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Can Central Government Employee do the business or Life Insurance Agency as a part time ?

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Can Central Government Employee do the business or Life Insurance Agency as a part time ?

As per the CCS Conduct Rules 1964, Government servant cannot occupy / participate in part-time job or any other business.  CCS Rules 1964 clearly defined in Rule 15 (1) (d)

Rule 15 : Private trade or employment

(1) Subject to the provisions of sub-rule (2), no Government servant shall, except with the previous sanction of the Government-

(a) engage directly or indirectly in any trade or business, or
(b) negotiate for, or undertake, any other employment, or
(c) hold an elective office, or canvass for a candidate or candidates for an elective office, in any body, whether incorporated or not, or
(d) canvass in support of any business of insurance agency, commission agency, etc., owned or managed by any member of his family, or
(e) take part except in the discharge of his official duties, in the registration, promotion or management of any bank or other company registered or required to be registered, under the Companies Act, 1956 (1 of 1956) or any other law for the time being in force, or of any co-operative society for commercial purposes.
(f) participate in or associate himself in any manner in the making of-

(i) a sponsored media (radio or television) programme; or
(ii) a media programme commissioned by Government media but produced by a private agency; or
(iii) a privately produced media programme including video magazine:
Provided that no previous permission shall be necessary in case where the Government servant participates in a programme produced or commissioned by Government media in his official capacity.

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(2) A Government servant may, without the previous sanction of the Government,-

(a) undertake honorary work of a social or charitable nature, or
(b) undertake occasional work of a literary, artistic or scientific character, or
(c) participate in sports activities as an amateur, or
(d) take part in the registration, promotion or management (not involving the holding of an elective office) of a literary, scientific or charitable society or of a club or similar organisation, the aims or objects of which relate to promotion of sports, cultural or recreational activities, registered under the Societies Registration Act, 1860 (21 of 1860), or any other law for the time being in force, or
(e) take part in the registration, promotion or management (not involving the holding of elective office) of a co-operative society substantially for the benefit of Government servants, registered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for the time being in force:
Provided that –

(i) he shall discontinue taking part in such activities, if so directed by the Government; and
(ii) in a case falling under clause (d) or clause(e) of this sub-rule, his official duties shall not suffer thereby and he shall, within a period of one month of his taking part in such activity, report to the Government giving details of the nature of his participation.

(3) Every Government servant shall report to the Government if any member of his family is engaged in a trade or business or owns or manages an insurance agency or commission agency.

(4) Unless otherwise provided by general or special orders of the Government, no Government servant may accept any fee for any work done by him for any private or public body or any private person without the sanction of the prescribed authority.

EXPLANATION- The term ‘fee’ used here shall have the meaning assigned to it in Fundamental Rule 9 (6-A).

Rule 15A (7)

Enforcement of the restriction against canvassing by Government servants of the business of Life Insurance Agency, Commission Agency owned or managed by members of his family.

Sub-rule (1) of rule 12 of the Central Civil Services (Conduct) Rules, 1955 (Now rule 15), inter alia lays down that no Government servant shall, except with the previous sanction of the Government, engage directly or indirectly in any trade or business or undertake any employment. It has been further emphasized in the ‘explanation’ thereunder that canvassing by a Government servant in support of the business of insurance agency, commission agency, etc., owned and managed by his wife or any other member of his family shall be deemed to be a breach of this sub-rule.

2. In spite of specific provisions in this rule, during the past two years quite a number of cases have been reported to the Special Police Establishment in which Government servants have been found carrying on life insurance business on their own or in the names of their wives or dependent, etc.

3. It appears that the Government servants have either not realized the full importance of the above rule or are willfully ignoring it. This rule should, therefore, be brought to the notice of all Government servants under the Ministry of WHS etc., and the importance of observing the rule impressed on them.

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10 COMMENTS

  1. can a retired PSU employee ( on VRS ) ,who gets pension can write Life agent exam by irda ,and work as a Life insurance agent for private insurance company …pl clarify

  2. Are not MLA/MP or sport personals who are paid by Indian Govt Govt’s servents? Ministers say UP’s present Chief minister Yogi Adityanath has a huge business of cattle rearing and many others have other businesses. Mr. Virat Kohli owns UAE Royals, MS Dhoni have big enterprise to run beside their actual occupations. Why not Govt prohibit them from having duel employments? Poor servicemen should also have the opportunity to grow big though they have limited scopes…

  3. Sir, if a govt employee have a youtube channel..The channel is ready to make him pay..can his wife take the payment with her bank account ??

  4. Hi sir,

    I am a central government employee and my father is dependent on me. He wants to do business in partnership. we want everything to be transparent and are ready to pay income tax. Is it permissible/legal? If so, what is procedure.

    Please reply as soon as possible…..Thanks.

  5. Sir i am central government emploee. Can i invest in iquity, share market or online trading in commodity market. Please reply.

    • Hi Saini,

      As per CCS Sub-rule (1) of Rule 16 provides that no Government servant shall speculate in any stock, share or other investment. It has also been explained that frequent purchase or sale or both, of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.

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