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Rule 18 - GPF & Insurance Policies | KartavyaDesk

GPF Rules

Original Rule Text

Provided that where immediately before the 22nd June, 1953, substitution for subscription due to the Fund or withdrawal of subscriptions from the Fund, was permitted in respect of more than four policies, such substitution or withdrawal shall continue to be permitted in respect of those policies.

What This Means

Rule 18 of the General Provident Fund (GPF) Rules deals with a specific situation regarding life insurance policies and their connection to your GPF account. Before June 22, 1953, some government employees were allowed to use their GPF contributions to pay premiums for more than four life insurance policies, or even withdraw money from their GPF to cover these premiums. This rule essentially grandfathered in those existing arrangements.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Applies only to situations existing before June 22, 1953.
  • •Allows continuation of GPF substitutions or withdrawals for more than four life insurance policies if permitted before the specified date.
  • •It's a legacy provision, meaning it addresses past practices.
  • •New arrangements after June 22, 1953, are not covered by this rule.

Practical Example

Mr. Sharma joined the government service in 1950. Before June 22, 1953, he was permitted to substitute his GPF subscription to pay premiums for six life insurance policies. Even though current GPF rules might restrict the number of policies for which such substitution is allowed, Rule 18 ensures that Mr. Sharma can continue to use his GPF contributions for all six of his existing policies. If Mr. Verma joined the government in 1960, this rule would not apply to him, and he would be subject to the rules in place at the time of his joining regarding the number of policies.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Does Rule 18 allow me to start using my GPF for more than four insurance policies now?▼
No, Rule 18 only applies to arrangements that were already in place before June 22, 1953. It doesn't create new permissions.
What if I had five policies before 1953, but I've since cancelled one. Can I add a new one?▼
Rule 18 allows the *continuation* of existing arrangements. Adding a new policy after cancelling one might not be covered, and you should consult your accounts officer for clarification.
How do I prove that I had this arrangement before June 22, 1953?▼
You would need to provide documentation showing that the substitution or withdrawal was officially permitted before that date. This could include old pay slips, official letters, or GPF statements.
Is this rule still relevant today?▼
While less common, it's still relevant for government employees who joined service long ago and had such arrangements in place before the specified date.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 18 of the General Provident Fund Rules, the provision allowing substitution or withdrawal for more than four life insurance policies applies to arrangements that were in place:

Related Rules

Rule 13GPF (Central Services) Rules, 1960 - Rule 13Rule 15GPF (Central Services) Rules, 1960 - Rule 15Rule 20GPF (Central Services) Rules, 1960 - Rule 20Rule 16GPF (Central Services) Rules, 1960 - Rule 16Rule 26GPF (Central Services) Rules, 1960 - Rule 26

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