(1)At the request in writing of any subscriber and with the consent of the Council any portion or whole of his subscriptions with interest thereon may be invested by the Council in a policy of life assurance in such office and for such amount and on such terms as may be mutually agreed upon in writing between such subscriber and the Council.(2)Such policy shall be effected in the name of the subscriber who shall assign the same in favour of the Executive Officer or of such person as the Council may from time to time appoint for the purpose. It shall be held and unless reassigned as provided for in Clause (c) or Clause (d) of the proviso, or in Sub-rule (3) shall be realised by the Municipal Council and the net proceeds on realisation shall be credited to account of subscriber :Provided always-(a)that every such policy shall so long as the subscriber is actually in employment under the Council belong to the Council and no interest therein shall during such period vested in a subscriber on whose life it has been effected or in his nominees and neither he nor they shall have any right to interfere therewith;(b)that the Council shall not be responsible for any loss or damage that may arise or result from the effecting of any policy under this rule;(c)that on the retirement from services of a subscriber or on the termination of his services either by resignation or as a measure of punishment or his transfer to any other local body, the policy effected on his life shall be re-assigned to him; andNote. - In cases where a subscriber has taken service under another local body or has been transferred thereto by a competent authority and the amount to his credit in the provident fund has been transferred to the provident fund of such local body and his policy of life assurance has been reassigned to him under the proviso he shall assign the same under this Sub-rule in favour of the Executive Officer of the District Board or Municipality accordingly as his transfer is to a Municipality or to a District Board.(d)that 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 438 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 Executive Officer 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 451, reassign the policy to the subscriber and make it over to him who shall immediately on receipt of the proceeds from the insurance company repay to the fund the whole of any amount withdrawn with interest and in case of default the Executive Officer shall arrange to recover the amount by deduction from the emoluments of the subscriber by instalments or otherwise as the Council may direct; and(b)if the amount assured together with the amount or any accrued bounced is less than the whole of the amount withdrawn from the fund in respect of the policy with interest thereon at the rate provided in Rule 448, realise under Sub-rule (2) the amount assured together with any accrued bonuses and shall place the amount so realised to the credit of the subscriber in the fund.(4)The Executive Officer shall cause to be kept a register of life assurance policies effected under this rule and a register of premia paid in respect of such policies in Forms P.F. 11 and P.F. 12 respectively appended to these rules.
