Section 19 in The Orissa Contributory Provident Fund Rules, 1938
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 Accounts Officer, if he 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 Governor of Orissa, as security for the payment of any sum which may become payable to the Fund under Rues 20 to 22, and delivered to the Accounts Officer, the assignment being made by endorsement on the policy in Form (1) or Form (2) or Form (3) of the Forms in the Third Schedule according as the policy is on the life of the subscriber or on the joint lives of the subscriber and his wife or the policy has previously been assigned to the subscriber's 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 Accounts Officer.(2)The Accounts Officer shall satisfy himself by reference to the insurance company, where possible, that no prior assignment of the policy exists.(3)Once a policy has been accepted by an Accounts Officer for the purpose of being financed from the Fund the terms of the policy shall not be altered nor shall the policy be exchanged for another policy without the prior consent of the Account Officer to whom details of the alteration or of the new policy shall be furnished.(4)If the policy is not assigned and delivered, or delivered, within the said period of three months or such further period as the Accounts Officer may, under Sub-rule (1), have fixed, any amount withheld or withdrawn from the Fund in respect of the policy shall, with interest thereon at the rate provided in Rule 11.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 repaid, as the case may be, by the subscriber to the Fund, or, in default be ordered by the Accounts Officer to be recovered by deduction from the emoluments of the subscriber, by instalments or otherwise, as may be directed by one of the authorities competent to grant an advance under Clause (a) of Sub-rule (2) of Rule 12.(5)Notice of assignment of the policy shall be given by the subscriber to the insurance company, and the acknowledgment of the notice by the insurance company shall be sent to the Accounts Officer within three months of the date of assignment.Note 1. - Subscribers are advised to send notice of the assignment to the insurance company in duplicate, accompanied, in cases in which the notice has to be sent to a company in Great Britain or Ireland, by remittance of five shillings, which is the fee for the acknowledgment 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. - Subscriber who proceed to Great Britain or Ireland on quitting the service are advised that under the English Stamp Law, assignments or reassignments are required to be stamped within 30 days of 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.
