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Rule 22 - GPF Policy Assignment | KartavyaDesk

GPF Rules

Original Rule Text

(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 President as security for the payment of any sum which may become payable to the Fund under rule 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;

What This Means

Rule 22 of the General Provident Fund (GPF) Rules deals with using your life insurance policy as security for potential debts you might owe to the GPF. Basically, if you take an advance or withdrawal from your GPF, you might need to assign your life insurance policy to the President of India as collateral. This ensures that if you fail to repay the amount as per Rule 27 (which covers recovery of advances), the government can recover the outstanding amount from the policy proceeds.

However, there's an exception. If a male subscriber's life insurance policy is explicitly for the benefit of his wife, or his wife and children, it doesn't need to be assigned to the President. This protects the financial security of the subscriber's family. The assignment, when required, is done through a specific endorsement on the policy document and submitted to the Accounts Officer. The specific form used depends on whether the policy is on the subscriber's life alone, jointly with their spouse, or already assigned to the spouse.

In essence, this rule aims to safeguard the GPF from potential losses due to unpaid advances while also providing some protection for family members who are named beneficiaries in specific life insurance policies.

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

Key Points

  • •Life insurance policies may need to be assigned to the President of India as security for GPF debts.
  • •This applies when a subscriber takes an advance or withdrawal from their GPF.
  • •Policies explicitly for the benefit of a male subscriber's wife, or wife and children, are exempt.
  • •Assignment is done via endorsement on the policy using specified forms.
  • •The assigned policy is delivered to the Accounts Officer.

Practical Example

Mr. Rajesh Sharma, a government employee, withdraws ₹50,000 from his GPF to pay for his daughter's education. According to GPF rules, he needs to provide security for this withdrawal. He has a life insurance policy worth ₹1,00,000 that is not explicitly for the benefit of his wife and children. Therefore, he needs to assign this policy to the President of India. He fills out Form (1) from the Second Schedule, endorsing the policy to assign it as security. He then submits the endorsed policy to the Accounts Officer. If Rajesh repays the ₹50,000 as per the agreed schedule, the assignment will be cancelled. However, if he defaults, the government can recover the outstanding amount from the policy proceeds. If Rajesh had a policy explicitly stating it was for the benefit of his wife, Mrs. Seema Sharma, and their children, he wouldn't need to assign it.

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

Frequently Asked Questions

What happens to my life insurance policy after I repay the GPF advance?▼
Once you fully repay the advance as per Rule 27, the assignment of your life insurance policy will be cancelled, and the policy will be returned to you.
Which form do I use for assigning my policy?▼
The form depends on the type of policy. Use Form (1) if the policy is on your life alone, Form (2) if it's on the joint lives of you and your spouse, and Form (3) if the policy was previously assigned to your spouse.
Does this rule apply to female subscribers?▼
The rule specifically mentions policies effected by a *male* subscriber for the benefit of his wife and children as being exempt. The rule doesn't explicitly address female subscribers, but the general principle of assigning policies as security applies to all subscribers unless specifically exempted.
What is Rule 27 mentioned in Rule 22?▼
Rule 27 deals with the recovery of advances from the subscriber's salary or other sources. Rule 22 ensures that the government has security in case the subscriber fails to repay the advance as per Rule 27.
Where can I find the Forms mentioned in the Second Schedule?▼
The Forms are usually included as appendices to the official General Provident Fund Rules document. You can also consult with your Accounts Officer for assistance in obtaining the correct forms.

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

Under Rule 22 of the General Provident Fund Rules, a life insurance policy is required to be assigned to whom as security for sums payable to the fund?

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 18GPF (Central Services) Rules, 1960 - Rule 18

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