Rule 24 - Policy Reassignment
Original Rule Text
RULE 24- REASSIGNMENT OF POLICIES 1) Save as provided by Rule 28 when the subscriber-
(a) quits the service; or return of the policy; or
(b) has proceeded on leave preparatory to retirement and applies to the Accounts Officer for re-assignment or turn of the policy; of
(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 the Accounts 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(d) pays or repays to the Fund the whole of any amount withheld or withdrawn from the Fund for any of the purposes mentioned in sub-clause
(ii) of clause {a) of rule 17 and sub-clauses
(i) and
(ii) of clause
(b) of rule 17.
(e) has been sanctioned withdrawal under rule 15 read with
Note 3 below sub-rule (1) of rule 16.
(f) has completed twenty years of service (including broken periods of service if any); the Accounts Officer shall-
(i) if the policy has been assigned to the President under rule 22, or under the corresponding rule heretofore in force reassign the policy in Form I in the Third Schedule to the subscriber, or to the subscriber, and the joint assured, as the case may be, and make it over to the subscriber 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-rule (1) of rule 22, 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 be unfit for further service, returns to duty, any policy so reassigned or made over shall, if it has not matured or been assigned charged or encumbered in any way, be again assigned to the President and delivered to the Accounts Officer, or again be delivered to the Accounts Officer, as the case may be, in the manner provided in rule 22, and thereupon the provisions of these rules 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 any way, the provisions of sub-rule (4) of rule 22 applicable to a failure to assign and deliver a policy shall apply.
(2) Save as provided by rule 28, when the subscriber dies before quitting the service, the Accounts Officer shall-
(i) if the policy has been assigned to the President under rule 22, or under the corresponding rule heretofore in force, reassign the policy in Form II in the Third 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-rule (1) of rule 22, make over the policy to the beneficiary, if any, or it there is no beneficiary, to such persons as may be legally entitled to receive it.
What This Means
This rule explains when and how a life insurance policy, which you've linked to your General Provident Fund (GPF) account, is returned to you or your legal heirs. Essentially, if you've assigned your policy to the President (meaning, the government holds it as security for your GPF withdrawals) or simply delivered it to the Accounts Officer, this rule dictates its return.
There are several situations where the policy is returned to you, the subscriber. This happens if you leave government service, go on leave before retirement and apply for its return, are permitted to retire early due to medical unfitness, or if you fully repay any money you previously withdrew from your GPF for certain purposes. It also applies if you've completed twenty years of service or received a specific type of withdrawal. In these cases, the Accounts Officer will either formally reassign the policy back to you (if it was assigned to the President) or simply hand it over (if it was just delivered). They will also provide a notice to the insurance company about this change.
If you pass away before leaving service, the Accounts Officer will ensure the policy is returned to the person legally entitled to receive it. Again, this involves either a formal reassignment (if assigned to the President) or a direct handover. A crucial point: if you get your policy back because you were on leave preparatory to retirement or medically unfit, but then you return to duty, you must re-assign or redeliver the policy back to the Accounts Officer, provided it hasn't matured or been used in any way. If it has matured or been encumbered, different rules apply regarding failure to assign.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Life insurance policies linked to GPF are returned to the subscriber under specific conditions like leaving service, retirement, medical unfitness, or after 20 years of service.
- 2Policies are also returned to the subscriber upon full repayment of certain GPF withdrawals.
- 3If the subscriber dies before leaving service, the policy is returned to their legally entitled beneficiaries.
- 4The Accounts Officer is responsible for processing the return of these policies.
- 5The process involves either a formal 'reassignment' (if the policy was assigned to the President) or a simple 'handover' (if it was merely delivered).
- 6Subscribers who return to duty after receiving their policy back must re-assign or redeliver it to the Accounts Officer, unless it has matured or been encumbered.
- 7Specific forms (Form I or Form II) are used for reassignment depending on whether it's to the subscriber or their legal heirs.
Practical Example
Ms. Priya Singh, a Section Officer, is planning to retire next month after 25 years of dedicated service. Throughout her career, she had taken out a life insurance policy and assigned it to the President as security for her GPF. As she approaches her retirement date, she applies to the Accounts Officer for the return of her policy, fulfilling the condition of "quitting the service" and "completed twenty years of service."
The Accounts Officer verifies her records and confirms that all conditions are met. Following Rule 24(1)(f)(i), the Accounts Officer formally reassigns the policy back to Ms. Singh using Form I from the Third Schedule. They then hand over the reassigned policy to her, along with a signed notice addressed to the insurance company, informing them of the change in ownership. Ms. Singh can now manage her policy directly.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Cross References
Frequently Asked Questions
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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 24 of the General Provident Fund Rules, in which of the following scenarios is a subscriber eligible to apply to the Accounts Officer for reassignment or return of an insurance policy previously assigned to the fund?