Section 21 in The Bihar General Provident Fund Rules, 1948
21.
(1)The policy, within three months after the first withholding of a subscription or withdrawal from the Fund in respect of the policy, or in the case of an Insurance company whose headquarters are outside India, within such further period as the Account Officer, if he is satisfied by the production of the completion certificate (Interim receipt), may fix, shall -(a)unless it is a policy effected by a male subscriber which is expressed on the face of it to be for the benefit of the subscriber, or of his wife and children, or any of them, be assigned to the Governor of Bihar, as security for the payment of any^sum which may become payable to the fund under rule 26, and delivered to the Account Officer the assignment being made by endorsement on the policy in Form (2) or Form (1) of the Forms in third Schedule according as the policy is on the life of the subscriber or on the joint lives of the subscriber, and the subscriber's wife or husband or the policy has previously been assigned to the subscriber's wife.(b)If it is a policy effected by a male subscriber which is expressed on the face of it to be for the, benefit of the subscriber, or of his wife and children or any of them, be delivered to the Account Officer.(2)The Account Officer shall satisfy himself by reference to the Insurance Company where possible, that no prior assignment of the policy exists.(3)Once a policy has been accepted by the Account Officer for the purpose of being financed from the Fund, the terms of the policy shall not be altered, nor shall, the policy be exchanged for another policy without the prior consent of the Account Officer to whom details of the alterations or of the new policy shall be furnished.(4)If the policy is not assigned and delivered, or delivered within the said period of three months or such further period as the Account Officer may, under sub-rule (1) have fixed, any amount withheld or withdrawn from the Fund in respect of the policy shall with interest thereon at the rate provided in Rule 14, forthwith be paid or repaid, as the case may be, by the subscriber to the Fund, or in default be ordered by the Account Officer to be recovered by deduction from the emoluments of the subscriber, by instalments or otherwise as may be directed by the authority competent to sanction an advance for the grant of which special reasons are required under clause (c) of sub-rule (1) of Rule 15:(5)Notice of assignment of the policy shall be given by the subscriber or the Insurance Company, and the acknowledgement of the notice by the Insurance Company shall be sent to the Account Officer within three months of the date of assignments.Note 1. - Subscribers are advised to sent notice of the assignment to Insurance Company in duplicate accompanied in cases in which the notice has to be sent to a Company in Great Britain or Ireland, by a remittance of five shillings which is the fee for acknowledgement authorised by the Policies of Assurance Act, 1867.Note 2. - Subscribers who proceed to Great Britain or Ireland or quitting the service are advised that under the English Stamp Law assignment or reassignments are required to be stamped within 30 days of their first arrival in those countries, otherwise penalty will be incurred under the Stamp Act and difficulties may arise when the policy matures for payment.
