IREC Rule No.927: Payment From Provident Fund Towards Insurance Policies

927.    Payment From Provident Fund Towards Insurance Policies:-

Subject to the conditions laid down in Rule 928 to 938 and the restriction in Rule 939;

(a)   (i)    Subscriptions to a family pension fund approved in this behalf by the President, or

(ii)    Payments towards a policy of life insurance;

May at the option of a subscriber, be substituted in whole or in part for his subscriptions due to the State Railway Provident Fund, and

(b)   The amount of subscriptions with interest thereon standing to the credit of a subscriber in the fund may be withdrawn to meet;

(i)    A payment towards a policy of Life Insurance;

(ii)    The purchase of a single payment insurance policy; or

(iii)   The payment of a single premium of subscriptions to a family pension fund approved in this behalf by the President.

Provided that no amount shall be withdrawn;

(1)   Before the details of the proposed policy have been submitted to the Accounts Officer and accepted by him as suitable, or

(2)   To meet any payment or purchase made or effected more than 3 months before the date of application or presentation of claim for withdrawal, or

(3)   To meet payment of any premium or subscription more than 3 months in advance of the due date of payment.

Note-1: Due date of payment for the purpose of this proviso will be date up to which payment can be made including the grace period allowed by the insurance companies.  

Note-2: The following certificate should be endorsed on the bill by the bill drawing officer in the case of payments under clause (2) above;

‘Certified that the presentation of this claim / application for withdrawal of this amount was made within three months from the date of payment to the Life Insurance Corporation’.

Explanation: Under clause (3) of this proviso no withdrawal from the fund for financing a policy of life insurance shall be made after the due date of payment without production of the premium receipt in token of such payment;

Provided further that payments towards an educational endowment policy may not be substituted for subscriptions to the fund and that no amounts may be withdrawn to meet any payment or purchase in respect of such a policy if that policy is due for payment or in whole or part before the subscriber’s age of normal superannuation;

Provided further that amounts of substituted payment or amounts withdrawn shall be rounded to the rupee below, paise, if any, being met by the subscriber.  

Note: The following family pension funds have been approved by the President;

(1)   Superior Services (India) Family Pension Fund;

(2)   Bengal Uncovenanted Service Family Pension Fund;

(3)   Bombay Government Service Family Pension Fund;

(4)   The General Family Pension Fund;

(5)   The Hindu Family Annuity Fund; and

(6)   Bengal Christian Family Pension Fund.