Section 27 in The M.P. General Provident Fund Rules, 1955
27.
If the Accounts Officer receives notice of,-(a)an assignment (otherwise than an assignment to the Governor of Madhya Pradesh under Rule 21);(b)a charge or encumbrance on;(c)an order of a Court restraining dealings with the policy or any amount realized thereon, the Accounts Officer shall not,-(i)reassign or make over the policy as provided in Rule 23, or(ii)realize the amount assured by the policy or reassign, or make over the policy, as provided in Rule 24, but shall forthwith refer the matter to Government.Note 1. - Endowment policies of the usual type are solely for the benefit of the assured and by their terms are not affected by Section 6 of the Married Women's Property Act. Such policies, if financed from the Provident Fund, should be required to be assigned by the assured subscribers to the Governor under the first sub-section of the relevant rule and not merely be accepted on deposit. Neither the wife nor any children, even if mentioned in the policies, should be made, parties to such assignments which will be taken from the subscribers alone.Note 2. - The State Government have ruled that the procedure laid down in paragraph 13 of the Memorandum Explanatory of Government Provident Fund Rules, vis-a-vis, the law on the subject, viz., to hand over the policy without a formal deed of reassignment and without insisting on the production of a succession certificate, should normally be followed in all cases provided the amount of the policy does not exceed Rs. 5,000. If, in any case, the sum insured exceeds that figure and the party concerned does not wish to produce evidence of legal title to the proceeds of the policy, the orders of the State Government should be taken.
