(1) Payment of premium of the Life Insurance Policy on the Life of the subscriber himself who has put in a continuous service of not less than 5 years may, at the option of the subscriber be made out of the amount of the fund to the extent of his subscription, provided that the subscriber applies to the Chairman in this regard and gets policy approved by him.
(2) On approval of the Policy by the Chairman, the Executive Officer shall make payment to the Life Insurance Corporation on behalf of the subscriber according to the mode of payment of premium in respect of the policy, provided that it will be the responsibility of the subscriber to watch and to take timely steps to keep the policy alive.
(3) If the total amount of payment towards the Life insurance Policy is less than the amount of the premium subscription payable to the fund the difference shall be rounded to the nearest rupee and paid to the account of the subscriber in the fund.
[(4) The policy shall be such as is legally assignable to the Chairman and it shall be so assigned in the Form prescribed in Schedule-II and deposited with the Executive Officers within three months after the date of the first withdrawal from the Fund for the purpose. In case of failure to do so the amount withdrawn shall be recovered from the emoluments of the subscriber with interest at the rate prescribed by the State Government.]
(5) In case of resignation or retirement of the subscriber the policy shall be reassigned in the Form prescribed in Schedule III by Chairman in the name of the subscriber. In case of death of the subscriber, the amount due on the policy shall be realised by the Chairman and paid to the nominee under rule 5.
(6) If a policy matures during his service, the amount due on the policy shall be realised by the Chairman and credited to the subscriber's account in the fund.
[(7) If a policy lapses on account of any reason and cannot be made even 'Paid up' the whole amount paid so far from the Fund as premium shall be recoverable from the emoluments of the subscriber with interest at the rate prescribed by the State Government and credited to his Provident Fund account.]
(8) The account of advance on this account shall be kept in the Form prescribed in Schedule IV.