Section 19 in Bihar Contributory Provident Fund Rules, 1948
19.
(1)The policy, within three months after the first withholding of a subscription or withdrawal from the Fund in respect of the policy, or, in the case of an insurance company whose headquarters are outside India, within such further period as the Account Officer, if he is satisfied by the production of the completion certificate (interim receipt) may fix, shall-(a)unless it is a policy 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, be assigned to the Government of Bihar, as security for the payment of any sum which may become payable to the Fund under rules 21 to 23 and delivered to the Account Officer, the assignment being made by endorsement on the policy in Form (1) or Form (2) of the Forms in the Second Schedule according as the policy is on the life of the subscriber, or on the joint lives of subscriber and his wife;(b)if it is a policy 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 be delivered to the Account Officer.(2)The Account Officer shall satisfy by reference to the insurance company, where possible, that no prior assignment of the policy exists.(3)If the policy is not assigned and delivered, or delivered, within the said period of three months or such further period as the Account Officer may under sub-rule (1) have fixed, any amount withheld or withdrawn from the fund in respect of the policy shall, with interest thereon at the rate provided in rule 11, forthwith be paid, or re-paid, as the case may be, by the subscriber to the Fund, or, in default to be ordered by the Account Officer to be recovered by deduction from the emoluments of the subscriber, by instalments, or otherwise as Government may direct.(4)Notice of the assignment of the policy shall be given by the subscriber to the insurance company, and the acknowledgement of the notice by the insurance company shall be sent to the Account Officer within three months of the date of assignment.Note 1. - Subscribers are advised to send notice of assignment in the insurance company in duplicate, accompanied in case in which the notice has to be sent to a company in Great Britain, or Ireland, by a remittance of five shillings, which is the fee for the acknowledgement authorised by the Policies of Assurance Act, 1867.The policy itself, bearing the assignment endorsed thereon, need not be sent to the Company, as Insurance Companies do not ordinarily require the production of the original instruments affecting a policy holder's title, until the policy becomes a claim.Note 2. - Subscribers who proceed to Great Britain, or Ireland, on quitting the service are adviced that under the English Stamp Law, assignment or assignments are required to be stamped within 31 days of the their first arrival in those countries. Otherwise penalty will be incurred under the Stamp Act and difficulties may arise when the policy matures for payment.
