(1) The policy within six months after the first withholding of a subscription or withdrawal from the fund in respect of the policy, or in the case of an Insurance Company whose headquarters are outside India, within such further period as the Accounts Officer, if he is satisfied by the production of the completion certificate (inter receipts), may fix, shall,—
(a) unless it is policy effected by a male subscriber which is expressed on the face of it to be for the benefit of the wife of the subscriber, or of his wife and children, or any of them, be assigned to the Governor of Maharashtra, as security for the payment of any sum which may become payable to the fund under Rules 25 to 27, and delivered to the Accounts Officer, the assignment being made by endorsement on the policy in Form (1) or Form (2) or Form (3) of the Forms in the Second Schedule according as the policy is on the life of the subscriber or on the joint lives of the subscriber and the subscriber’s wife or husband or the policy has previously been assigned to the subscriber’s wife or husband.
(b) If it is a policy effected by a male subscriber which is expressed on the face of it to be for the benefit Of the wife of the subscriber or of his wife and children, or any of them, be delivered to the Accounts Officer.
(2) The Accounts officer shall satisfy himself by reference to the Insurance Company, where possible, that no prior assignment of the policy exists.
(3) Once a policy has been accepted by the Accounts officer for the purpose of being financed from the fund, the terms of the policy shall not be altered nor shall the policy be exchanged for another policy without the prior consent of the Accounts Officer to whom details of the alteration or of the new policy shall be furnished.
(4) If the policy is not assigned and delivered or delivered within the said period of six months or such further period as the Accounts Officer may, under sub-rule (1) have fixed, any amount withheld or withdrawn from the fund in respect of the policy shall forthwith be paid or repaid, as the case may be, by the subscriber, to the fund, or in default be ordered by the Accounts Officer to be recovered by deduction from the emoluments of the subscriber by instalments or otherwise as may be directed by the authority competent to sanction an advance for the grant of which special reasons are required under clause (B) or clause (C) of Rule 15.
(5) Notice of assignment of the policy shall be given by the subscriber to the Insurance Company and the acknowledgment of the notice by the Insurance Company shall be sent to the Accounts Officer within three months of the date of assignment.
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