(a) For paying the cost of education beyond the High School stage of the insured or of any person who is a member of his family provided that such education is of a duration of not less than three years;
(b) For paying the expenses of the insured in connection with the prolonged or serious illness of the insured or of any member of his family;
(c) For paying the expenses in connection with the marriage of insured or of any person who is a member of his family;
(d) For the purpose of building a house including the cost of site or acquiring a suitable house and also for additions or alterations to and reconstruction of the house;
21
(e) For paying the obligatory expenses which by customary usage, the insured has to incur in connection with funerals or other ceremonies of any member of his family;
Provided that the loan granted shall not be less than fifty rupees.
40.Sub-rule (1) “Provided further that the Director may sanction a loan for purposes other than those mentioned above if he is satisfied that the Insured bona fide requires the loan applied for;
(2) The surrender value of the policy for purposes of sub-rule (1) shall be specified in the appropriate table referred to in rule 17.
(3) A loan under this rule shall not be granted in respect of a policy which is not in force for at least three complete years.
(a) A loan under this rule shall not be granted inrespect of a policy given as an additional security for the repayment of a house building, house purchase or house repair advance made to the insured.
(b) No loan under this rule shall be granted if monthly net salary of the Insured after all deductions (including the deduction in respect of the loan proposed for sanction) is less than fifty per cent of his monthly gross emoluments.
Explanation:- For the purpose of this sub-rule-(i) if both husband and wife are Government Servants, the “net salary” and “gross emoluments” shall be the net salary and gross emoluments of both of them put together and “deductions” shall be the total deductions from the salary of both of them.
(ii) “gross emoluments” of an insured who has taken house building or house purchase advance shall be his gross emoluments as increased by an amount equal to 7/12 per cent of the house building or house purchase advance”.
(4) An application for grant of loan under this rule shall be made in Form ‘A’ appended to these rules.
(5) At any time after the expiry of two years from the date of sanction of loan, the insured may, on an application made in this behalf, be sanctioned a further loan subject to the following conditions, namely:- 22
(i) The balance of outstanding loans with interest and premia with interest, if any, are adjusted out of the second loan;
(ii) The amount after deducting the amount specified in item (1) above, payable is not less than one hundred rupees; and
(iii) The insured is capable of repaying the loan and interest thereon in the prescribed number of instalments or before he attains the age of superannuation, whichever is earlier.” “Explanation:- For the purpose of this rule, “a member of his family” means, husband, wife, son, adopted son, step-son, daughter, adopted daughter, step daughter, father, mother, step-mother, brother, step-brother, sister or step-sister of the insured who is actually dependent on him”.
Interest
41. Simple interest at the rate of nine per cent per annum shall be charged on the loan granted under Rule 40.
Security for the Loan
42. The policy shall be assigned by the insured in favour of the Governor of Karnataka by way of security for the loan granted under Rule 40. The assignment of the policy shall be in form ‘B’ appended to these Rules.
Recovery of Loan
43. (1) The loan granted under Rule 40 shall be recovered by deductions from the pay of the Insured in such number of equal monthly installments not exceeding forty-eight as the Director may determine, commencing from the month following that in which the loan has been drawn. The installments will be fixed in whole rupees. In no case shall be the period of recovery extends beyond the date of superannuation of the Insured.
(2) The Insured who has obtained the loan may repay more than one installment in any one month.
23
(3) The interest due on the loan shall be recovered in one or more installments as may be determined by the Director commencing from the month following that in which the repayment of the Principle is completed where such recovery is made in installments the amount of each installment shall not be appreciably greater than the amount of installment towards principle.
(4) Whenever the insured is absent from duty on leave with allowance or when his salary is held over for future payment the installment shall be recovered when the leave allowance and salary is subsequently drawn.
(5) In case the Insured is suspended from service or is on leave without allowance and in all other cases where the installment cannot be deducted from his salary, the amount due towards the installments shall be paid in cash and if not so paid the interest at nine per cent per annum compounded half yearly will be charged and recovered from his future pay.
Refund of Loan in case of its utilization for purposes other than Prescribed Purposes
44. If after a loan has been drawn by the person to whom it is granted, the Director has reasons to believe that the purpose for obtaining a loan mentioned in the application is incorrect or that the loan has not been utilized for the purposes for which it was granted, he may notwithstanding the grant of installments, direct that the entire loan of portion thereof which is outstanding be recovered with interest in such number of installments as the Director may, in his discretion, decide.
45. “Savings: Notwithstanding the supersession of the existing rules by these rules, the provision of Section 6 of the General Clauses Act, 1897 (Central Act 10 of 1897), shall be applicable as if the existing rules had been repealed by a Central Act and the provisions of Section 24 of the said Act shall be applicable as if the existing rules has been repealed and reenacted by a Central Act.” 24 FORM A (See Rule 40) KARNATAKA GOVERNMENT INSURANCE DEPARTMENT (Life Branch) Application for Loan
1. Name and Designation of the Insured:
2. Name of the Office in which he/she is employed and the month of recovery of the last monthly premium.
3. Policy Number/s 3-A. Particulars of the pay drawn, total deductions from the pay, the nature of such deductions and net pay drawn.
Gross salary Rs….
Total Deductions Rs….
(to be shown separately)
(i) Premium on Official Branch Policies Rs….
(ii) L.I.C. Premium Rs….
(iii) Cycle Advance Rs….
(iv) Festival Advance Rs….
(v) Other deductions Rs….
Net pay drawn Rs….
4. Full particulars of the purpose or purposes for which the loan is required (necessary certificate/s should also be enclosed….
5. Amount of loan required…
6. The number of instalments in which the loan is proposed to be repaid (not exceeding 48 instalments including 25 interest according to rule 43)…
7. Name of the Treasury or Bank where the payment of loan is desired…
8. Are the following documents enclosed:-
(1) Policy …
(2) Assignment Deed …
(3) Certificate required in column 4 above …
(4) Premium receipt book (Rule 27 cases) …
(5) Payee’s Receipt … I have read the relevant rules regulating the grant of the loan applied for as also the instructions appended to this form and I do hereby declare that the particulars stated above as well as those mentioned in the enclosed certificates are correct and that I shall spend the amount received only towards the purpose or purposes mentioned above.
“I also declare that I have not drawn any House Building/House Purchase or House Repair Advance on the security of the policy/policies mentioned in this application.” Place ………………..
Date………………....
Signature of the Applicant I hereby certify that the particulars stated above are correct to the best of my knowledge and belief and that the above signature of Sri/Smt………………………..* holder of the Life Branch Policy No………. and the premium due for the month of ……. ……….. in respect of the above Policy has been recovered from the pay of the insured disbursed in …………………..
Forwarded to the DIRECTOR, KARNATAKA GOVERNMENT INSURANCE DEPARTMENT FOR FAVOUR OF NEEDFUL ACTION Place ………………..
Date………………....
Signature of Pay Drawing Officer Designation …………………….
26 Instructions to the Applicants
1. The policy should be in force for at least three complete years on the date of application.
2. The amount of loan is limited to 90 per cent of the Surrender Value of the Policy and the loan is granted in multiples of Rupees ten only. No loan for less than Rs.50/- will be granted at a time.
3. The loan and loan interest along with the usual monthly premium shall be recovered by deduction from the pay of the Insured in equal monthly installments not exceeding forty-eight.
4. Loan will be granted only on the security of a Original Policy or a duplicate obtained under Rule 28(a) of the Karnataka Government Servant’s (Compulsory Life Insurance) Rules, 1958.
5. The purpose or purposes for which the loan is required may please be stated in full so as to satisfy the Department. The expenses incidental to illness, the name of the patient and his relation to the subscriber, the name of the disease, etc., be given and the certificate of the Physician or Surgeon who is attending to the patient may be enclosed. In case of marriage the name of the dependent (stating relation) who is to be married, whether the marriage has been finally settled or is likely to be settled, whether the date has been fixed, if so, the probable date, may be mentioned. If the loan is required for education purposes (above the High School Standard) the names of the persons who are being educated, their relation to the subscriber, their ages, the classes in which they are studying may be mentioned and certificate of the Educational Institution may be appended to the application.
6. The attention of the applicant is invited to Rule 44 of the Karnataka Government Servant’s (Compulsory Life Insurance) Rules, 1958 which provides for disallowing the granted loan and its immediate recovery, if it is found that the purpose or purposes mentioned in the application are incorrect or that the amount sanctioned has not been utilized or is not being utilized for the object for which it was sanctioned.
7. If a Government Servant has stood surety to another Government Servant for the purpose of the latter taking House Building/House Purchase or House Repair Advance, then loan cannot be granted on the policies held by either the former or latter that is both of them.
27 FORM B (See Rule 42) ASSIGNMENT FORM (To be executed on A stamp paper of appropriate value if not executed on the back of the Policy) I, …………………………………. son/daughter of ……………aged ………….. years, in consideration of the loan I have taken or take in the Karnataka Government Insurance Department under Order No…………….. dated……………… do hereby assign and transfer as beneficial owner, all my right, title and interest in the Policy No……………… bearing date ………………….. granted by the Director, Karnataka Government Insurance Department on my life for a sum of Rs………………. (sum assured to be entered) and all moneys assured by or to become payable by or under the same to the Governor of Karnataka (hereinafter called the Karnataka Government Insurance Department) and declare that the receipt or receipts or book adjustments by the Karnataka Government Insurance Department for any sum or sums of money to be received or adjusted by it under or on account of the said policy shall discharge the Insurance Department from all responsibility in respect of the application of such money as effectually and to all intents and purposes as if such receipt or receipts or adjustments were assigned or effected by myself, my heirs, executors administrators and assigns.
I do hereby covenants that I shall not do or knowingly suffer anything to be done whereby the said policy may be rendered void or voidable or the said Government Insurance Department may be prevented from receiving or adjusting the policy money or any part thereof:
Provided always that, I the said Sri/Smt………………………… my heirs, executors, administrators and assigns reserve the right of repaying in full at any time the loans outstanding against my account in the book of the Karnataka Government Insurance Department together with accrued interest either in cash or adjustment from the Policy moneys payable and thereafter get the policy re-assigned in favour of my heirs, executors, administrators and assigns.
Dated……………… ………………………….
Place……………….. Signature of the Assigner Witness:
Signature……………………… Designation…………………………….
Designation……………………. Address………………………………...
28 Address………………………… ………………………………… …………………………………..
TABLE I Endowment Assurances with profits payable on the Assured attaining the age of 55 years or at death, if earlier, for a monthly premium of Rs.1/- only.
Note- (i) These rates apply to first class lives only. Rates for second class lives will be quoted in individual cases.
(ii) The rates for ages 18 and 19 are the same as those for age 20.
TABLE II Omitted* A ge A ss u ra n ce in ru p e e s A ge A ss u ra n ce in ru p e e s A ge A ss u ra n ce in ru p e e s A ge A ss u ra n ce in ru p e e s A ge A ss u ra n ce in ru p e e s 20 436 27 338 34 247 41 161 49 66 21 422 28 324 35 235 42 149 50 54 22 408 29 311 36 222 43 137 23 394 30 298 37 210 44 126 24 380 31 285 38 198 45 115 25 366 32 272 39 185 46 99 26 352 33 259 40 173 47 87 48 77 29 TABLE III The following table of Single premia will appear as an appendix to the Insurance Rules.
A ge Si n gl e P re m iu m A ge A ge Si n gl e P re m iu m A ge A ge Si n gl e P re m iu m A ge A ge Si n gl e P re m iu m A ge 20 .40891 20 29 .50820 29 38 .63405 38 47 .79918 47 21 .41883 21 30 .52072 30 39 .65014 39 48 .82087 48 22 .42901 22 31 .53357 31 40 .66673 40 49 .84339 49 23 .43947 23 32 .54676 32 41 .68384 41 50 .86680 50 24 .45020 24 33 .56032 33 42 .70150 42 51 .89116 51 25 .46122 25 34 .57424 34 43 .71973 43 52 .91657 52 26 .47251 26 35 .58855 35 44 .73858 44 53 .94310 53 27 .48411 27 36 .60329 36 45 .75809 45 54 .97087 54 28 .49600 28 37 .61845 37 46 .77827 46 Note- (i) Rated-up cases must be taken at their true age in using this table.
(ii) The cash surrender value of an endowment Policy is the product of the Paid up policy amount arrived at as indicated in Rule 17(ii) and the Single premium for the completed age of the insured.
30 TABLE IV Table of the Multiplying factor for the calculation of Surrender Value of whole life Policy.
A g e M u lt ip ly in g fa ct o r A g e M u lt ip ly in g fa ct o r A g e M u lt ip ly in g fa ct o r A g e M u lt ip ly in g fa ct o r 20 .16862 32 .24110 44 .34161 56 .47743 21 .17371 33 .24824 45 .35152 57 .49015 22 .17900 34 .25561 46 .36171 58 .50304 23 .18443 35 .26323 47 .37224 59 .51609 24 .19005 36 .27100 48 .38295 60 .52923 25 .19581 37 .27910 49 .39396 61 .54248 26 .20176 38 .28719 50 .40519 62 .55581 27 .20791 39 .29561 51 .41667 63 .56919 28 .21415 40 .30434 52 .42838 64 .58262 29 .22762 41 .31328 53 .44034 65 .59605 30 .22029 42 .32243 54 .45253 31 .23410 43 .33190 55 .46486 Note- (i) Rated-up cases must be taken at their true age in using this table.
(ii) The cash surrender value of a Whole Life Policy is the product of the Paid up policy amount arrived at as indicated in Rule 17(ii) and the multiplying factor against the age of the insured next birthday.
31 FORM C (See Rule 23) Form of Bond of Indemnity for drawing the Insurance Amount due on the Policy held by the Deceased Insured.
INDEMNITY BOND Agreement executed this the ……………… day of …………… by Sri/Smt……………………… son of/Daughter of ……………………………… aged………….. occupation …………………………… residing at …………………….
Hereinafter called the PAYEE (which term shall include his/her heirs, assigns and representatives) and (i) Sri…………………….. Son of ………………………..
aged…………… occupation …………………… residing at……………………..……… hereinafter called the sureties (which term shall include their heirs, assigns and representatives) in favour of the Governor of Karnataka, hereinafter called the Government.
Whereas a sum of Rs…………… (Rupees…………………………………………… ……………………..) is payable under the Policy/Policies Nos…………………………...
held by the deceased insured………………………………. In the Karnataka Government Insurance Department, Bangalore to the legal heirs of the said Insured;
And Whereas the payee has put in a claim for payment of the aforesaid sum representing that he/she is the legal heir of deceased insured.
And Whereas the Director, Karnataka Government Insurance Department, Bangalore, has agreed to pay the aforesaid sum to the payee as the legal heir of the deceased insured on his/her executing along with sureties, a covenant of the nature hereinafter appearing;
32 And Whereas the sureties have agreed to stand sureties to the Payee and to execute the Bond in the terms and manner hereinafter appearing;
These presents witness that after payment has been made to the Payee in pursuance of the said agreement, the Payee and the sureties above named jointly and severally, shall in the event of a claim being made by any other person against the Government with respect to the aforesaid sum of Rs……………….. refund to the Government the said sum of Rs……………….. and shall otherwise indemnify and keep the Government harmless and indemnified against and from all liabilities in respect of the aforesaid sum and all costs incurred in consequent of the claim thereto. The amount if any to be refunded to Government by the payee or the surety shall be recovered as if it were arrears of Land Revenue.
In Witness Whereof the said, we ……………………………………………………….
…………….. and …………………………………………………. Have hereunto put our hands.
(1) ……………………………
(2) ……………………………
(3) …………………………… Signed and delivered by above named payee and sureties in the presence of:
Witness:- Witness:-
(1)……………………………. (2)……………………………….
Occupation…………………… Occupation…………………… Address……………………….. Address………………………..
N.B.- To be executed on a sufficient Stamp Paper under the provisions of the Stamp Act.