The General Provident Fund (Central Services) Rules, 1960
RULE 17- PAYMENT TOWARDS INSURANCE POLICIES AND FAMILY PENSION FUNDS
Payment towards Insurance Policies .- Subject to the conditions hereinafter contained in rules 18 to 28-
(a) (i) subscription to a family pension fund approved in this behalf by the President; or
(ii) payment towards a policy of life insurance, may at the option of a subscriber; be substituted in whole or part for subscriptions due to the Fund;
(b) the amount of subscriptions with interest thereon standing to the credit of a subscriber in the Fund may be withdrawn to meet-
(i) a payment towards a policy of life insurance;
(ii) the purchase of a single payment insurance policy;.
(iii) the payment of a single premium or subscriptions to a family pension fund approved in this behalf by the President:
Provided that no amount shall be withdrawn (1) before the details of the proposed policy have been submitted to the Accounts Officer and accepted by him as suitable, or (2) to meet any payment or purchase made or effected more than three months before the date of application or presentation of claim for withdrawal, or (3) to meet payment of any premium or subscription more that three months in advance of the due date of payment.
NOTE.-·Due date of payment for the purpose of this proviso will be the date up to which payment can be made including the grace period allowed by the insurance companies.
Explanation.-Under clause (3) of this proviso no withdrawal from the fund for financing a policy of life insurance shall be made after the due date of payment without production of the premium receipt in token of such payment:
Provided further that payments towards an educational endowment policy may not be substituted for subscriptions to the Fund and that no amounts may be withdrawn to meet any payment or purchase in respect of such a policy if that policy is due for payment in whole or part before the subscriber’s age of normal superannuation :
Provided further that amounts withdrawn shall be in whole rupees, but shall not include fraction of a rupee although such amount is less than the amount actually required.