RULE 19: PAYMENT TOWARDS INSURANCE POLICIES AND FAMILY PENSION FUNDS.


Subject to the conditions in Rules 20 to 27,

(a) (i) subscription to a family pension fund approved in this behalf by Government; for

(ii) payments towards an insurance policy may, at the option of a subscriber, be substituted in whole or part for subscriptions due to fund;

(b) The amount of subscriptions with interest thereon standing to the credit of a subscriber in the fund may be withdrawn to meet;

(i) Payment towards an insurance policy;

(ii) Purchase of a single payment insurance policy;

(iii) Payment of a single premium or subscription to such a family pension fund as already approved or as may be approved by Government for purposes of the Contributory Provident Fund:

Provided that, no amount shall be withdrawn-

(1) before the details of the proposed policy have been submitted to the Accounts Officer and accepted by him as suitable, or

(2) or to meet any payment or purchase made or effected more than twelve months before the withdrawals; or

(3) in excess of the amount required to meet a premium or subscription actually due for payment within six months of the date of withdrawal.



Explanation I.—

For the purpose of this provision due date of payment will be the date upto which payment can be made including the grace period allowed by the Life Insurance Corporation of India or insurance companies.

Explanation 2.—

Under clause (3) of this proviso, no withdrawal from the fund for financing a policy of Life Insurance shall be made after the due date of payment without production of the premium receipt in token of such payment:

Provided further that, payments towards an educational endowment policy may not be substituted for subscription to the fund and that no amounts may be withdrawn to meet any payment or purchase in respect of such a policy if that policy is due for payment in whole or part before the subscriber’s age of normal superannuation.

Any amount withdrawn under clause (b) shall be paid in whole rupee only rounded to the nearest rupee in the manner provided in sub-rule (7) of Rule 11.

The number of policies in respect of which substitution for subscriptions due to the fund or withdrawal of subscriptions from the fund may be permitted under this rule shall not exceed four.

The premium for a policy in respect of which withdrawal of subscription from the fund may be permitted under this rule shall not be payable otherwise than annually.

Explanation.—

In computing the maximum number of policies specified in clause (d) policies which have matured or have been converted into paid up ones shall be excluded.

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