Appointment of Shariah Auditors Retakaful 2016 - GIC

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भारतीय साधारण बीमा निगम

General Insurance Corporation of India

REQUEST FOR PROPOSAL FOR THE APPOINTMENT OF SHARIAH

AUDITOR FOR RETAKAFUL BUSINESS OF GENERAL INSURANCE

CORPORATION OF INDIA FOR THE FY 2016 – 17

ISSUED BY:

SHRI Y. RAMULU,

GENERAL MANAGER

4TH FLOOR,


SURAKSHA,170, J. TATA ROAD, CHURCHGATE

MUMBAI-400020

DATE OF ISSUE: March 15, 2016

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DISCLAIMER

This Request for Proposal (RFP) document is not an agreement or offer by

General Insurance Corporation of India to the prospective Bidders or any other

party. The purpose of this RFP is to provide interested parties with information

to assist the formulation of their Bid.

The RFP and the information contained therein are to be used only in the

manner prescribed.

While this RFP has been prepared in good faith, neither General Insurance

Corporation of India nor its employees make any representation or warranty

express or implied as to the accuracy, reliability or completeness of the

information contained in this RFP.

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CONTENTS

LETTER OF INVITATION ........................................................................................................................................... 4

TIMELINE................................................................................................................................................................. 4

ELIGIBILITY AND PRE-QUALIFICATION CRITERIA. .................................................................................................... 4

TERMS AND CONDITIONS ....................................................................................................................................... 5

PROCEDURE FOR SUBMISSION OF PROPOSAL ....................................................................................................... 8

BID EVALUATION CRITERIA AND SELECTION PROCEDURE ................................................................................... 10

STANDARD FORMATS FOR TECHNICAL AND FINANCIAL PROPOSAL. ................................................................... 10

Annexure 1 - Proforma for Technical Bid ............................................................................................................. 11

Annexure 2 - Proforma for Financial Bid .............................................................................................................. 13

Annexure 3 - Scope of Shariah Audit for Retakaful Business of GIC Re ................................................................ 14

Annexure 4 - Draft Agreement ............................................................................................................................. 16

Annexure 5 – Declaration Format ........................................................................................................................ 22

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REQUEST FOR PROPOSAL (RFP)

APPOINTMENT OF SHARIAH AUDITOR FOR RETAKAFUL BUSINESS OF GENERAL INSURANCE CORPORATION OF INDIA FOR THE FY 2016 – 17

LETTER OF INVITATION

“GENERAL INSURANCE CORPORATION OF INDIA (A Company Wholly Owned by Government

of India) hereinafter referred to as “GIC Re” invites applications from “Sharia Audit Firms

“hereinafter referred to as the Bidders, for appointment as Shariah Auditors for conducting

Shariah Audit of Retakaful Business of General Insurance Corporation of India for the FY 2016-17

and providing services as mentioned in the scope of work. The Scope of work of Shariah

Audit and Services is as per Annexure 3.”

TIMELINE

The following shall be the time schedule for completion of the bidding process

Sr. No. Event Schedule, Date / Time

1. Date of issue of RFP March 15, 2016

2. Last date of Bid submission 17:30 Hrs.

March 29, 2016

3. Date of Opening of Financial Bids On or before, March 31, 2016

4. Result of Financial (Price) Bids of Qualified Bidders To be displayed on website.

ELIGIBILITY AND PRE-QUALIFICATION CRITERIA.

1. The Bidder shall be registered in India.

2. The Bidder must have their Branch / Office in Mumbai from where the Shariah Audit work

should be carried out.

3. The Bidder should have -

(i) At least one qualified Chartered Accountant and

(ii) An Independent Shariah Board, having authorisation from well-recognised Shariah

teaching institutions of repute, to issue Shariah Certifications in relation to GIC Re's

Retakaful operations.

4. Bidder must have experience of minimum 5 years of rendering Retakaful Consultancy

Services to any Insurance / REINSURANCE Company in India. It should be doing the work

of Shariah Audit for reputed and large PSU clients.

5. Bidder should be specialized in the work of Shariah Audit and the turnover from the audit

function during the last financial year should not be less than ₹ 20 Lacs.

6. The Bidder should have at least one person who has necessary knowledge of either Takaful

or Retakaful, or both.

7. The evaluation of Bidder will be based on the experience, reputation, appointment with

other Companies, PSUs, Govt. institutions, manpower & logistical support of the applicant,

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their financial capabilities, quality consciousness, etc. Based on the details furnished and

eligibility criteria, the applicants will be appointed.

8. If, information and details furnished by Bidder are found to be false at any time in future or

any information withheld, which comes to the notice of the Corporation at a later date, the

appointment of such applicant will be cancelled immediately.

9. The Bidder should have a Pan No. & Service Tax No.

10. The Bidder should be adept in compliance of Indian laws. They should be well versed with

compliance of all relevant guidelines of IRDA, CAG and other regulations applicable to

Insurance /Reinsurance Industry.

11. The Bidder should not be owned by any of the relatives of the GIC Re Officials. Also, none

of the officials of GIC Re should have vested interest in the Bidder.

12. The Bidder or its partners should not possess any place of profit in GIC Re.

13. The Bidder/partner/director should not have any place of profit with Retakaful

Intermediaries.

14. The Bidder should not have been prohibited/debarred/blacklisted by any regulating

Authority/Agency including IRDA, RBI, SEBI, ICAI, C&AG, Shariah Board, etc.

15. Decision of GIC Re regarding selection / rejection for appointment will be final and binding

and no further correspondence will be entertained. The appointed Shariah Auditor will only

be informed by post.

TERMS AND CONDITIONS

1. GIC Re reserves the right to reject any or all applications.

2. RIGHT TO REJECT BIDS.

GIC Re reserves the absolute and unconditional right to reject any response to this RFP if

it is not in accordance with its requirements and no correspondence will be entertained

by GIC Re in the matter.

The bid is liable to be rejected if:

It is not in conformity with the instructions mentioned in this RFP document.

It is not properly/duly signed.

It is received after expiry of the due date and time.

It is incomplete including non-furnishing the required documents / information as

required in terms of this RFP.

It is evasive or contains incorrect information.

There is canvassing of any kind.

Bid having Conflict of Interest.

(A Bidder may be considered in a conflict of interest with one or more bidders in

the same bidding process under this RFP if they have a relationship with each

other, directly or indirectly, through a common firm, that puts them in a position to

have access to information or influence the Bid of another bidder.)

Bidder delaying in submission of additional information or clarifications sought by

GIC Re as applicable.

3. The Bidders will be shortlisted on the basis of assessment as per Technical Bids. The

Financial Bids of these shortlisted firms only will be opened.

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4. Technical Bid and Financial Bid is to be signed by Authorized Partner/Signatory on each

page of RFP document. Please refer to the proforma of the Authorized signatory at

Annexure 5.

5. Any billing linked to GIC Re’s Assets and/or Revenue will disqualify the bidder.

6. CLARIFICATIONS AND AMENDMENTS TO RFP DOCUMENT

Prospective bidders may seek clarification on the RFP document by letter/fax/email till the

date and time mentioned in the “Timeline”.

It may be noted that all queries, clarifications, questions etc., relating to this RFP

Document, technical or otherwise, must be in writing only and should be addressed to the

nominated point of contact as mentioned below:

Retakaful Department

Mr. Charles Asirvatham, Deputy General Manager Mr. Mukesh Khedekar, Assistant General Manager

Email ID - [email protected]

GIC Re may, for any reason, whether at its own initiative or in response to clarification(s)

sought from prospective bidders, modify the RFP document contents by amendment

/corrigendum. Clarification / Corrigendum /Amendment, if any, will be notified in the

websites. No individual communication would be made in this respect.

7. CANCELLATION OF TENDER PROCESS

GIC Re reserves the right to cancel the tender process partly or fully at its sole discretion

at any stage.

8. PERIOD OF VALIDITY OF BID

The bidder shall submit the bid which shall remain valid up to 180 days after the BID

deadline. GIC Re reserves the right to reject any BID which does not meet the

aforementioned validity requirement.

9. ADHERENCE TO TERMS AND CONDITIONS

The Bidders who wish to submit responses to this RFP should note that they should abide

(in true intent and spirit) by all the terms and conditions contained in the RFP. If the

responses contain any extraneous conditions put in by the bidders, such proposals may

be disqualified and may not be considered for the selection process.

10. EXECUTION OF PRINCIPAL AGREEMENT AND NON-DISCLOSURE AGREEMENT

The selected Bidder will be required to execute (a) Principal Agreement (PA), which must

include all the services and terms and conditions of the services to be extended as

detailed herein and as may be prescribed or recommended by GIC Re and (b)

Nondisclosure Agreement (NDA). The selected Bidder will be required to execute the PA

and NDA within 15 days from the date of notification about the final selection of the

Bidder, on completion of the required processes as outlined herein.

11. ADHERENCE TO STANDARDS/ COMPLIANCE WITH LAWS

The selected Bidder should adhere and comply with all the applicable laws of land and

rules, regulations and guidelines prescribed by various regulatory, statutory and

Government authorities of India.

12. ASSIGNMENT

Neither the contract nor any rights granted under the contract can be sold, leased,

assigned, or otherwise transferred, in whole or in part, by the selected Bidder. The

selected Bidder shall not subcontract or permit anyone other than its personnel to

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perform any of the work, service or other performance required of the selected Bidder

under the contract. Formation of consortium or association of Bidder and engaging sub

auditor is not allowed and such proposals will be disqualified at the evaluation stage itself.

13. PERIOD OF CONTRACT AND RENEWAL OF ASSIGNMENT

The period of Contract of Appointment of the Bidder as Shariah Auditor, shall initially be

for One Year for the financial year beginning 1st April, 2016 and renewable annually for 2

subsequent years at the same Annual fees and other terms and conditions, subject to

satisfactory performance by the Bidder. The renewal will be with consent of both parties.

14. OUT OF POCKET EXPENSES

The Travelling Expenses, Lodging and Boarding and all related expenses of the Shariah

Audit Team to be borne by the Bidder. No extra payment will be admissible other than

Annual fees quoted by the Firm.

15. SHARIAH AUDIT SCOPE & REQUIREMENTS

Shariah Audit of GIC HO and Branches, is to be conducted in Mumbai at the

Corporate Office of the GIC Re, at the following address:

GENERAL INSURANCE CORPORATION OF INDIA “Suraksha”,

170, J. Tata Road, Churchgate, Mumbai – 400 020.

Scope of Shariah Audit, in respect of Retakaful Business of GIC Re, is as per Annexure

– 3.

It is compulsory for Bidder to depute at least one qualified Chartered Accountant for

auditing and the size of audit team may be decided by the Bidder to commensurate

with scope and other requirements.

The time line for submission of monthly report is 15 days from end of previous month.

16. SHARIAH AUDIT FEES:

The Shariah Audit Fees inclusive of applicable taxes, as approved, shall be payable in four

installments as below:

i. 25% on or before 30th June;

ii. 25% on or before 30th September;

iii. 25% on or before 31st December;

iv. 25% on or before 31st March.

17. VERIFICATION OF DOCUMENTS

The documents received by GIC Re at the time of engaging the bidder and their subsequent

submission of report on being appointed shall be verified as per Standard Operating

Procedure (SOP) dated 02-02-2016. Non-compliance as per SOP norms will consequently

result in Rejection of application OR Termination of Contract OR Imposition of appropriate

liquidated damages for any penalties imposed either pecuniary or otherwise on GIC Re.

18. TERMINATION:

The Contract of Appointment of the Bidder may be terminated, incase performance of the

Bidder is not satisfactory, on giving 3 months written notice by GIC Re.

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PROCEDURE FOR SUBMISSION OF PROPOSAL

Bidder (Eligible as Above), shall apply under Two Bid system and submit separate sealed

envelopes, as under:

Envelope I – Technical Bid

Envelope I - Technical Bid to contain the following.

i. Covering Letter with Name and Registered Address of the Bidder,

ii. Full name of Contact Person (s), their Contact Numbers (landline and mobile) & Email ID,

iii. Full Name of all Directors/Partners, with details of qualifications along with membership no. and experience and contact details of Firm,

iv. Profile of the Bidder, with specific mention of all particulars like year of establishment/Registration,

v. List of major clients including General Insurance Companies, past and present, with details of Period of Shariah Audit and Nature of Services,

vi. Work Plan for conducting the Shariah Audit assignment and methodology

of its implementation.

vii. Self-Attested Copy of Audited Profit & Loss Account and Balance Sheet of the Firm for the last 3 (three) financial years,

viii. Evidence of Turnover more than ₹ 20 lacs from Shariah Audit Operations,

ix. Self-Attested Copy of Certificate of Practice.

x. Self-Declaration in the enclosed format (Annexure - 5).

xi. Details of Shariah Board

All the documents enclosed with the offer document to be serially numbered and duly signed and sealed by the firm or authorized partner.

The Technical Bid NOT to contain any details of Financial Bid.

This sealed Envelope I to be super-scribed as under:

Technical Bids of M/s _________________________, for Appointment

as Shariah Auditor for Retakaful Business of GIC Re for FY 2016-17.

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Envelope II – Financial Bid

Envelope II - Financial Bid to contain the following.

Fees for the assignment for one year, applicable taxes, other expenses, if

any, all inclusive, in the given format.

The Technical Bid/Financial Bid NOT to be submitted in the format of a Legal

Agreement.

This sealed Envelope II to be super-scribed as under:

Financial Bids of M/s ___________________________, for Appointment


Envelope III

The sealed Envelope III should be super-scribed as under:

Please submit both the envelopes in another sealed ENVELOPE III, addressed and to

be dropped in Tender Box situated at Retakaful Department on the 4th Floor at the

following address:

Shri Y. Ramulu,

General Manager,


“Suraksha”, 4th Floor


Technical and Financial Bids of M/s ________________, for Appointment


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BID EVALUATION CRITERIA AND SELECTION PROCEDURE

EVALUATION METHOD

The evaluation process comprises the following four steps:

Step I – Responsiveness check. (Submission of Requirements by Bidder)

Step II – Evaluation of Technical Bid

Step III - Evaluation of Financial Bid

Step IV – Selection of Successful Bidder

If for any reason the Bid of any Successful Bidder is rejected, GIC Re may, at its discretion:

i. Consider the next lowest Financial Bid from a Bidder other than the Successful

bidder whose Bids are responsive and valid; or

ii. Annul the bid process; or

iii. Take any such measure as may be deemed fit in the sole discretion of GIC Re;

STANDARD FORMATS FOR TECHNICAL AND FINANCIAL PROPOSAL.

The Bidders should necessarily submit the information as per the prescribed formats given in the

RFP while submitting both technical and financial Bids. Any deviation in this regard entails the

Bidder for disqualification.

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ANNEXURE 1 - PROFORMA FOR TECHNICAL BID

(On letter head of Firm of Shariah Auditor)

PROFORMA FOR TECHNICAL BID

(For conducting Shariah Audit of Retakaful Business of GIC Re for FY 2016-17)

To,

The General Manager,


"Suraksha", 170, Jamshedji Tata Road,

Churchgate,

Mumbai - 400 020

Sr. No Particulars

1. Name of the Firm ( Bidder):

Registered Address of the Bidder

Profile of the Bidder.

Date of Registration

• Whether Partnership/ Proprietorship/ any other

• Name of the Lead Partner/ In- charge • Full Name(s) of the Contact person(s) and the Contact details.

Land Line (if any) ___________________

Mobile __________________

Email ID _________________

(Please attach the certificate of registration)

2. Full Name of Directors/Partner(s) with details of

• Qualifications • Experience • Contact Details.

Land Line (if any) ___________________

Mobile __________________

Email ID _________________

• Date of Commencement of Practice • Certificate of Practice (COP) Number / Registration Number.

(Please attach documentary evidence)

3. Details of Office in Mumbai Address: -

Telephone Nos. :

Fax No. :-

Email:-

Website (if any):-

4. Details of Other Branches in India and Overseas

5. List of Major Clients including General Insurance Companies, past and present

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with details of period of Shariah Audit and Nature of Services.

6. Work Plan for conducting the Shariah Audit Assignment and methodology of its

implementation. (Attach separate sheet, if required)

7. • Self-Attested Copy of Profit & Loss Account and Balance Sheet of the

Firm Bidder for the last 3 (three) financial years,

• Self-Attested Copy of Certificate of Practice.

• Self-Declaration in the enclosed format (Annexure 5),

• PAN of the Bidder (Please attach documentary evidence)

• Service Tax Registration No. of the Bidder (Please attach documentary

evidence)

8. Number of Active partners in the Bidder and Number of Employees who are fully

qualified CA and members of ICAI

(Please attach details including name, membership no., experience etc. of the

active partner / employee.)

9. Turnover of the Bidder in preceding Financial Year based on ITR / balance Sheet

(Please attach documentary evidence)

a. Total Annual Turnover

b. Total Annual Turnover from Shariah Audit Assignments

10. Please attach C.V of the Resource Person having necessary knowledge in the

Takaful / Retakaful.

11. Details of Shariah Board

12. Any other relevant information (Please attach separate sheet, if required.)

Declaration –

1. All the information provided by me/us herein above is correct.

2. I/We have no objection if enquiries are made about the work listed by me/us in the accompanying sheets/annexure.

3. I/We have read all the terms & conditions of bid and the instructions and

these are acceptable to me/us.

Signature: --------------------------

Name & Designation of the Authorized Signatory: ---------------------

Stamp of the Bidder: --------------------------

Date: ----------------

Place: ---------------

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ANNEXURE 2 - PROFORMA FOR FINANCIAL BID

(On letter head of Shariah Auditor Firm (Bidder))

PROFORMA FOR FINANCIAL BID

(For conducting Shariah Audit of Retakaful Business of GIC Re for FY 2016-17 as per the

scope of work mentioned in the RFP)

To,

The General Manager,


"Suraksha", 170, Jamshedji Tata Road,

Churchgate, Mumbai - 400 020

Sr. No Description Fees in INR

(In Figures)

Taxes, if any Total Fees in

INR

(In Figures)

1. Conducting Shariah Audit for Retakaful Business of GIC Re for FY 2016-17 as

per Scope of work

mentioned in the RFP

Total amount in words: Rupees __________________________________________ only

Notes:

1. The quoted rate is valid for entire tenure of the contract. No escalation on payment

for this contract will be demanded by us.

2. Payment to be made as per RFP document.

Signature: --------------------------

Name & Designation of the Authorized Signatory: ---------------------

Stamp of the Bidder: --------------------------

Date: ----------------

Place: ---------------

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ANNEXURE 3 - SCOPE OF SHARIAH AUDIT FOR RETAKAFUL BUSINESS OF GIC RE

The nature and scope of services to be provided by the Shariah Auditor for the financial

years, 2016-17 are as follows:

1. Advising GIC Re in respect of its Retakaful operations, providing the parameters for

carrying out Retakaful business, as permissible by the Shariah scholars and Indian

regulatory authorities, guiding GIC Management on Retakaful/Shariah Norms, periodic

development and giving directions of different business opportunities.

2. Providing the list of permissible Shariah compliant companies (which are listed on the main

Indian stock exchanges, i.e. BSE and NSE) to invest the funds of Retakaful operations.

3. Providing the guidelines and monitoring Retakaful operations of GIC Re and advising on

the manner of sharing the profits and losses between GIC Re and its customers and/or the

Wakalah Fees.

4. Preparing and finalising the statement of Retakaful business (on quarterly/half

yearly/annual basis) for the period from 01.04.2016 to 31.03.2017 and certifying the same

and complying all Statutory and Regulatory requirements pertaining to GIC Re Head Office

and Branches.

5. To nominate the required personnel who shall be well acquainted in the field of Shariah

financing, structuring, documentation and product development, in order to facilitate

completion of Consultancy Services within a reasonable and acceptable timeframe.

6. Providing Shariah Compliant certification from Shariah scholar(s), for Retakaful operations

of GIC Re and periodically providing Shariah monitoring report once in a calendar year

from their Shariah Board for the Retakaful operations of GIC Re.

7. Examining the books and records of GIC Re at regular intervals during the term of

consultancy contract and to assure that the structure and operations of its Retakaful

business are Shariah compliant on an ongoing basis and deviations, if any, from such

compliance are addressed and rectified within the period of 3 months from the date the

deviation is reported.

8. In the event a ground for non-compliance existed at the time when Shariah compliance

certificate was issued and/or renewed by them earlier and not objected by them while

issuing the said Shariah compliance certificate, Shariah compliance certificate shall not be

denied when such ground for non-compliance is noticed subsequently. In such event

however, the ground for non-compliance will need to be addressed and an attempt shall be

made by GIC Re to eliminate the ground of non-compliance by the next quarterly review.

9. The scope of the services to be provided by them shall not include an examination of the

Shariah compliance of the operations/schemes of the customers who come to GIC Re for

Retakaful protection.

10. Shariah Auditor shall inform GIC Re in a suitable format, and on an ongoing basis, as the

case may be, the interest income, if any, that needs to be purged by it under the Retakaful

operations.

11. Imparting training to GIC Re employees/officers as per the requirement, to update the

knowledge of the employees of Retakaful Department.

12. Any other advice, guidelines and service, which is incidental to Retakaful business of GIC

Re, Mumbai and its Branches, within the time limit specified.

13. All requirements as per Shariah Norms, should be complied with.

14. Coverage and Periodicity of Shariah Audit:

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Area & Schedule Frequency

1 Providing monthly List of Shariah compliant Companies for Investment in

its Equity. Monthly

2

Compilation of data for finalization of accounts from GIC Re Head Office and Branches, by the month of July, of the running contract period.

Yearly

3 Finalisation of Accounts for preceding financial year, by the month of

October, of the running contract period. Yearly

4

Reply to any query pertaining to Retakaful Business, that may be raised by the internal auditors or any other related parties within 1 week.

Regularly

5 Acquiring Shariah Compliant Certificate for Retakaful Business of GIC Re carried out for the Preceding Financial Year, by the month of December

Yearly

6

Regularly checking the Retakaful business conducted by GIC Re and its Branches, and assuring its smooth functioning on regular basis.

Regularly

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ANNEXURE 4 - DRAFT AGREEMENT

DRAFT PRINCIPAL AGREEMENT

(To be submitted by the Successful Bidder after issue of Letter of Appointment)

(This Draft Principal Agreement is subject to final moment changes at the discretion of GIC

Re before actual execution takes place.)

This CONTRACT (hereinafter together with ………..appendices attached hereto called the Contract)

is made on …………..day of ……….2016 between General Insurance Corporation of India, a Company

incorporated under the Companies Act, 1956 having Registered office at “Suraksha”, 170 J Tata

Road, Churchgate, Mumbai- 400020 on the one part (hereinafter called GIC Re) which

expression shall unless it be repugnant to the context or meaning thereof, mean and include their

respective successors and permitted assigns and M/s………….………….………….……………(hereinafter

called the Bidder) having their registered office at…….………….………….…………………….. which

expression shall unless it be repugnant to the context or meaning thereof, mean and include their

respective successors and permitted assigns on the other part (Notwithstanding such association,

the Firm will be represented hereunder at all times by ………………………………………………………… which

will retain full and undivided responsibility for the performance of the obligations hereunder and

for satisfactory completion of the Shariah Audit services to be performed hereunder.)

RECITALS

WHEREAS GIC Re has requested for the conduct of Shariah Audit for Retakaful Business of General

Insurance Corporation of India for FY 2016 – 17 through RFP as per the scope of work described

therein.

AND WHEREAS the Bidder has proposed to provide the services in accordance with the Terms of

Reference and all Conditions set forth in this contract.

AND WHEREAS GIC Re has accepted the proposal of the Bidder according to the evaluation terms

and all conditions of RFP.

NOW THIS AGREEMENT WITNESSETH as follows:

The following documents shall be deemed to form and be read and construed as part of this

Contract viz.

a) The RFP Document for Appointment of Bidder for conduct of Shariah Audit for Retakaful

Business of General Insurance Corporation of India for FY 2016 – 17 beginning 1st April,

2016.

b) All amendments to the RFP Document for Appointment of Bidder for conduct of Shariah

Audit for Retakaful Business of General Insurance Corporation of India for FY 2016 – 17,

prior to submission of bids, queries of bidders, if any.

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c) Appointment letter issued by the GIC Re vide No…………… dated …………… and all

correspondence exchanged between the GIC Re and the Bidder up to the date of

appointment letter as specifically referred to in the said Appointment letter.

In consideration of the payment to be made by the GIC Re to the Bidder as herein after mentioned

the Bidder hereby covenants with the GIC Re to execute and complete the works in all respects in

conformity with the provisions of the contract.

GIC Re hereby covenants to pay to the Bidder the counterpart charges in the manner prescribed in

RFP in consideration of the completion of the works.

1. DEFINITIONS:

The Contract means the Principal agreement entered into between GIC Re and the Bidder, as

recorded in the Contract Form signed by the parties, including all attachments and appendices

thereto and all documents incorporated by reference therein.

The Contract Price means the price payable to the Bidder under the Contract for the full and

proper performance of its contractual obligations.

DURATION/ PERIOD OF CONTRACT means the period for which the Bidder has been engaged

by GIC Re i.e. for the FY 2016-17.

2. CONFIDENTIALITY

The bidder must undertake that they shall hold in trust any Information received by them, under

the Contract/Agreement, and the strictest of confidence shall be maintained in respect of such

Information. The Bidder has also to agree:

To maintain and use the Information only for the purposes of the Contract/Agreement and

only as permitted by GIC Re ;

To only make copies as specifically authorized by the prior written consent of GIC Re and

with the same confidential or proprietary notices as may be printed or displayed on the

original;

To restrict access and disclosure of Information to such of their employees, agents, strictly

on a "need to know" basis, to maintain confidentiality of the Information disclosed to them

in accordance with this Clause and

To treat all Information as Confidential Information.

3. INDEMNITY

The Bidder shall indemnify GIC Re and keep indemnified for any loss or damage, cost or

consequences that GIC Re may sustain, suffer or incur on account of violation/ noncompliance of

any statutory requirements in conducting Shariah Audit. The Bidder shall always remain liable to

GIC Re for any Losses suffered by GIC Re due to any negligence or fault on the part of the Bidder,

and the Bidder also shall indemnify GIC Re for the same. The total liability of the Bidder under this

clause and contract shall not exceed the total contract value.

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The Bidder is responsible for managing the activities of its personnel and will be accountable. The

Bidder shall be vicariously liable for any acts, deeds or things done by their employees which is

outside the scope of work or authority vested or instructions issued by GIC Re.

GIC Re reserves its right to terminate the Contract in the event of delay in the performance of its

obligations and may impose liquidated damages for the delay. Due to such delay, any penalties

imposed either pecuniary or otherwise on GIC Re, would also be borne by the Bidder in monetary

terms.

4. FORCE MAJEURE

Any failure or delay by selected Bidder or GIC Re in the performance of its obligations, to the

extent due to any failure or delay caused by fire, flood, earthquake or similar elements of nature,

or acts of God, war, terrorism, riots, civil disorders, rebellions or revolutions, acts of governmental

authorities or other events beyond the reasonable control of non-performing party, is not a default

or a ground for termination. The affected party shall notify the other party within reasonable time

period of the occurrence of a Force Majeure Event.

5. TERMINATION CLAUSE

This contract shall automatically terminate at the expiry of the term of the Contract unless

renewed with the mutual consent of both the parties.

GIC Re further reserves the right to terminate the contract with the Bidder by giving three

months’ notice for the same and recover expenditure incurred by GIC under the following

circumstances:

1. The Bidder commits a breach of any of the terms and conditions laid down in the RFP.

2. The Bidder goes into liquidation, voluntarily or otherwise.

3. If any attachment is levied and continue to be levied for a period of seven days upon the bidder’s effects or any individual partner for the time being of your firm.

4. If the Bidder fails to complete the assignment as per the time lines prescribed in the RFP

and the extension if any allowed, it will be a breach of contract. GIC Re reserves its right

to terminate the contract in the event of delay and may impose liquidated damages for

the delay. Due to such delay, any penalties imposed either pecuniary or otherwise on GIC

Re, would also be borne by the Bidder in monetary terms.

5. In case the Bidder fails to deliver the services as stipulated, GIC Re reserves the right to

procure the same or similar services from alternate consultancy at the risk, cost and

responsibility of the Bidder.

6. After award of the contract, if the Bidder does not perform satisfactorily or delays

execution of the contract, GIC Re reserves the right to get the balance contract executed

by another party of its choice. In this event, the Bidder is bound to make good the

additional expenditure, which GIC Re may have to incur in executing the balance contract.

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This clause is applicable, if for any reason, the contract is terminated at the expiry of its

term.

6. CONSEQUENCES OF TERMINATION OF CONTRACT

a) In the event of termination of the Contract due to any cause whatsoever, [whether

consequent to the stipulated term of the Contract or otherwise], GIC Re shall be entitled to

impose any such obligations and conditions and issue any clarifications as may be

necessary to ensure an efficient transition and effective business continuity of the

Service(s) which the Bidder shall be obliged to comply with and take all available steps to

minimize loss resulting from that termination/breach, and further allow the next successor

Bidder to take over the obligations of the Bidder in relation to the execution/continued

execution of the scope of the Contract.

b) In the event that the termination of the Contract is due to the expiry of the term of the

Contract, a decision not to grant any (further) extension by GIC Re, the Bidder herein

shall be obliged to provide all such assistance to the next successor Bidder or any other

person as may be required and as GIC Re may specify, enable the successor to adequately

provide the Service(s) hereunder, even where such assistance is required to be rendered

for a reasonable period.

c) The termination hereof shall not affect any accrued right or liability of either Party nor

affect the operation of the provisions of the Contract that are expressly or by implication

intended to come into or continue in force on or after such termination.

d) GIC Re reserves the right to recover any dues payable by the Bidder from any amount

outstanding to the credit of the Bidder, including but not restricted to, pending bills.

7. DISPUTE RESOLUTION MECHANISM

a) The parties shall make every effort to resolve amicably by direct informal negotiations, any

disagreement or disputes, arising between them under or in connection with this

Agreement within 30 days of a written intimation regarding the dispute being given by

either party to the other.

b) If, after Thirty (30) days from the commencement of such direct informal negotiations, the

parties have been unable to resolve amicably such dispute, either party may require that

the dispute be referred for resolution to the formal mechanism specified in clauses (c) and

(d).

c) Parties shall agree upon and appoint a single Arbitrator within fifteen days of one receiving

a written demand from the other for Arbitration. Upon such appointment the arbitral

tribunal shall be constituted and shall consist of a sole arbitrator.

d) In the event that the parties fail to appoint a single Arbitrator within fifteen days of the

written demand, the Claimant (the party requesting Arbitration) shall appoint his Arbitrator

within seven days thereafter and give written notice thereof to the Respondent (the other

party). Within seven days of receiving such notice the Respondent shall appoint his

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Arbitrator and give written notice thereof to the Claimant. Within seven days of the

appointment of the Arbitrator by the Respondent, the two appointed arbitrators shall then

appoint a third arbitrator to act as a Presiding Officer. The Tribunal shall be constituted

upon the appointment of the third arbitrator and upon such appointment the three

together shall constitute the arbitral tribunal.

e) In the event that the Respondent fails to appoint his Arbitrator or the two appointed

arbitrators fails to appoint a third arbitrator to act as a Presiding Officer, in the manner

aforesaid, the Claimant or the Respondent as the case may be, may apply to the High

Court of Mumbai, India and the appointment shall thereupon be made by the Chief Justice

of that court.

At any time, prior to such appointment by the Chief Justice of the High Court of Mumbai,

the Respondent or the arbitrators in default as the case may be, may make such

appointment.

f) The parties shall submit their respective cases to the Tribunal within fifteen days of the

constitution of the Tribunal or within such longer period as the Tribunal may grant. The

Tribunal shall give its award in writing within 30 days from the submission of the cases to

it. The Tribunal shall decide by majority. The decision rendered by a majority of the

arbitrators shall be final and binding on the parties who consent to carry out the same.

Such decision shall be a condition precedent to any right of legal action arising out of the

arbitrated dispute that any parties may have against the other. The Tribunal is not to be

bound by any strict rules of procedure or evidence. It shall have the power to fix all

procedural rules for the holding of the Arbitration including discretionary power to make

orders as to any matters which it may consider proper in the circumstances of the case

with regard to pleadings, discovery, inspection of documents, examination of witnesses

and any other matter whatsoever relating to the conduct of the Arbitration and may

receive and act upon such evidence whether oral or written strictly admissible or not as it

shall in its discretion think fit. The Tribunal may in its sole discretion make such orders and

directions as it considers necessary for the final determination of the matters in dispute.

The Tribunal shall have the widest discretion permitted under the law governing the

arbitral procedure when making such orders or directions.

g) All costs of the arbitration shall be determined by the Arbitral Tribunal which may, taking

into account the law and practice of the place of arbitration, direct to and by whom and in

what manner they shall be paid.

h) The Arbitration and Conciliation Act 1996, the rules thereunder and any statutory

modification or re-enactments thereof, shall apply to the arbitration proceedings.

i) The venue of arbitration shall be Mumbai, India.

j) GIC Re may terminate this Agreement, by giving a written notice of termination of

minimum Thirty (30) days, to the Bidder, if the Bidder fails to comply with any decision

reached consequent upon arbitration proceedings pursuant to Clause (c) above.

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k) Continuance of this Agreement: Notwithstanding the fact that settlement of dispute(s)

(if any) under arbitration may be pending, the parties hereto shall continue to be governed

by and perform the work in accordance with the provisions under the Scope of Work to

ensure continuity of operations.

8. RENEWAL OF ASSIGNMENT

The period of Contract of Appointment of the Bidder shall initially be for One Year for the financial

year beginning 1st April, 2016 and renewable annually for 2 subsequent years at the same Annual

fees and other terms and conditions, subject to satisfactory performance by the Bidder. The

renewal will be with consent of both parties.

9. JURISDICTION

The courts of India at Mumbai have exclusive jurisdiction to determine any proceeding in relation

to this Agreement.

IN WITNESS WHEREOF the parties hereto have caused their respective common seals to be

hereunto affixed (or have hereunto set their respective hands and seals) the day and year first

above written.

Binding Signature of Binding Signature of

Authorised signatory Authorised signatory

General Insurance Corporation of India Bidder

Witness: Witness:

1. 1.

2. 2.

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(On letter head of Shariah Auditor Firm (Bidder))

ANNEXURE 5 – DECLARATION FORMAT

DECLARATION

I_______________________ Son of Shri ________________________ working

as__________________ in __________________ (name of the Bidder and its address in full be

mentioned), hereby solemnly affirm and declare that I have been authorized by the firm to sign

the proposal. I, hereby declare and certify, on behalf of the firm, that we have accepted all the

terms & conditions mentioned in this RFP document and we shall abide by all the terms &

conditions of appointment letter in the event of acceptance of my/our Bid.

I further declare that M/s. __________________ (Name of the Bidder)/any of its

partners/relatives/employees/representatives/agents shall not, under any circumstances, be

deemed to have any employer-employee relationship with GIC Re / GIC Re Officials. I also declare

that I/We do not possess any place of profit in GIC Re. I declare that our firm is/was not

prohibited/debarred/blacklisted by any regulating authority/agency including IRDA, RBI, SEBI,

ICAI, CAG etc.

I also declare that none of the GIC Re officials have any vested interest in the Bidder mentioned

above. I undertake to sign contract with GIC Re on behalf of the Bidder as per Draft in Annexure

4.

I declare that all information submitted by me is true and correct to the best of my knowledge.

I/We have no objection if enquiries are made about my work/clients listed by me/us.

Signature of Authorized Person of the firm/

Proprietor etc. with Seal & Stamp.

Place: ____________ Name: _________________________

Dated: _________________ Designation: _____________________

Membership No.__________________

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1. Envelope I containing Technical bid would be opened on the March 30, 2016 in GIC Re, “Suraksha”,


2. The documents submitted by the bidders would be evaluated by the Technical Committee of GIC Re.

3. Envelope II containing Financial bid would be opened of only those bidders who have been short-listed.

The time and the date would be intimated to the shortlisted bidders at a later date.

4. The authorized representative should bring a letter on company’s letterhead authorizing him to attend

the Financial bid opening.

5. The bidder with the lowest quote will be identified as the successful bidder.

6. Any Financial bid incomplete in any respect or deviating from the specified format would not be

considered.

7. The procedure adopted by GIC Re for opening the tender shall be final and binding on all the parties.

8. Any effort made by the bidder to influence GIC Re in the evaluation decision, may result in the rejection

of the bid. It is GIC Re’s intent to select the bid that is most advantageous to GIC Re

Appointment of Shariah Auditors Retakaful 2016 - GIC

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