Section 24 in The M.P. General Provident Fund Rules, 1955
24.
(1)If a policy assigned to the Governor of Madhya Pradesh under Rule 21 matures before the subscriber quits the service, or if a policy on the joint lives of a subscriber and his wife assigned under the said rule, falls due for payment by reasons of the wife's or husband's death, the Accounts Officer shall, save as provided by Rule 27, realise the amount assured together with any accrued bonuses and shall place the amount so realised to the credit of the subscriber in the Fund :Provided that if the amount assured together with the amount of any accrued bonuses is more than the whole of the amount withheld or withdrawn, it shall be the duty of the Accounts Officer to pay to the subscriber the difference, on receipt of a written application in this behalf.(2)Save as provided by Rule 27, if a policy delivered to the Accounts Officer under Clause (b) of sub-rule (1) of Rule 21 matures before the subscriber quits the service, the Accounts Officer shall make over the policy to the subscriber :Provided that if the interest in the policy of the wife of the subscriber or his wife and children, or any of them, as expressed on the face of the policy, expires then the policy matures, the subscriber, if the policy moneys are paid to him by the Insurance Company shall immediately on receipt thereof pay or repay to the Fund either,-(i)the whole of any amount withheld or withdrawn from the Fund in respect of the policy; or(ii)an amount equal to the amount assured together with any accrued bonuses, whichever is less, and, in default, the provisions of sub-rule (4) of Rule 21 applicable to a failure to assign and deliver a policy shall apply.Note. - A question has been raised as to the procedure to be adopted in regard to the refund of the amount withdrawn from the provident fund for financing an insurance policy in the event of the insurance company concerned going into liquidation. It has been decided that in such an event the procedure laid down in the above rule should be followed. The expression "amount assured together with the amount of any accrued bonuses" occurring therein being taken to mean the amount payable by the liquidated company to the insured. In cases where the policies require to be reassigned to the subscriber, the necessary reassignment should be made in the normal manner and a notice of reassignment sent to the insurer. In the case of a company under liquidation, the liquidator takes the place of the management for all practical purposes and his power include the power to receive such notices.
