Section 16E in RSWC Employees General Provident Fund Regulations, 1990
16E.
(1)The policy within six 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 head-quarters are outside India, within such further period as the Sr. Accounts Officer, if he is satisfied by the production of the completion certificate (interim receipt) may fix, shall-(a)unless it is policy effected by a male subscriber which is expresses on the face of it to be for the benefit of the wife subscriber, or of his wife and children or any of them, be assigned to the Corporation as security for the payment of any sum which may become payable to the Fund under Rule 16J and delivered to the Sr. Accounts Officer, the assignment being made by endorsement on the Policy in Form 7(A) or Form 7(B) or Form 7(C) accordingly 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 have previously been assigned to the subscriber's wife.(b)if it is a Policy effected by a male subscriber which is expressed on the fact of it to be for the benefit of the wife of the subscriber or of his wife and children or any of them, be delivered to the Sr. Accounts Officer.(2)The Sr. Accounts Officer shall satisfy himself by reference to the the Insurance Company where possible, that no prior assignment of the policy exists.(3)Once a policy has been accepted by a Sr. Accounts 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 Sr. Accounts Officer to whom the details of the alteration or of the new policy shall be furnished.(4)If the policy is not assigned and delivered, or delivered, within the said period of six months or such further period as the Sr. Accounts Officer may, under sub-rule (1), have fixed, any amount withheld or withdrawn from the Fund in respect of the policy shall with interest thereon at the rate provided in Rule 13 forthwith be paid or repaid, as the case may be, by the subscriber to the Fund or, in default be ordered by the Sr. Accounts Officer to be recovered by deduction from the emoluments of the subscriber, by installments 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 to the Insurance Company, and the acknowledgement of the notice by the Insurance Company shall be sent to the Sr. Accounts Officer within three months of the date of assignment.
