from one person to another. Such prepaid cards are known as semi-closed system prepaid cards. These cards can be used only domestically. Q. 6: Is there any limit on the value stored in a prepaid card? Ans: Yes, as per extant instructions, the maximum value that can be stored in any prepaid card (issued by banks and authorised non-bank entities) at any point of time is Rs 50,000/- Q. No. 7: Can prepaid cards of lesser limits be issued? Ans: Yes. The following types of semi closed pre-paid payment instruments can be issued by carrying out Customer Due Diligence as detailed by the banks and authorised nonbank entities: Up to Rs.10,000/- by accepting minimum details of the customer provided the amount outstanding at any point of time does not exceed Rs 10,000/- and the total value of reloads during any given month also does not exceed Rs 10,000/-. These can be issued only in electronic form; from Rs.10,001/- to Rs.50,000/- by accepting any officially valid document defined under Rule 2(d) of the PML Rules 2005, as amended from time to time. Such PPIs can be issued only in electronic form and should be non-reloadable in nature; up to Rs.50,000/- with full KYC and can be reloadable in nature. The balance in the PPI should not exceed Rs.50,000/- at any point of time. Q. 8: Who decides the limits on cash withdrawal or purchase of goods and services through use of a card? Ans: The limits on cash withdrawal at ATMs and for purchase of goods and services are decided by the issuer bank. However, in case of cash withdrawal at other bank s ATM, there is a limit of Rs 10,000/- per transaction. Cash withdrawal at POS has also been enabled by certain banks wherein, a maximum of Rs.1000/- can be withdrawn daily by using debit cards. 33

34 Q. 9: Is the customer charged by his/her bank when he uses his debit card at other banks ATM for withdrawing cash? Ans: As per extant instructions, the savings bank account customer will not be charged by his/her bank up to five transactions (inclusive of both financial and non-financial transactions) in a month if he/she uses an ATM of another bank. However, within this overall limit of five free transactions, for transactions done at ATM of another bank located in the six metro centres, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad, the free transaction limit is set to three transactions per month. Q. 10: Where should the customer lodge a complaint in the event of a failed ATM transaction (account debited but cash not dispensed at the ATM)? Ans: The customer has to approach his/her bank (bank that issued the card) to lodge a complaint in the event of a failed ATM transaction. Q. 11: What is the time limit for resolution of the complaint pertaining to failed ATM transaction? Ans: The time limit, for resolution of customer complaints by the issuing banks, is within 7 working days from the date of receipt of customer complaint. Hence the bank is supposed to re-credit the customer s account within 7 working days. For failure to re-credit the customer s account within 7 working days of receipt of the complaint from the customer, the bank is liable to pay Rs 100 per day as compensation to the customer. Q. 12: What is the option for a card holder if his complaint is not redressed by the issuer? Ans: If a complainant does not get satisfactory response from his/her bank within a maximum period of thirty (30) days from the date of his lodging the complaint, he/she will have the option to approach the Office of the Banking Ombudsman (in appropriate jurisdiction) for redressal of his grievance. Q. 13: How are the transactions carried out through cards protected against fraudulent usage? Ans: For carrying out any transactions at an ATM, the card holder has to key in the PIN which is known only to him/her for debit/credit and prepaid cards. However, for carrying out transactions at POS too, the card holder has to key-in the PIN which is known only to the card holder if a debit card is used. In the case of credit card usage at POS the requirement of PIN depends on the banks policy on security and risk mitigation. In the case of e-commerce transactions, additional factor of authentication is applicable except in case of international websites. 34

35 Q. 14: What are the liabilities of a bank in case of fraudulent use of a card by unauthorised person? Ans: In case of card not present transactions RBI has mandated providing additional factor of authentication (if the issuer bank and e-commerce merchant bank is in India). Hence, if a transaction has taken place without the additional factor of authentication and the customer has complained that the transaction is not effected by her/him, then the issuer bank shall reimburse the loss to the customer without demur. Q. 15: Is there anyway a customer can come to know quickly whether a fraudulent transaction has taken place using his/her card? Ans: RBI has been taking various steps to ensure that card payment environment is safe and secure. RBI has mandated banks to send online alerts for all card transactions so that a card holder is aware of transactions taking place on his / her card. Q No. 16: What is the mandate for banks for issuing Magnetic stripe cards or Chipbased cards? Ans: RBI has mandated that banks may issue new debit and credit cards only for domestic usage unless international use is specifically sought by the customer. Such cards enabling international usage will have to be essentially EMV Chip and Pin enabled. The banks have also been instructed to convert all existing Mag-stripe cards to EMV Chip card for all customers who have used their cards internationally at least once (for/through e- commerce/atm/pos). 35

36 F. ATMs Q. 1. What is an Automated Teller Machine (ATM)? Ans1. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch. Q.2. What type of cards can be used at an ATM? Ans 2. The ATM debit cards, credit cards and prepaid cards (that permit cash withdrawal) issued by banks can be used at ATMs for various transactions. Q. 3. What are the services/facilities available at ATMs? Ans3. In addition to cash dispensing ATMs may have many services/facilities enabled by the bank owning the ATM such as: Account information Cash Deposit Regular bills payment Purchase of Re-load Vouchers for Mobiles Mini/Short Statement Loan account enquiry etc. Q.4. How can one transact at an ATM? Ans4. For transacting at an ATM, the customer inserts /swipes his/her Card in the ATM and enters his/her Personal Identification Number(PIN) issued by his/her bank. Q.5. What is Personal Identification Number (PIN)? Ans 5. PIN is the numeric password which is separately mailed / handed over to the customer by the bank while issuing the card. Most banks require the customers to change the PIN on the first use. Q.6. Can these cards be used at any bank ATM in the country? Is the customer charged for the same? Ans 6. Yes. The cards issued by banks in India may be used at any bank ATM within India. However the savings bank account holders can transact a maximum of five transactions free at other bank ATMs in a month, which is inclusive of all types of 36

37 transactions, financial and non-financial, beyond which the customer can be charged by his/her bank. Q. 7. What step should the customer take in the event of one forgets PIN or if the card is sucked in by the ATM? Ans7. The customer may contact the card issuing bank and apply for a new PIN or retrieval/issuance of a new card. Q. 8. What should be done if card is lost/stolen? Ans 8. The customer may contact the card issuing bank immediately on noticing the loss so as to enable the bank to block the card. Q. 9. Is there any minimum and maximum cash withdrawal limit per day? Ans 9. Yes. broadly the withdrawal limits are set by the card issuing banks. This limit is displayed at the respective ATM locations. Q.10. What steps should a customer take in case of failed ATM transaction at other bank ATMs, where his account is debited? Ans 10. The customer should lodge a complaint with the card issuing bank at the earliest. This process is applicable even if the transaction was carried out at another bank s ATM. Q. 11. Is there any time limit for the card issuing banks for reaccrediting the customer s account for a failed ATM transaction indicated under Q No. 10? Ans 11. As per the RBI instructions (DPSS.PD.No. 2632/ / dated May 27, 2011), banks have been mandated to resolve customer complaints by reaccrediting the customer s account within 7 working days from the date of complaint. Q. 12. Are the customers eligible for compensation for delays beyond 7 working days? Ans 12. Yes. Effective from July 1, 2011, banks have to pay customers Rs. 100/- per day for delays beyond 7 working days. The compensation has to be credited to the account of the customer without any claim being made by the customer.if the complaint is not lodged within 30 days of transaction, the customer is not entitled for any compensation for delay in resolving his / her complaint. Q 13. What is the course of action for the customer if the complaint is not addressed by his/her bank within the stipulated time? Ans 13. The customer can take recourse to the local Banking Ombudsman in such situations. 37

38 These FAQs are issued by the Reserve Bank of India (The Reserve Bank) for information and general guidance purposes only. The Reserve Bank will not be held responsible for actions taken and/or decisions made on the basis of the same. For clarifications or interpretations, if any, readers are requested to be guided by the relevant circulars and notifications issued from time to time by the Reserve Bank and the Government. 38

39 G. Banking Ombudsman Scheme, 2006 Q 1. What is the Banking Ombudsman Scheme? The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from Q 2. Who is a Banking Ombudsman? The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services. Q 3. How many Banking Ombudsmen have been appointed and where are they located? As on date, fifteen Banking Ombudsmen have been appointed with their offices located mostly in state capitals. The addresses and contact details of the Banking Ombudsman offices have been provided in the annex. Q 4. Which are the banks covered under the Banking Ombudsman Scheme, 2006? All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Cooperative Banks are covered under the Scheme. Q 5. What are the grounds of complaints? The Banking Ombudsman can receive and consider any complaint relating to the following deficiency in banking services (including internet banking): non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.; non-acceptance, without sufficient cause, of small denomination notes tendered for any purpose, and for charging of commission in respect thereof; non-acceptance, without sufficient cause, of coins tendered and for charging of commission in respect thereof; non-payment or delay in payment of inward remittances ; failure to issue or delay in issue of drafts, pay orders or bankers cheques; non-adherence to prescribed working hours ; failure to provide or delay in providing a banking facility (other than loans and advances) promised in writing by a bank or its direct selling agents; 39

40 delays, non-credit of proceeds to parties accounts, non-payment of deposit or nonobservance of the Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings,current or other account maintained with a bank ; complaints from Non-Resident Indians having accounts in India in relation to their remittances from abroad, deposits and other bank-related matters; refusal to open deposit accounts without any valid reason for refusal; levying of charges without adequate prior notice to the customer; non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card operations or credit card operations; non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees); refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government; refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities; forced closure of deposit accounts without due notice or without sufficient reason; refusal to close or delay in closing the accounts; non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions of the Code of Bank s Commitments to Customers issued by Banking Codes and Standards Board of India and as adopted by the bank ; non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and any other matter relating to the violation of the directives issued by the Reserve Bank in relation to banking or other services. A customer can also lodge a complaint on the following grounds of deficiency in service with respect to loans and advances non-observance of Reserve Bank Directives on interest rates; delays in sanction, disbursement or non-observance of prescribed time schedule for disposal of loan applications; non-acceptance of application for loans without furnishing valid reasons to the applicant; and non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code of Bank s Commitment to Customers, as the case may be; non-observance of any other direction or instruction of the Reserve Bank as may be specified by the Reserve Bank for this purpose from time to time. The Banking Ombudsman may also deal with such other matter as may be specified by the Reserve Bank from time to time. Q 6. When can one file a complaint? One can file a complaint before the Banking Ombudsman if the reply is not received from the bank within a period of one month after the bank concerned has received one s 40

41 representation, or the bank rejects the complaint, or if the complainant is not satisfied with the reply given by the bank. Q 7. When will one s complaint not be considered by the Ombudsman? Ones complaint will not be considered if: a. a. One has not approached his bank for redressal of his grievance first. b. One has not made the complaint within one year from the date one has received the reply of the bank or if no reply is received if it is more than one year and one month from the date of representation to the bank. c. The subject matter of the complaint is pending for disposal / has already been dealt with at any other forum like court of law, consumer court etc. d. Frivolous or vexatious. e. The institution complained against is not covered under the scheme. f. The subject matter of the complaint is not within the ambit of the Banking Ombudsman. g. If the complaint is for the same subject matter that was settled through the office of the Banking Ombudsman in any previous proceedings. Q 8. What is the procedure for filing the complaint before the Banking Ombudsman? One can file a complaint with the Banking Ombudsman simply by writing on a plain paper. One can also file it online or by sending an to the Banking Ombudsman. There is a form along with details of the scheme in our website. However, it is not necessary to use this format. Q 9. Where can one lodge his/her complaint? One may lodge his/ her complaint at the office of the Banking Ombudsman under whose jurisdiction, the bank branch complained against is situated. For complaints relating to credit cards and other types of services with centralized operations, complaints may be filed before the Banking Ombudsman within whose territorial jurisdiction the billing address of the customer is located. Address and area of operation of the banking ombudsmen are provided in the annex. Q 10.Can a complaint be filed by one s authorized representative? Yes. The complainant can be filed by one s authorized representative (other than an advocate). Q 11. Is there any cost involved in filing complaints with Banking Ombudsman? 41

42 No. The Banking Ombudsman does not charge any fee for filing and resolving customers complaints. Q 12. Is there any limit on the amount of compensation as specified in an award? The amount, if any, to be paid by the bank to the complainant by way of compensation for any loss suffered by the complainant is limited to the amount arising directly out of the act or omission of the bank or Rs 10 lakhs, whichever is lower. Q 13. Can compensation be claimed for mental agony and harassment? The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the complainant only in the case of complaints relating to credit card operations for mental agony and harassment. The Banking Ombudsman will take into account the loss of the complainant s time, expenses incurred by the complainant, harassment and mental anguish suffered by the complainant while passing such award. Q 14. What details are required in the application? The complaint should have the name and address of the complainant, the name and address of the branch or office of the bank against which the complaint is made, facts giving rise to the complaint supported by documents, if any, the nature and extent of the loss caused to the complainant, the relief sought from the Banking Ombudsman and a declaration about the compliance of conditions which are required to be complied with by the complainant. Q 15. What happens after a complaint is received by the Banking Ombudsman? The Banking Ombudsman endeavours to promote, through conciliation or mediation, a settlement of the complaint by agreement between the complaint and the bank named in the complaint. If the terms of settlement (offered by the bank) are acceptable to one in full and final settlement of one s complaint, the Banking Ombudsman will pass an order as per the terms of settlement which becomes binding on the bank and the complainant. Q 16. Can the Banking Ombudsman reject a complaint at any stage? Yes. The Banking Ombudsman may reject a complaint at any stage if it appears to him that a complaint made to him is: not on the grounds of complaint referred to above compensation sought from the Banking Ombudsman is beyond Rs 10 lakh. 42

43 requires consideration of elaborate documentary and oral evidence and the proceedings before the Banking Ombudsman are not appropriate for adjudication of such complaint without any sufficient cause that it is not pursued by the complainant with reasonable diligence in the opinion of the Banking Ombudsman there is no loss or damage or inconvenience caused to the complainant. Q 17. What happens if the complaint is not settled by agreement? If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award. Before passing an award, the Banking Ombudsman provides reasonable opportunity to the complainant and the bank, to present their case. It is up to the complainant to accept the award in full and final settlement of your complaint or to reject it. Q 18. Is there any further recourse available if one rejects the Banking Ombudsman s decision? If one is not satisfied with the decision passed by the Banking Ombudsman, one can approach the appellate authority against the Banking Ombudsmen s decision. Appellate Authority is vested with a Deputy Governor of the RBI. One can also explore any other recourse and/or remedies available to him/her as per the law. The bank also has the option to file an appeal before the appellate authority under the scheme. Q 19. Is there any time limit for filing an appeal? If one is aggrieved by the decision, one may, within 30 days of the date of receipt of the award, appeal against the award before the appellate authority. The appellate authority may, if he/ she is satisfied that the applicant had sufficient cause for not making an application for appeal within time, also allow a further period not exceeding 30 days. Q 20. How does the appellate authority deal with the appeal? The appellate authority may i. dismiss the appeal; or ii. allow the appeal and set aside the award; or iii. send the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper; or iv. modify the award and pass such directions as may be necessary to give effect to 43

44 the modified award; or v. pass any other order as it may deem fit. 44

45 III Telecommunications 45

46 A. Complaints Q 1. A consumer has made a request for termination (closure) of the service. How long has he to wait? What about rentals and other dues? A. The service provider shall terminate the connection within 7 days. They cannot charge rental or any other charges beyond the period of 7 days of request for closure made by the customer. Further, fresh bills shall be raised only after adjustment of the security deposit. The closure/ termination of service shall not be made conditional upon payment of dues/ bills/settlement of dispute. The outstanding amount of security deposits has to be refunded within 60 days of closure/ termination of service. In case of delay in refund beyond 60 days, a consumer is entitled to interest at the rate of 10% per annum for the number of days refund is delayed beyond 60 days. Q 2. What is the time limit within which a billing/ charging complaint has to be resolved? A. A billing complaint (post-paid connections) and charging complaint (pre-paid connections) has to be resolved within 4 weeks. Any credit/ waiver/ adjustment, arising out of such resolution of complaint has to be made to customer s account within one week of resolution of the complaint. Q 3. In case the fault is not rectified within the certain period, is the consumer entitled to any relief? A. Yes, in the case of basic telephone (wire line) connection, for delayed rectification of faults, the customer is entitled to rent rebate at the following rates: (a) Faults pending for more than 3 days and up to 7 days: Rent rebate for 7 days. (b) Faults pending for more than 7 days and up to 15 days: Rent rebate for 15 days. (c) Faults pending for more than 15 days: rent rebate for one month. Q 4. What is the time limit for disposal of an appeal by the appellate authority? A. The time limit for disposal of the appeal by the appellate authority is three months from the date of filing of the appeal. Q 5. Is there any time limit for making appeal to the appellate authority? A. Yes, the appeal has to be filed within three months of disposal of complaints by the Nodal Officer. However, the appellate authority may entertain any appeal filed after the expiry of three months. 46

47 Q 6. Where can a consumer find or obtain the prescribed appeal form for making appeal to the appellate authority? A. The Form can be obtained, free of charge, from the offices of the service provider, sales outlets, offices of the Nodal Officer and appellate authority or it can be downloaded from the website of the service provider or TRAI s website. Q 7. What is the time limit for redressal of a complaint by the Nodal Officer? A. Complaints relating to fault or disruption of service or disconnection of service shall be redressed within three days from the date of registration of complaint. All other complaints shall be redressed within ten days from the date of registration of complaint. If the Nodal Officer does not resolve the grievance satisfactorily, one can appeal to the appellate authority of the service provider in the prescribed form.. Q 8. If the complainant is not satisfied with the redressal of the complaint at the Call Centre level, who should be contacted? A. The complainant should contact Nodal Officer of the service provider and lodge his grievance. The contact details of a Nodal Officers are available on the service provider s web site. These are also available on TRAI s website under the caption Consumers.. Information. The contact details can also be obtained from the Call Centre. Q 9. What is the time limit for redressal of complaints at the Call Centre? A. The Call Centre has to redress the complaints as per the provisions in the QoS Regulation where no parameters are prescribed, complaints relating to faults/disruption of service have to be rectified within 3 days and all other complaints with 7 days. Q 10. Can TRAI help a consumer in resolving individual complaints? A. The TRAI Act, 1997 does not envisage handling of individual consumer complaints by TRAI. As per the Telecom Consumers Protection and Redressal of Grievances Regulations, 2007, in case a consumer has a complaint, the first step is to register the complaint at the toll free Call Centre number of the service provider and obtain a docket number, confirming registration of the complaint. 47

48 B. Tariff Q 1. What is the composite ceiling tariff fixed by TRAI for national roaming services? A. * Outgoing Local Call : Rs.1.40 per minute * Outgoing STD : Rs.2.40 per minute * Incoming calls : Rs.1.75 per minute Q 2. What protection is available for subscribers against hike in tariff? A. (i) No hike in any tariff item of a plan is permitted within a period of six months from the date of enrolment of the subscriber to that tariff plan. (ii) In respect of lifetime tariff plans and plans having longer validity, no hike in tariff is permitted during the period of promised validity. Q 3. What is meant by lifetime in respect of tariff scheme offering lifetime validity? A. It means that tariff plans which are offered as having lifetime validity, would continue to be available to the subscriber during the current license and renewed license of the service provider. Q 4. Is there a minimum validity period prescribed for tariff plans? A. A tariff plan, once offered by a service provider, shall be available to a subscriber for a minimum period of SIX months from the date of enrolment of the subscriber to that tariff plan. This implies that no tariff component of that plan can be hiked for a period of 6 months from the date of enrolment of a subscriber to that tariff plan. However, the Subscribers are free to move to other tariff plans of their choice at any time. Q 5. Is there a single tariff plan, which may best suit a subscriber? A. There is no single tariff plan which is uniformly best suited for each and every subscriber. There are a large number of tariff schemes in the market targeted at different user categories. It is essential for a subscriber to estimate his expected volume of usage and the pattern of usage and other preferences before deciding on the plan he should subscribe to. 48

49 C. Broadband Q 1. Even though broadband is not used frequently, still huge bills are received. What could be the reason? A. Broadband service is available under various types of tariff packages with different download limits. Additional download of data beyond the permissible limit would attract additional charges. Therefore, user should subscribe to a Broadband package, which suits his requirement. Q 2. Can Broadband connection be misused by tampering the cable? A. No, it cannot be tampered if the access to Internet connection is secured by assigning a Password. It is advisable for the users to secure their PC by using proper user ID and Password. Users should also frequently change the password to avoid any misuse. Q 3. How can a subscriber measure the download speed of his Broadband connection? A. Customers can check the speed by clicking on the speed check icon given on their website. The speed of the broadband is displayed generally in Kbps (Kilo bits per second). Q 4. What is the permissible minimum Broadband speed limit? A. As per the regulation on Quality of Service standards for Broadband Services issued by TRAI on 6th May, 2006, a subscriber should get minimum 80% of the subscribed broadband connection speed from ISP Node to user. 49

50 D. Prepaid Q 1. Can the wireless Internet connection be misused? A. Yes, there is a possibility of the wireless Internet connection getting misused, particularly if the Internet access is provided through Wi-Fi. To avoid that one should use proper authentication methods by using secured password and user name. Q 2. Can a prepaid subscriber avail any services even after his talk time is exhausted? A. Services which do not affect talk time value, including incoming voice calls and SMS shall continue to be available to the prepaid subscribers during validity period even after talk time value has exhausted. Q3. Can a pre-paid subscriber migrate to post-pay and vice-versa? A. Yes, migration from pre-paid to post-paid and vice-versa is allowed without any migration charge and without having to change the mobile number. Q 4. A prepaid subscriber feels that he is being overcharged. Can he get itemized usage details in respect of his mobile connection? A. Yes, if a prepaid subscriber makes a request for itemized usage details, the service provider is required to supply to him the same for a period of six months preceding the month in which the request has been made. The service provider may charge a reasonable cost not exceeding Rupees Fifty for providing such details. E. Top-ups Q 1. Is it permissible for service providers to charge processing fee on talk-time topups? A. Service provider shall not charge fixed charges / processing fees etc., on exclusive talktime top-ups. However, nominal fee not exceeding Rs.2/- towards administrative cost as well as applicable service tax can be levied. 50

51 F. Roaming Q 1. Is incoming calls free while roaming? A. No. Incoming calls are free only when the subscriber is within his home network. Q 2. Whether any fixed charge / rental can be levied by the service provider for providing national roaming services? A. No fixed charge / rental in any form is permitted for accessing national roaming services. G. Internet Q 1. Will keeping the modem on make any difference in the download limits? A. Yes it can make some difference. When the PC and Modem is kept on, there is a trickling of packets from the Internet into the system, even though the PC is not connected to the Internet. Therefore, it is advisable to keep the modem off when one is not accessing Internet. H. VAS Q 1. The service providers activate value added service like hello tunes, ring tunes, background music etc. on a telephone/ mobile of a consumer without his/her consent and charge for the same. Is it permissible? A. The service provider cannot activate any value added service, whether chargeable or free of charge, without the explicit consent of a customer. In case the subscriber seeks to unsubscribe the value added service within 24 hours from the time of its activation, the service provider has to deactivate the value added service and adjust or refund the deductions made if any. Source TRAI I Mobile Number Portability Q.1 When is MNP being launched in my circle? A. Mobile Number Portability has been launched across India on 20th January For Official Confirmation of this, See Here p

52 Q.2 In What circumstances my request for MNP may be rejected? A period of 90 days has not expired from the date of porting if you have ported your number earlier. A period of 90 days has not expired from the date of activation of your current number even if it was not ported earlier. There are some outstanding dues by way of pending bill or bills. There is a pending request for change of ownership of number. The mobile number to be ported is sub-judice. Any court has passed an order prohibiting the porting of the concerned number. Q.3 What exactly is meant by outstanding dues? A. Outstanding dues will mean the amount by way of actually generated bills as on the date of your request for MNP. Suppose if your Billing Date is 7th of each month and you make a request for MNP on 15th of that month, outstanding dues will mean the amount of your bill generated on 7th of that month. The subsequent amount of your usage and rent till the time of actual number porting will have to be paid by you to your existing operator later on as and when the final bill is generated. However this amount is not considered as outstanding. You are only supposed to pay it. If you don't, then even after MNP, your number can be de activated by the new operator based on complaint by your existing operator. Q.4 I am a very old mobile subscriber and in the earlier days there was a lot of deposits to be paid for STD, ISD. I have such deposits with my existing operator. Can i adjust it against my outstanding so as not to wait for a refund? A. You cannot. However as per the TRAI Quality of Service norms, your existing operator is supposed to refund you all the deposit within a period of 60 days from the date of closure. Q.5 I am a CDMA subscriber and want to switch to a GSM Service. My friend is having GSM Service and wants to switch to CDMA Service? Is it possible? A. Yes. You will be able to switch from CDMA>GSM as well as GSM>CDMA. But you will need a GSM Handset if switching from CDMA and CDMA handset if switching from GSM. Q.6 I am switching from CDMA to CDMA and have an official handset from my current operator. Will the same handset work with the new operator? A. If you are having an OMH (Open Market Handset) Sim CDMA handset, it will work with the new CDMA service provider. For other handsets it is a grey area. TRAI in its Mobile 52

53 Number Portability Regulations has mentioned the following as one of the reasons for rejection of MNP request. "there are subsisting contractual obligations in respect of which an exit clause has been provided in the subscriber agreement but the subscriber has not complied with such exit clause:" There are lots of CDMA handsets sold at cheap rates by operators. You pay as less as Rs 1000 to Rs 2000 for them. However we all don't care to read the fine print of terms and conditions. If the terms and conditions say that the handset is the property of the operator, then you will be stuck there as the operators will interpret the above TRAI clause as per their convenience and say that the customer needs to return the handset back to them. Q.7 I am a postpaid subscriber but would like to be prepaid one with the new operator? A. Yes you can do that. You can also be a postpaid subscriber from prepaid. Q.8 I am a prepaid subscriber and have a good amount of balance in my account. Will it be carried forward to new operator? A. No. You will lose your prepaid credit balance with the existing operator. Q.9 I have a lot of add on packs like SMS, on net free talktime etc. Will it be carried forward to the new operator of my choice? A. Unfortunately No. You will have to select a fresh plan of your choice from the new operator. Q.10 For how long my services be disrupted? A. Your services will be disrupted for not more than 2 hours on the day of actual porting. Even this will be mostly done between late evening to early morning hours to cause least inconvenience. Your phone will remain operational on all days while your MNP request is under process. Q.11 I am interested in switching to a new operator of my liking. What do I need to do? Send an SMS: PORT<space>Mobile Number (that is to be ported) to For ex. PORT Your existing operator will immediately provide you with a 8 digit alpha-numeric porting code that you need to submit to the operator you wish to opt to along with relevant documents. The unique porting code will be valid for 15 days for all service areas except Jammu & Kashmir, Asaam & North East Licensed areas where the validity of the 53

54 Unique Porting Code allocated to a subscriber will be 30 days from the date of request OR till such time the number is ported out, whichever is earlier, irrespective of the number of requests the subscriber makes. You need to submit the documents to operator of your choice within this time frame. Your number will be ported to the new operator within a maximum time frame of 7 Working days. For Jammu & Kashmir it will be maximum 15 Working days. Q.12 What Documents are required for porting the number to a new operator? Duly Filled Customer Application Form of your new operator alongwith the UPC (Unique Porting Code) details. Your Address Proof and Identity Proof. Copy of last bill paid to your current operator. Q.13 I made a porting request to the new operator but now changed my mind and do not want to shift. What to do? A. You can cancel your porting request to the new operator within 24 hours of submitting the application but the porting fees of Rs 19 (If you had paid) will be non-refundable. I will port from say Reliance to Tata Docomo. I understand that my number remains the same but if i surrender my number in Tata Docomo, what happens to the number? Once you surrender your ported number, it will again revert back to the Original Operator for issue to a new customer. Q.14 I stay in Gujarat but now will be shifting to Mumbai Soon. So i guess it makes sense to port my number to a Mumbai Circle Telecom Operator? A. Currently you can only port your number to an operator within your telecom circle. Inter Circle portability is not allowed yet but is on the radar of the govt. and will happen ultimately. Q.15 Can I use the same SIM Card of my current operator after i port to a new operator? A. No. Your Operator will issue a new Sim Card to you. You can continue to use your current operator's Sim card even after you give the portability request but only till the time of actual porting. Once porting is done, insert the new SIM card. Q.16 I am sick of those unwanted marketing calls and already registered with the Do Not Call Registry. I guess even after porting i will have peace of mind as my number remains the same. 54

55 A. Picture is not completely clear yet but some operators are saying that you will need to re-register for Do Not Call Registry. If your new operator has an option in the CAF form for activation of DND, select it otherwise activate it after porting. Q.17 Is there any charges for this? A. TRAI has mandated maximum of Rs. 19/- for MNP request to be paid to your new operator. However your new operator has the option to waive it off. I fulfill all the criteria for porting my number still my porting request was rejected by my current operator/i am facing technical glitches wherein my current operator has de-activated my number but new operator is not activating hence i cannot make or receive any calls/what to do if i have any complaints regarding my MNP porting process? You should first try lodging complaints with your current/new operator for resolution of your MNP porting related complaints. If still there is no resolution, you can always complain to Deptt. of Telecom OR TRAI (Telecom Regulatory Authority of India). Officially neither DOT nor TRAI has announced any procedure/contact details for people wanting to complain regarding MNP Process/issues. However, you can lodge your complain on the following public of DOT & TRAI. Deptt. Of Telecom ddgpg-dot@nic.in TRAI ca@trai.gov.in Q.18 What Precautions I should take so that my porting request is not rejected? A. During Generating the Port out Code: Ensure that the SMS you are sending for generating the Porting Code is without any signature. Many people put default signatures in their SMS. Some of the Operators are intentionally blocking the Generation of Port Code and you may receive messages like, "Cannot process Your Request, Please Try After Some Time". In such cases, lodge a complaint with the Customer Service of Your Operator and wait for resolution. While lodging the complaint, be firm and tell your Operator that unless your complaint is processed in a reasonable time frame, You will take the matter further by lodging Complaints to DOT and TRAI. Before Proceeding to New Operator with Port in Request Ensure that there is no pending request for Change of Ownership of your number with the current operator. Ensure that you have already paid of your last generated bill to your current operator if you are a post paid customer. Check that 90 days have passed from the date when your services was activated with the current operator. If you have converted your Postpaid to Prepaid with your current operator, ensure that 90 days have passed from the date of activation of Prepaid. (Though this is not uniform and debatable) 55

56 Do not give Port In request to more than One Operator with the same UPC Code. If you have received any free handset with time commitment or are under some scheme with your current operator which mandates you to fulfill certain obligations, Clarify with your current operator what you need to do so that your contractual obligations are fulfilled and port out will not be rejected. While Going to New Operator For Port In Ensure that your Unique Porting Code and Mobile Number is Correctly Filled in the Necessary Forms. During The Porting Process If you are a Postpaid Customer and a fresh bill is generated while the porting process is going on, pay it off immediately preferably in Cash at the Operators Outlets, so it reflects immediately in your account. 56

57 IV IATA and Air Transport Industry 57

58 Q.1 What is IATA IATA - the International Air Transport Association works with its airline members and the air transport industry as a whole to promote safe, reliable, secure and economical air travel for the benefit of the world's consumers. IATA s 240 member airlines comprise 84% of all air traffic. IATA is present in some 60 countries over the world. Q.2 What does IATA do? IATA provides a wide range of services and programs to its member airlines, the broader aviation community and by extension the traveling public. IATA sets standards in many areas of the business - from ticketing to baggage - that make it possible for passengers to travel from one place to another using two or more airlines. It also leads a number of industry initiatives involving safety, security, environment and the quality of air travel. IATA makes buying tickets easier as well. It accredits over 70,000 travel agents worldwide to ensure they provide the high standards of service and dependability that airlines and their clients expect. IATA s Billing and Settlement Plan serves as the financial backbone of the industry by managing the flow of the over $270 billion generated annually by travel agent ticket sales to airlines. And there is much, much more - check out our areas of activities. Q.3 Does IATA regulates airline activities? No. While IATA provides many standards and recommended practices it does not regulate its members in any way. That task is left to governments and civil aviation authorities. I've been contacted about outstanding fees Fraud protection and verification There have been attempts to obtain payments from users of IATA products and services through fraudulent messages. Please see our recommendations to detect fraud and report it to us. Traveler s questions Q.4 What are my rights with regard to an incident or accident related to a journey by air? The liability of airlines towards passengers in cases of incidents and accidents are defined in the "Conditions of contract and other important information". This document details passenger rights with regard to death or bodily injury, loss of or damage to baggage, and for delay. It also defines passenger rights and obligations for denied boarding, check-in times, baggage and the transport of dangerous goods. 58

59 There may be some regional adaptation of the ticket notice. Please check out the ticket notice applicable to the country of departure indicated on your ticket: Passenger Rights Q.5 Can IATA help me with my airline/airport complaint? While IATA serves the airline industry, it is not a regulatory body, and cannot intervene in service disputes or other commercial matters involving airlines or agents and their customers. For any issue, consumers should approach the respective airline or agent directly. You will find their contacts on their respective websites. Q.6 Is that my only option? Consumers who wish to escalate an issue related to aviation can contact the Civil Aviation Authorities of the country in which the airline is registered. Directory of Civil Aviation Authorities. Q.7 Where do I find information on Passenger Rights and Legislation? Much of this information can be located in two documents. First is the Montreal Convention. It is a treaty, adopted by the United Nations International Civil Aviation Organization (ICAO) in 1999 that defines the liability of airlines in cases of accidents, injuries and loss of baggage. In Europe additional legislation exists in the form of the European Commission Regulation on Denied Boarding, Cancellations and Delays. Q.8 Are there consumer organizations that I can contact? Yes there are several. The following organizations can provide advice on how to proceed with travel complaints: EU: Passenger rights in the EU UK: Civil Aviation Authority Passenger Site UK: UK Travel Association Switzerland: Office de Mediation en Suisse USA: Aviation Consumer Protection Division Canada: Canadian Transportation Agency International: International Airline Passengers Association Baggage Q.9 How do I know how much baggage I can travel with free of charge? 59

60 It s important to ask your airline or travel agent when you purchase your ticket as the free baggage allowance can vary by airline, routing and class of fare. Free allowance baggage is generally defined as those items necessary for the passenger's journey, such as clothing and personal articles within certain limitations. Q.10 How many pieces can I take? IATA has guidelines for baggage but the number and weight of baggage allowed free of charge can vary by airline, routing and fare. The "piece concept" defines the number of bags entitled by the passenger's ticket. Generally, two pieces of checked baggage are allowed per passenger, each piece weighing a maximum of 32 kilos (70 lb) and measuring no more than 158 cm (62 in) adding the dimensions: height + width + length. But check with the carrier because some airlines/airports have limits per bag which may be lower and for journeys with a single carrier, there may also be baggage limitation. The "piece concept" is generally in use on flights within, to and from Canada and the United States. Q.11 What about baggage weight? The "weight concept" defines the amount of baggage entitled by the passenger's ticket in kilos. For example, an economy class passenger may be entitled to 20 kilos of baggage and a business class passenger to 30 kilos. For safety considerations and in order to avoid inconvenience at the airport, make sure that your suitcase doesn't weigh more than a maximum of 32 kilos (70lbs). If it does you will be asked to repack and transfer some of your belongings into another bag. Please note that the maximum weight limit relates only to single items and does not affect the baggage allowance or excess baggage charges, which are set by individual airlines. However, some airlines/airports may have limits per bag which are lower, and for journeys with a single carrier, there may also be baggage limitation. Therefore, check with your carrier in advance. Q.12 What about cabin baggage - how many pieces can I carry on? Carry-on baggage must be stowed in the aircraft cabin which limits baggage to a size, weight and shape to fit under a passenger seat or in a storage compartment. Cabin baggage should have maximum length of 22 in (56 cm), width of 18 in (45 cm) and depth of 10 in (25 cm). These dimensions include wheels, handles, side pockets, etc. Baggage allowed onboard may vary from one to two pieces per passenger. Check with your airline as to what is allowed. Q.13 Why do so many bags go missing? Actually, globally 98.2% of all baggage travels with the passenger as planned. And the vast majority of bags that are mishandled are returned to the passenger within 48 hours. This does not detract from the fact that arriving without your baggage is a significant 60

61 inconvenience. Many baggage mishandlings occur at the transfer point due to punctuality issues, and these are often caused by air traffic control congestion. Sometimes it is simply not possible to move the bags between flights in the time available. IATA and its members continue to work hard to improve baggage performance further. Q.14 What liquids, aerosols and gels am I allowed to bring on board? The International Civil Aviation Organisation, the UN s aviation standard-setting body, has defined guidelines that more and more governments are adopting. The current restrictions for liquids, aerosols and gels from ICAO and in effect in most many countries are that they must be in containers 100ml or equivalent, placed in a transparent resealable plastic bag with max capacity 1-litre. At screening, plastic bags should be presented apart from other carry on items. Q.15 Are there exemptions? Yes, a few. Medications, baby milk/foods, special dietary requirements are exempt. Consult your local airport s website for more information. Q.17 What about duty free items? Passengers should ask and make sure the liquid products they are buying will not be confiscated later on in their trip. Different countries have different requirements and determine if duty free purchased in another country is allowed or not. In certain countries, it will be placed in a sealed tamper-evident bag, with the proof of purchase. This is meant to allow the passenger s purchases to go through other airports without being confiscated, although this needs an agreement between the countries concerned. Q.18 What is RFID? RFID stands for Radio Frequency Identification. RFID is a technology incorporated into a silicon chip embedded in a tag. The tag can be updated with new information, which is the main difference from other technologies used such as bar code. This means that new information can be updated on an item s tag as it travels around different locations. The technology also allows for tags to be read from a distance, through most substances, and for multiple tags to be read at one time, making it ideal for environments where items are stored in piles. Q.19 Is RFID technology the way to eliminate missing baggage? It is part of the solution. RFID can fix about 20% of baggage mishandling issues. The IATA business case showed that this was economically feasible, and the baggage improvement 61

62 programme is now looking to address the use of RFID and also tackle the other 80% of mishandling issues. It s important to understand that over 98% of baggage arrives at its destination with the passenger as planned! Q.20 What do I do when my bag goes missing? First, you report it to the baggage claims department on arrival. There you will provide information to the airline to help them track down your baggage. Most airlines use a global system called World Tracer which a joint product provided by IATA and SITA, a technology group that is owned by airlines. All missing baggage information is filed on this system. Once a match is found, the baggage is returned to its owner. The vast majority of mishandled luggage is returned to the passenger within 48 hours. Q.21 How do I make sure I packed my bag correctly? Make sure your baggage is not overweight. Check before flying as baggage weight allowances vary by airline but as a general rule if you can't lift your bag, it is likely airline staff won't be able to either. Please use something to identify your bag; a lot of luggage looks the same, if not identical. Ideally use an individualized strap rather than tying a cloth to the handle as this obscures the baggage label. Please pack your bag uniformly. Heavy and dense objects can cause the bag to move as well as delays at security. Please remove any labels and tags from previous flights. Please place a luggage label on one handle of your bag. Does your bag have wheels? Please lock them, if possible, to prevent movement after check-in. Does your travel insurance cover the cost of replacing the contents of your bag and the bag itself? Have you listed the contents of your bag in case you need to make an insurance claim? Is your bag over-packed? Please use another bag if this one was hard to close. If you have straps on your bag please remove them and place them in your bag. Please do not lock your bag as it may need to be searched. Ticketing Q.22 What is an electronic ticket? An e-ticket is an electronic record that holds the information previously held on a paper ticket and stores it securely on a database. Electronic tickets follow IATA global standards 62

63 and are therefore compatible with ground handling, distribution and accounting processes used by the global community of airlines. Q.23 Is there a difference between "ticketless" and e-ticket? Yes. Ticketless is basically a way of recording the sale and is used typically by low cost airlines on point to point travel. It does not conform to industry electronic ticketing standards and therefore cannot be used for journeys involving two or more airlines. Q.24 Are electronic tickets secure? Yes. E-ticketing was first introduced by the airline industry back in It is a process that has been tried, tested and widely appreciated in many markets. By introducing e- ticketing, all fraud related to paper tickets is automatically eliminated. The electronic ticket sits safely on the airline s secured database. However, consumers should make sure they buy tickets from a trusted supplier either directly from the airline or from an IATA accredited travel agent. Q.25 Do I need to have access to the Internet to use electronic ticketing? No. While the Internet is both a sales and distribution channel, the e-ticket purchase can be done by phone or at a ticket office. The itinerary receipt can be mailed, sent by fax or e- mail, or picked up at a ticketing location. Q.26 How do travelers using e-tickets prove they are booked on a flight? At check-in, passengers can present a valid ID such as a passport, an ID card, driver's license or credit card. Passengers should always be provided with an itinerary receipt. And IATA recommends that passengers take the itinerary receipt with them when they travel. Q.27 How can passengers with e-tickets gain entry to airports? Most airports do not need any documentation to gain access to the check-in area where airline agents are able to inspect e-ticket records in their computer systems. However, some airports do restrict access to the check-in area. In those airports, a passenger using an e-ticket may be identified from a preprinted list or simply be asked to show an itinerary/receipt. Q.28 What is an e-ticket? 63

64 An electronic ticket or e-ticket - is an electronic document that certifies the contract of carriage between passenger and airline. This is an electronic form of the usual paper ticket. The advantages of an electronic ticket are: time-saving, especially when a purchase is made via Internet; digitally stored tickets in the airline database, which protects you against loss, theft, or the fact that you simply forgot it; possibility to purchase tickets for other persons who are in another city, or for some other reason are unable to buy a ticket themselves. After the purchase the check-in process is the only thing that s left for them. When you travel with an electronic ticket it is preferably to save your itinerary receipt (printed e-ticket) during whole trip, this is not mandatory, but it may be required by the airport security service at the entrance, during passport control or customs inspection, as a proof that you have a return ticket. A passport for adults and birth certificates for children are required for the check-in procedure at the airport. The ticket can be used to transport only the person mentioned in it. According to the paid fare services of business / premium or economy class are provided to the passenger. The list and standards of service according to classes of service are established by the airline. Business class passengers have a higher level of comfort and service. Larger space between the seats allows them to settle down comfortably during the flight. Delicious menu and upscale wine will make even long flight easier and more enjoyable. Even higher service level and much more diverse menu are in first-class cabin. In addition, passengers of this category can spend their time in the first class airport lounge before departure, where they are offered free alcoholic and soft beverages and snacks. First Class Passengers often receive corporate gifts from airlines. Many other additional facilities are provided for passengers of these categories. For example - separate check-in counter, priority boarding and exit, more service personnel comparing to another classes. Passengers who have purchased an economy class e- ticket (using full or reduced fare), mostly are offered food, including wine, juice and soft drinks, depending on the time, duration and route of flight. Q.29 What is the advantages of an electronic ticket? The technology of electronic tickets appeared in 1996 in USA. Now it is widely distributed in most countries, including Ukraine. All members of the International Air Transport Association must use such tickets starting from

65 An electronic ticket or e-ticket - is an electronic document that certifies the contract of carriage between passenger and airline. This is an electronic form of the usual paper ticket. The advantages of an electronic ticket are : time-saving, especially when a purchase is made via Internet; digitally stored tickets in the airline database, which protects You against loss, theft, or the fact that you simply forgot it; possibility to purchase tickets for other persons who are in another city, or for some other reason are unable to buy a ticket themselves. After the purchase the check-in process is the only thing that s left for them. When you travel with an electronic ticket it is preferably to save your itinerary receipt (printed e-ticket) during whole trip, this is not mandatory, but it may be required by the airport security service at the entrance, during passport control or customs inspection, as a proof that you have a return ticket. A passport for adults and birth certificates for children are required for the check-in procedure at the airport. The ticket can be used to transport only the person mentioned in it. The main advantage of the electronic ticket is that it can t be lost or forgotten at home, and there is no longer any need for a passenger to carry a ticket with him. It only remains to arrive at the airport on time, approach the check-in counter with your passport, get a boarding pass and enjoy your flight. Q.30 What is Open date ticket? If passenger does not know the exact date of his return, he can buy a ticket with an open date? Open date ticket can usually be issued for a period of three months, six months or one year. During this period, passenger has a right over the phone or directly at the airline or agency office, book a place on the suitable date and flight. No charges for this are applied, except cases when there is no free seats of class specified in your ticket on selected flight. Then you will need to pay extra charge for more expensive class. Open date tickets are usually more expensive than tickets with a fixed date. But even a ticket with an open date is usually cheaper than two separate one-way tickets. Place on a flight for open date ticket is booked according to booked class seat availability. Open date ticket gives right to departure from the mentioned airport only after departure date and flight number entry in it. If you don t know exactly when you'll come back, it s better to buy a ticket with an open Q.31 What is Ticket validity? Ticket validity - is a period of time during which the passenger may carry on his flight. 65

66 The time of passenger's stay at the destination point can be expressed in calendar days, months (starting from the date of departure on the first flight coupon and ending the same day last possible months for this type of fare) or be equal to one year (starting from the date of departure and ending the same day next year). Validity is limited depending on ticket s fare level and for the cheapest ticket is 1 month. For example, the validity of ticket purchased at full normal fare is one year from the date of sale, during which you can change direction, departure date, make a refund, without any restrictions neither on staying time nor on stopovers during all the way. Q.32 What is the process of Ticket Cancellation? Contact your travel agent or the Airline for cancellation. Cancellation and refund can be processed only on the applicant's request. If you decide to cancel your ticket before it s issue (when you cancel your order after electronic payment), your money returnes in full amount except payment systems interest (from 1 to 3%). Please pay attention that each individual case of refund requires additional coordination with carrier, which makes final decision on refund amount, since rules of return are regulated by airlines. There are involuntary and voluntary cancellations of purchased tickets. Involuntary cancellation of issued ticket Most airlines consider as involuntary, cancellations based on following grounds: flight cancellation and delay for more than 3 hours; passenger's illness involving hospitalization; death of a close passenger s relative; passenger s death. If airline acknowledges involuntary cancellation, passenger obtains total amount of money paid for the ticket, minus: full service charge for ticket refund; payment systems interest (from 1 to 3%). Voluntary cancellation of the issued ticket All other cancellation cases, not listed above, are considered voluntary. In case of voluntary cancellation: full service charge for ticket refund; full airlines penalties according to fare rules; agency charge of Aviaradar.com, if it was included ticket price; payment systems interest (from 1 to 3%) are not refundable. Money may be returned in following ways: on a credit card account; on a Web money wallet; 66

67 with cash at the office; on the current account. Please specify additional data in the request letter, depending on the way you prefer to get the refund. 1. Refund on a credit card (possible when online order was paid by credit card) In the request letter you need to specify order number. Other additional information is not required. Upon request, refund will be made on a credit card used for order payment. Transferring funds to a credit card is made within 2-4 business days upon request receiving. 2. Refund on a Web money wallet (possible when online order was paid through Internet via Web money) In the request letter, you must specify: order number; number of the electronic wallet; full recipient s last name, first name and patronymic. refunds can be made only to a person who paid the order. Refund is processed within 7-8 business days. 4. Refund on bank account (is possible when payment was made via bank transfer) In request letter, you should specify next data: order number; full payee s name or legal entity name; account number; bank name; bank code. Refunds can be processed only to a person who paid the order, within 5-6 business days. Source IATA. 67

68 V Insurance 68

69 A. General Questions Q 1. What is Utmost Good Faith? A. Utmost Good Faith is one of the principles that insurance is based on. It denotes a positive duty of the person seeking insurance to voluntarily disclose accurately and fully, all facts material to the risk being proposed whether requested or not. Q 2. What is meant by Insurable Interest? A. The financial interest that the assured possesses in whatever is being insured is known as Insurable interest. In other words, it is the right of a person to insure something which, when lost or damaged, would mean a financial loss to him. If a person is allowed to insure something that he does not own it becomes a wagering contract and therefore void under Section 30 of Indian Contract Act. Therefore, Insurable interest is a pre-requisite for insurance and the compensation is limited by the value of the subject matter of insurance and the extent of insurance coverage. In Life Insurance, though human life value cannot be measured in monetary terms, insurers determine the sum assured as a multiple of the income of the life assured and his remaining productive years. Q 3. What is the difference between an Insurance Agent and an Insurance Broker? A. An insurance agent can represent only one insurer and do business for him. An insurance Broker is basically the representative of the customer and can sell the policies of more than one insurer. In the Indian context an Agent can represent one Life insurer, one Non-Life insurer and one Health insurer. In addition he can represent one credit insurance company and agricultural insurance company too. Detailed regulations have been framed by Insurance Regulatory and Development Authority (IRDA) for both Agents and Brokers and they govern them. Q 4. What is an insured peril? A. The purpose of insurance is to compensate you for a loss caused by an insured perils. If your stocks are destroyed in a fire, the cause of loss is fire which is payable under a fire policy. If the stocks are stolen, the loss is not payable under a fire policy as Burglary is not a covered peril. 69

70 Q 5. What is the meaning of Proximate Cause? A. If the loss is caused by two or more causes acting simultaneously or one after the other, then it is necessary to chose the most important / effective cause which has caused the loss. This cause is termed Proximate Cause and other cause is termed as Remote. Q 6. Can an insured claim any amount from his insurer regardless of the extent of loss? A. No. The loss will be surveyed and amount payable assessed and this is subject to calculations like depreciation and policy excess so that the compensation is strictly for the loss suffered and to the extent suffered. The concept is that an insurance policy should not be the means to making a profit. However it is possible to take some policies on a Reinstatement Value Basis so that, in the event of a loss, the claim will be paid on the basis of creating a new asset in the place of the old one rather than on the depreciated or market value of the old asset. Q 7. What is the meaning of Deductibles? A. In some policies there is a clause that a specified amount will be deducted from the claim amount. For example in Industrial Risks 0.5 per cent of the total sum insured subject to a minimum of Rs.1 lakh is the deductible if loss is due to Terrorist Act. This means that the first Rs one lakh of any claim and up to 0.5 per cent of the claim has to be borne by the insured. If the loss is below Rs one lakh then no claim is payable. This is a way for the insurance companies to avoid the administrative costs of small claims and the insured is usually given a premium rebate for accepting this burden. Q 8. What is the meaning of Co-Insurance? A. Corporate clients, who want to oblige more than one insurer, or benefit from the competitive forces among insurers, place their insurance business with more than one insurance company. While doing so, they select one company as the Leader who is given higher share of premium and others are given lesser share. Client deals only with the Leader. The leader will share the premium (in the ratio decided by the client) as well as claims with other participating insurers who are called Co-insurers. Depending on the total volume of premium, it can be placed with 2, 3, 4 or more insurers. Q 9. Is the Insured responsible for Loss Minimisation? 70

71 A. Even when a property is insured, it is the responsibility of insured to take all reasonable steps to protect against or minimise the loss. Every insured is expected to behave as though he is a prudent uninsured. If the insured neglects to take such steps, as per the policy condition of Negligence, the claim can be repudiated or partially allowed. Q 10. What are the Rules of the Insurance Ombudsman Scheme? A. The objective of the Insurance Ombudsman Rules is to resolve all complaints relating to: 1. Partial or total repudiation of claims 2. Any dispute regarding premium paid or payable in terms of the policy 3. Any dispute about the legal construction of the policy relating to claims 4. Delay in settlement of claims 5. Non-issue of any insurance document to customers after receipt of premium, in a cost effective, efficient and impartial manner. These rules are called Public Grievances Rules 1998 and were notified by Government of India and published in the Gazette of India on Q 11. What is a TPA and what are its functions? A. A TPA is a Third Party Administrator. They are commercial entities duly licensed by IRDA. Their services are utilised by Insurance Companies, both Life and Non-Life, to render, on their behalf, post-sales services to health insurance policyholders. They provide services like: Guiding the insured with regard to claims Issuing photo ID cards to insured persons Issuing pre-authorisation to hospitals to facilitate insured persons to avail of the cashless facility and Process and settle claims for reimbursement 71

72 Q1. What is Health Insurance? B. Health Insurance A. The term health insurance is a type of insurance that covers your medical expenses. A health insurance policy is a contract between an insurer and an individual /group in which the insurer agrees to provide specified health insurance cover at a particular premium. Q 2. What are the forms of Health Insurance available? A. The commonest form of health insurance policies in India cover the expenses incurred on Hospitalization, though a variety of products are now available which offer a range of health covers, depending on the need and choice of the insured. The health insurer usually provides either direct payment to hospital (cashless facility) or reimburses the expenses associated with illnesses and injuries or disburses a fixed benefit on occurrence of an illness. The type and amount of health care costs that will be covered by the health plan are specified in advance. Q 3. Why is Health Insurance important? A. All of us should buy health insurance and for all members of our family, according to our needs. Buying health insurance protects us from the sudden, unexpected costs of hospitalization (or other covered health events, like critical illnesses) which would otherwise make a major dent into household savings or even lead to indebtedness. Each of us is exposed to various health hazards and a medical emergency can strike anyone of us without any prior warning. Healthcare is increasingly expensive, with technological advances, new procedures and more effective medicines that have also driven up the costs of healthcare. While these high treatment expenses may be beyond the reach of many, taking the security of health insurance is much more affordable. Q 4. What kinds of Health Insurance plans are available? A. Health insurance policies are available from a sum insured of Rs 5000 in microinsurance policies to even a sum insured of Rs 50 lakhs or more in certain critical illness plans. Most insurers offer policies between 1 lakh to 5 lakh sum insured. As the room rents and other expenses payable by insurers are increasingly being linked to the sum insured opted for, it is advisable to take adequate cover from an early age, particularly because it may not be easy to increase the sum insured after a claim occurs. Also, while most non-life insurance companies offer health insurance policies for a duration of one year, there are policies that are issued for two, three, four and five years duration also. Life insurance companies have plans which could extend even longer in the duration. A Hospitalization policy covers, fully or partly, the actual cost of the treatment for hospital 72

73 admissions during the policy period. This is a wider form of coverage applicable for various hospitalization expenses, including expenses before and after hospitalization for some specified period. Such policies may be available on individual sum insured basis, or on a family floater basis where the sum insured is shared across the family members. Another type of product, the Hospital Daily Cash Benefit policy, provides a fixed daily sum insured for each day of hospitalization. There may also be coverage for a higher daily benefit in case of ICU admissions or for specified illnesses or injuries. A Critical Illness benefit policy provides a fixed lumpsum amount to the insured in case of diagnosis of a specified illness or on undergoing a specified procedure. This amount is helpful in mitigating various direct and indirect financial consequences of a critical illness. Usually, once this lump sum is paid, the plan ceases to remain in force. There are also other types of products, which offer lumpsum payment on undergoing a specified surgery (Surgical Cash Benefit), and others catering to the needs of specified target audience like senior citizens. Q5. What is cashless facility? A. Insurance companies have tie-up arrangements with several hospitals all over the country as part of their network. Under a health insurance policy offering cashless facility, a policyholder can take treatment in any of the network hospitals without having to pay the hospital bills as the payment is made to the hospital directly by the Third Party Administrator, on behalf of the insurance company. However, expenses beyond the limits or sub-limits allowed by the insurance policy or expenses not covered under the policy have to be settled by you directly with the hospital. Cashless facility, however, is not available if you take treatment in a hospital that is not in the network. Q6. What are the tax benefits I get if I opt for Health Insurance? A. Health insurance comes with attractive tax benefits as an added incentive. There is an exclusive section of the Income Tax Act which provides tax benefits for health insurance, which is Section 80D, and which is unlike the section 80C applicable to Life Insurance wherein other form of investments/ expenditure also qualify for the deduction. Currently, purchasers of health insurance who have purchased the policy by any payment mode other than cash can avail of an annual deduction of Rs. 15,000 from their taxable income for payment of Health Insurance premium for self, spouse and dependent children. For senior citizens, this deduction is higher, and is Rs. 20,000. Further, since the financial year , an additional Rs 15,000 is available as deduction for health insurance premium paid on behalf of parents, which again is Rs 20,000 if the parents are senior citizens. Q7. What are the factors that affect Health Insurance premium? 73

74 A. Age is a major factor that determines the premium, the older you are the premium cost will be higher because you are more prone to illnesses. Previous medical history is another major factor that determines the premium. If no prior medical history exists, premium will automatically be lower. Claim free years can also be a factor in determining the cost of the premium as it might benefit you with certain percentage of discount. This will automatically help you reduce your premium. Q 8. What does a Health Insurance policy not cover? A. You must read the prospectus/ policy and understand what is not covered under it. Generally, pre-existing diseases (read the policy to understand what a pre-existing disease is defined as) are excluded under a Health Insurance policy. Further, the policy would generally exclude certain diseases from the first year of coverage and also impose a waiting period. There would also be certain standard exclusions such as cost of spectacles, contact lenses and hearing aids not being covered, dental treatment/surgery ( unless requiring hospitalization) not being covered, convalescence, general debility, congenital external defects, venereal disease, intentional self-injury, use of intoxicating drugs/alcohol, AIDS, expenses for diagnosis, x-ray or laboratory tests not consistent with the disease requiring hospitalization, treatment relating to pregnancy or child birth including cesarean section, Naturopathy treatment. Q 9. Is there any Waiting Period for claims under a policy? A. Yes. When you get a new policy, generally, there will be a 30 days waiting period starting from the policy inception date, during which period any hospitalization charges will not be payable by the insurance companies. However, this is not applicable to any emergency hospitalization occurring due to an accident. This waiting period will not be applicable for subsequent policies under renewal. Q 10. What is pre-existing condition in health insurance policy? A. It is a medical condition/disease that existed before you obtained health insurance policy, and it is significant, because the insurance companies do not cover such preexisting conditions, within 48 months of prior to the 1st policy. It means, pre-existing conditions can be considered for payment after completion of 48 months of continuous insurance cover. Q 11. If my policy is not renewed in time before expiry date, will I be denied for renewal? A. The policy will be renewable provided you pay the premium within 15 days (called as Grace Period) of expiry date. However, coverage would not be available for the period for 74

75 which no premium is received by the insurance company. The policy will lapse if the premium is not paid within the grace period. Q 12. Can I transfer my policy from one insurance company to another without losing the renewal benefits? A. Yes. The Insurance Regulatory and Development Authority (IRDA) has issued a circular making it effective from 1st October, 2011, which directs the insurance companies to allow portability from one insurance company to another and from one plan to another, without making the insured to lose the renewal credits for pre-existing conditions, enjoyed in the previous policy. However, this credit will be limited to the Sum Insured (including Bonus) under previous policy. For details, you may check with the insurance company. Q 13. What happens to the policy coverage after a claim is filed? A. After a claim is filed and settled, the policy coverage is reduced by the amount that has been paid out on settlement. For Example: In January you start a policy with a coverage of Rs 5 Lakh for the year. In April, you make a claim of Rs 2 lakh. The coverage available to you for the May to December will be the balance of Rs.3 lakh. Q 14. What is 'Any one illness? A. 'Any one illness' would mean the continuous period of illness, including relapse within a certain number of days as specified in the policy. Usually this is 45 days. Q 15. What is the maximum number of claims allowed over a year? A. Any number of claims is allowed during the policy period unless there is a specific cap prescribed in any policy. However the sum insured is the maximum limit under the policy. Q 16. What is health check facility? A. Some health insurance policies pay for specified expenses towards general health check up once in a few years. Normally this is available once in four years. Q 17. What do you mean by Family Floater Policy? A. Family Floater is one single policy that takes care of the hospitalization expenses of your entire family. The policy has one single sum insured, which can be utilised by any/all insured persons in any proportion or amount subject to maximum of overall limit of the policy sum insured. Quite often Family floater plans are better than buying separate 75

76 individual policies. Family Floater plans take care of all the medical expenses during sudden illness, surgeries and accidents. C. Conventional Life Insurance Q 1. What should I look for before I decide to buy a policy? You must check and see whether or not there is availability of guarantee of return, what the lock in period is, details of premium to be paid, what would be implications of premium default, what the revival conditions are what the policy terms are, what are the charges that would be deducted, would loan be available etc. Q2. What is the importance of a proposal and the disclosures made therein? The disclosures made in a proposal are the basis for underwriting a policy and therefore any wrong statements or disclosures can lead to denial of a claim. Q 3. What are special medical reports required to be submitted in Life insurance? In case of certain proposals, depending upon the age of entry, age at maturity, sum assured, family history and personal history, special medical reports may be necessary for consideration of a risk. E.g. if the proposer is overweight, special reports like Electro Cardiogram, Glucose Tolerance test etc could be required, while for underweight proposers, X-ray of the chest and lungs with reports could be required. Q4. What is meant by Paid-up Value in Conventional Life Insurance Policy? After premiums are paid for a certain defined period or beyond and if subsequent premiums are not paid, the sum assured is reduced to a proportionate sum, which bears the same ratio to the full sum assured as the number of premiums actually paid bears to the total number originally stipulated in the policy. For example, if sum assured is 1 lakh and the total number of premiums is payable is 20 (20 years policy, mode of premium is assumed yearly) and default occurs after 10 yearly premiums are paid, the policy acquires the paid up value of 50,000/-. Paid up Value = No. of Premiums Paid / No. of Premiums Payable X S.A=10/20 X = 50000/-. This means that the policy is effective as before except that from the date the 11th premium was due, the sum assured is 50,000/- instead of original 1,00,000/-. To this sum assured the bonus already vested (accrued) before the policy lapsed, is also added. Example if the bonus accrued up to the date of lapse is 35,000/-, the total paid up value is =

77 Q 5. How is Surrender Value calculated in Conventional Life Insurance Policy? Surrender Value is allowed as a percentage of this paid up value. Surrender value is calculated as per the surrender value factor, which depends on the premiums paid and elapsed duration. Q 6. How is the Loan on Policy calculated under Conventional Life Insurance Policies? If the policy conditions permit grant of loan, loan is sanctioned as a percentage of the Surrender Value. Q 7. What are the requirements to be submitted in case of a Maturity Claim? Usually the Insurance Company will send intimation attaching the discharge voucher to the policy holder at least 2 to 3 months in advance of the date of maturity of the policy intimating the claim amount payable. The policy bond and the discharge voucher duly signed and witnessed are to be returned to the insurance company immediately so that the insurance company will be able to make payment. If the policy is assigned in favour of any other person the claim amount will be paid only to the assignee who will give the discharge. Q 8. What is meant by settlement options? Settlement option means the facility made available to the policy holder to receive the maturity proceeds in a defined manner (the terms and conditions are specified in advance at the inception of the contract). Q 9. What documents are generally required to be submitted in case of death of life assured while the policy is in force? The basic documents that are generally required are death certificate, claim form and policy bond, Other documents such as medical attendant's certificate, hospital certificate, employer's certificate, police inquest report, post mortem report etc could be called for, as applicable. The claim requirements are usually disclosed in the policy bond. 77

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79 D. Motor Insurance Q 1. What Motor Insurance cover should I buy? Should I buy Comprehensive Insurance or Liability Policy only? A. Third Party Liability insurance is mandatory for all vehicles plying on public roads in India. This covers Liability for injuries and damages to others that you are responsible for. In addition, it is prudent to cover loss or damages to the vehicle itself by way of Comprehensive/Package policy, which covers both Liability as well as Own damage to the insured vehicle. Liability Only cover is also known as Act Only cover. Q 2. How is the premium determined? A. Many factors determine the premium you will pay. For Own Damage cover different insurance companies charge different premiums for similar coverage. Shop around; getting three or more comparison quotes is worthwhile. Check various insurers s websites; it will help you compare premiums. Do not forget to compare deductibles, coverage and IDV s as premium may be lesser of one insurer but with higher deductibles, lower coverage and lower IDV, which will adversely impact you in the event of claim settlement. Be prepared to give your agent information about the following items that are commonly used to determine your premium: Vehicle registration details with Engine No., Chasis no., Class of vehicle, cubic capacity, seating capacity, etc. (In fact, all relevant details are in the RC book/card and a copy of same may be handed over) Tax paid details; Certificate of fitness, Driver details - age, gender, qualifications, licence validity Previous insurance history, if any. The Own Damage coverage is left to be rated by individual insurance companies after duly filing rates with the Insurance Regulatory and Development Authority. The same is determined on following factors amongst others -- Age of vehicle; Discounts / loadings- Appropriate Bonus / loading/ discounts along with past claims experience are taken into account while calculating premium. IDV (Insured Declared Value). Third Party Liability Premium rates are laid down by IRDA.In case of break in insurance, vehicle inspection would be required and extra charges will have to be incurred for the same. Q 3. What coverage limits meet my needs? A. The sum insured for the vehicle is called Insured s Declared Value and should reflect the current market value of the vehicle. Under Liability insurance, Third Party Liability insurance is covered. There is unlimited coverage to Third parties injury and Third party property damage is covered up to a sum of Rs 7,50,

80 The Insured has the option to restrict coverage for Third Party Property damage to Rs 6,000 and this will result in a lower Liability Only premium. Q 4. What is the period of the policy? A. A motor policy is usually valid for a period of one year and has to be renewed before the due date. Pay the premium on time. No Insurer offers a grace period for paying the premium. In case of lapse of policy by even one day, the vehicle has to be inspected. Moreover, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB (No Claim Bonus) is also lost. Q 5. What is "No Claim Bonus"? A. No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. As per current norms in India, it ranges from 20% on the Own Damage premium (and not on Liability premium) and progressively increases to a maximum of 50% If, however, a claim is lodged, the No Claim Bonus is lost in the subsequent policy period.ncb is given to the insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period. The original owner can, however, use the NCB on a new vehicle purchased by him. Q 6. Will my No Claim Bonus get migrated if I want to change my insurance company? A. Yes, you can avail of the NCB facility if you change the insurer on renewal. You would have to produce proof of the NCB earned by way of renewal notice from the current insurer. Alternately, you can produce your original, expiring policy along with a certification that you have lodged no claims on the expiring policy. For this the proof can be in the form of a renewal notice or a letter confirming the NCB entitlement from the previous insurer. Q 7. Are there discounts that will lower my premium? A. In addition to NCB, there are additional discounts available under Own Damage Premium for membership of Automobile Association of India, Vintage Cars (Pvt. Cars certified by the Vintage and Classic Car Club of India); Installation of anti-theft devices approved by Automobile Research Association of India (ARAI), Pune and whose installation is approved by AAI; Concessions for specially designed/modified vehicles for the Blind, Handicapped and mentally challenged persons, which are suitably endorsed in the RC by the RTA concerned; - opting for voluntary additional deductible/excess. 80

81 Under Liability Only Section, discounts are available for reduction in Third Party Property Damage (TPPD) from Rs. 750,000 to Rs. 6,000. Q 8. Is Service Tax applicable and how much is it? A. Yes, Service Tax is applicable and would be as per prevailing rule of law. Q 9. What is deductible? A. Deductible or excess is the amount over and above, which the claim will be payable. There is a normal standard/compulsory excess for most vehicles ranging from Rs 50 for two-wheelers to Rs 500 for Private Cars and Commercial Vehicles which increases depending upon the cubic capacity/carrying capacity of the vehicle. However, in some cases the insurer may impose additional excess depending upon the age of the vehicle or if there is high frequency of claims. Q 10. What is the procedure for recording any changes in the policy? A. If there are any changes in the policy like change of address or modifications to the vehicle or its use, it will be done by an Endorsement by the insurance company. Submit a letter to the insurer with proof for the changes and obtain the endorsement. Some endorsements may require you to pay additional premium. Check the correctness of the endorsement. Q 11. If I am using the car in a particular city, what premium rate is applied? A. For the purpose of applying premium rate, the place where the vehicle is registered is reckoned (not the place where the vehicle is used). If your vehicle is registered in Chennai, the rate applicable for Zone A is charged. Even when you shift to a different city / town, the same rate will continue to be applied. Similarly if a vehicle is registered in a town, it attracts Zone B premium rate. Subsequently if the owner shifts to a metro, he will continue to be charged the Zone B rate. Q 12. What is a Certificate of Insurance under Motor Vehicle Act? A. As per Rule 141 of Central Motor Vehicle Rules 1989, a certificate of Insurance is to be issued only in Form 51. It is only in Motor Vehicle Insurance, apart from the policy, that a separate certificate of insurance is required to be issued by insurers. This document should always be carried in the vehicle. The policy should be preserved separately at home / office. 81

82 Q 13. If I fit CNG or LPG kit in my vehicle, is it necessary to inform the Insurance Company? A. If a CNG / LPG kit is fitted in the vehicle, the (Road Transport Authority (RTA) office where the vehicle was registered should be informed so that they make a note of the change in the registration certificate (RC) of the vehicle. The insurance company should also be informed so that the kit is covered on payment of extra premium on the value of the kit under OD section and also under LO section. Q 14. What are the documents to be kept in the vehicle while plying in public places? Certificate of Insurance Xerox copy of Registration Certificate Pollution Under Control Certificate Photocopy of Driving Licence of person who is driving the vehicle Q 15. Can I transfer my insurance to the purchaser of my vehicle? A. Yes, the insurance can be transferred to the buyer of the vehicle, provided the seller informs in writing of such transfer to the insurance company. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance along with pro-rata recovery of NCB from the date of transfer till policy expiry. It may be noted that transfer of ownership in comprehensive/package policies has to be recorded within 14 days from date of transfer failing which no claim will be payable for own damage to the vehicle. Q 16. Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name? A. No. Registration and insurance of the vehicle should always be in the same name with the same address. Otherwise the claim is not payable. A fresh proposal form needs to be filled in. There is a nominal fee charged for transfer of insurance. Q17. I have lost the insurance policy. Can I get a duplicate one? A. Yes, please approach the same office, which had issued the policy, with a written request. A nominal fee is charged for issuing a duplicate policy copy. Q 18. What are the documents that are required to be submitted for a Motor Insurance claim? A. Generally, the following documents are required to be submitted. However, read through your policy to see the complete list duly filled in claim form, RC copy of the 82

83 vehicle, Original estimate of loss, Original repair invoice and payment receipt. In case cashless facility is availed, only repair invoice would need to be submitted and FIR, if required. For theft claims, the keys are to be submitted. Theft claims would also require non-traceable certificate to be submitted. E. Property Insurance Q 1. What are the requirements to purchase a property insurance policy? A. The proposer of the policy should first and foremost have an interest in the assets being proposed for insurance, i.e. he/she should stand to lose financially in the event of loss or damage to such assets. Secondly, the proposer should submit a proposal form (which can be obtained at any insurer s website or office). The proposal form should disclose all details, which are true to the insured s best knowledge and other information, which the proposer may feel is relevant. Q 2. What are the different types of Property Insurance Policies? A. The most popular is the Standard Fire & Allied Perils policy which covers most of the perils the property is exposed to like fire, riots, flood, and storm. Loss of current assets due to burglary and theft can be covered under a Burglary & House Breaking Insurance Policy. Valuables can be covered under All Risks Policies and there are package policies for house owners and shopkeepers. Q 3. How does one fix the sum insured? A. Generally, there are two methods. One is Market Value (MV) and the other is Reinstatement Value (RIV). In the case of M.V, in the event of a loss, depreciation is levied on the asset depending on its age. Under this method, the insured is not paid amount sufficient to buy the replacement. In the RIV method, the Insurance Co. will pay the cost of replacement subject to ceiling of S.I. Under this method, no depreciation is levied. One condition is that the damaged asset should be repaired / replaced in order to get the claim. It may be noted that RIV method is allowed only for FIXED ASSETS and not for other assets like stocks and stocks in process. Q 4. What will be the cost of a fire insurance policy? A. The cost of a fire insurance policy or the Premium can depend on the 83

84 Perils to be covered The value of the items covered The usage of the premises proposed for insurance The location details of the premises proposed for insurance etc. The construction of building and occupancy Consequent to de-tariffing of the non-life insurance segment (except Motor Third Party Insurance where premium rates laid down by IRDA), premium rates charged by each insurer may differ. However, they should have been filed with the IRDA under File & Use procedure. Q 5. How does one arrive at the value of assets in Dwellings or Offices or Industries? A. Other than dwellings, industrial units or offices will maintain books of accounts showing therein value of assets, therefore it will not be any problem in arriving at the sum insured. In case of dwellings, one should take stock of assets under broad categories like furniture & fixtures, clothing, bed linen, kitchen equipment, electronic gadgets and arrive at the sum insured. Q 6. Why should I insure my Building? Fire can't possibly do any harm to the building? A. Fire and other perils (normally covered under a fire insurance policy) can cause loss / damage to buildings. There have been fire accidents that have completely destroyed multi-storey buildings. Floods can also bring about devastating losses. Similarly, Riots and Acts of Terrorism can also produce huge losses to human lives as well as property. Q 7. Can I ask for cancellation of policy mid-term? Will I get any premium refund? A. Yes, At Insured's option: Retention of premium on short period scale and balance if any, will be refunded. At Insurer's option: Pro-rata refund of premium will be given. Q 8. In case of loss, what are the obligations of the insured? A. Every insured is expected to behave as though he is uninsured. Take all precautions to prevent / aggravate the loss. Inform Insurance Company who have to be given an opportunity to inspect the damages. Inform fire brigade who will assist to put out the fire. During fire fighting, any damage caused to other insured property caused by water, will be paid by Insurance Company. Extend cooperation to surveyor while inspecting and assessing the loss. If arrival of surveyor is likely to be delayed, then, take photos / and shift unaffected assets to a place of safety. Give completed claim form and documents as 84

85 required by Insurer, in support of your claim. After repairs / replacement, submit bills to Insurer. Q 9. If I insure for a higher value, will I get a higher claim amount? A. No. When you apply for a fire insurance policy, the current market value of the property or the Reinstatement value of the property, depending upon the basis of the Sum Insured, should be accurately calculated for arriving at the correct amount to be insured. The compensation payable when a covered loss or damage occurs shall be based on whether or not the property has been insured adequately. If the amount insured is excessive, it will mean overpayment of unnecessary premium; if the amount insured is inadequate you will receive amounts in proportion to the market value only. Q 10. Can items like jewellery, ornaments and art works be covered by the general fire insurance policy? A. Unless prior consent has been given by the Insurer, general fire insurance policy does not cover items like jewellery ornaments, art works, scripts, documentary information, computer system information, shares and stocks, cash. These can be covered on specific request and subject to valuation where necessary. Q 11. I have taken an insurance policy covering my building. My bank which has financed my business has also taken insurance separately. Both policies are in force covering same property. What happens in the event of a claim? A. In the event of a claim, each insurer will pay the loss amount in proportion to the Sum Insured under their respective policies, in accordance with the principle of contribution. The object of the principle of indemnity is to place the insured in the same place as he occupied prior to occurrence. Insured is prevented from making claim for full amount of loss under each policy. Insurance company indemnifies the insured only to the extent of actual loss suffered subject to depreciation, policy excess etc., and not permit to make profit out of a loss. Q 12. What is the relevance of salvage? A. In case of claims under various types of insurance policies, the partly damaged goods or the wreck of a car or any machinery or any other property settled on Total Loss Basis is known as Salvage. After settling the claim for the full amount the salvage becomes the property of insurance company. Generally the job of salvage disposal is entrusted by the insurance company to the surveyor who carried out the loss assessment, subject to observance of procedure for salvage disposal. The amount realized through salvage disposal will be set off by insurer against losses paid by them. 85

86 Q13. I want to cover my goods against transit risk. What policy do I take? A. The Marine Cargo policy offers cover for goods against transit risks. You can take this policy if you are, for instance, transporting your household goods from one place to another. You may either opt for a Basic Cover or for an All Risks one. The latter offers a wider scope of coverage. Please read the terms and conditions of the policy to understand what you are buying. Q 14. Who has to arrange for Marine Cargo insurance-the buyer or the seller? Or do both need some protection? A. This depends on the Sale Contract the two enter into. For each Sale Term such as Free on Board (FOB), Cost and Freight (C&F), Cost Insurance and Freight (CIF) etc, the responsibility for arranging for insurance varies. Q 15. I need to cover my jewellery. What policy should I take? A. Insurers offer All Risks policy for covering jewellery. You must ensure that your jewellery is valued correctly and you are able to show proof of valuation should a claim occur. An All Risks policy also has exclusions, so go through the terms and conditions thoroughly. Q 16. I want to cover my household goods against burglary when I am away. Can I get a burglary insurance policy? A. A burglary insurance policy covers goods against the risk of burglary. A burglary insurance policy may also offer extension of cover against theft. A burglary insurance policy will usually cease to operate if the house is not occupied beyond a certain defined period unless you have intimated the insurance company and they specifically agree to extend the cover even when the house is not occupied. It s a good idea to ensure that you have a burglary policy always rather than opting for one only when you are away. You might not get one if you want to insure the contents only when the house is locked. Q 17. How do you define Small and Medium Enterprises (SME)? A. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: (a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: (i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh; 86

87 (ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and (iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. Q 18. Why buy Property Insurance? A. If you are an SME, an entrepreneur or having any small or medium enterprise, you could look for a package policy that offers coverage against all your insurance requirements. It can also provide coverage under Workmen s Compensation Act including coverage of accident and health insurance, fidelity guarantee, public liability, Money in transit insurance etc. Q 19. As an SME, What property insurance can I buy? A. There are a variety of insurance policies covering different kinds of risks like fire, flood, earthquake for the building and contents, sudden breakdown of your machinery or damage to the Electronic Equipment in your office, Workmen compensation, Public and Professional liability, Money-in-Transit, Fidelity Guarantee etc. You can choose the limits of Sum Insured for each section of coverage offered depending on the insurance needs of your enterprise. It could also include employer s benefit policies such as Group Personal Accident and Group Health Insurance etc, all under a Comprehensive package insurance policy. For further details on property insurance, please refer to the sub-menu on Buying Property Insurance. Q 20. I am an exporter registered as SME and my overseas buyer requires me to have a Product Liability insurance cover? Can I get such covers in India? A. Yes. Such covers are available in the Indian Insurance market and you may purchase them from any one of the non-life insurers offering such products. 87

88 F. Travel Insurance Q 1. Why should I buy travel insurance? A. To obtain a visa for some countries, overseas travel insurance is compulsory. Even where it is not, it is prudent to obtain a travel insurance policy when you are travelling on business or holiday or for education, research etc as medical treatment costs in many countries are much higher than what they are in India and are unaffordable. Q 2. Can I extend the period of my travel insurance? A. You must check with your insurer regarding this as it would depend on the policy. Read your policy document and understand what it provides. Most policies, especially overseas travel insurance policies have a provision for one or even two extensions. Q 3. Is there a minimum duration of period for purchase of travel insurance? A. Generally there will be a minimum stipulated period. Normally pricing of the policy goes by the trip band i.e., the number of days of travel involved and there would be a minimum trip. Q 4. Is a medical check -up required to purchase a travel insurance policy? A. You must check up with the insurer and/or the agent or broker about medical tests required and reports that are required to be submitted along with the duly filled in proposal form. Check up about the validity period of such reports as well normally reports within three to four weeks prior to departure are required. Q 5. Do I need prior approval of the insurance company before proceeding with medical treatment should the contingency arise? A. Please read the policy thoroughly and understand whether there are such requirements. Prior approval would be required in most cases though there could be exceptions depending on the emergency involved. Get this aspect clarified at the time of purchasing the policy. Q 6. Who is a Third Party Administrator? A. A Third Party Administrator is one who offers claims services on behalf of the insurer. In most cases, they offer cashless facility. You must confirm details from your insurer before you travel. Ensure that your policy document has all the contact details and other relevant information related to the services offered by the Third Party Administrator. 88

89 Q 7. Can I get a refund under my policy if I cut short my travel? A. In case your travel doesn t take off and you show proof of the same, policies would normally provide for premium refund subject to deductions towards administrative costs. Where travel is cut short, policies may or may not allow refund subject to certain conditions. You must read your document and understand whether there is such a provision and if so, how it operates. Q 8. Is my visa status relevant to obtain overseas travel insurance? A. In most cases it would be. Normally, such policies are meant for travellers who visit other countries on business or holiday or education or other purposes and not for those residing permanently abroad. Source IRDA 89

90 VI Medical Negligence 90

91 Medical malpractice is a cause of action related to negligence in providing health care. While outcomes are not always guaranteed -- for instance, some surgeries are known to be risky and may result in complications -- malpractice occurs when a doctor fails to perform to the standards of his or her profession. A doctor who leaves a scalpel inside a patient may be sued for malpractice, for example. Q 1. What is clinical and medical negligence? This is the area of law that enables you to claim compensation for injury or loss suffered as a result of poor medical treatment. A healthcare professional may provide negligent medical treatment if they fail to provide a service that meets the minimum acceptable standard for their profession. This could include failing to diagnose a condition, prescribing the wrong medicine or making a mistake during surgery. However a mistake doesn t automatically entitle you to compensation. You also need to prove that the negligent treatment caused your injury or loss. Q 2. What is a medical malpractice claim? A: A medical malpractice claim is a claim of negligence committed by a professional health care provider -- such as a doctor, nurse, dentist, technician, hospital or hospital worker -- whose treatment of a patient departs from a standard of care met by those with similar training and experience, resulting in harm to a patient or patients. Q 3. Does someone who is not satisfied with the results of his or her surgery have a viable medical malpractice claim? A: In general, there are no guarantees of medical results, and unexpected or unsuccessful results do not necessarily mean negligence occurred. To succeed in a medical malpractice case, a plaintiff has to show an injury or damages that resulted from the doctor's deviation from the standard of care applicable to the procedure. Q 4. What should I do if I think I have a medical malpractice claim? A: You should talk to a lawyer who specializes in such cases, as soon as possible. Tell the attorney exactly what happened, from your first visit to the doctor or other health care provider, through your last contact with him or her. If possible, obtain your medical records and bring them to your first meeting with the attorney. There are time limits governing how long someone may wait to bring a medical malpractice claim, so time is of the essence. 91

92 Q 5. What is "informed consent"? A: Although the specific definition of informed consent may vary from state to state, it means essentially that a physician (or other medical provider) must tell a patient of all the potential benefits, risks, and alternatives involved in any surgical procedure, medical procedure, or other course of treatment, and must obtain the patient's written consent to proceed. Q 6. Do I have a case against a doctor who prescribed me a drug for treatment, but failed to tell me it was part of an experimental program? A: Your physician had a duty to tell you that the drug was part of an experimental program, and you had the right to refuse to participate in it. You may have grounds for an action against your doctor based on his/her failure to obtain your "informed consent" relative to this treatment. Q 7. If the consent form I signed prior to a procedure is considered valid, can I recover any damages in a medical malpractice claim against my doctor? A: Yes, you still may be able to recover damages. A consent form does not release from liability a physician who was negligent in performing a medical procedure. If you can establish that your doctor deviated from the applicable standard of care in performing the procedure, and you were injured as a result, you may still recover against him/her. You may also have a claim that the procedure the physician performed went beyond the consent you gave, in which case the doctor might even be liable for battery. Q 8. How does a jury determine if a doctor's actions were negligent? A: A jury will consider the testimony of experts, usually other doctors, who will testify whether they believe your physician's actions followed standard medical practices, or fell below the accepted standard of care. Q 9. What is a "Certificate of Merit?" A: One obstacle plaintiffs in many states may have to overcome before they can even file a medical malpractice claim against a health care professional is the requirement that they file what is commonly known as a "certificate of merit." In order to file a certificate of merit, a plaintiff will first have to have an expert, usually another physician, review the relevant medical records and certify that the plaintiff's health care provider deviated from accepted medical practices, which resulted in injury to the plaintiff. The plaintiff's attorney then files the certificate of merit, which confirms that the attorney has consulted with a medical expert and that the plaintiff's action has merit. 92

93 Q 10. I'm not sure if I have a valid claim but I suspect my doctor was negligent. How do I find out whether I have a medical malpractice claim? A: As if the intricacies of the law weren't complex enough, medical malpractice claims typically require an additional level of expertise. Additionally, you may not even know you've been injured until much later. Thankfully, patients who suspect negligence on behalf of their doctor may consult a malpractice attorney for a free claim evaluation. If they believe you have a valid claim, they will help you get started, with no obligation. - See more at: Q.11. What are Patient Rights? 1. Patient has the right to be informed of their rights and review the policies regarding them. 2. Patient has the right to express complaints and satisfaction regarding services rendered and to comment and make suggestions for improvement of the quality of care and services. 3. Patient has the right to file a complaint and to receive a response in a timely manner without fear of discrimination or reprisal. 4. Patient has the right to receive considerate and respectful care in a safe and secure environment with respect and regard for privacy, individuality, personal beliefs and cultural traditions. 5. Patient has the right to accessible services and timely referrals to staff and services consistent with quality professional practice. 6. Patient has the right to refuse treatment and be fully informed of possible consequences of such refusal, without reprisal. 7. Patient has the right to participate in decisions affecting care and treatment according to their desires, needs, and understanding including the choice to have family and friends participate in the process. 8. Patient has the right to receive information regarding their illness, the course of treatment, and the prospects for good health in terms that they can understand. 9. Patient has the right to approve and refuse the release of their medical records. Patient has the right to access their medical record. Patient has the right to privacy and confidentiality of their records records are to be maintained in a safe and secure environment. 10. Patient has the right to know the professional status of the person(s) treating them and those giving medical advice after hours. 11. Patient has the right to know, in advance of services, the cost of services and any applicable payment policy. 12. Patient has the right to receive timely and qualified care in a setting appropriate to health care needs. 93

94 13. Patient has the right to appoint a legal representative to make decisions regarding their health care. 14. Patient has the right to refuse to participate in research/experimental activities without reprisal. 15. Patient has the right to change their Primary Care or Dental providers if other qualified practitioners are available. Q.12. What are Patient Responsibilities? 1. Patient has the responsibility to actively participate in decisions regarding their health care to the degree that you choose and to reasonably follow your provider s health care instructions. 2. Patient has the responsibility to inform their health care provider of information related to past illness, treatment, and medications. 3. Patient has the responsibility to respect the rights and property of health care professionals, employees, and other patients. 4. Patient has the responsibility to make and promptly keep all scheduled appointments. To assure that all patients are served in a timely manner, patients are responsible for calling and changing appointments 24 hours in advance. 5. Patient has the responsibility to pay for services at the time service is provided and to provide the patient registration office with accurate, complete, and current information pertaining to insurance coverage, home address, telephone number, social security number, and Native American Indian verification. 6. Patient has the responsibility to discuss their health care problems, concerns, and personal needs with their provider in an honest manner and to inform the health care provider of any changes occurring in their health. Patients should ask questions when in need of further information or a better understanding. 7. Patient has the responsibility to cooperate with various providers involved in their care and to conduct themselves in a polite and respectful manner. 8. Patient has the responsibility to inform provider if they cannot or will not follow certain treatment plan. 9. Patient has the responsibility to respect the rights of their health care provider and to exchange information in a non-abusive manner either physically or verbally while receiving care. 10. Patient has the responsibility to advise their provider of all changes in decisions concerning advance directives and/or persons designated by them to make health care decisions. IHC recognizes and adheres to patient rights under HIPAA CFR Additional information can be found at www. hhs.gov Privacy Rule 94

95 VII Liquefied Petroleum Gas (LPG) 95

96 A. New Connection-Indane Q.1. How do I get a new domestic (14.2 kg/5 kg cylinder)indane connection? Where is my nearest LPG distributor located? Indane is available for domestic use generally in 14.2 Kg capacity cylinders and is also available in 5 Kg capacity cylinders in select few cities primarily in hilly / rural areas in the country. New LPG Connections are now available on demand across the country. In case you do not have an LPG connection from any of the PSU Oil Companies in your household and you have a separate cooking area in your house you can have an Indane domestic connection in your household. For a domestic connection, you can visit nearest Indane distributor serving in your area and register for the connection with a valid proof of identity and residence. One of the following documents can be produced for proof of residence: - 1. Ration Card 2. Electricity Bill 3. Telephone Bill 4. Passport 5. Employer's Certificate 6. Flat allotment / possession letter 7. House registration papers 8. LIC policy 9. Voter s Identity Card 10. Rent Receipt 11. PAN card issued by the Income Tax department 12. Driving License 13. Aadhaar Note: In Karnataka and Tamil Nadu, as per the requirement of the State Government, Ration Card is a must for issue of new connection for prospective domestic LPG customer. Accessories/Deposits On registration, the distributor will send you an intimation letter through registered post. You need to carry the letter and the envelope to the distributor to avail the connection. The Indane connection will be released to you immediately. However before release of an LPG connection, you should be in possession of an ISI mark Hotplate conforming to IS:4246 and a Suraksha LPG hose confirming to IS:9573 (Type IV), so that after release of your Indane connection, it may be installed at your residence immediately. For release of your Indane connection you will be required to pay security deposit at the following rates: 96

97 North Eastern States of Arunachal Pradesh, Tripura, Assam, Meghalaya, Mizoram, Nagaland and Manipur Rs 900/- for 14.2 kg cylinder. Rs 350/- for 5 kg cylinder. Rs 100/- Rest of India Rs 1250/- for 14.2 kg cylinder Rs 350/- for 5 kg cylinder. Rs 150/- Q.2. What Are the Standard tariff Rates applicable for Indane Services? Various approved Indane tariff rates are as follows: 1 (a) Security Deposit for Cylinder (14.2 kg) - in the rest of India, except North Eastern States In the seven North Eastern States (b) Security Deposit for Cylinder (5 kg) (c) Security Deposit for Cylinder (19 kg) (d) Security Deposit for LOT Valve (e) Security Deposit for Cylinder (19 kg with LOT Valve) (f) Security Deposit for Cylinder (47.5 kg) (g) Security Deposit for Cylinder (47.5 kg with LOT Valve) Security Deposit for Pressure Regulator Hotplate Inspection charges at the time of release of new connection Installation/Demonstration charges for New Connections Administrative charges for release of DBC Administrative charges seeking confirmation of Termination voucher(tv)/cta/transfer terminations voucher Mechanic visit charges other than leakage (cylinder and PR Leakage complaints are attended free of charge) Administrative charges for issuance of DGCC including cost of DGCC Mechanic charges for mandatory inspection of domestic installation Damaged Safety cap Replacement 2.00 Q.3. Do I need to buy a hotplate from the LPG distributor only? It is not compulsory to buy hot plate from the Distributors. A customer can buy BIS approved Stove from any source of his choice. However Distributors are advised to keep high thermal efficiency i.e. fuel saving and better quality LPG Stoves for offering to existing and prospective customers. For availing of a LPG connection, a customer should be in possession of an ISI mark hotplate and rubber tube. 97

98 In case you have an ISI mark hotplate available with you, the distributor shall check it at your premises against a nominal payment (as per the table given above) The distributor has to complete such an inspection within 7 days from the date of such a payment by the customer. Q.4. What do I need to check when I receive my refill? You may undertake simple checks at the time of your refill receipt :- Check the seal of the cylinder Check the safety cap. It should not have any cracks Remove safety Cap and check for leakage from the valve. Usually in case of any leakage from the Cylinder valve, the safety cap will pop off at the time of removal. This can be further reaffirmed by placing your thumb on the cylinder valve Get the new cylinder connected with the hotplate and make sure that no leakage is observed. Pay the cash and acknowledge the 2nd copy of the cash memo / refill voucher Q.5. How should I maintain my domestic LPG installation? The following steps may be followed as a part of regular maintenance 1. Clean the hotplate after each cooking 2. Clean the Suraksha LPG Hose with wet cloth periodically 3. Keep the pressure regulator knob closed when not cooking 4. Clean up the choked holes of the burner, when it is cooled off Q.6. Whom can I contact in case I need some assistance? For any assistance pertaining to supply of Indane supplies your distributor is always at your service to help you, however if you desire you may contact our Customer Service Cell or our Officer. At Indane Showroom name and telephone number of our officer is displayed. Q.7. Do I have to get my domestic installation checked? Safety audit of the domestic installations should be carried out once in every two years. Your Indane distributor s trained mechanic carries out such an audit at your place. You need to pay a nominal charge of Rs. 40/- to your distributor, for which a cash memo is issued to you. The mechanic carries an identity card with him confirming his identity as an authorized person from your distributor for carrying out such an inspection. case of doubt, you may ask him to identify himself. Q.8. How do I transfer my Indane connection? 98

99 In case you are shifting your residence, you may follow either of the following options :- Within the same distributor's area of operation -- Advise your distributor your new address with supporting proof of residence so that he effects the change in his records and your future supplies shall then be sent to your new place of residence. Within the same town -- In case your present distributor does not service your new place of residence, you may approach your Indane distributor with your original Subscription Voucher (SV). The distributor shall prepare a transfer termination voucher (TTV) for the place of your new residence. You can then approach the nearest Indane Distributor serving your new place of residence along with proof of residence, TTV and DGCC booklet (Domestic gas consumer card) The distributor shall prepare a Transfer Subscription voucher (TSV) against your TTV and shall provide you a new consumer number. These details will be updated in your DGCC booklet, (Domestic gas consumer card). In this case of a shift of residence within the same town you are not required to surrender your equipment. Hence you need to carry your Indane domestic cylinder and pressure regulator to your new residence. While getting transferred out of town -- In case you are transferred outside the town, you are required to surrender your Indane equipment viz. cylinder and pressure regulator to your Indane distributor. In such a case, you may approach your Indane distributor with your Subscription Voucher (SV) or Transfer Subscription Voucher (TSV) as the case may be & Domestic Gas Consumer Card (DGCC) along-with your Cylinder/s and Pressure Regulator. The distributor in turn will prepare a Termination Voucher (TV) in your name for your new place and refund the deposit held against the Cylinder/s and Regulator. You will also be guided to the nearest Indane distributor for future service. At the new place you can approach the nearest Indane distributor for resuming your Indane supplies. Q. 9. How do I get a new connection for non-domestic, i.e. commercial/industrial (19 kg cylinder) use? In case you intend to have LPG supplies for commercial or Industrial use, you can avail Indane connection in 19 kg or 47.5 kg capacity cylinders. Non-Domestic connections are released at following security deposit rates: - 19 kg Cylinder with SC valve Rs. 1700/- per cylinder 19 kg Cylinder Rs with LOT valve 3200/- per cylinder 47.5 kg Cylinder with SC valve Rs. 4300/- per cylinder 47.5 kg Cylinder with LOT valve Rs. 5800/- per cylinder 5 kg NDNE Cylinder with SC valve Rs. 350/- per cylinder 99

100 Pressure Regulator (PR) Rs. 150 per PR ( for North East Rs.100) As per the rules laid down by Department of Explosives, LPG can be stored up to 100 Kgs without an explosive license in unconnected cylinders. Hence, in case your requirement is up to 100 Kgs you can have a gas connection from your nearest Indane dealer for your industrial / commercial usage. However, in case your LPG requirement for industrial/ commercial usage warrants higher storage of LPG, you will be required to install a manifold where all the cylinders are to be kept connected for supplying LPG to the end usage area through a network of LPG pipelines. The design, installation, testing and operation of such LPG installations should confirm to IS: 6044 (Part ). Such industrial / commercial connections, requiring LPG manifold installations are normally released after a safety audit by the IndianOil officer for the benefit of the consumer. For all necessary technical help and release of connection you can contact nearest Indane Area Office in this matter. Q.10. How can I buy bulk LPG? In case you require bulk LPG for your industrial/ commercial uses, you may contact the nearest Indane Area Office for necessary assistance. Q.11. What are high thermal efficient LPG stove and what are the advantages of high thermal efficient LPG stoves marketed by Indane distributors? LPG stoves marketed by the Indane distributors are of high thermal efficiency which is min 68% and is conforming to IS The other advantages are as follows: 1. It is manufactured in a dedicated production line with stringent quality control checks. 2. Each piece is serially numbered and properly documented 3. Each thermal efficient LPG stove carries a copy of BIS certificate and sold in a special packaging as per laid down specifications. 4. Warranty on Thermal efficient LPG stove is for 3 years as compared to 1-year warranty on other LPG stoves. Q.12. What is Suraksha LPG hose and what are its special features? Suraksha LPG hose is patented and manufactured by LERC (LPG Equipment Research Centre, Bengaluru ) approved and BIS approved manufacturers as per IS : 1998 Type-4. It is manufactured under stringent quality control checks on raw materials and during its processing stage and on finished products. Its salient features are: 100

101 1. Three layered construction i.e. inner and outer layers are made of special quality rubber and middle layer made of braided Copper / Brass coated high carbon steel wire mesh which eliminates various deficiencies of rubber tube. 2. Suraksha LPG hose has longer life of 5 years. 3. Suraksha LPG hose is crack proof, rodent cannot cut through steel braided wire mesh. 4. Outer layer is fire resistant and Weather & abrasion resistant. 5. Each tube carries the details of batch no., month/year of manufacture, replace before Month/year. 6. Each tube is packed and sold in a specially designed pouches. Details such as manufacturer, MRP, Length of piece, instruction card and safety tips for usage of LPG & Suraksha LPG hose are printed on each pouch. Q.13. What are the value added services offered by Indane Distributors to their customer? Indane Distributors are offering value added services to their customers by way of offering products / services at highly competitive prices under one roof such as high Thermal efficient LPG Stoves, Higher safety longer life Suraksha LPG Hose, Fire Retardant Suraksha Kitchen Aprons, BIS approved Portable Fire Extinguishers for homes, e booking of Railway tickets Flame type LPG Gas lighters, domestic cylinder trolleys etc. Few more value added products / services for the benefit of the customers are being planned. Q.14. What is LPG? Liquefied Petroleum Gas (LPG) is a mixture of hydrocarbons, which are in gaseous state at ambient temperature and pressure but these are liquefied under pressure for easy storage, handling and transportation in pressurized vessels. It is obtained through Crude Oil refining or from Natural Gas through fractionation. Butane and Propane are the main constituent hydrocarbon's in LPG. Others present in traces or small fractions are Isobutane, butylene, n-butane, propylene etc. LPG is highly inflammable. LPG is odourless, colour less and is heavier than air. Ehtyle Mercaptan is added as odouriser for detection of any leak. LPG as per IS: 4576 is being marketed in India. Q.15. What are the uses of LPG? LPG is one of the safest, economical, eco friendly healthy cooking fuels for all. LPG is being used a cooking fuel's in most urban and semi urban household's. The rural population is also increasingly using it. 101

102 Besides domestic usage, LPG is often used as an efficient source of energy in various industrial and commercial applications. Some of the important areas where LPG is used extensively are: Metal cutting: Provides stable high temperature required for the purpose. Also provides clean cuts. Kiln and Furnaces: Used In incinerators, crematoriums, ceramic and brick kilns, For heat treatment etc. Process Industries: Extensively used in Glass, automobile and textile industries for glass blowing, paint drying/ surface coating and singing activities. Also used by Electronics industry involved in TV picture tube manufacturing etc. Fabrication: Used for providing homogeneous temperature bath required for melting operations with lead, sulphur and carbon free burning ensuring high quality of production specification Poultry: Used for used in Poultry rearing with accurate temperature controls Aerosol: Used as an propellant in aerosol cartridges Industrial processing: Used for instant and controlled drying processes right from curing of fibre glass to tea leaves drying and dry roasting of nuts Radiant Heating: Used for heating purposes both in homes and industrial and commercial complexes Generators: Used as a clean eco friendly fuel for running the generators even in the closed premises Hotels and Cook Houses: Used for all possible cooking skills from boiling, stewing, simmering, baking, grilling and roasting to braising Q.16. Why do I find sweating on the cylinders? If the rate of withdrawal of LPG is higher than the designed rate, the cylinder starts sweating and you would see condensation on the body of the cylinders. If the cylinders in the manifold are regularly sweating, it is advisable to check your LPG consumption rate vis-à-vis the Cylinder manifold design. Consult your nearest Indane Area Manager or a technical consultant, you may require to increase your cylinder manifold bank. Q.17. Why does the flame lift from the burner port? The right mix of LPG and air is required to give you the best blue coloured flame at your burner port. In case of any imbalance of Air-LPG mixture such things can happen. If air is more in the combustible mixture, the flame will lift off the burner port. You may get your burners checked as they may require a little repair or cleaning etc to ensure right combustible mixture at the burner port. In case the pressure is higher than the designed rating, the flame may lift off the port. Please get the pressure regulator checked. Q.18. Are there any design specifications for the LPG cylinder manifold? 102

103 LPG cylinder manifold should be designed and tested as per IS 6044 (Part 1) : 2000 Q.19. What is the procedure to maintain the quality of cylinders? LPG Cylinders are manufactured as per BIS 3196 through manufacturers approved by the Chief Controller of Explosives, Nagpur (CCOE) and having BIS license. Each and every new LPG cylinder is checked at various manufacturing stages and marked by BIS (Bureau of Indian Standards) after various tests carried out as per the BIS codes and Gas Cylinder Rules, 2004, before putting them into circulation by the Public Sector Oil Companies. Thereafter, each LPG cylinder is checked at the LPG Bottling plants and only the ones which are meeting the Standards as specified in the Gas Cylinder Rules are filled, checked and sent to the Distributors for distribution to the customers. All new LPG cylinders are required to be put to first Statutory Testing after 10 years. Thereafter, the cylinders are put to statutory testing every 5 years. Such testing of LPG cylinders is done through agencies approved by CCOE as specified in The Gas Cylinder Rules 2004 and once again put into circulation only if the cylinders pass the required Pressure Tests. Q. 20 What is the procedure for repairing/replacing damaged cylinders? LPG cylinder found requiring repairs is put to Hot repairs once in its lifetime as per IS code of practice. Each and every Hot repaired cylinder is also certified for use by BIS and is accordingly put into circulation. Any LPG cylinder which has undergone one Hot repair, if it is found damaged subsequently, is scrapped. IOC strictly follows the above and introduces new LPG cylinders as replacement to the cylinders scrapped. Q.21. Is it possible to know when a particular cylinder is scheduled for testing? On one of three vertical stay plates (side stems) of the LPG cylinder, the date is coded alpha numerically as A or B or C or D and a two-digit number following this e.g. D10. The alphabets stand for quarters - A for Qtr. ending March (First Qtr), B - Qtr. ending June (Second Qtr), C-Qtr. ending Sept (Third Qtr), & D for Qtr. ending December (Fourth Qtr). The digits stand for the year when the cylinder is due for Statutory testing as explained above. Hence D10 would mean that the particular cylinder is to be taken for the next Statutory Testing by December In any case, this is not the date of EXPIRY of PHYSICAL LIFE of the CYLINDER It is further clarified that, during service, every empty LPG cylinder when it comes from the Distributor to the Bottling Plant for filling, is checked for its condition including the marked date for Statutory Testing due. Cylinders due for testing are segregated and sent for testing. 103

104 Every cylinder after its filling with LPG is checked for correctness of its weight and soundness, before despatch to the Distributors. Every care is taken to ensure that cylinders which are safe for use are only sent to our Distributors for further distribution. It means if a customer gets a cylinder in June 2010 with marking as B10, it does not indicate that the physical life of the cylinder has expired. It only means that this cylinder is due for Statutory testing by end June B. LPG Customer-Indane Q.1. What is meant by Preferred Time Delivery? How is it different from normal home delivery? Normally LPG cylinders are delivered based on your booking in serial order on first come first serve basis. No separate provision for refill delivery as per your convenient day and time is provided. Under Preferred Day and Time Delivery, you can now choose the service to receive the cylinder at home on the day and time of your choice at a cost. The day and time slots fixed for the delivery and the charges for the service are given below: Time Slot Charges per delivery in Towns with population of ten lakh and above Charges per delivery in other Towns Before 8 AM Rs.50 Rs.40 8AM to 11 AM Rs.25 Rs AM to 3 PM Rs.25 Rs.20 3 PM to 6 PM Rs.25 Rs.20 6 PM to 8 PM Rs.50 Rs.40 Only Saturday/Sunday (8 AM to 6 PM) Rs.25 Rs.20 Q.2. What are the options available for me as a preferred time customer? You can make your choice from any of the following three options: Preferred Time Customer: You can prefer a time on any day starting from Monday upto Friday. Such a choice indicate that you are ready to accept the cylinder on any day from Monday to Friday on the fixed time slot specified above. If you miss the delivery, distributor will deliver on the next day same time. Preferred Day and Time Customer: You can also make a choice of selecting a day in addition to time. Which means you are is ready to accept only on the specified day and time. Even if you miss the day and time next delivery will be next week same day and time. 104

105 Saturday/Sunday Preferred Customer: You can prefer either Saturday or Sunday any time indicating that you are ready to accept the cylinder either on Saturday or Sunday as per the preference any time from 8AM to 6PM. Q.3. Do I get a cylinder on my immediate next preferred day and time of my booking? You may undertake simple checks at the time of your refill receipt :- LPG cylinders are subsidized and hence are delivered on first come first served basis. Hence you will not receive the cylinder out of turn. After your call matures, the supply will be made to you on next preferred day and time. For example if you are a preferred time customer, you will receive the cylinder next day on the preferred time slot after your call matures. For example if you are a 8AM to 11 AM preferred time customer and have booked your refill on Saturday 1st of June. But on that day distributor was delivering cylinders booked by customers on 25th day of May. After your call matures, say on Wednesday 5th June, you will receive the cylinder on same Wednesday between 8 AM and 11 PM. However if you are a preferred day and time customer of Monday and your booking matures on Wednesday 5th June, you will receive the cylinder only on 10th June, Monday. Q.4. Is this facility available with all distributors in India? The facility is now available with all distributors of Indianoil Corporation Limited(Indane) customers in Mumbai, Kolkata, Delhi, Chennai, Bangluru, Hyderabad and Pune and also outskirts of these cities i.e. Gurgaon, Noida, Faridabad, Ghaziabad, Sonepat, Thane, Navi Mumbai, Kalyan, Mira Bhayander etc. The scheme may be extended to all towns having population of about 10 lakhs shortly. Q. 5 How do I become a Preferred Time Customer? You need to register to become a preferred time customer. You can register through any one of the following two separate routes: 1. You can submit a registration in the stipulated format/plain paper. 2. You may register on Q.6. Do I need to mention my preferred day and time every time I book for a refill? Once you register as a preferred time customer for a specific day and time you need not mention the day and time at the time of refill booking. The system provided with the distributors will automatically identify your status. Q.7. Do I have an option to avail cylinder on any day-any time after registration? 105

106 No. Once you are a Preferred Time Customer, you will receive cylinders only on the time/day /day and time you have already chosen. Q.8. Can I withdraw myself from availing this facility after registration? You can de-register through submission of an application physically to distributor or through web site. Q.9. What is the validity period of my registration? Registration is one time. But you can change your day and time of choice after a period of six months. When you change or register, the acceptance of same in the system may take a maximum of 48 hours Q.10. What are my obligations as a customer when I register as Preferred Time Customer? Once you register and become a preferred time customer you or your representative shall be available at home for receiving the cylinder delivered on the day and time chosen by you (Say Sunday 9th June). You will not be delivered with the cylinder on any other day and time. In case you are not available on the preferred day and time(sunday, 9th June), distributor will deliver it only on the next week same day and time(sunday,16th June). If on the second time you fail to receive, your status of preferred time customer will be withdrawn for next six months and your refill booking will be cancelled. Discretion to restart the facility within six months will lie with the distributor for which you need to contact him/her. Q.11. Is the delivery possible on Preferred Date? This facility is only for preferred day and no specific booking is possible as of now for preferred Date. Q.12. In case I am available at home and distributor fails to deliver. When do I get the cylinder? In case the distributor fails to deliver due to reasons solely attributable to him, he will call you and deliver it to you subsequently on any day by giving a rebate of Rs 20. Q.13. Can I register my option for Preferred time through IVRS/SMS? No. Presently you cannot opt for preferred time through IVRS/SMS. However in case you are registered as a preferred time customer even if you book you refill through IVRS/SMS you will receive delivery on the day and time chosen by you. 106

107 Q.14. How do I give feedback on the preferred time service You can contact Sales Officer or the customer service cell( Details are provided in showroom of the distributor ) of the Oil Marketing Company or dial or to provide a feedback/complaint on Preferred time or any other service offered by the distributor. Q.15. How do I transfer my Connection to My son? Transfer of connection to family member is now permitted. In case the transferee in your family is not having a LPG connection you may please provide a request to your distributor with the following: a. KYC of the Transferee b. Proof of Address & Proof of Address c. Original Subscription Voucher(SV) in Your Name( If SV is missing Please provide affidavit) d. Declaration from the transferee The KYC will be verified, multiple connections in the address mentioned for transfer will be checked and then the distributor will make a new Subscription voucher in the Transferee s name. Security deposit will remains the same as in the original SV. Q.16. I am a legal heir of my father who is no more. How do I transfer his LPG connection to me? Transfer of connection to legal heir is now simplified. In case the transferee (legal heir ) is not having a LPG connection you may please provide a request to your distributor with the following: a. Declaration by Legal Heir b. Copy of Death Certificate c. KYC of the Legal Heir d. Proof of Address & Proof of Address e. Original Subscription Voucher(SV) in the name of deceased( If SV is missing Please provide affidavit) f. Declaration from the Legal Heir The KYC will be verified, then multiple connections in the address mentioned for transfer will be checked and then the distributor will make a new Subscription voucher in the Transferees name. Security deposit will remains the same as in the original SV. Copyright IndianOil Corporation Ltd. 107

108 C. HPGAS Q.1. How to get a New Connection? Ans. The nearest HP GAS distributor may be approached for a new Gas connection. Alternately you may book for new HP GAS connection online. Details of cost of New Connection with Double Bottle Cylinder (DBC) (two cylinders and one regulator) along with cost of LPG is given below: Fixed Cost: Refundable Deposit for Two Rs. 1450/ - each = Rs. 2,900/- Regulator Price -(Refundable Deposit for One Rs. 150/- = Rs. 150/- *(For North Eastern States Refundable Deposit for each cylinder is Rs.1150/-) Cost of Two Refills - Present price according to your area as applicable Cost of hotplate/stove and Suraksha Hose (rubber tube) will be extra Service Charges applicable towards Installation / Inspection Stamp duty on actuals is levied wherever applicable. Given below is the list of documents required for new connection. You can submit any one of these documents. Documents for Proof of Address: Ration Card Electricity Bill (within Last Three Months) Land line Telephone Bill (Within Last Three Months) Passport Employer's Certificate Flat allotment / possession letter from Builder House registration papers /Property Tax Document LIC policy Voter s Identity Card Registered Leave and Licence Document Driving License Aadhaar Letter Bank Passbook Documents for Proof of Identity: PAN Card Passport Voter s Identity Card Aadhaar Letter Driving License Central/State Government Issued ID cards 108

109 Bank Passbook with Photograph Kindly note that in certain states, as per orders received from the State Government, New connections can be released only against production of ration cards. As per the LPG Control Order, only ONE LPG Connection is permitted per household. Any additional connection is required to be surrendered. If you need any further help, kindly contact our LPG Regional Office for the area. Q.2. What is KYC? Ans. KYC (Know your consumer) is a format which helps consumers to provide relevant details for (1) Proof of identity and (2) Proof of Address along with a few personal details. Q.3. Why am I required to submit the KYC form? Ans. In case you do not possess multiple LPG connections, but multiple connections are reflecting against your name/ address in your distributor s records, then you are required to submit KYC form along with Proof of identity as well as Proof of Address indicating that the households are different. Q. 4. I have received letter from the HPGAS distributor about possessing of multiple connections. What should I do? Ans. As per the control order of Ministry of Petroleum & Natural Gas (MOPNG), one household can possess only one LPG connection. Multiple connections are not allowed, and should be surrendered immediately. One can opt for the 2nd cylinder, if not already available on the retained connection, after surrendering the multiple connections. If no multiple connections are available, please submit the KYC form duly filled in, along with a copy of Proof of identity and of Proof of address, to the distributor. Q.5. I do not possess multiple connections. However, I have been told to submit KYC. What should I do? Ans. KYC format is required to be submitted along with Proof of identity as well Proof of Address for updating your address in distributor s system. Q.6. From where can I get the KYC form? Ans. KYC for is available with your distributor, free of cost. 109

110 Q.7. I have taken a PNG connection, what is the process of surrendering the LPG connection? Ans. PNG consumers are required to surrender their LPG connection to their LPG distributor for Safe Custody. For more details please click PNG Consumers. Q.8. Is it compulsory to buy hot plate (stove) and other accessories from distributor while availing new LPG connection? Ans. No. Customer is at liberty to purchase them from any source provided it is approved by BIS. HPCL is committed to the conservation of Petroleum products. To enable the conservation of LPG, HPCL has entered into a tie-up with certain manufacturers for manufacturing and sale of high thermal efficiency stoves (Green Label Stoves), which gives % savings to the customer. These stoves are not available in the open market and are marketed only through our distributor network. Q.9. In case of loss of SV how to get the same again? Ans. In case of loss of SV, customer has to submit an affidavit on non-judicial Stamp Paper of applicable value as per format; which is also available with our concerned Customer Service Cell or distributor. In case you are a Piped Natural gas (PNG) Customer, please use the declaration of loss of SV by PNG consumers Format. Q.10. In case of transfer, what is the procedure to transfer the connection? Ans. In case, the transfer is within the city or in certain adjoining city, then The existing distributor will issue e-customer Transfer Advise (e-cta) ie. Authorisation Code on production of Subscription Voucher (SV). The e-cta is valid for 3 months from the date of issue. The SV with the Authorisation Code should be produced to the new distributor, who will enrol the customer & return the original SV after endorsement. The SV is an important document and should be retained safely. Here, the equipments (cylinder + regulator) need not be surrendered, but be carried by the customer. In case of transfer of connection from one place to another, The distributor at the current location will issue Termination Voucher (TV) and will refund the deposit amount mentioned in the SV, on surrender of existing equipments (cylinder/s and regulator). The TV is valid for one year from the date of issue. Do not surrender your Domestic Gas Consumer Card. The same card can be used at the new location after endorsement by the new distributor. 110

111 Reconnection can be availed at the new place by payment of the same deposit amount mentioned in the TV. Please collect the new SV and retain it safely..top Q. 11. How do we change the name of the connection holder? Ans. Name change can be done in the following cases: (i) Death of SV Holder: To transfer the connection in the name of legal heir / within the family, after death of consumer, please submit the following to the distributor. An application with details Legal Heir certificate NOC from other Legal Heirs of the deceased consumer Death Certificate Completed KYC form with valid Proof of Identity (POl) and Proof of Address (POA). Affidavit in Annexure F, in case original SV is lost. In case the next of kin is not in a position to produce Legal heir Certificate, please submit request Affidavit on plain paper. The deposit will remain the same as in the original SV. Name will be changed by preparing TV and issuing a new SV for the Beneficiary family member. (ii) Due to Marriage: Please submit the following to your distributor. An application with details Documents giving proof of marriage (marriage certificate) Original SV / Affidavit for loss of SV The deposit will remain the same as in the original SV. (iii) Change in name during lifetime of Consumer: Transfer of LPG connection within family (ie. Father, Mother, Brother Sister, Son, Daughter, Spouse) is permitted. Original SV holder has to submit his written consent, in Annexure to transfer his connection to a specific family member. Additionally, the family member receiving the connection has to submit an affidavit on plain paper, in Annexure indemnifying HPCL regarding this connection. Submit affidavit in Annexure F in case original SV is lost. Completed KYC form with valid Proof of Identity (POl) and Proof of Address (POA). The deposit will remain the same as in the original SV. Name will be changed by preparing TV and issuing a new SV for the Beneficiary family member. (iv) Person in possession of the cylinder/s and pressure regulator and SV of an authorized Customer 111

112 A. In case the person is holding the Cylinder (s), regulator and the SV, the name of connection holder can be changed as follows: The person, in whose name the original SV was issued will give his consent, in Annexure, to transfer the connection in the name of the person actually holding the SV & equipment. In addition, the actual holder of the SV & equipment, shall submit affidavit, in Annexure, on plain paper indemnifying the Corporation regarding this connection. Both, The consent letter and Affidavit should be submitted to the LPG Distributor. Submit Completed KYC form Proof of identity and Proof of Address. Submit affidavit in Annexure F in case original SV is lost. Security deposit: shall be at the prevailing rates. Subscription Voucher (SV) will be issued in the name of the present holder of the Cylinder & DPR after collecting differential security deposit (difference between the security deposit amount as in the surrendered SV and the prevailing deposit rate). B. In case the person holding the SV & equipment is not in a position to submit the consent letter as per Annexure-A, the name of connection holder can be changed as follows: Submit affidavit, as per Annexure-C on plain paper indemnifying HPCL. Submit Completed KYC form, Proof of identity and Proof of Address. Submit Affidavit in Annexure F in case original SV is lost. Security deposit: shall be at the prevailing rates. Subscription Voucher (SV) will be issued in the name of the present holder of the Cylinder & DPR after collecting differential security deposit (difference between the security deposit amount as in the surrendered SV and the prevailing deposit rate). (v) Person in possession of the cylinder/s and pressure regulator without any connecting document (SV/DGCC): In case the person holding the LPG equipment without any connecting document (SV/DGCC), the connection can be regularized as follows: Submit affidavit in Annexure-E. on plain paper Submit Completed KYC form, Proof of identity and Proof of Address. Security deposit: shall be at the prevailing rates New SV will be issued against the existing cylinder and regulator. Q.12. How do we notice overcharges? Ans. Please insist on cash memos, which should contain the complete charges paid by you. The various charges including deposits and service charges are displayed on one of the boards at the showroom. Q.13. Can I book for my refill by any means other than by Telephone or in person? Ans. Yes. The refills can be booked by IVRS, online thru website and by SMS. 112

113 HPGAS IVRS: IVR based refill booking system is available in various cities and states with HP Anytime. Click on (HP Anytime) to know the IVRS refill booking number for various states and cities. Online Booking: You can book your refill online SMS booking: Refill Booking through SMS is available for the respective areas by using the HP ANYTIME numbers given above. SMS on booking, with booking number and date, cash memo generation and delivery confirmation are sent to customer s registered mobile number. Q.14. In case of LPG leakage during nights/holidays, where do we contact? Ans. In case of Gas leakage beyond working hours and on holidays, you can contact Emergency Service Cell (ESC) operating in your area, Phone Nos. of the ESC is mentioned on the refill cash memos. Please select your dealer using the above link and then click on Emergency Service Cell to locate your ESC. Q.15. How do we locate the distributor of HPCL? Ans. Locate the Names & addresses of our distributors. Q.16. Which is the nearest HPCL Office? Ans. You can click here to locate the nearest HPCL LPG Regional Offices at Q.17. If there is no action by distributor on complaint, whom should we contact for immediate redressal? Ans. For immediate redressal of your complaint please call on our LPG Customer Service Cell OR our nearest LPG Regional Office. Alternately, you can Log your Complaint Online or call HPGAS Toll free Helpline no Q.18. What is the weight of empty and filled cylinder? What action can be taken in case the weight of gas is less than 14.2 kg.? Ans. The weight of the empty cylinder (Tare Weight) is stenciled on the shroud of the cylinder (on the Blue Band in case of HPCL). The weight of LPG filled is 14.2 kg. Therefore, the weight of the filled cylinder would be Tare WT kg. Before accepting delivery of filled cylinder, you are advised to check the weight of the cylinder. In case the weight of gas is +/- 150 gms, you can refuse to accept the sealed cylinder and contact Customer Service Cell. 113

114 Q.19. Can we use Domestic Cylinder in Motor Vehicle, Geyser and other LPG run appliances? Ans. No. Use of Domestic LPG in motor vehicle, geyser or any other LPG run appliances is prohibited under LPG Control Order. Instead you can use Auto LPG in vehicles, which is available at selected Retail Outlets (Petrol Pumps). However, non-domestic LPG in 19 kg can be used for such purposes.top Q.20. Are HPCL consumers insured? Ans. Yes. All registered HP GAS consumers (having valid SV) are insured against outcome of an accident at their registered premises due to LPG. Details are available with all the distributors and Customer Service Cell In addition, HPCL has also taken a Public Liability Insurance Policy. Q.21. What is the procedure for replacement of lost/defective cylinder / regulator? Ans. In case of replacement for loss of cylinder/regulator, an Undertaking as per format is to be given on plain paper to your distributor. Replacement of lost/defective Cylinders/Regulators can be done in the following cases: Cylinders: Cylinders damaged in accidents due to LPG are replaced free of cost to the customer. Cylinder will be replaced at Normal Tariff in case of Established cases of theft and supported by FIR and non- traceable certificate from police. In case customer is unable to produce FIR, replacement will be at Penal Tariff only. Regulators: Theft and accident cases would be dealt as above. In other cases: Normal wear and tear involving (a) broken regulating knob and (b) broken Bakelite ring (bearing collar) will be replaced free of charge. Regulators with broken or damaged body, broken outlet nozzle, missing top or Bakelite ring, opened and re-riveted ones will be replaced at Normal Tariff. Regulator will be replaced at Normal Tariff in case of Established cases of theft and supported by FIR and non- traceable certificate from police. In case customer is unable to produce FIR, replacement will be at Penal Tariff only. 114

115 Q. 22. Is it mandatory for the distributor to give Home Delivery of refill cylinders? In case refill cylinder is collected from the showroom/godown what is the rebate given by the distributor on the refill? The normal mode of delivery of LPG cylinders by the distributors to the consumers is home delivery only. There is no additional charge for home delivery. However, under special circumstances like riots, curfews strikes etc., oil companies may authorize in writing selected dealers to resort to Cash and Carry supply on optional and temporary basis till normalcy is restored. In such cases, customers will be entitled to a rebate of Rs.18.00/- per refill. Top 115

116 VIII Payment of Pension to Government Pensioners 116

117 Scheme for Payment of Pension to Government Pensioners by Authorised Banks The Reserve Bank of India (the Reserve Bank) oversees disbursement of pension by its agency banks in respect of all Central Government Departments and some State Governments. In the process, it receives queries/complaints from pensioners in regard to fixation, calculation and payment of pension including revision of pension/dearness Relief, transfer of pension account from one bank branch to another, etc. The Reserve Bank has analysed the queries/complaints, and put them in the form of answers to Frequently Asked Questions here. It is hoped that these will cover most of the queries/ doubts in the minds of pensioners. Q.1. Can the pensioner draw his/ her pension through a bank branch? Yes. Even the Government employees earlier drawing their pension from a treasury or from a post office have the option to draw their pension from the authorized bank s branches. Q. 2. Who is the Pension Sanctioning Authority? The Ministry/ Department /Office where the Government servant last served is the pension sanctioning authority. The pension fixation is made by such authority for the first time and thereafter the refixation of pay, if any, is done by the pension paying bank based on the instructions from the concerned Central/ State Government authority. Q. 3. Is it necessary for the pensioner to open a separate pension account for the purpose of crediting his/ her pension in authorized bank? The pensioner is not required to open a separate pension account. The pension can be credited to his/her existing savings/ current account maintained with the branch selected by the pensioner. Q. 4. Can a pensioner open a Joint Account with his/ her spouse? Yes. All pensioners of the Central Government Pensioners and those State Governments which have accepted such arrangement can open Joint Account with their spouses. Q. 5. Whether Joint Account of the pensioner with spouse can be operated either by ''Former or Survivor" or "Either or Survivor"? The Joint Account of the pensioner with spouse can be operated either as Former or Survivor" or Either or Survivor". 117

118 Q.6. Whether a Joint Account can be continued for family pension after death of a pensioner? Yes, the banks should not insist on opening of a new account in case of Central Government pensioner if the spouse in whose favour an authorization for family pension exists in the Pension Payment Order (PPO) is the survivor and the family pension should be credited to the existing account without opening a new account by the family pensioner for this purpose. Q.7. What is the minimum balance required to be maintained in the pension account maintained with the banks? RBI has not stipulated any minimum balance to be maintained in pension accounts by the pensioners. Individual banks have framed their own rules in this regard. However, some banks have also permitted zero balance in the pensioners accounts. Q.8. Who sends the Pension Payment Orders (PPOs) to the authorized bank branch? The concerned pension sanctioning authorities in the Ministries /Departments/ State Governments forward the PPOs to bank branches wherefrom the pensioner desires to draw his/her pension. However, on implementation of CPPCs, pension sanctioning authorities have gradually started sending PPOs to the CPPC of the bank instead of bank branch. Q.9. When is the pension credited to the pensioner's account by the paying branch? The disbursement of pension by the paying branch is spread over the last four working days of the month depending on the convenience of the pension paying branch except for the month of March when the pension is credited on or after the first working day of April. Q.10. Can a pensioner transfer his/ her pension account from one branch to another branch of the same bank or to the branch of another bank? (a) Pensioner can transfer his/ her pension account from one branch to another branch of the same bank within the same centre or at a different centre; (b) He/ She can transfer his/ her account from one authorized bank to another within the same centre (such transfers to be allowed only once in a year); (c) He/ She can also transfer his/ her account from one authorized bank to another authorized bank at a different centre. 118

119 Q.11. What is the procedure for payment of pension in the case of the transfer of PPO to another branch or bank, as the case may be? Pension will be paid for three months on the basis of the photocopy of the pensioner s PPO at the transferee (new) branch from the date of the last payment made at the transferor (old) branch. Both the branches (old and new) are required to ensure that all the required documents are received by the transferee branch within these three months. Q.12. Is it necessary for the pensioner to be present at the branch of the bank along with documents for the purpose of identification before commencement of pension? Yes. Before the commencement of pension, a pensioner has to be present at the paying branch for the purpose of identification. The paying branch shall obtain the specimen signatures or the thumb/toe impression from the pensioner. Q.13. What is the procedure to be followed by the bank branch if the pensioner is handicapped /incapacitated and is not in a position to be present at the paying branch? If the pensioner is physically handicapped/incapacitated and unable to be present at the branch, the requirement of personal appearance is waived. In such cases, the bank official visits the pensioner s residence/hospital for the purpose of identification and obtaining specimen signature or thumb/toe impression. Q.14. Has the pensioner got right to retain half portion of the PPO for record and to get it updated from paying branch whenever there is a change in the quantum of pension due to revision in basic pension, dearness relief, etc.? Yes. The pensioner has right to retain half portion of the PPO for record and whenever there is a revision in the basic pension/dearness Relief (DR), etc. the paying branch has to call for the pensioner's half of the PPO and record thereon the changes according to government orders/notifications and return the same to the pensioner. Q.15. Whether the paying branch has to maintain a detailed record of pension payments made by it in the prescribed form? 119

120 Yes. The pension paying branch is required to maintain a detailed record of pension payments made by it from time to time in the prescribed form duly authenticated by the authorized officer. Q.16. Can the pension paying bank recover the excess amount credited to the pensioner s account? Yes. The paying branch before commencement of pension obtains an undertaking from the pensioner in the prescribed form for this purpose and, therefore, can recover the excess payment made to the pensioner's account due to delay in receipt of any material information or due to any bonafide error. The bank also has the right to recover the excess amount of pension credited to the deceased pensioner s account from his/her legal heirs/nominees. Q.17. Is it compulsory for a pensioner to furnish a Life Certificate/Non-Employment Certificate or Employment Certificate to the bank in the month of November? Yes. The pensioner is required to furnish a Life Certificate/Non Employment Certificate or Employment Certificate to the bank in the month of November every year. However, in case a pensioner is unable to obtain a Life Certificate from an authorized bank officer on account of serious illness / incapacitation, the bank official will visit his/her residence/ hospital for the purpose of recording the life certificate. Q.18. Can a pensioner be allowed to operate his/ her account by the holder of Power of Attorney? The account is not allowed to be operated by a holder of Power of Attorney. However, the cheque book facility and acceptance of standing instructions for transfer of funds from the account is permissible. Q.19. Who is responsible for deduction of Income Tax at source from pension payment? The pension paying bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time. While deducting such tax from the pension amount, the paying bank will also allow deductions on account of relief to the pensioner available under the Income Tax Act. The paying branch, in April each year, will also issue to the pensioner a certificate of tax deduction as per the prescribed form. If the pensioner is not liable to pay Income Tax, he should furnish to the pension paying branch, a declaration to that effect in the prescribed form (15 H). 120

121 Q.20. Can old, sick physically handicapped pensioner who is unable to sign, open pension account or withdraw his/ her pension from the pension account? A pensioner, who is old, sick or lost both his/her hands and, therefore, cannot sign, can put any mark or thumb/ toe impression on the form for opening of pension account. While withdrawing the pension amount he/she can put thumb/toe impression on the cheque/withdrawal form and it should be identified by two independent witnesses known to the bank one of whom should be a bank official. Q.21. Can a pensioner withdraw pension from his/ her account when he/she is not able to sign or put thumb/toe impression or unable to be present in the bank? In such cases, a pensioner can put any mark or impression on the cheque/ withdrawal form and may indicate to the bank as to who would withdraw pension amount from the bank on the basis of cheque/withdrawal form. Such a person should be identified by two independent witnesses. The person who is actually drawing the money from the bank should be asked to furnish his/her specimen signature to the bank. Q.22. When does the family pension commence? The family pension commences after the death of the pensioner. The family pension is payable to the person indicated in the PPO on receipt of a death certificate and application from the nominee. Q.23. How the payment of Dearness Relief at revised rate is to be paid to the pensioners? Whenever any additional relief on pension/family pension is sanctioned by the Government, the same is intimated to the agency banks for issuing suitable instructions to their pension paying branches for payment of relief at the revised rates to the pensioners without any delay. The orders issued by Government Departments are also hosted on their websites and banks have been advised to watch the latest instructions on the website and act accordingly without waiting for any further orders from RBI in this regard. Q.24. Can pensioners get pension slips? Yes. As decided by the Central Government (Civil, Defence & Railways), pensionpaying banks have been advised to issue pension slips to the pensioners in prescribed form when the pension is paid for the first time and thereafter whenever there is a change in quantum of pension due to revision in basic pension or revision in Dearness Relief. 121

122 Q.25. Which authority the pensioner should approach for redressal of his/ her grievances? A pensioner can initially approach the concerned Branch Manager and, thereafter, the Head Office of the concerned bank for redressal of his/her complaint. They can also approach the Banking Ombudsman of the concerned State in terms of Banking Ombudsman Scheme 2006 of the Reserve Bank of India (details available at the Bank s website This is applicable only in respect of complaints relating to services rendered by banks. For other issues, the complainant will have to approach the respective pension sanctioning authority. Q.26. Where can a pensioner get information about the changes in the pension/dearness Relief or any pension related issue? The pensioner can visit the Official Website of the concerned Government Department as also Reserve Bank of India Website ( to get the information about pension related issues. Q.27. Whether a pensioner is entitled for any compensation from the agency banks for delayed credit of pension/ arrears of pension? Yes. A Pensioner is entitled for compensation for delayed credit of pension/arrears thereof at the fixed rate 8% and the same would be credited to the pensioner's account automatically by the bank on the same day when the bank affords delayed credit of such pension / arrears etc without any claim from the pensioner. 122

123 IX Aadhaar Card 123

124 Q.1. What is Aadhaar? Ans. Aadhaar is a project from the government of India under which the residents of this country will be given a unique identification number (UID). The Aadhaar number is a 12 digit unique number for every single individual whose uniqueness is determined through the biometric (fingerprints, iris scan, photograph) and demographic (residential address) details of the individuals. Q.2. which is the regulatory body for Aadhaar? Ans. The Unique Identification Authority of India (UIDAI) on behalf of the government of India is the regulatory body for Aadhaar. Q.3. Who is eligible for Aadhaar? Ans. Any resident of this country including infants can enrol for Aadhaar. Even NRIs and foreign citizens residing in India can also enrol for Aadhaar. Q.4. Is Aadhaar a smart card? Ans. As per the UIDAI facts Aadhaar is not a card rather it is a number which is unique for every beneficiary of it. Q.5. Is it compulsory/mandatory to enrol for Aadhaar? Ans. No, Aadhaar is not a compulsory scheme at all, it is a voluntary based scheme and anyone who is interested can enrol for Aadhaar. Q.6. what is the fee charged for enrolling for Aadhaar? Ans. No fee will be charged at any stage under this scheme. Aadhaar is free for everyone and no fee will be charged at any time in the future as well. Q.7. How can I enrol for Aadhaar? Ans. Visit any authorized Aadhaar enrolment centre nearby you with some documents of your identity and address proof where you will need to fill up the Aadhaar enrolment form and give your biometric and demographic details. After which you will get an acknowledgement slip which will be used to track your Aadhaar status. This complete your job in the process of getting your Aadhaar number, the rest is up to UIDAI which will send you your Aadhaar letter after some time. 124

125 Q.8. What are the documents required for Aadhaar enrolment? Ans. You need to bring Proof of Identity (PoI) and Proof of Address (PoA) documents at the enrolment centre. Following are the documents required for Aadhaar enrolment/registration. 1. Filled Aadhaar Enrolment Form 2. Proof of Identity (PoI) document 3. Proof of Address (PoA) document 4. Date of Birth (DoB) document Except the Aadhaar enrolment form, you are required to take original or attested photocopies of the remaining three documents. The photocopies can be attested by any gazetted/notary officer. Valid Documents A. Supported Proof of Identity (PoI) Documents Containing Name and Photo (any one): 1. Passport 2. PAN Card 3. Ration/ PDS Photo Card 4. Voter ID 5. Driving License 6. Government Photo ID Cards/ service photo identity card issued by PSU 7. NREGS Job Card 8. Photo ID issued by Recognized Educational Institution 9. Arms License 10. Photo Bank ATM Card 11. Photo Credit Card 12. Pensioner Photo Card 13. Freedom Fighter Photo Card 14. Kissan Photo Passbook 15. CGHS / ECHS Photo Card 16. Address Card having Name and Photo issued by Department of Posts 17. Certificate of Identify having photo issued by Gazetted Officer or Tehsildar on letterhead 18. Disability ID Card/handicapped medical certificate issued by the respective State/UT Governments/Administrations B. Supported Proof of Address (PoA) Documents Containing Name and Address (any one): 1. Passport 2. Bank Statement/ Passbook 125

126 3. Post Office Account Statement/Passbook 4. Ration Card 5. Voter ID 6. Driving License 7. Government Photo ID cards/ service photo identity card issued by PSU 8. Electricity Bill (not older than 3 months) 9. Water bill (not older than 3 months) 10. Telephone Landline Bill (not older than 3 months) 11. Property Tax Receipt (not older than 3 months) 12. Credit Card Statement (not older than 3 months) 13. Insurance Policy 14. Signed Letter having Photo from Bank on letterhead 15. Signed Letter having Photo issued by registered Company on letterhead 16. Signed Letter having Photo issued by Recognized Educational Instruction on letterhead 17. NREGS Job Card 18. Arms License 19. Pensioner Card 20. Freedom Fighter Card 21. Kissan Passbook 22. CGHS / ECHS Card 23. Certificate of Address having photo issued by MP or MLA or Gazetted Officer or Tehsildar on 24. letterhead 25. Certificate of Address issued by Village Panchayat head or its equivalent authority (for rural areas) 26. Income Tax Assessment Order 27. Vehicle Registration Certificate 28. Registered Sale / Lease / Rent Agreement 29. Address Card having Photo issued by Department of Posts 30. Caste and Domicile Certificate having Photo issued by State Govt. 31. Disability ID Card/handicapped medical certificate issued by the respective State/UT Governments/Administrations 32. Gas Connection Bill (not older than 3 months) 33. Passport of Spouse 34. Passport of Parents(in case of Minor) C. Supported Proof of Date of Birth (DoB) Documents (any one): 1. Birth Certificate 2. SSLC Book/Certificate 3. Passport 4. Certificate of Date of Birth issued by Group A Gazetted Officer on letterhead 126

127 D. Supported Proof of Relationship (PoR) Documents containing Relationship details to Head of Family (any one): 1. PDS Card 2. MNREGA Job Card 3. CGHS/State Government/ECHS/ESIC Medical card 4. Pension Card 5. Army Canteen Card 6. Passport 7. Birth Certificate issued by Registrar of Birth, Municipal Corporation and other notified local Government bodies like Taluk, Tehsil etc. 8. Any other Central/State government issued family entitlement document. Q.9. I have enrolled for Aadhaar now how can I track my Aadhaar status? Ans. You can track your Aadhaar status here Q.10. Where can I contact for any query or complaint? Ans. You can contact to UIDAI through any of the following means: Telephone Number: (Toll-free) Fax: Mailing Address: PO Box 1947, GPO Bangalore Address: help@uidai.gov.in and aadharcard@in.com Q.11. What is the use of Aadhaar Number? Ans. Your Aadhaar Number will serve as the single source for your identification that can be used in various services like ticket booking, opening of bank accounts, transfer of welfare payments etc. Aadhaar will help the poor and needy people into the proper banking system, give them chance get benefits from the services provided by the government and the private sector. It will provide migrants mobility of identity. 127

128 X Indian Railways 128

129 A. General Information Q. 1. What is PNR? Ans. PNR is the abbreviation of Passenger Name Record. PNR is a unique ten digit number printed on the top left hand corner of your ticket, in case you want to travel by reserved accommodation, which has to be quoted in order to know the status of your ticket. Q. 2. What are the various classes of travel and their codes? A. The system recognizes the following classes of travel: Class First class Air-Conditioned/ Executive class in Shatabdi trains AC 2-tier sleeper First class AC 3 Tier AC chair Car Sleeper Class Second Sitting Code IA 2A FC 3A CC SL 2S Q. 3. What are the various Quotas available for booking through Internet? Ans. At present, Internet booking is allowed only against General (GN),Tatkal, Senior citizen and Ladies (LD) Quotas Q. 4. How does one find out STATION CODE for a given station? Ans. The user can find the station codes by using the Station Code Finders provided on "Plan My Travel", "Fare Enquiry", "Trains From/To", and "Get Availability" pages. The user can enter the first three letters of the station name and click search to get the list of matching stations and the station codes. Q. 5. How can one use the internet reservation facility to plan my journey? Ans. Get yourself registered online by submitting the Registration Form available on railway web site with your personal details. For further information visit IRCTC website 129

130 Q. 6. What is the mode of Payment? Ans. There are various modes of payment : Payment by Credit Cards Payment through Credit Cards EMI Option Payment through ATM cum Debit Card Payment through Net/Mobile Banking facility Payment through Cash Cards Payment through IRCTC ewallet Q.7. How much extra should consumer pay for his ticket? Ans. IRCTC charges a service charge of Rs.40/- plus service tax per ticket in case of Second Class and Sleeper Class tickets and Rs.60/- service charges, plus service tax per ticket in case of tickets of other classes. (These charges are not per passenger, but per PNR, irrespective of the number of passengers) Apart from this service charge of IRCTC, the banks for each transaction will levy transaction charges as notified. Q. 8. What are the different types of concessions available for Passengers? A. At present this site offers Concession tickets only to Senior Citizens. This concession is also offered only on specific request made by the User by clicking the relevant button on the online reservation form. Other concession tickets can be availed at the PRS counters at any Railway Reservation Office. (Children below 12 years need pay only 50% fare, as for normal tickets) Q. 9. What are the rules for reservation and cancellation? Cancellation of tickets before departure of trains Cancellation of I-Tickets can be done at any computerized reservation counter across the country and a cancellation ticket obtained. NO CASH REFUND will be given. Bank charges that are being levied by the Payment Gateways/Banks are not subject to refund in the event of cancellation of tickets by the Customer. Service Charge is also not refundable. The refund amount will be credited to the respective account electronically, the following working day of cancellation. Refund of fare shall be made after deduction of cancellation charge of the fare as follows: If a RAC/waitlisted is cancelled then Rs. 30/- (Per Passenger) shall be deducted. 130

131 If a confirmed ticket is cancelled more than 48 hrs before the scheduled departure of the train, flat cancellation charges shall be Rs.120/- for AC First Class/Executive Class, Rs.100/- for AC 2 Tier/First Class, Rs. 90 for AC 3 Tier/AC Chair car/ AC 3 Economy, Rs.60/- for Sleeper Class and Rs.30/- for Second Class. Cancellation charges are per passenger. If a confirmed ticket is cancelled within 48 hrs and upto 6 hours before the scheduled departure of the train, cancellation charges shall be 25% of the fare subject to the minimum flat rate mentioned in the above clause. Q. 10. What are rule of Cancellation of tickets after departure of trains? Ans. Tickets can also be cancelled, at the boarding station, within 6 hours before the scheduled departure of the train and upto two hours irrespective of distance, cancellation charges will be 50% of the fare subject to the minimum flat rate mentioned in the above clause. Q. 11. What is the time limit for advance reservation? Ans. Advance reservations are made generally up to 60 days in advance for all classes and all trains. The period of advance reservation (ARP) is exclusive of the day of departure of the train. Q. 12. What is the services charges charged by IRCTC for reservation of ticket? Ans. IRCTC levies a service charge of Rs.10 plus service Tax/- (Second /Sleeper) and Rs.20 plus service Tax/-per e-ticket in case of all other classes (1AC, 2AC, 3AC,CC, 3E,FC) irrespective of the number of passengers booked on an e-ticket. Q. 13. How does one cancel a ticket if the train has already departed? Ans. After the departure of the train up to the time / distance limit prescribed by Railway Commercial Rules the ticket can be cancelled normally at any of the Railway Reservation Counters where a "Cancellation Slip" will be given to you & the due refund amount will be credited back to your Credit card / Bank account. If these time limits also have lapsed you will be required to deposit the ticket with the reservation counter / station master & you will be issued a Ticket Deposit Receipt (TDR). This TDR should be sent in original to the IRCTC Head office. Q. 14. How do one get compensated if someone was forced to travel in a lower class than what had booked, or AC was not working etc? 131

132 Ans. In such cases the Guard Certificate (GC) issued by the train superintendent, TTE, Guard etc. must be obtained and sent along with ticket in original to the IRCTC office. Q. 15. What is meant by Reservation against Cancellation (RAC) Ans. The passengers whose names figure under R.A.C., are provided reserved sitting accommodation initially and are likely to get berths becoming vacant due to last minutes cancellation of reservation of passengers not turning up in time before the departure of the train. Q. 16. What is procedure of cancellation of e-ticket? Ans. The e- ticket may be booked and cancelled through Internet and the refund of fare shall be credited to the customer s account after deducting the charges applicable. Q. 17. What is the rule with regard to refund of Tatkal tickets? Ans. No refund of fare shall be admissible on confirmed Tatkal ticket. In case of Tatkal ticket on waitlist, refund of fare shall be granted in accordance with rule for unused waitlisted or RAC tickets. Q. 18. What the rules with regard to party /Family ticket? Ans. Tatkal ticket or a family Tatkal ticket issued for travel for more than one person, some persons have confirmed reservation and others are on waiting list, full refund of fare, less clerkage, shall be admissible for confirmed passengers also provided that the entire Tatkal ticket is surrendered for cancellation within six hours before the scheduled departure of the train or upto two hours of the actual departure of the train. Q. 19. What are the Tatkal Charges? Ans. The Tatkal Charges have been fixed as a percentage of fare at the rate of 10% of basic fare for second class and 30% of basic fare for all other classes subject to minimum and maximum as given in the table below. Class of Travel Minimum Tatkal Charges Maximum Tatkal Charges Second (Sitting) Rs.10 Rs.15 Sleeper Rs.90 Rs.175 AC Chair Car Rs.100 Rs.200 AC 3 Tier Rs.250 Rs.350 AC 2 Tier Rs.300 Rs.400 Executive Rs.300 Rs

133 Q. 20. What are the identity proof valid to book ticket under tatkal? Ans. The following are the valid identity card for the booking of tickets under Tatkal scheme 1.Voter Photo identity card issued by Election Commision of India. 2.Passport 3.PAN Card issued by Income Tax Department. 4.Driving Licence issued by RTO. 5.Photo identity card having serial number issued by Central/State Government. 6.Student Identity Card with photograph issued by recognized School/College for their students. 7.Nationalized Bank Passbok with photograph. 8.Credit cards issued by banks with laminated photograph. 9.Unique Identification Card "Aadhaar". 10.Photo identity cards having serial number issued by Public Sector Undertaking of State/Central Government, District Administration, Municipal bodies and Penchant Administration. Q. 21. What are the maximum free limit allowance for luggage? Ans. The following maximum limit free allowance, marginal allowances are admissible for carriage of luggage in the compartment. The maximum limit includes free allowance. Class Free allowance Marginal allowance AC First Class 70 Kgs 15 Kgs 150 Kgs AC 2-Tier 100 Kgs 50 Kgs 10 Kgs sleeper/first class AC 3-tier sleeper/ac 40 Kgs 40 Kgs 10 Kgs chair car Sleeper class 40 Kgs 10 Kgs 80 Kgs Second class 35 Kgs 10 Kgs 70 Kgs 133 Maximum quantity permitted (including free allowance) Q. 22. What are the penalties if someone found with excess luggage? Ans. When a passenger is detected either en route or at the destination with un booked or partially booked luggage weighing more than the free allowance, the excess un booked weight exceeding free allowance of luggage is charged at six times the luggage scale rate subject to minimum of Rs.50. Q. 23. What is the procedure to complaint when a luggage get stole en route?

134 Ans. In case of theft of luggage, robbery / dacoits in running trains, One can approach train conductors/coach attendant/guards or GRP escort. They will give the FIR Forms,which may be duly filled in and handed over to them. The complaint will then be forwarded to the Police Station for necessary action. Passenger need not break your Journey to lodge a complaint with the police. Passenger can also approach the RPF Assistance Posts at major railway stations, for any assistance in lodging the complaint. Q. 24. What is the procedure when the luggage gets stolen or damaged? Ans. Where value of the luggage booked has not been declared beforehand by the consignor and the prescribing percentage charge not paid the monetary liability of the railways has been limited to Rs. 100/- per Kg. However, where the consignor has declared the value of the consignment and has also paid percentage charges, he will be entitled to get the claimed amount which will not exceed the value of the luggage so declared at the time of booking. The procedure of payment of percentage charge can be enquired from the luggage booking office. 134

135 Q.1. What is PNR Number? B. PNR (Passenger Name Record) Number PNR (Passenger Name Record) is a 10 digit unique number which is provided by the Indian railways reservation system to its passengers whether they book their ticket online or by visiting a reservation counter. Q.2. How can I locate the PNR number on the railway ticket? You can easily locate PNR number on the top left corner of a railway ticket. Q.3. What is the use of PNR Number? It is used to know the current status of a railway reservation. You can check the current status of your PNR by visiting oyatri.com or indianrail.gov.in/pnr_enq.html. Q.4. How does railway generate PNR number? A PNR is generated by the Indian Railways automated system known as CRS (Central Reservation System).The PNR is generated only after a passenger provides information such as passenger name, gender, age, berth preference, train number, date of journey, class of travel, contact information, and so on. A passenger can provide these details to the CRS online or by writing them on a printed reservation slip. Q.5. How can I find the PNR Number when I book ticket online? If you book your ticket online then you can check your PNR on your e-ticket or i-ticket. You can download it from your IRCTC account. IRCTC also sends SMS after booking which looks like this: PNR: , TRAIN:12558, DOJ: , 3A, NDLS TO BMKI, R SHRIVASTAVA, B6 56, FARE:1535, SC:20+PG CHGS. Q.6. What happens if confirm berth is not available? If confirm berth is not available then the reservation status will show either RAC (Reservation against Cancellation) or WL (Waiting List). Q.7. What is RAC (Reservation against Cancellation)? The passengers whose names figure under R.A.C., are provided reserved sitting accommodation initially and are likely to get berths becoming vacant due to last minutes cancellation of reservation of passengers not turning up in time before the departure of the train. Depending on the length of the waiting queue, there is a likelihood that his 135

136 reservation will promoted to a confirmed berth. RAC ticket holders can board the train and can sit on the two side chairs. If a berth becomes available due to cancellation, one RAC holder will get the berth, and the other RAC holder can convert the two side chairs into a single berth. Q.8. What is WL (Waiting List)? WL status means that the passenger cannot be guaranteed any berth or sitting accommodation in the train. If sufficient number of confirmed or RAC ticket holders cancel their reservations, they will be accommodated. The maximum length of the waiting queue for each train is determined by railway officials, and once the maximum number of waitlisted tickets have been issued, the ticketing system refuses any further reservation requests and responds with REGRET status. Q.9. Why do Railway reservations with RAC or WL status have two numbers? Railway reservations with RAC or WL status have two numbers eg. WL30/WL18, WL19/RAC11. The first number indicates the reservation status at the time of booking (also known as booking status), while the second number indicates the current position (also known as current status). The status WL20/WL18 means that the passenger s position was at wait list 20 at the time of purchasing the ticket, while the current position has improved to wait list 18 following 2 cancellations. To find out more updates related to Indian Railways like us on facebook: or follow us on twitter : twitter.com/travelkhana. For food delivery during train journey visit us or simply call on

137 XI Food Safety and Standards Authority 137

138 Q.1. What is FSSA, 2006 & why this Act is needed? Ans: FSSA, 2006 is an Act enacted to keep with changing needs / requirements of time and to consolidate the laws relating to food and to establish the Food Safety and Standards Authority of India. The Act was needed to bring out a single statutory body for food laws, standards setting and enforcement so that there is one agency to deal and no confusion in the minds of consumers, traders, manufacturers and investors which was due to multiplicity of food laws. Q.2.Does FSSA serve the purpose of a unified food law? Ans: Yes, as the Act consolidates various food laws. Q.3. Who is responsible for implementation & Enforcement of FSSA, 2006? Or Who is the regulatory authority under the Food Act in India? Ans: Food Safety and Standards Authority of India in association with State Food Authorities are responsible for implementation &enforcement of FSSA, Q.4. When was FSSAI established? Ans: The Government has established Food Safety and Standards Authority of India under Food Safety and Standards Act, 2006 vide notification no. S. O (E) dated 5th September Q.5. Who are the members of FSSAI? Or what is the composition of the Food Authority? Ans: The Food Authority consists of a Chairperson and 22 members out of which 7 exofficio members represent the Ministries or Departments of Central Government viz. Agriculture, Commerce, Consumer Affairs, Food Processing, Health, Legislative Affairs, Small Scale Industries; two representatives from food industry; two representative from consumer organizations; three eminent food technologists or scientists; five members to represent the States and the Union Territories on rotation basis; two persons to represent farmers organizations and one person to represent retailers organizations. Q.6. What is the tenure of members of the Food Authority? Ans. The Chairperson and the members other than ex officio members of the Food Authority can hold office for a term of three years and eligible for re-appointment for a 138

139 further period of three years subject to a maximum age of 65 years for Chairperson and 62 years for member. Q.7. What are the priorities of FSSAI? Ans: The priorities of the FSSAI is laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption. Q.8. What does FSSAI do? Ans: The mandate assigned to the Food Authority is (i) laying down science based standards for articles of food (ii) to regulate manufacture, storage, distribution, sale and import of food (iii) to facilitate food safety. Q.9. On what basis is the FSSA, 2006 developed? Ans: FSSA, 2006 is an Act to consolidate the laws relating to food and to establish the Food Safety and Standards Authority of India. The Act was needed to bring out a single statutory body for food laws, standards setting and enforcement so that there is no confusion in the minds of consumers, traders, manufacturers and investors which was due to multiplicity of food laws. Q.10. What is the mandate of Food Authority? Or What are the salient features of FSSA, 2006? Ans: The mandate assigned to the Food Authority is laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption. Q.11. Which Acts/Orders related to food is repealed in FSSA, 2006? Or What are the major elements of the law? Ans: The following Acts/Orders mentioned in second schedule of the Act are going to be repealed in Food Safety and Standards Act, 2006: 1. Prevention of Food Adulteration Act, Fruit Products Order, Meat Food Products Order, Vegetable Oil Products (Control) Order, Edible Oils Packaging (Regulation) Order, Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, Milk and Milk Products Order,

140 8. Any other order under Essential Commodities Act, 1955 relating to food Q.12. How consumers are benefitted through FSSA? Ans: The representative of the consumer organizations are members of the Food Authorities and Central Advisory Committee. The consumer may analyze the samples of food on payment of fees. The in case of injury of death of consumer there is a provision for compensation to the consumer. Q.13. Whether all the sections of the Food Safety and Standards Act, 2006 have been notified? Ans: All sections of the Food Safety and Standards Act, 2006 have been notified by Government of India except the provisions relating to the genetically engineered or modified food in section 22. Q.14. Whether the staff working under different Ministries/Departments for implementation of various Acts/Orders has been transferred to FSSAI? Ans: The staff working for implementation of FPO, MFPO, MMPO and PFA Act under various Ministries/Departments got transferred to FSSAI in December, 2008-January, 2009 in terms of section 90 the Act. Q.15. What role Food Authority is currently playing to ensure quality and safe food to the consumers? Ans: The mandate of Food Authority is laying down science based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import, to ensure availability of safe and wholesome food for human consumption. Food Authority is in the process of formulating and finalizing the various regulations/guidelines in terms of provisions under the Act to ensure the quality and safety of food and giving effect to the mandate of the Food Authority. Q.16. Why there is so much delay in the implementation of Food Safety and Standards Act, 2006? Ans: A chronology of events regarding implementation of Food Safety and Standards Act, 2006 is given below: President assent received on Notified in the Gazette of India on

141 The work allocation by Cabinet Secretariat notified vide S.O 1568(E) dated to allocate work relating to Food Safety and Standards (FSS) Act, 2006, to the Ministry of Health and Family Welfare, The Ministry of Health and Family Welfare issued notification on invoking section 4 to 10, 87-88, 91 and 101 relating to establishment of Food Authority, selection of Chairpersons and member of the Authority, function of Chief Executive Officer, power of Central government to make rules and powers to remove difficulties. Section 90 relating to transfer of existing employees of central government agencies governing various food related Act, /Orders to Food Authority, invoked vide gazette notification dated Food Safety and Standards Authority of India (FSSAI) established under Section 4 of the Act vide notification dated 5th September, Chief Executive Officer of Food Authority was appointed on Various sections (16-18,81-86,92 and 93) were invoked on and other sections (11-15) relating to Central Advisory Committee, Scientific Committee, Scientific Panel etc. were invoked vide notification dated Section 99 notified Section notified all remaining sections have been notified except section Rules notified Regulation notified (Tentative) Q.17. What is the status of Food Safety and Standards Authority of India Rules, 2010? Ans: The Food Safety and Standards Authority of India Rules, 2010 have been notified in the Gazetted of India on by the Central Government. Q.18. What is the status of Food Safety and Standards Authority of India Regulations, 2010? Ans: The Food Safety and Standards Authority of India Regulations, 2010 have been notified in the Gazette of India on Q.19. Whether the Regulations are going to change the food standards given in PFA Act? Ans: The Food Authority while drawing up the regulations has tried to integrate erstwhile Acts, Rules, Orders, in line with the mandate of the Food Safety and Standards Act. The Authority has not introduced new standards at this stage since it would require detailed risk assessment, examination of risk management options, consideration by the Scientific panels/committee and final approval by the Food Authority and Central Government. 141

142 Q.20. What is the procedure for changing standards / regulations? Ans: (i) The new regulations / amendments will be made in the FSSAI standards /regulations from time to time and is ongoing process (ii) The regulations / amendments will be placed before the Scientific Panels and Scientific Committee for their opinions / recommendation. (iii) The regulation will be approved by the Food Authority and draft notified after previous approval of Central Government. (iv) The draft notification is also notified to WTO Member Countries for their comments. (v) A time period of normally 60 days is given for information of the persons likely to be affected thereby and sending the comments to the FSSAI. (vi) The comments received on the draft notification are examined by the FSSAI. In case of divergent comments are received on the draft standards / regulations. (vii) The final notification is published in the Gazette of India giving date of effects of its implementation and simultaneously notified to the WTO Member Countries for information & reference. Q.21. Which agency is responsible for investigating food borne illness and foreign object complaints? Ans: Food Safety and Standards Authority of India and State Food Authorities will investigate such complaints. Q. 22. Which agencies regulate food business in India? Ans: Food Safety and Standards Authority of India and State Food Authorities will regulate the food business in India. Q.23. How New Act will curb increasing food adulteration? Ans: There will be better auditing, Food Safety Management System (FSMS), traceability, recall and other systems in place which will help in curbing food adulterants. Q.24. What are the areas of R & D identified by FSSAI? Ans: The various areas in milk and milk products, meat and meat products, fruits and vegetables and oils & fats have been identified and final decision will be taken in consultation with the research institute which will take such R & D work. Q.25. Does FSSAI provides capacity building for consumers, house-wives & food regulators? Ans: There is a plan scheme and work will be initiated in 12th Plan for capacity building of all levels. 142

143 Q.26. Does FSSAI provide training to food business operators? Ans: FSSAI create awareness about food safety with FBO and will be coordinating training with the help of accredited with agencies / universities. Q.27. Is there a registration fee required under FSSA? Ans: Yes, there is a registration fee of Rs 100/- to be paid by FBO. Q. 28. What are the fees outlined in the new rules & regulations? Ans: The fees outline for licensing is given in Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 which is available on FSSAI website. III) FAQ s on Enforcement of the Act. Q. 29. What is the status of the preparedness of the State Governments for implementation of the FSS Act? Ans: 34 States / UTs have notified Food Safety Commissioners and other functionaries will be notified after notification of Rules. FSSAI has also requested all the Chief Secretaries of States / UTs for necessary steps for implementation of FSS Act, Since all states have PFA structure working, they all will be subsumed in the new structure. Q. 30. Do State governments have to comply with the requirements of the Food Act 2006? Ans: Yes. Q. 31. Does any liability rest with the food safety officer and can enforcement action be taken against the food safety officer for not fulfilling their role? Ans: The Food Safety Officer shall be liable to a penalty which may extend up to one lakh rupee if he / she is found to be guilty of an offence under section 39 of the Act. Provided that in case the complaint made against the Food Safety Officer is false the complainant shall be punish with fine which shall not be less than fifty thousand rupees and may extend to one lakh rupees. Q. 32. Who is the responsible authority for enforcement of FSS Act in States? 143

144 Ans: State Food Authorities (Commissioner of Food Safety of the States) are responsible for enforcement of FSS Act in the States. Q.33. What is Improvement Notice & who issues improvement notice? Ans: The improvement notice is the notice issued by Designated Officer if FBO fails to comply with the regulations under section 32 of the FSS Act. Q. 34. What action will be taken if FBO fails to comply with Improvement Notice? Ans: If the food business operator still fails to comply with the improvement notice, the Designated Officer may, after giving the licensee an opportunity to show cause, cancel the licensee granted to him. Provided that the Designated Officer may suspend any license forthwith in the interest of public health for reasons to be recorded in writing. Penal action can also be taken for non compliance as per the Act. Source FSSAI 144

145 XII Standards 145

146 A. Standards and Role of BIS Q1. What is standard? A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose. Q2. What does BIS stands for? BIS stands for BUREAU OF INDIAN STANDARDS Q3. What is the role of BIS? Bureau establishes Indian Standards in relation to any article or process and amends, revises or cancels the standards so established as may be necessary, by a process of consultation involving consumers, manufacturers, Government and regulatory bodies, technologists, scientists and testing laboratories through duly constituted committees. Q4. Why is standard required? Standardization can help to maximize compatibility, interoperability, safety, repeatability, or quality. It can also facilitate commoditization of formerly custom processes. Q5. what is ISI mark? Presence of ISI certification mark known as Standard Mark on a product is an assurance of conformity to the specifications. The conformity is ensured by regular surveillance of the licensee's performance by surprise inspections and testing of samples, drawn both from the market and factory. Q6. On what products ISI mark is mandatory? There are 16 broad categories, including textiles, packaged water, food, automobile components, plastic products and electronics, for which BIS has laid down standards. Q7. What is a FPO mark? It is a mandatory mark for all processed fruit products in India. It certifies that the product was manufactured in a hygienic 'food-safe' environment. 146

147 Q8. What is AGMARK? AGMARK is a certification mark employed on agricultural products in India, assuring that they conform to a set of standards approved by the Directorate of Marketing and Inspection, an agency of the Government of India. Q9. What is Hallmark? It certifies the purity of gold. Q10. From where Hallmarking is done? Hallmarking is done from the centers authorized by the government. Q11 What are the signs on a hallmarked jewelry? There are 5 things to be seen on the jewelry: first is the BIS logo, second is the 3 digit number code defining the purity(carat) of gold, third is the mark of the assaying & hallmarking centre, fourth is the a alphabetic code that describes the year of manufacturing & last is the jewelers mark. Q12. How to verify the purity of gold? These are usually the carats in which gold is found: 958 Corresponding to 23 Carat 916 Corresponding to 22 Carat 875 Corresponding to 21 Carat 750 Corresponding to 18 Carat 708 Corresponding to 17 Carat 585 Corresponding to 14 Carat 375 Corresponding to 9 Carat Q13. how can we check the year of manufacturing? For the year A means the manufacturing year is 2000, B is for 2001, C is for 2002 & so on. Q14. How cana vegetarian & non vegetarian eatables be differentiated on the basis of the color of marks on it. 147

148 In eatables green mark stands for vegetarian products & brown for non vegetarian. Q15. What is silk mark? Silk Mark certifies that a piece of textile is pure silk. It is managed by the 'Silk Mark Organisation of India'. Q16. Are there any mark on cosmetics? For every package containing soap, shampoos, tooth pastes & other cosmetics & toiletries, a brown mark will be for non vegetarian origin & green for vegetarian origin. Q17. What is BEE? BEE stands for Bureau of Energy Efficiency, to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 Q18. What is the objective of BEE? The primary objective of BEE is reducing energy intensity of the Indian economy Q19. What is eco mark? Eco mark is a certification mark issued by the Bureau of Indian Standards to products conforming to a set of standards aimed at the least impact on the ecosystem. Q20. What is the purpose of eco mark? Purposes of the mark are increasing awareness among consumers towards reducing environment impact. The mark is issued to various product categories and the development of standards for more products is in progress. Q21. What do the numbers and symbols on plastics mean? While householders are encouraged to recycle as many items as possible, it is important to remember that not all plastics which show the plastic symbol (see the table below) mean that the item is automatically recyclable in a kerbside collection system. A handy tip to remember is that if the plastic container holds its shape when crumpled, and/or would hold liquid, then that item is suitable for recycling and can be placed into your yellow lid bin. 148

149 All rigid plastics labelled from 1 6 can be put in the kerbside recycling bin. However, lightweight polystyrene, such as used for meat trays, packaging (including foam packing 'peanuts') and hot drink cups should not be put in kerbside recycle bins. Here's a quick guide to which plastics can and cannot be placed in your yellow lid recycling bin: Symbol Type of plastic Characteristics Uses for this plastic Accepted in kerbside collection? Polyethylene Terephthalate PET High Density Polyethylene HDPE Clear, tough, solvent resistant plastic, often used as a fibre. Very common plastic, usually white or coloured. Carbonated soft drink bottles, detergent bottles. Milk and cream bottles, shampoo bottles, cleaning products. Polyvinyl PVC Chloride Hard, rigid plastic, may be clear. Clear cordial and juice bottles. Low Density Polyethylene LDPE Polypropylene PP Polystyrene PS Soft, flexible plastic - waxy surface. Hard but still flexible plastic. Clear, glassy, rigid, brittle plastic. Squeeze bottles. Ice cream containers and lids, plastic take away containers. Yoghurt containers and margarine/ butter containers. OTHER Includes all other plastics and soft plastics including acrylic and nylon. Expanded Polystyrene EPS Foamed, light weight, energy absoring, heat insulating. Packaging, meat trays, hot drink cups, foam packing 'peanuts'. 149

150 B. ISO Q. 1. What is ISO? ISO (International Organization for Standardization) is a worldwide federation of national standards bodies from each country. The object of ISO is to promote the development of standardization and related activities in the world with a view to facilitating international exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific, technological and economic activity. The results of ISO technical work are published as International Standards. Q. 2. What is ISO 22000? This is an international standard specifies requirements for food safety management system where an organization in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption. Q. 3. What is the role of BIS in ISO 22000? BIS is the National Standards Body of India and is a founder member of ISO. BIS represents India, in ISO. The Technical Committee (TC) and its Sub-committees of ISO are responsible for the development of ISO standard. Experts from food sector from Indian industry including BIS officers nominated by BIS participate in the meetings of the Technical Committee and its Sub-committees for developing the standard. Q. 4. What is IS/ISO 22000? BIS has adopted ISO as IS/ISO and it is an exact replica of ISO Q. 5. Where can copies of the IS/ISO standards be obtained? Copies of the IS/ISO standards may be purchased from BIS Regional/Branch offices and Headquarters at the addresses given in this website. Q. 6. I want to be an ISO auditor: where can I get training? Contact National Institute of Training for Standardization (NITS) of Bureau of Indian Standards at the address: Deputy Director General (Training), National Institute of Training for Standardization, A-20&21, Institutional Area, Sector-62, Noida (Tel: ; Fax: ; nits@bis.org.in; Website: Also refer IS/ISO 19011:2002 standard, for auditor s qualification, training, experience, etc. 150

151 Q.7. Is there any guidance standard for implementation of IS/ISO 22000? ISO has been adopted by BIS as IS/ISO which is exact replica of ISO Organizations willing to implement the Food Safety Management System as per IS/ISO may refer to IS/ISO/TS Food Safety Management System Guidance on the application of IS/ISO As IS/ISO/TS is a guidance standard, it is not meant for Certification. Q. 8. How to implement the requirements of IS/ISO in my organization? As a minimum you should familiarize yourself with the requirements of IS/ISO Vocabularies given in IS/ISO and guidance standard IS/ISO will help you to clearly understand your organization s activities and processes and appropriately interpret the requirements of the standards. Implement the requirements in the various activities and processes. For training programmes on general awareness on the requirements our National Institute of Training for Standardization (NITS) may be contacted. Q. 9. What is the difference between certification and accreditation? In simple terms, accreditation is like certification of the certification body. `Accreditation Q. 10. Why ISO is required? More and more food businesses are requiring that their suppliers have a food safety management system in place. It is becoming a necessity if you wish to supply major food companies, sell to large retailers or enter into new markets. Each step in the food supply chain is critical to the safety of the end product. The ISO standard clarifies requirements and standards of food safety across national borders and throughout the supply chain. Q. 11. Which organizations can implement ISO 22000? Organizations involved in the food supply chain including any company involved with: food manufacturing food ingredients food additives transportation of food packaging of food selling (retail or wholesale) serving prepared food (restaurants, grocery stores) 151

152 food equipment production For more details Contact nearby branch office of BIS or any of the Regional Offices of BIS located at Mumbai, Kolkata, Chandigarh, Delhi and Chennai or Head (Management Systems Certification), Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi Source BIS 152

153 C. ISO 9000 Q. 1. What is ISO? ISO (International Organization for Standardization) is a worldwide federation of national standards bodies, at present comprising 140 members, one in each country. The object of ISO is to promote the development of standardization and related activities in the world with a view to facilitating international exchange of goods and services, and to developing cooperation in the spheres of intellectual, scientific, technological and economic activity. The results of ISO technical work are published as International Standards. Q. 2. What is ISO 9000? The ISO 9000 family of standards represents an international consensus on good management practices with the aim of ensuring that the organization can time and time again deliver the product or services that meet the client s quality requirements. These good practices have been distilled into a set of standardized requirements for a quality management system, regardless of what your organization does, its size, or whether it is in the private, or public sector. The family of ISO 9000 standards have been developed by ISO and it is made up of four core standards: a) ISO 9000:2005 Fundamentals and Vocabulary b) SO 9001:2008 Quality Management Systems Requirements c) ISO 9004:2009 Quality Management Systems Guidelines for performance improvements d) ISO 19011: 2011 Guidelines for quality and/or environmental management systems auditing Q. 3. What is the role of BIS in ISO 9000? BIS is the National Standards Body of India and is a founder member of ISO. BIS represents India, in ISO. The Technical Committee (TC) number 176 (ISO/TC 176), and its Sub-committees of ISO are responsible for the development of ISO 9000 standards. Quality and industry experts from India including BIS officers nominated by BIS participate in the meetings of the Technical Committee ISO/TC 176 and its Sub-committees. Q. 4. What is the difference between ISO 9000 standards and IS/ISO 9000 standards? There is no difference. They are exactly the same. BIS has adopted the above mentioned ISO 9000 standards and these are numbered as IS/ISO 9000:2005; IS/ISO 9001:2008; 153

154 IS/ISO 9004:2009; and IS/ISO 19011:2011. These standards published by BIS are exact replica of ISO 9000 standards. BIS also provides certification against IS/ISO 9001:2008 under its Management Systems Certification activity. Q. 5. Which IS/ISO 9000 standard is meant for certification? Any organization can apply for certification against IS/ISO 9001:2000. The other standards i.e. IS/ISO 9000:2005; IS/ISO 9004:2009; and IS/ISO 19011:2011 are guidance standards and are not meant for certification. Q. 6. Tell me more about IS/ISO 9004:2009. The requirements of IS/ISO 9004:2009 should be implemented by the organizations who intend to further improve beyond the requirements of IS/ISO 9001:2008. The standard IS/ISO 9004:2009 has an important element of `self-evaluation and this standard is not amenable to certification. Q. 7. Where can copies of the IS/ISO 9000 standards be obtained? Copies of the IS/ISO 9000 standards may be purchased from BIS Regional/Branch offices and Headquarters at the addresses given in this website. Q. 8. What is the difference between a certification body and a registration body? None. The term `certification body is used in some countries, like, India, because BIS as certification body issue certificates (licences). Elsewhere, they prefer to say that they `register organizations complying with ISO Q. 9. I want to be an ISO 9000 auditor: where can I get training? Contact National Institute of Training for Standardization (NITS) of Bureau of Indian Standards at the address: Deputy Director General (Training), National Institute of Training for Standardization, A-20&21, Institutional Area, Sector-62, Noida (Tel: ; Fax: ; nits@bis.org.in; Website: Also refer IS/ISO 19011:2011 standard, for auditor s qualification, training, experience,etc. Q. 10. My organization provides services. How are the IS/ISO 9000 standards applicable to us? The IS/ISO 9000 standards are applicable to all types of organizations. The definition of the term `product in IS/ISO 9000:2005 also include services and their combination. Therefore, the requirements of IS/ISO 9001:2008 are equally applicable to service sector as it is applicable to product manufacturing company. 154

155 Q. 11. How to implement the requirements of IS/ISO 9001:2008 in my organization? As a minimum you should familiarize yourself not only with the requirements of IS/ISO 9001:2008 but also with the content and philosophies given in IS/ISO 9000:2005, IS/ISO 9004:2009 and the Quality Management Principles. You have to clearly understand your organization s activities and processes and appropriately interpret the requirements of the standards. Implement the requirements in the various activities and processes adding value to these processes and activities. For training programmes on general awareness on the requirements, content and philosophies of the IS/ISO 9000 standards, our BIS, National Institute of Training for Standardization (NITS) may be contacted. Q. 12. What are the main benefits of implementing IS/ISO 9001:2008 Quality Management System Requirements? - Provides an opportunity to increase value to the activities of the organization - Improve the performance of processes/activities continually - Satisfaction of customers - Attention to resource management - Implementation of statutory and regulatory requirements related to product/services - Better management control Q. 13. What is accreditation? In simple terms, accreditation is like certification of the certification body. `Accreditation should not be used as an interchangeable alternative for certification or registration. Q. 14. How should I obtain IS/ISO 9001:2008 certification? The information is available in this BIS website under Management Systems Certification. The application form (Form IV), questionnaire (Form V) and fee structure can also be downloaded from BIS website. A copy of the `Guidelines for Applicants IS/ISO 9001:2008 can be obtained from Regional or Branch Offices of BIS or from Headquarters at New Delhi. For more details 155

156 Contact nearby branch office of BIS or any of the Regional Offices of BIS located at Mumbai, Kolkata, Chandigarh, Delhi and Chennai or Head (Management Systems Certification), Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi D. ISO Q. 1. What is ISO 14001? ISO is the general term used for ISO family of standards. ISO 14001:2004 `Environmental Management Systems Specifications with Guidance for use is a standard published by International Organization for Standardization (ISO) (About ISO, please see ISO 9000 Frequently Asked Questions, Answer to Question No. 1) and adopted by BIS as IS/ISO 14001:2004. IS/ISO 14001:2004 is the exact replica of ISO 14001:2004. This standard provides for the framework for the Management System for an organization to meet its Environmental obligations reliably and consistently. IS/ISO 14001:1996 is the only certification standard in the IS/ISO family. IS/ISO is a requirements standard. It contains a set of requirements to define the operation of the Environmental Management System. Since the requirements are expressed in a general form, it has the flexibility to be applied to any organization. Q. 2. Who has formulated ISO 14001:2004 standard? ISO has published ISO family of standards including ISO 14001:2004 standard. The Technical Committee of ISO i.e. ISO/TC 207 Environmental Management Systems is responsible for formulation of these standards. BIS represents India as participating member on this Committee. Experts from India including BIS officers are nominated on this Committee to put forth India s viewpoints on EMS. Q. 3. What are the other standards in ISO family of standards? The other standards of ISO family have also been adopted by BIS as IS/ISO and are exact replica of ISO standards. These standards are: IS/ISO 14004:2004 Environmental management systems General guidelines on principles, system and supporting techniques IS/ISO 14020:2000 Environmental labels and declarations General principles IS/ISO 14021:1999 Environmental labels and declaration Self-declared environmental claims (Type II Environmental labeling) ISO (EMS) - FAQs IS/ISO 14024: 1999 Environmental labels and declaration Type 1 Environmental labelling Principles and procedures 156

157 IS/ISO 14031:1999 Environmental management Environmental performance evaluation Guidelines IS/ISO 14040:2006 Environmental Management Life cycle assessment Principles and framework IS/ISO 14041:1998 Environmental management Life cycle assessment Goal and scope definition and inventory analysis IS/ISO 14042:2000 Environmental management Life cycle assessment Life cycle impact assessment IS/ISO 14043:2000 Environmental Management Life Cycle Assessment Life Cycle Interpretation IS/ISO 14050:2002 Environmental Management - Vocabulary Q. 4. What is IS/ISO 14004? ISO has been adopted by BIS as IS/ISO which is exact replica of ISO and is the companion standard to IS/ISO For those organizations implementing the Environmental Management System specified in IS/ISO 14001, IS/ISO provides guidance and illustrations of `what to do and `how to do it. As this is a guidance standard, it is not meant for certification. Q. 5. What are the benefits of implementing IS/ISO 14001:2004? Following are the benefits to an organization by implementing IS/ISO 14001:2004: Provides framework for - Pollution prevention and waste reduction - Compliance with legislative and regulatory requirements - Reduction in liability/risks - Competitive advantage for `Green products Globally - Creation of an improved community goodwill - Improved environmental performance - Assures customers of commitment to demonstrate environmental management - Improved Industry Government relations - Helps in conservation of raw materials and energy - Reduces incidents that results in liability Q. 6. How to implement the requirements of ISO 14001:2004 in my organization? As a minimum you should familiarize yourself not only with the requirements of IS/ISO 14001:2004 but also with the content and philosophies given in : - IS/ISO 14050:2002 `Environmental Management - Vocabulary 157

158 - IS/ISO 14004:2004 `Environmental Management Systems General Guidelines on Principles, System and Supporting Techniques - IS/ISO 19011: 2011 `Guidelines for quality and/or environmental management systems auditing In addition to the above you may also refer other standards of ISO family of standards as mentioned at answer to question no 3. You have to clearly understand your organization s obligations towards environment and effect of organization s activities and processes on the environment and appropriately interpret the requirements of the standards. For training programmes on general awareness on the requirements, content and philosophies of the IS/ISO standards, our BIS, National Institute of Training for Standardization (NITS) may be contacted. Q. 7. I want to be an ISO auditor: where can I get training? Contact National Institute of Training for Standardization (NITS) of Bureau of Indian Standards at the address: Deputy Director General (Training), National Institute of Training for Standardization, A-20&21, Institutional Area, Sector-62, Noida (Tel: ; Fax: ; nits@bis.org.in; Website: Also refer IS/ISO 19011:2002 standard, for auditor s qualification, training, experience, etc. Q. 8. What is the role of BIS in ISO 14001:2004 certification? BIS is operating IS/ISO 14001:2004 certification under the Regulations framed under an Act of Parliament i.e. BIS Act, A number of organizations in the field of chemicals, cement, textiles, power generation, steel manufacturing, mining, pesticides, ceramic tiles, paper, engineering, etc., have been certified by BIS for IS/ISO 14001:2004. The other information is available in this BIS website under Management Systems Certification. The application form (Form IV) and questionnaire (Form VII) can also be downloaded from BIS website. A copy of the `Guidelines for Applicants IS/ISO 14001:2004 can be obtained from nearby Regional or Branch Offices of BIS or from Headquarters at New Delhi. Q. 9. Where can copies of IS/ISO standards be obtained? Copies of the IS/ISO standards may be purchased from BIS Regional/Branch offices and Headquarters at the addresses given in this website. Q. 10. What is the difference between certification, registration and accreditation? Please refer to Question No. 8 and 13 of ISO 9000 FAQs. For more details 158

159 Contact nearby branch office of BIS or any of the Regional Offices of BIS located at Mumbai, Kolkata, Chandigarh, Delhi and Chennai or Head (Management Systems Certification), Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi E. Hazards Analysis and Critical Control Point (HACCP) IS Q. 1. What is HACCP? Hazard Analysis and Critical Control Point (HACCP) is a process control system designed to identify and prevent microbial and other hazards in food production. It includes steps designed to prevent problems before they occur and to correct deviations as soon as they are detected. Such preventive control system with documentation and verification are widely recognized by scientific authorities and international organizations as the most effective approach available for producing safe food. Q. 2. Why HACCP? India is a signatory to WTO. The WTO Agreement on Sanitary and Phytosanitary (SPS) makes it obligatory to adopt the standards, guidelines and recommendations issued by Codex Alimentarius Commission which advocates the adoption of HACCP. The Indian Standard on Food Hygiene Hazard Analysis and Critical Control Point (HACCP) System and Guidelines for Its Application IS 15000:1998 is technically equivalent to the Codex document on the subject. For food industry in India, adoption of HACCP is becoming imperative to reach global standards, demonstrate compliance to Regulations/Customer requirements besides providing safer food to our millions. Q. 3. Is there any standard published by ISO on HACCP? No. Presently there is no ISO standard available for HACCP certification. Q. 4. Tell me more about HACCP. HACCP involves a system approach to identification of hazards, assessment of chances of occurrence of hazards during each phase, raw material procurement, manufacturing, distribution, usage of food products, and in defining the measures for hazard control. In doing so, the many drawbacks prevalent in the inspection approach are avoided and HACCP overcomes shortcomings of reliance only on microbial testing. 159

160 Q.5. Who can implement HACCP? HACCP enables the producers, processors, distributors, exporters, etc, of food products to utilize technical resources efficiently and in a cost effective manner in assuring food safety. Food inspection too would be more systematic and therefore hassle-free. It would no doubt involve deployment of some additional finances initially but this would be more than compensated in the long run through consistently better quality and hence better prices and returns. Q.6. What are the highlights of HACCP Certification? Mandatory for export from certain sectors of food industry to some countries Pro-active system for assuring safe production of foods Emphasizes prevention rather than inspection Addresses all types of Hazards-Microbiological, Physical and Chemical Can be integrated into a more general quality assurance plan Can be implemented in tiny, small, medium and large scale enterprises Q.7. What are the benefits of HACCP? Reduces contamination Reduces recall/product destruction Provides market protection Provides preferred supplier status Demonstrates conformance to international standards and regulations, and requirements of overseas markets Transforms commodities into branded products International acceptance Q.8. Who offers HACCP Certification? BIS offers two Certification schemes to the food industry. 1. Food Safety Certification (HACCP) against IS 15000: HACCP based Quality Management Systems Certification provides for twin Certification through one audit i.e. Certification of Quality Management Systems against IS/ISO 9001:2008 and Certification of HACCP against IS 15000:1998 Q.9. How to obtain licence? 1. Establish and implement documented HACCP System (as per IS 15000:1998) and ensure its effectiveness. For QMS-HACCP, establish and implement integrated 160

161 food and quality management system (as per IS 15000:1998 and IS/ISO 9001:2008) and ensure its effectiveness. 2. Submit application on prescribed proforma (Form IV) along with the questionnaire (Form XII) and necessary fees (Application Form, Questionnaire and Fee Structure are available and can be downloaded from this website Management Systems Certification) 3. Submit the quality manual and/ or concerned documents, when asked for 4. Arrange audit by BIS Assessment Team 5. Take actions on non-conformities observed by assessment team and get them verified. If found satisfactory, grant of licence is recommended. 6. Obtain the Licence 7. The licence will enable the company to compete effectively in national and international markets. Q. 10. Where can copy of IS standard be obtained? Copy of the IS standard may be purchased from BIS Regional/Branch offices and Headquarters at the addresses given in this website. Q.11. What is the difference between certification, registration and accreditation? Please refer to Question No. 8 and 13 of ISO 9000 FAQs. For more details Contact nearby branch office of BIS or any of the Regional Offices of BIS located at Mumbai, Kolkata, Chandigarh, Delhi and Chennai or Head (Management Systems Certification), Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi

162 F. Occupational Health and Safety Management Systems (OHSMS) IS 18001:2007 Q.1. What is OHSMS? Health and safety are important aspects of an organization s smooth and effective functioning. Good health and safety performance ensures an accident-free industrial environment. This demands adoption of a structured approach for the identification of hazards, their evaluation and control of risks. Bureau of Indian Standards (BIS) has formulated an Indian Standard on Occupational Health & Safety (OH&S) Management Systems, considering the above in view and a great demand from the industry for a comprehensive framework of OH&S i.e. IS 18001:2007 `Occupational Health and Safety Management Systems Specification with Guidance for use. Q.2. Is there any standard published by ISO on OHSMS? No. Presently there is no ISO standard available for OHSMS certification. Q.3. Tell me more about IS 18001:2007. This standard prescribes requirements for an OH&S Management Systems to enable an organization to formulate a policy and objectives, taking into account legislative requirements and information about significant hazards and risks, which the organization can control and over which it can be expected to have an influence, to protect its employees and others, whose health and safety may be affected by the activities of the organization. All the requirements in this standard are intended to be incorporated into any OH&S management system. This standard also provides imperative guidance on the use of the specification. Q.4. How to obtain certification for OHSMS? Organizations interested in obtaining licence for OH&S Management System as per IS should ensure that they are operating the system according to this standard. The organization should apply on the prescribed proforma (Form IV) at the nearest Regional Office of BIS along with Questionnaire (Form X) and the prescribed application fee as applicable. The form, questionnaire and fee structure can be downloaded from this website Management Systems Certification. Q.5. I want to be an IS auditor: where can I get training? 162

163 Contact National Institute of Training for Standardization (NITS) of Bureau of Indian Standards at the address: Deputy Director General (Training), National Institute of Training for Standardization, A-20&21, Institutional Area, Sector-62, Noida (Tel: ; Fax: ; Website: Q.6. Where can copy of IS standard be obtained? Copy of the IS standard may be purchased from BIS Regional/Branch offices and Headquarters at the addresses given in this website. Q.7. What is the difference between certification, registration and accreditation? Please refer to Question No. 8 and 13 of ISO 9000 FAQs. For more details Contact nearby branch office of BIS or any of the Regional Offices of BIS located at Mumbai, Kolkata, Chandigarh, Delhi and Chennai or Head (Management Systems Certification), Bureau of Indian Standards, Manak Bhavan, 9 Bahadur Shah Zafar Marg, New Delhi

164 G. Quality Council of India Q.1 What is QCI? A Quality Council of India is an autonomous body of Department of Industrial Policy and Promotion, Govt. of India which has been created jointly with Indian industry represented by Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI) & Associated Chambers of Commerce and Industry (ASSOCHAM). The main objectives of QCI are (a) to establish and operate national accreditation structure (b) to monitor and administer the National Quality Campaign Q.2 What is Accreditation? A Accreditation is the formal recognition by an accreditation authority to the technical and organizational competence of a conformity assessment body to carry out a specific service in accordance to the standards and technical regulations as described in their scope of accreditation. QCI is the accreditation authority in India. Q.3 What does conformity assessment mean? A At its simplest, conformity assessment means checking that products, materials, services, systems or people measure up to the specifications of a relevant standard. For example, a customer may want to check that the product he or she ordered from a supplier meets the purpose for which it is required. One of the most efficient ways to do this when the specifications of the product have been defined in an International Standard. That way, both supplier and customer are on the same wavelength, even if they are based in different countries, because they are both using the same references. Conformity assessment is important to suppliers, consumers & regulators. It enables them to demonstrate that the product(s) meet relevant design & safety standards and gives consumer competence when selecting product in market place. Q.4 Why is conformity assessment so important? A Today, many products require testing for conformance with specifications or compliance with safety or other regulations before they can be put on many markets. Even simpler products may require supporting technical documentation that includes test data. With so much trade taking place across borders, it may just not be practical for these activities to be carried out by suppliers and customers, but rather by specialized third parties. In addition, national legislation may require such testing to be carried out by independent bodies, particularly when the products concerned have health or environmental implications. In fact, conformity assessment has become an important 164

165 component of world trade which is most often carried out by specialist organizations, such as inspection and certification bodies and testing laboratories. QCI coordinates programmes for conformity assessment and related processes. Q.5 What is Certification? A Certification is the procedure by which a third party gives written assurance that a product, process, system or person conforms to specified requirements. Q.6 What is National Quality Campaign? A In India awareness on Quality is still at a nascent state. There is need to propagate concepts of quality within all suppliers of products and services especially on quality standards, quality tools and best practices. Equally consumers must be empowered to demand quality. This can only happen when there is large scale quality campaign across the country. The purpose of National Quality Campaign is to educate both suppliers and consumers on modern concepts of quality. The campaign is carried out from funds received from Department of Industrial Policy and Promotion (DIPP). The major activities under the campaign are awareness programmes, conduct of surveys, publications, media campaign and specialized training courses. The activities are carried out by Council members and professional bodies. Q.7 What are the topics covered under awareness programmes? A There are a range of topics that are covered in the awareness programmes. These includes 1. ISO 9001:2008 Quality Management Systems 2. ISO 14001: 2004 Environment Management Systems 3. OHSAS 18001:2007 Occupational Health and Safety Management System 4. ISO 22001: 2005 Food Safety Management System 5. IS Requirements for QMS for Public Services 6. 5S & KAIZEN 7. 7 QC Tools 8. Total Productive Maintenance - Overview 9. Lean Manufacturing Overview Q.8 Who runs Quality Council of India? A All strategic decisions are taken by Council which consists of 38 members representing Government, Apex Level Industry Associations, Quality Professional Bodies, Manufacturing Sector Associations, Service Sector Associations and Consumer Organisations. It is headed by Chairman. Operations are managed by a Secretariat which is headed by Secretary General. 165

166 Q.9 What are the activities of QCI? A QCI operations are carried out by its constituent boards namely, National Accreditation Board for Certification Bodies (NABCB), National Accreditation Board for Education and Training (NABET), National Accreditation Board for Hospitals Healthcare Providers (NABH), National Board for Quality Promotion (NBQP) and National Accreditation Board for Testing and Calibration Laboratories (NABL). Currently NABL operates under Department of Science and Technology. For details of activities of various boards, please logon to the links of respective boards on our website. Q.10 What are the accreditation programmes of QCI? A QCI runs accreditation programmes through its Boards. National Accreditation Board for Education & Training (NABET) runs accreditation of schools based on Accreditation Standard for Quality School Governance. Similarly National Accreditation Board for Hospitals and Healthcare Providers (NABH) runs accreditation of hospitals, nursing homes, blood banks, primary health centre / community health centre based on respective accreditation standards developed by NABH. Details of these programmes are available on NABET and NABH links on our website respectively. Q.11 What benefits does QCI bring to businesses? A By providing national accreditation structure QCI facilitates trade and business across the world. By developing accreditation schemes specific to the field of education and healthcare QCI helps organisations in these fields in their journey for excellence. Through its national quality campaign programmes QCI help businesses to upgrade their quality performance. Q.12 How QCI is different from BIS? A The Bureau of Indian Standards (BIS), the National Standards Body of India, is a statutory body set up under the Bureau of Indian Standards Act, The Bureau is a body corporate and responsible for formulating National Standards. It comprises of members representing the Industry, Consumer Organizations, Scientific & Research Institutes and Professional Bodies, Technical Institutions, Central ministries, State Governments and Members of Parliament. Its main activities are: Standards Formulation, Certification, Laboratory Testing, Calibration and Management, Standards Promotion and Training, International Cooperation in the field of Standards. 166

167 Quality Council of India (QCI) is National Accreditation body. It is an autonomous body under Department of Industrial Policy and Promotion (DIPP). Its main activities are development and implement accreditation schemes through its constituent boards, promotion of quality, both national and international levels. Q.13 Can an organisation or individual become a member of QCI? A QCI has launched a Professional Membership Scheme. Quality professionals are looking forward to be part of this initiative, which will enable them to network with fellow professionals and be a part of the National Quality Movement. Besides individual membership, we have organizational membership. The member organization will be entitled to nominate/register appropriate number of its employees (depending upon its size) as individual members. You can download the brochure and other membership related information at the following link: Q.14 Does QCI conduct any training programmes? A QCI under its national quality campaign programmes conducts awareness programmes, seminars, and conferences. These are regularly announced on our website. Q.15 What are the publications of QCI? A QCI publishes a magazine Quality India on a regular basis. Quality India contains articles on trends and practices in quality in various sectors like manufacturing, education, healthcare, public services, etc. QCI also publishes books on emerging issues of quality. The recent publications of QCI are (i) ISO 9001:2008 Small Changes Big Opportunities, (ii) ISO 9001:2008 Quality Management Systems; Auditing for Value Addition. If you wish to obtain QCI publications, please contact: Avik Mitra, Advisor, National Board for Quality Promotion, Quality Council of India, nbqp@qcin.org Q.16 Does QCI have any award scheme? A QCI operates an unique award scheme named as QCI D.L. Shah National Awards on Economic of Quality. This award has been instituted with a view to establish that bottomline benefits are achieved through quality initiatives. The Award recognises successful project (case studies) of an organisation that have linked quality initiatives to real term financial gains and competitiveness. The details of this award scheme are available on our website. Q.17 What role government plays in QCI s activities? 167

168 A QCI is an autonomous body under Department of Industrial Policy and Promotion, Ministry of Commerce and Industry. Secretary, Industrial Policy and Promotion is currently the Chairman of QCI. Representatives from several government departments are Council members of QCI. QCI does enjoy a cooperative relationship with all departments of Government. Department of Industrial Policy and Promotion provides direction to the National Quality Campaign and also encourage other government departments to rely on voluntary standards and conformity assessment systems to help government in fulfilling its mandate for providing solutions to critical quality issues in trade and business. Q.18 Does QCI provide any assistance to Micro, Small and Medium Enterprises (MSME)? A QCI does not provide any financial assistance directly to MSMEs. However Ministry of MSME has made it mandatory to use the services of NABET registered consultants and NABCB accredited certification bodies to avail of the subsidy provided to a MSME unit for obtaining ISO 9001/ISO certification. QCI awareness programme at industrial clusters are aimed for capacity building of MSME. Q.19 Does QCI directly receive any consumer complaints about quality? A QCI directly does not receive any consumer complaints regarding any quality problem. However, if any complaint pertains to certification body, then such a complaint can be made to Director, NABCB at the address given in the QCI website. Q.20 Can QCI provide articles on quality for publication? A If requested QCI have no restriction for publication of an article which has been printed in Quality India. However, acknowledgement for the same has to be mentioned very clearly and QCI reserves the right for such publication. Q.21 How do I get in touch with QCI? A You can contact us through any time. Out office address is given below: Quality Council of India 2nd Floor, Institution of Engineers Building Bahadurshah Zafar Marg New Delhi , India Tel: , Fax: If you have a question concerning QCI that is not covered above, please send your enquiry to: nbqp@qcin.org 168

169 For FAQs on NABCB, NABET & NABH please go to their links provided on QCI website or click on the following: NABCB FAQ's NABET FAQ's NABH FAQ's Source: QCI 169

170 XIII Airlines 170

171 Q.1 What is an Airline complaint? A. The Airline complaint is any kind of formal complaint being filed by an airline customer either against the airline responsible for the grievance or the office of government responsible for ignoring the airlines national industry. Q.2 What is Domestic Airlines? A. Domestic airlines of India have made traveling easier for the masses. More and more people are opting for traveling by air, because they save a lot of time in traveling, as compared to other means of--transportation that particular time. Q.3 what is online booking and how do I use it? A. Online booking is a convenient way of booking your travel over the internet. Using the Air India online services you can: Book a flight and pay online for your travel Request for a particular seat, special meal or service Redeem your frequent flyer miles online Check Flight status View the Schedule/timetable Web Check in Make an online booking using the NGPAY mobile app. Q.4 How do I use the online booking service? A. You can start by visiting "Book Online option of this site. You will then have to follow the process of: Search - Find a suitable flight/routing/date Select - Display of fares and selection of suitable fares Passengers & Payments Inserting details of passengers and payment details on a secured site Confirmation - Getting a confirmation of the booking details Q.5 What is an Electronic ticket or e-ticket? A. An e-ticket is the electronic version of the conventional paper ticket. It is an electronic record kept in the airline s reservations system. 171

172 Q.6 What are the benefits of an e-ticket? A. No worries about your ticket being lost or stolen as the e-ticket is stored in the airlines database. You can use the "Manage My Booking and take a print of the itinerary receipt, if you have lost your original itinerary receipt. Q.7. If my ticket is past the date of travel, can I still apply for a refund? A. Yes A refund can be applied for, within one year after expiry of the ticket validity. Q.8 How long can I expect to wait for my refund to be processed? A. In normal circumstances a refund is processed almost immediately. However, in case of a credit card bank transfer, it takes a minimum of twenty days. Q.9 If I need a wheelchair, what should I do? Is there a charge? A. If a wheelchair is needed, the request should be placed with us at the time of reservation, ticketing or reconfirmation of the booking. No charge will be applied to old and infirm passengers and passengers with a medical condition for which a medical certificate has to be produced. If in case the passenger is medically unfit and requires a wheelchair, then a Medical Information form (MEDIF) needs to be filled. Q.10 How much of free checked baggage allowance is permitted? A. The free checked baggage allowance for each passenger who pays the adult fare and child fare is based on the passenger's class of travel and country of travel and is further determined by the piece system and the weight system. Q.11 What are the limitations on carriage of hand/cabin baggage? A. The carriage of hand/cabin baggage is limited to one piece weighing not more than 8 kgs. This applies to all classes of travel and all flights on our network. The hand/cabin baggage should be suitable to place in the closed overhead rack or under the passenger seat, provided the sum of the 3 dimensions of all such carry on items does not exceed 45 inches or 115cms. Q.12 What if I notice that my baggage is damaged when I claim the same on arrival? A. If your baggage is received by you in damaged condition, on arrival in the baggage claim area; please contact the Airlines personnel in Baggage Services Counter which is normally located in the arrival hall. You will be asked to fill in a Property Irregularity Report 172

173 which has a unique reference number. Please see the Conditions of Carriage for full details on baggage liability. Q.13 Can I avail this facility? A. Yes, when travelling ex Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Bangalore on a domestic sector and holding a confirmed booking in any class. Q.14 What is the Refund Process? A. (i) Payment by cash immediately. (ii) Payment by credit card within 7 days. (iii) Payment by travel agent approaches our travel agent. Q.15 If Airlines is delayed for less than 24 hours and more than 24 hours? A. For less than 24 hours, You are entitled for meals & refreshments at airport, and for more than 24 hours you are entitled for hotel accommodation with transfers. Q.16 Must a Customer be careful about Time? A. Some airlines use 24 hour clock time while displaying available flights. You may wrongly book a flight departing at 04:31pm rather than 04:31am and may miss your flight. While making booking online, double-check the dates, time of flight(s) and your names as indicated in the passport or ID Card. Q.17 Must a Customer be careful about spellings? A. Misspelt name on a booked ticket may lead to the following complications: Refusal for reimbursement by your office for official journey. Denial of entry into airport by security due to mismatch in the name on your identity card and the booked air ticket. Denial by airline at the time of check-in. Denial by immigration authorities. If anything is entered wrongly, airline may charge for the changes in the ticket. Q. 18 What care should be taken while selecting services? 1. While making booking, you should opt for only those optional services which you really want to avail during flight. 173

174 2. Booking without proper care may result in opting of chargeable services not desired by you and comparatively higher ticket price thereto compared to your fellow flyer. Q. 19 What are the Airlines optional services? A. Airlines also offer optional services on chargeable basis. You can avail the following services at the time of booking process and choose any of them on opt-in basis if you so desire: Preferential seating. Meals/snacks/drink charges (except drinking water). Charges for using airline lounges. Check-in baggage charges. Sports equipment charges. Musical instrument carriage. Fee for special declaration of valuable baggage (allow for higher unit on carrier liability). Government has permitted unbundling of above services on opt-in basis (Air Transport Circular 03 of 2013) 174

175 XIV Education 175

176 Q.1. Where does one can get information regarding the recognition of various universities in India? Ans. The information can be obtained from the Universities Handbook of Association of Indian Universities. It can also be obtained from the University Grants Commission (UGC), All India Council for technical education (AICTE), National Council for Teachers Education (NCTE), Medical Council of India(MCI),Bar council of India (BCI) etc. websites, depending upon the course and its recognition. Q.2. How does one get to know about the recognition status of the degrees awarded by the foreign universities in the field of Health Sciences? Ans. The recognition of degrees in the field of health sciences are looked after by the following agencies i. Medical Council of India ii. Dental Council of India iii. Pharmacy Council of India iv. Central Council for Homoeopathy v. Central Council for Indian Medicines Q. 3. What is the accreditation status of the Teachers Training Programmes? Ans. Teachers Training Programmes are regulated and monitored by the National Council for Teacher Education, Indira Gandhi Sports Complex, I P Estate, New Delhi Q.4. What are the eligibility requirement for admission to Medical/Engineering programmes at Indian Universities? Ans. For admission to Medical/Engineering programmes candidates are required to have studied the subjects of Physics, Chemistry, Biology/Mathematics respectively and English in the last two years of High School programme (viz grade 11 and 12) with minimum 50 % marks in PCB/PCM taken together.( For SC/ST and OBC candidates the requirement is 40%). Q. 5. What are the professional council/ regulators in field of education for different subject and courses? Ans. Professional councils are responsible for recognition of courses, promotion of professional institutions and providing grants to undergraduate programmes and various awards. The statutory professional councils are: All India Council of Technical Education (AICTE) Medical Council of India (MCI) 176

177 Indian Council for Agricultural Research (ICAR) National Council for Teacher Education (NCTE) Distance Education Bureau (DEB) Pharmacy Council of India (PCI) Indian Nursing Council (INC) Bar Council of India (BCI) Central Council of Homeopathy (CCH) Central Council for Indian Medicine (CCIM) Council of Architecture Distance Education Council (DEC) Rehabilitation Council National Council for Rural Institutes (NCRI) State Councils of Higher Education (SCHE) Q.6. What are the information a student can take from AICTE website? Ans. Website provides a list of approved institutes state-wise for Degree and Diploma Programs in Engineering and Technology, MCA & MBA, Pharmacy, Architecture & Applied Arts, Hotel Management & Catering Technology and M.E./M.Tech. / M.Pharm. /M.Arch.). The site also provides list of programs accredited by National Board of Accreditation (NBA) under the AICTE. The website also provides model curriculum for UG Programs and list of books recommended for management education. Q. 7. What is the role of Medical Council of India? Ans. The Medical Council of India (MCI) was set up by the Indian Medical Council Act, 1956, amended in The council is empowered to prescribe minimum standards for medical education required for granting recognized medical qualifications by universities or medical institutions in India. Q. 8. What are the functions of Medical Council of India? Ans. The Council is empowered to make regulations relating to: The course and period of study, including duration of practical training to be undertaken, the subjects of examination, and the standards of proficiency therein to be obtained in universities or medical institutions for grant of recognized medical qualifications; The standard of staff, equipment, accommodation, training and other facilities for medical education; and The conduction of professional examinations, qualifications of examiners, and the conditions of admissions to such examinations. 177

178 Q. 9. What is the role of NCTE in teaching education programme? Ans. The National Council for Teacher Education is a statutory body set up under the National Council for Teacher Education Act, 1993 to facilitate planned and coordinated development of the teacher education system in the country, and for regulation and proper maintenance of norms and standards in the teacher education system. Q. 10. What are the activities and functions of NCTE? Ans. The Council, is responsible for the following activities and functions: to coordinate and monitor teacher education and its development in the country; lay down guidelines in respect of minimum qualifications for a person to be employed as a teacher; lay down norms for any specified category of courses or trainings in teacher education; lay down guidelines for compliance by recognized institutions for starting new courses or training; lay down standards in respect of examinations, leading to teacher education qualifications; and examine and review periodically the implementation of the norms, guidelines and standards laid down by the Council. Q. 11. What is the role of Central and state Government in Education? Ans. Following are the role of Central and State Government with regard to education: Central Government is responsible for major policy relating to higher education in the country. It provides grants to the UGC and establishes central universities in the country. The Central Government is also responsible for declaration of Educational Institutions as 'Deemed to be University' on the recommendation of the UGC. State Governments are responsible for establishment of State Universities and colleges, and provide plan grants for their development and non-plan grants for their maintenance. The coordination and cooperation between the Union and the States is brought about in the field of education through the Central Advisory Board of Education (CABE). Special Constitutional responsibility of the Central Government: Education is on the 'Concurrent list' subject to Entry 66 in the Union List of the Constitution. Q. 12. What is the Student Grievance redressal Mechanism by AICTE? Ans. AICTE has directed all universities and colleges to appoint an ombudsman and a 178

179 grievance redressal committee. The committee and ombudsman have assigned powers to investigate complaints. Students are also able to register complaints against their own institute/university. Every institution must maintain a registry in which a student can record a complaint. When a complaint is received the ombudsman must seek an explanation from the institution concerned within seven days and conduct proceedings and dispose of the case within a month. Q. 13. What is the AICTE purview on Student Grievance redressal? Ans. AICTE is the regulator for coordinated development of technical education in India. Types of grievances that fall under AICTE purview- Non refund of fee by AICTE approved institution Non return of original Documents Non observation of Norms & standards. Delay in according approvals Charging of capitation fee Non refund of Security Amount Other similar related matters Q. 14. What is the policy of Distance Education? Ans. Territorial jurisdiction to be followed by Open & Distance Learning Institutions as under- For case of Central Universities, the Territorial Jurisdiction will be as per their Acts & rules In case of State Universities (both Govt. funded and private), the Territorial Jurisdiction will be as per their Acts- not beyond the boundaries of their respective States. In case of Private Institutions (other than Universities) Territorial jurisdiction will only be headquarters. In case any such institution is offering programmes beyond its headquarters then it should be a new institution as per norms. Q. 15. What is the role of University Grants Commission? Ans. UGC is the autonomous institution of the Govt. of India. It has been established to promote quality higher education and promote enrollment of students in higher studies. UGC has established a system in which students can file the complaint in their respective college/ institute/ university which are approved by UGC It also provides the list of Universities, which are affiliated by UGC, a list of fake 179

180 Universities pan India to aware students before taking admission. XV Electricity 180

181 Q.1. What does Electricity comprise of? All aspects related to generation, transmission, distribution and supply of electricity for industrial, commercial and residential use. Q.2. What is meant by generation, transmission and distribution of electricity? Electricity from a power plant flows through transmission lines and distribution lines to facilitate supply of electricity to our houses. Electricity generated from conventional sources like coal, gas, hydro and nuclear & renewable sources like wind, solar, biomass and co-generation. This reaches the distribution substations which supply electricity to consumers. The distribution networks operate at a voltage and frequency depending on the distance and load to be served residential, commercial and industrial consumers. The main components of a distribution system are High Tension (HT) and Low Tension (LT) power lines, substations, transformers and circuit breakers. Q.3. What are the main objective of the Electricity Act 2003? Ans: Electricity Act contains the laws relating to generation, transmission, distribution, trading and use of electricity by taking the following measures. Taking conducive measures to develop the electricity industry Supply of electricity to all users Protecting consumer Interest Rationalization of electricity tariff Transparency in policies regarding subsidies Promotion of efficient & environmental friendly policies constituted by Central Electricity Authority (CEA) Regulatory commissions & establishment of Appellate tribunal Q.4. Is Electricity Act-2003 applicable to whole of India? Yes, The Electricity Act-2003 is extended to whole of India except the state of Jammu & Kashmir. Q.5. Is electricity a central subject or state subject? The Electricity sector falls under the concurrent list of Indian constitution. The State and Central Government, both have jurisdiction on it, and share the powers of formulating policies and plans. Distribution of Electricity is a State Subject. 181

182 Q.6. Who regulates the sector? Central Electricity Regulatory Commission is a key regulator of power sector in India. There is a provision to create the State Electricity Regulation Commission. The role of a regulatory Commission is to determine the tariff for generation, supply, transmission and wheeling of electricity to regulate electricity purchase and procurement process of distribution licensees including the price at which electricity shall be procured, Q.7. What does the term Distribution licensee mean? Distribution licensee means a licensee, authorized to operate and maintain a distribution system for supplying electricity to consumers within his area of supply. Q.8. What is kwh or Unit of electricity? The Kilowatt-Hour (kwh) also known as Unit is a measure of electricity. If 1 kw i.e W of power is consumed for 1 hour then the energy consumed is said to be 1kWh. Our consumption of electricity is usually denoted in Units. Our electricity bill reflects the units of electricity consumed. Q.9. What does your electricity bill consists of? The electricity bill is made up of the following charges, Electricity/ Energy Charge: These charges are the per unit electricity charge of electricity consumption. It is mostly defined slab wise (different charges for different of type consumers) and is inversely proportional with the electricity consumption. Fixed Charge: This mostly depends on the connected load that the utility provides you. Sanctioned/ Connected load is typically calculated as sum of wattage of all the appliances that you use at your home. A fixed charge is collected based on the connected load. Electricity Duty & Tax: This is a tax by the government for using electricity. Duty is applicable for each unit of electricity consumption and tax is applied on the whole bill amount. Minimum Monthly Charges: In some states, if the consumption is less than a certain amount, minimum monthly charges are applicable, which means that the bill amount cannot be less than the minimum monthly charges. Meter Rent: Rent that you pay for a meter at your premises. Rates are different for single phase and three phase meters. 182

183 Q.10. Who approves our Tariff? The State Commission, keeping in mind the interest of both the utility and the consumers, decides the tariff. It is the responsibility of the Commission at this juncture to organize meetings with the public for their acceptance and objections if any. Q.11. Who handles individual consumer grievances? At the first level, Distribution licensees have to take up complaints of their customers at the district level and redress them timely. A consumer grievance Redressal Forum (CGRF) is present at the Electricity Distribution Centers and is a special cell for addressing consumer complaints. If the complaint is not addressed, the consumer can approach the Electricity Ombudsman. Q.12. Does consumer court take up electricity cases? Yes, further to the CGRF and Electricity Ombudsman when a consumer feels that the CGRF/Ombudsman ruling are not satisfactory or if the complainant does not get any response, then the consumer can take up the case to the District Consumer Dispute Redressal Forum. Please note that electricity theft cases are not considered by consumer forums. Consumer has to approach special Electricity courts ( Bijli adalat) and then the State High Court for the same. Q.13. How to reduce electricity bills? Switch off the lights/appliances when not in use Switch to electrical appliances with BEE (Bureau of Energy Efficiency) label Use Fluorescent tube lights, LED and CFL Lights Use renewable energy devices/systems such as solar collectors/ solar panels, solar generators, solar water heaters, solar cookers etc. Avoid keeping electronic appliances in the standby mode Q.14. Why are there voltage fluctuations? Any disturbance in this grid results into voltage fluctuation Q.15. How do I report Power cut? 183

184 Please contact the Call Centre or nearest licensee office for lodging power failure complaints or any other power related complaints. They will give the updates on power restoration status. 184

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