Para 12.21 — MSO (A&E)
Original Rule Text
12.21 Before the financing of a policy from a Provident Fund is allowed the Account Officer should see that it is acceptable under the rules of the Fund.
What This Means
Before allowing a subscriber to finance an insurance policy from their Provident Fund, the Accounts Officer must verify that such financing is permissible under the specific rules of that fund. This is a prerequisite check — no withdrawal for insurance premium payment should be processed without first confirming the fund rules allow it.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Insurance policy financing from PF requires prior verification of fund rules
- 2The Accounts Officer must check acceptability before allowing the withdrawal
- 3This is a mandatory pre-condition, not an optional check
- 4Different funds may have different rules regarding policy financing
Practical Example
A subscriber applies to finance a life insurance policy worth Rs 10 lakh from his GPF. Before authorising the first premium withdrawal, the Accounts Officer checks the GPF (Central Services) Rules 1960 and finds that no new policies were to be accepted for PF financing after 17 December 1960. Since this is a new policy request in 2025, the application is rejected.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can all Provident Fund subscribers finance insurance policies from their PF?▼
Who is responsible for verifying the acceptability of policy financing?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.