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Rule 25 - Policy Maturity | KartavyaDesk

GPF Rules

Original Rule Text

RULE 25- PROCEDURE ON MATURITY OF POLICIES (l) If a policy, assigned to the President under rule 22 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 rule, or under the corresponding rule heretofore in force, falls due for payment by reasons of the death of the subscriber's wife or husband, the Accounts Officer shall, save as provided by rule 28, realise the amount assured together with any accrued bonuses and shal1 place the amount so realized to the credit of the subscriber in the Fund :

What This Means

Rule 25 of the General Provident Fund (GPF) Rules deals with what happens when a life insurance policy assigned to the President of India (on behalf of the government) matures while you, the subscriber, are still employed. This rule kicks in if you've assigned a policy as security for withdrawals from your GPF, as per Rule 22. It also applies to joint life policies with your spouse if your spouse passes away before you retire. In essence, it ensures that the maturity proceeds of the policy are used to replenish your GPF account.

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

Key Points

  • •Applies when a life insurance policy assigned to the President matures before the subscriber retires.
  • •Also applies to joint life policies upon the death of the subscriber's spouse before retirement.
  • •The Accounts Officer is responsible for realizing the maturity amount, including bonuses.
  • •The realized amount is credited back to the subscriber's GPF account.
  • •Rule 28 provides exceptions to this rule (not detailed here, but important to note).

Practical Example

Let's say Ms. Sharma, a government employee, had assigned a life insurance policy worth ₹5,00,000 to the President of India when she took a withdrawal from her GPF for her daughter's wedding. The policy matures after 10 years, and Ms. Sharma is still in service. The Accounts Officer will receive the ₹5,00,000 (plus any accrued bonuses, say ₹50,000) from the insurance company. The total amount of ₹5,50,000 will then be credited to Ms. Sharma's GPF account, effectively replenishing the funds she had withdrawn earlier. This ensures that the GPF account benefits from the policy's maturity value.

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 if I retire before the policy matures?▼
Rule 25 specifically addresses situations where the policy matures *before* you retire. The procedure for policies maturing after retirement is governed by other rules.
What does 'assigned to the President' mean in this context?▼
It means you've legally transferred ownership of the policy to the President of India (acting on behalf of the government) as collateral for a GPF withdrawal. This ensures the government has a claim on the policy's maturity proceeds.
What is the role of the Accounts Officer?▼
The Accounts Officer is responsible for managing your GPF account. In this case, they are responsible for receiving the maturity amount from the insurance company and crediting it to your account.
Does this rule apply to all types of insurance policies?▼
No, this rule only applies to life insurance policies that have been formally assigned to the President of India under Rule 22 (or its equivalent predecessor rule) as security for a GPF withdrawal.
What is Rule 28 and how does it relate to Rule 25?▼
Rule 28 provides specific exceptions to the general procedure outlined in Rule 25. It's crucial to understand Rule 28 to fully grasp the nuances of policy maturity within the GPF framework. (Note: The specifics of Rule 28 are not covered in this explanation of Rule 25).

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 25 of the General Provident Fund Rules, what happens when a life insurance policy assigned to the President of India matures while the subscriber is still in service?

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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