Para 12.22 — MSO

12.22 In the case of policies financed from Provident Funds, the Accounts Officer should satisfy himself by a reference to the company at the time the policy is delivered to him:-

Such enquiries need not be made, however, in the case of a policy 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.

No other special steps should be taken by him subsequently to ascertain whether these policies have lapsed or have become encumbered, but when concrete evidence comes to notice of a policy having lapsed or having become encumbered enquiries should be made and the exact position ascertained; but if

(b) that recoveries of Principal and Interest, if due, under rules, are being made in accordance with the sanction; and

(c) that the recoveries are regular

(iii) The Section Officer should also exercise the checks detailed at (a),

(b) and

(c) of clause

(ii) above to the extent as may be prescribed.

(i) that no prior assignment of the policy exists; and

(ii) that the policy is not otherwise encumbered. such policy is merely deposited with the Accounts Officer (and is not assigned) he should, as a matter of precaution inform the company that the policy has been so deposited and ask that any dealings involving it should be communicated to him (the company may refuse to accept such a notice but this action should always be taken notwithstanding).