Section 18 of Gujarat Maritime Board Employees Regulations, 1985

Payment towards insurance policies and Family policies

and Family Pension funds. :- (1) Subject to the conditions hereinafter contained in subregulations (2) to (27). (a) Payments towards a policy of life insurance, at the option of a subscriber be, substituted in whole or part for subscriptions due to the Fund. (b) The amount of subscription with Interest thereon standing to the credit of a subscriber in the Fund may be withdraw to meet (i) a payment towards a policy of life insurance; (ii) the purchase of a single-payment insurance policy: Provided that payment towards an educational endowment policy may not be substituted for subscriptions to the fund and that no amount may be withdrawn to meet any payment for purchase in respect of such a policy if that policy is due for payment in whole or part before the subscriber's age of normal superannuation: Provided further that amounts withdrawn shall be rounded to the nearest whole rupee. (2) The number of policies in respect of which substitution for subscription due to the Fund or withdrawal of subscription from the Fund may be permitted under this regulation shall not exceed four: Provided that where immediately before the 18th January, 1954 substitution for subscription due to the Fund or withdrawal of subscription from the Fund is permitted in respect of more than four policies, such substitution or withdrawal shall continue to be permitted in respect of those policies. (3) The premium for a policy including any policy referred to in the proviso to sub-regulation (2) in respect of which withdrawal of subscriptions from the Fund may be permitted under this regulation shall not be payable otherwise than annually. Explanation.-In computing the maximum of policies specified in sub-regulation (2), policies which have natured shall be included. (4) If total amount of any subscriptions or payments substituted under clause (a) of sub-regulation (1) is less than the amount of the minimum subscriptions payable to the Fund under regulation 8(2), the difference shall be rounded to the nearest rupee in the manner provided in clause (iv) of sub-regulation (2) of regulation 11 and paid by the subscriber as a subscription to the Fund. (5) If the subscriber withdraws any amount standing to his credit in the Fund for any of the purposes specified in clause (b) of subregulation (1) he shall, subject to his option under clause (a) of that regulation, continue to pay the Fund the subscription payable under regulation 8. (6) A subscriber who desires to substitute a subscription or payment under clause (a) of sub-regulation (1) may reduce his subscription to the Fund accordingly :- Provided that the subscriber shall (a) intimate to the Account Officer, on his pay bill or by letter the fact of. and reason for, the reduction; (b) send to the Account Officer, within such period as the Account Officer may, require, receipts or certified copies of receipts in order to satisfy the Account Officer that the amount by which the subscription has been reduced was duly applied for the purposes specified in clause (a) of sub-regulation (1). (7) A subscriber who desires to withdraw any amount under clause (b) of sub-regulation (1) shall (a) intimate the reason for the withdrawal to the Account Officer by letter: (b) make arrangements with the Account Officer for the withdrawal; (c) send to the Account Officer, within such period as the Account Officer may require, receipts or certified copies of receipts in order to satisfy the Account Officer that the amount withdrawn was duly applied for the purposes specified in clauses (b) of Sub-regulation (1). (8) The Account Officer shall order the recovery of any amount by which subscriptions have been reduced, or of any amount withdrawn, in respect of which he has not been satisfied in the manner required by clause (b) of sub-regulation (6) and clause (c) of sub-regulation (7) from the emoluments of the subscriber and place it to the credit of the subscriber in the Fund. (9) Board shall not make any payments on behalf of subscriber to Insurance Companies nor take steps to keep a policy alive. (10)A policy to be acceptable under these regulations be one effected by the subscriber himself on his own life, and shall (unless it is a policy effected by a male subscriber which is expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them) be such as may be legally assigned by the subscriber to the Board. Explanation.-1. A policy on the joint lives of the subscriber and the subscriber's wife or husband shall be deemed to be a policy on the life of the subscriber for the purpose of this subregulation. 2. A policy which has been assigned to the subscriber's wife shall not be accepted unless either the policy is first reassigned to the subscriber or the subscriber and his wife both join in an appropriate assignment. (11) The policy may not be effected for the benefit of any beneficiary either the wife or husband of the subscriber or the wife or husband and children of the subscriber or any of them: provided that subscriber who took out policies under Note 1 of rule 21(ii) or under clause (b) or (c) of rule 21 A of the Rules previously in force, shall remain subject to the provisions of those rules in so far as policies so taken out are concerned. (12) 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 Account Officer, if he satisfied by the production of the completion certificate (interim receipt), may fix shall (a) unless 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 assigned to the Board, as security for the payment of any sum which may become payable to the Fund under subregulation (23) and delivered to the Account Officer, the assignment being made by endorsement on the policy in Form (1) or Form (2) or Form (3) of the Forms in the Fourth Schedule according as the policy is on the life of the subscriber or on joint lives of the subscriber and the subscriber's wife or husband or the policy has previously been assigned to the subscriber's wife; (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 Account Officer. (13) The Account Officer shall satisfy himself, by reference to the Insurance Company where possible, that no prior assignment of the policy exists. (14) Once a policy has been accepted by an 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 Account Officer to whom details of the alteration or of the new policy shall be furnished. (15), If the policy is not assigned and delivered, or delivered within the said period of six months or such further period as the Account Officer, may, under sub-regulation (12), 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 Account Officer to be recovered by deduction from the emoluments of the subscriber, by installment 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 (c) of sub-regulation (1) of regulation 14. (16) 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 Account Officer within three months of the date of assignment. Note 1.-Subscribers are advised to send notice of the assignment to the Insurance Company in duplicate, accompanied in cases in which the notice has to be sent to company in Great Britain or Ireland, by a remittance of five shillings, which is the fee for the acknowledgment authorised by the Policies of Assurance Act, 1867. Note 2.-Subscribers who proceed to Great Britain or Ireland on quitting the service are advised that under the English Stamp Law assignments or reassignments are required to be stamped within 30 days of their first arrival in those countries, otherwise penalty will be incurred under the Stamp Act, and difficulties may arise when the policy matures for payment. (17) The subscriber shall not during the currency of the policy draw any bonus the drawal of which during such currency is optional under the terms of the Policy, and the amount of any bonus which under the terms of the policy the subscriber has no option to refrain from drawing during its currency shall be paid forthwith into the fund by the subscriber or in default recovered by deduction from his emoluments by installments 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 (c) of subregulation (1) of regulation 14. (18) Save as provided by sub-regulation (24) when the subscriber- (a) quits the service; or (b) has proceeded on leave preparatory to retirement and applies to the Account Officer for reassignment or return of the policy; or (c) while on leave has been permitted to retire or declared by a competent medical authority to be unfit for further service and applies to Account Officer for reassignment or return of the policy; or (d) Pays or repays to the Fund the whole of any amount withheld or withdrawn from the Fund for any of the purposes mentioned in clause (a) and (b) of sub-regulation (1) the Account Officer shall (1) if the policy has been assigned to the Board under subregulation (12) or under the corresponding rule heretofore in force, reassign the policy in the first Form (4) set forth in the fourth Schedule to the subscriber, or to the subscriber and the joint assured, as the case may be and make it over to the subscriber with a signed notice of the reassignment addressed to the Insurance Company: (ii) if the policy has been delivered to him under clause (b) of subregulation (12) make over the policy to the subscriber: Provided that, if the subscriber, after proceeding on leave preparatory to retirement, or after being, while on leave, permitted to retire or declared by a competent medical authority to tie unfit for further service, returns to duty, and policy so reassigned or made over shall, if it has not matured or been assigned or charged or encumbered in any way, be again assigned to the Board, and delivered to the Account Officer, or again be delivered to the Account Officer, as the case may be, in the manner provided in sub-regulation (12) and thereupon the provisions of these regulation shall, so far as may be, again apply in respect of the policy: Provided further, that if the policy has matured or been assigned or charged or encumbered in anyway, the provisions of regulation (15) applicable to a failure to assign and deliver a policy shall apply. (19) Save as provided by sub-regulation (24) when the subscriber dies before quitting the service, the Account Officer shall (i) if the policy has been assigned to the Board under subregulation (12) or under the corresponding rule heretofore in force reassign the policy in the Form (4) set forth in the Fourth Schedule to such person as may be legally entitled to receive, it and shall make over the policy to such person together with a signed notice of the reassignment addressed to the Insurance Company: (ii) if the policy has been delivered to him under clause (b) of sub- regulation (12) make over the policy to the beneficiary, if any or if there is no beneficiary, to such persons as may be legally entitled to receive it. (20) If a policy assigned to the Gujarat Maritime Board under subregulation (12) or under the corresponding rule heretofore in force matures before the subscriber quits the service, or if a policy on the joint lives of a subscriber and the subscriber's wife or husband, assigned under the said regulation or under the corresponding rule heretofore in force, falls due for payment by reason of the death of the subscriber's wife or husband, the Account Officer shall, save as provided by sub-regulation (24) proceed as follows: (1) if the amount assured together with the amount of any accrued bonuses is greater than the whole of the amount with held or withdrawn from the Fund in respect of the policy, the Account Officer shall reassign the policy in the Form (4) set forth in the Fourth Schedule to the subscriber or to the subscriber and the joint assured as the case may be, and make it over to the subscriber who shall immediately on receipt of the policy moneys from the Insurance Company pay or repay to the Fund the whole of any amount withheld or withdrawn with interest and in default, the provisions, of sub-regulation (25) shall apply as they apply in relation to cases where money withheld or withdrawn from the Fund under clause (a) or clause (b) of sub-regulation (1) has been utilised for a purpose other than that for which sanction was given to the withholding or withdrawal. (ii) if the amount assured, together with the amount of any accrued bonuses is less than the whole of the amount withheld or withdrawn the Account Officer shall realise the amount assured together with any accrued bonuses and shall place the amount so realised to the credit of the subscriber in the Fund. (21) Save as provided by sub-regulation (24), if a policy delivered to the Account Officer under clause (b) of sub- regulation (12) matures before the subscriber quits the service the Account Officer shall make over the policy to the subscriber: Provided that if the interest in the policy of the wife of the subscriber, or of his wife and children, or any of them, as expressed on the face of the policy, expires, when the policy matures, the subscriber, if the policy moneys are paid to him by the Insurance Company shall immediately on receipt thereof pay or repay to the Fund either, (i) the whole of any amount withheld or withdrawn from the Fund in respect of the policy, or (ii) an amount equal to the amount assured together with any accrued bonuses, whichever is less, and. in default, the provisions of sub-regulation (25) shall apply as they apply in relation to cases where money withheld or withdrawn from the Fund under clause (a) or clause (b) of sub-regulation (1) has been utilised for a purpose other than that for which sanction was given to the withholding or withdrawal. (22) If the interest of the subscriber in the family pension fund ceases, in whole or part, from any cause whatsoever, the provident fund account of the subscriber shall forthwith be reimbursed by the amount of the refund secured by the subscriber from the family pension fund, which amount shall, in default of reimbursement, be deducted from the subscriber's emoluments by installments 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 (c.) of sub-regulation (1) of regulation 14. (23) If the policy lases, or is assigned, otherwise than to the Board under sub-regulation (12) charged or encumbered, the provisions of sub-regulation (15) applicable to a failure to assign and deliver a policy shall apply. (24) If the Account Officer receives notice of (a) an assignment (otherwise than an assignment to the Gujarat Maritime Board under sub-regulation (12), or (b) a charge or encumbrance on, or (c) an order of a Court restraining dealings with the policy or any amount realised thereon the Account Officer shall not- (i) reassign or make over the policy as provided in subregulation (18), or (ii) realise the amount assured by the policy or reassign or make over the policy, as provided in sub-regulation (20) but shall forthwith refer the matter to the Board. (25) Notwithstanding anything contained in these regulations if the sanctioning authority is satisfied that money drawn as an advance from the Fund under clause (1) of regulation 14 of withheld or withdrawn from the Fund under clause (a) or clause (b) of subregulation (1) has been utilised for a purpose other than for which sanction was given to the drawal withholding or withdrawal of the money the amount in question, shall forthwith be repaid or paid, as the case may be, by the subscriber to the Fund, or in default, be ordered to be recovered by deduction in one sum from the emoluments of the subscriber, even, if he be on leave. If the total amounts to be repaid or paid as the case may be, be more than half the subscriber's emoluments, recoveries shall be made In monthly installments of moieties of his emoluments till the entire amount recoverable be repaid as the case may be, by him. Note.-The term "emoluments' as used in this regulation does not include subsistence grant. (26) Restriction of the provisions relating to financing of policies to existing subscribers in respect of existing policies:- The provisions of sub-regulation (1) to (27) shall apply only to subscribers who, before the date of publication of this regulation have made atleast one withdrawal from the Fund and have been substituting in whole or in part, payment towards policies of life insurance for subscriptions to the Fund or making withdrawals from the Fund for such payments: Provided that such subscribers shall not be permitted to substitute such payments for subscriptions due to the Fund or to withdraw from the Fund for making such payments in respect of any new policy. But in case wherein first withdrawal has been made in respect of a new policy after the date of said Notification and before actual receipt of the revised regulations by the various offices, the concession may be allowed as a special case, in relaxation of the regulations. (27) The policies financed from the Provident Fund Accounts of the subscribers who dies and in whose case no legal heir or claimant, has come forward to claim the amount till the expiry of two years from the date of death of the subscriber the Account Officer shall issue a public notice through the leading daily news papers having circulation in the region where the subscriber last served or the place where his death had occurred requiring the legal heirs or claimants, if any, to submit their claims within a period of three months from the date of the said notice. If no claim is received within the said period, the Account Officer shall realise the proceeds of the policy and credit the same to the provident Fund Account of the deceased subscriber. The subsequent disposal of the amount so credited shall be regulated in accordance with the regulations.