159. Investment of subscription in Life Insurance Policy.
(1)At the request in writing o any subscriber, the whole or any portion of his subscription with interest thereon may be invested by the Chairman in a policy of Life Insurance in such office for such amount and on such terms as may be mutually agreed upon in writing between such subscriber and Market Committee.(2)Such policy shall be effected in the name of the subscriber who shall assign the same in favour of the Chairman. It shall be held and unless reassigned as provided for in proviso (c) or (d) of this rule or sub-rule (3) shall be realised by the Chairman and the net proceeds on realisation shall be credited to the account of the subscriber :Provided that,-(a)every such policy shall, so long as the subscriber is actually in employment under the Market Committee belong to the Market Committee and no interest thereon, shall, during such period vest in subscribers on whose life it had been effected, or in his nominee; and neither he nor they shall have any right to interfere therewith;(b)the Market Committee shall not be responsible for any loss or damage that may arise or result from the effecting of any policy under this rule;(c)on the retirement from service of a subscriber or on the termination of his services either by resignation or as a measure of punishment the policy effected on his life shall be reassigned to him; and(d)on the death of a subscriber while in service, the policy effected on his life shall be reassigned to the nominee appointed by him under Rule 156 or to all the nominees appointed by him under that rule jointly, specifying the shares to which each of the nominee is entitled.(3)If such a policy matures before the subscriber quits service, the Appointing Authority or the Market Committee shall,(a)if the amount assured together with the amount of any bonuses which have accrued is greater than the whole of the amount withdrawn from the fund in respect of the policy with interest thereon at the rate provided in Rule 158 reassign the policy to the subscriber and make it over to him, who shall immediately on receipt of the proceeds from the insurance corporation repay to the Provident Fund the whole of the amount withdrawn with interest and, in case of default, the Chairman shall arrange to recover the amount by deduction from the emoluments of the subscriber by instalments or otherwise as the Appointing Authority or the Market Committee may direct; and(b)if the amount assigned together any accrued bonuses is less than the whole of the amount withdrawn from the fund in resPect 0 the policy, with interest thereon at the rate provided in Rule 158 realise under sub-rule (2) the amount together with any^accrued bonuses and shall be placed the amount so realised to the credit of the subscriber in the fund.
