IREC Rule No.931: Government Not To Make Any Payment To Insurer On Behalf Of The Subscriber

931.  Government Not To Make Any Payment To Insurer On Behalf Of The Subscriber:-

(1)   (a)   Government shall not make any payments on behalf of subscribers to Insurers nor will they accept any responsibility for delays in payment of premia or for keeping the policy alive and will not enter into any correspondence with the Insurer in regard to a policy, premia or allied matters.

(b)   Premia in respect of policies taken out from the Post Office Insurance Fund shall be paid in accordance with the rules of that fund. In cases in which it has been arranged that the premia shall be deducted from pay, if the premium due for any month is not deducted from the salary bill of the insured person, or from the establishment bill of the office in which his pay is drawn, by an oversight, whether on his own part or on the part of the officer whose duty it is to draw his salary, he should pay the premium in cash into the nearest post office and obtain the Post Master’s receipt book.

(2)  A policy to be acceptable under these rules shall be on the life of the subscriber, and shall (unless it is a policy effected by male subscriber which is expressed on the face of it to be for the benefit of his wife, or of his wife and children or any of them) be such as may be legally assigned by the subscriber to the President;

Provided that a policy which has been assigned to the subscriber’s wife shall not be accepted unless either the policy is first re-assigned to the subscriber or the subscriber and his wife both join in the appropriate assignment.

Explanation: A policy on the joint lives of the subscriber and the subscriber’s wife or husband shall be deemed to be a policy on the life of the subscriber for the purpose of this sub-rule.