Section 65C in The Coal Mines Provident Fund Scheme
65C. [ Financing of Members' Life Insurance Policies. [Para 65C added vide G.S.R. 404 dated 6.3.1965.]
(1)The Commissioner or where so authorised by the Commissioner, any other officer subordinate to him, may, on an application form a member in such form and in such manner as may be prescribed by the Commissioner, make payment on behalf of the member to the Life Insurance Corporation of India, towards premium due on a policy of Life Insurance taken by the member on his own life or towards the first premium on the proposal of the member in respect of such a policy.(2)Any payment under sub-paragraph (1) shall be made out of and debited to the member's own share of contribution including interest thereon standing to his credit in the Fund.(3)No payment shall be made under sub-paragraph (1) unless the amount of member's own contribution together with interest thereon standing to the credit of the member at the end of the last completed currency period or quarter, as the case may be, for which posting in the individual ledger account of the member has been completed, is-(i)at the time of authorising the first payment, adequate to meet the premium for at least two years or such period after which the proposed or existing policy for which premium is to be paid can be converted into paid-up policy under the terms of the proposed or existing policy, as the case may be, whichever is more; and(ii)at the time of any subsequent payment, adequate to meet the amount of premium.(4)No payment towards the first premium on a proposal of the member for insuring his own life shall be made under sub-paragraph (1) unless-(i)the proposal has been examined and approved by the Commissioner, or such officer subordinate to him as may be authorised by him in this behalf;(ii)the proposal is acceptable to the Life Insurance Corporation of India subject to medical fitness of the member ;(iii)the member satisfies the Commissioner, or such officer subordinate to him as may be authorised by him in this behalf, that he has produced such evidence of his age to the Life Insurance Corporation of India as may be acceptable to the said Corporation ;(iv)a written notice of assignment, in such form, as the Commissioner may prescribe, in favour of the Board, in respect of the proposed policy has been signed by the member and made over to the Life Insurance Corporation of India alongwith the proposal for insurance.(5)Payment under sub-paragraph (1) shall not commence unless-(i)the member's own share of contribution during the last completed period of currency for which contributions have been posted in his individual ledger" account is equal to or more than the annual premium towards his existing or proposed policy, as the case may be,(ii)the terms of the existing or proposed policy, as the case may be, are such-(a)as shall allow automatic conversion of the policy into a paid-up policy without having to obtain the member's consent, after it has run for a specified period ;(b)as shall require payment of premium not more than once a year;(c)as shall allow the member himself to assign the policy in favour of the Board.(6)No payment under sub-paragraph (1) towards the premium of an existing policy of a member shall be made unless-(i)the policy has been assigned by the member in favour of the Board by an endorsement on the policy and unless such assignment has been registered with the Life Insurance Corporation of India ;(ii)the policy is free from all encumbrances and any prior assignment ;(iii)the age of the member has been endorsed in the policy as having been admitted by the Life Insurance Corporation of India.(7)No payment under sub-paragraph (1) shall be made towards the premium on an educational endowment policy or a marriage endowment policy if that policy is due for payment in whole or part before the member attains fifty years of age.(8)[ So long as the policy remains assigned to the Board, any bonus accruing on it shall be drawn on behalf of the Board by the Commissioner for being credited to member's own contribution account in the Fund.](9)The terms of the policy which is financed from the Fund shaH not be altered nor shall the policy be exchanged for another policy without the prior sanction of the Commissioner or such other officer subordinate to him as may he authorised by him in this regard and a member desirous of altering the terms of his policy financed from the Fund or exchanging the same for a new policy, shall furnish to the Commissioner or such other officer, subordinate to him, as may be authorised by him in this behalf, the details of the intended alteration or of the new policy, as the case may be, in such form as the Commissioner may specify.(10)Medical fees charged by the Life Insurance Corporation of India in respect of the proposal of a member for insurance of his life approved by the Commissioner or an officer subordinate to him under clause (i) of sub-paragraph (4) and found acceptable to the Life Insurance Corporation of India after medical examination, but which eventually does not materialise for any reason, what-so-ever, shall be debited to the member's own share of contribution with interest thereon standing to his credit in the Fund.(11)Where a member fails to pay into the Fund any amount realised by him by way of bonus as required under sub-paragraph (8), such amount shall be recovered by his employer from the member's emoluments in such instalments as the Commissioner, or such other officer subordinate to him as may be authorised by him in this behalf may determine. The employer shall render such account of the recoveries so made by him as the Commissioner may prescribe and shall deposit the sums so recovered into the Fund in such manner as the Commissioner may specify.(12)In the event of a member withdrawing his accumulations in the Fund under paragraph 63 before the maturity of his insurance policy financed partly or wholly out of his accumulations in the Fund, the policy so financed shall be assigned in favour of the member. When the assured sum of a policy financed partly or wholly out of the Fund falls clue for payment before orders for payment of the accumulations in the Fund of the member concerned have been passed the policy money shall be realised by the Fund from the Life Insurance Corporation of India and credited in the member's own contribution account in the Fund. Such amount shall on receipt in the Fund be deemed as the member's own contribution to the Fund for currency period in which received and be paid to him or his nominee(s) or his heir(s), as the case may be, in accordance with the provisions contained in this Scheme.(12A)[ In the event of the accumulations in the Fund of a member being transferred to any other Provident Fund under paragraph 31 C before the maturity of the policy of Insurance taken by such member and financed partly or wholly out of his accumulations in the Fund, the policy so financed shall -(a)where the member concerned so requests in writing to the Commissioner or where so authorised by the Commissioner, to any other officer subordinate to him and the authority administering the Provident Fund to which his accumulations in the Fund are transferred, agrees to accept such assignment, be re-assigned in favour of the said authority; and(b)where the member concerned does not so request or the authority administering the Provident Fund to which his accumulations in the Fund are transferred does not agree to accept such assignment, the policy shall be re-assigned to such member.(12B)On a written request made to the Commissioner or where so authorised by the Commissioner to an officer subordinate to him by a member to the effect that the premium payable to the Life Insurance Corporation of India on the policy of Insurance taken by such member and financed partly or wholly out of the accumulations of the member in the Fund need not, thereafter, be paid from such accumulations and that the policy may be re-assigned to him, the policy shall be re-assigned in favour of the member.] [Paras (12A) & (12B) inserted vide O.S.R. No. 1387 dated 25.9.1976.]Provided that in cases where a member makes a request for the re-assignment of his policy to him, the policy shall be re-assigned to him only if he pays back into his account in the Fund, the amounts paid from it, as premium on the policy to the Life Insurance Corporation of India or he gives an undertaking in writing that he shall by himself thereafter, regularly pay to the Life Insurance Corporation of India, the premium on such police' till its maturity.Provided further that where the policy is re-assigned to the member under this sub-paragraph the policy shall remain under the custody of the Board till the member ceases to be in employment in the Coal Industry or till the policy matures, whichever is earlier.(13)Any portion of the first premium on a proposal for insurance paid under sub-paragraph (1), if refunded by the Life Insurance Corporation of India due to nonacceptance of the proposal by the said Corporation and any bonus refunded by the member under sub-paragraph (11) shall be deemed as the member's own contribution for the currency period in which the amount is received in the Fund or is recovered from the member's wages, as the case may be, and shall be credited in the member's own contribution account on receipt in the Fund.(14)In cases where stamp duty on an assignment under clause (iv) of sub-paragraph (4) or clause (i) of sub-paragraph (6) or on a re-assignment under subparagraph (12), [sub-paragraph (12A) or sub-paragraph (12B) has been paid out of the Fund] [Inserted vide G.S.R. No. 1387 dated 25.9.76.], such duty shall be debited to the member's own contribution with interest thereon standing to his credit in the Fund.][65D. Omitted.] [Para 65D omitted vide G.S.R. No. 567 dated 9.6.1984.]
