THE KERALA STATE LIFE INSURANCE RULES, 1988

 

PREAMBLE

Government reserve to themselves the right to add or modify at any time these rules and the rates contained in the tables appended, provided that no such additions or modifications shall affect the conditions of any contract for a policy which any person may have made under these or any other rules in force at the time of making the contract unless such person has given his consent in writing to such addition or modification.

Rule - 1. Title and the date of effect.

(1)     These rules shall be called the Kerala State Life Insurance Rules.

(2)     These rules shall be come into force from the date of the order.

(3)     The State Life Insurance (Official Branch) Rules, 1940 shall stand repealed on the date on which these rules are made applicable to Government Servants Governed by the said rules:

Provided that anything done under the rules hereby repealed or any insurance or further insurance effected there under shall not withstanding such repeal, continue in force as if it was done or effected under these rules.

Rule - 2. Definitions.

(1)     "Proposer" means the person whose life is proposed to be insured

(2)     "Insured" means the person who has insured his life under these rules.

(3)     "Policy" means the written document containing the contract for the payment under these rules of a certain sum of money on the occurrence of the event specified therein in consideration of the premium paid by the insured.

(4)     "Premium" means the periodical payment made by or on behalf of the insured for any policy.

(5)     "Surrender Value" of a policy means the amount that is payable to an insured when he forgoes the contingent benefit of his policy and surrenders it for an immediate cash payment.

(6)     "Pay" means the amount drawn monthly by an officer in respect of which office he may become entitled under the Kerala Service Rules.

Rule - 3. Eligibility to become a policy holder.

(1)     All State Government employees holding permanent or officiating appointments under the Government of Kerala and who are below the age of 45 years on the date of 1st remittance of premium.

(2)     The age of the proposer shall be taken to be the age at his last birth day or next birth day which ever is nearer to the date on which the 1st premium is paid, if equidistant, it shall be taken to be his age at his last birth day.

(3)     Documentary proof in support of age of the proposer will be the certificate to that effect furnished in the proposal form by the Head of Office/ Institution.

Rule - 4. Premium[1]

(1)     Insured shall have to pay a minimum monthly premium fixed by Government from time to time. The existing rates effective from 1-7-1986 are the following.

(2)     Insured will have to take additional policies when they cross frome one pay range to the next pay range.

When an employee crosses one pay range to the next higher range, he should take additional policy within 2 years of his coming to the higher pay range. But this condition will not apply to an employee who has attained 45 years of age at the time of crossing over to the next pay slab.

(3)     The premium shall be payable monthly in advance and shall be recovered by deduction from the pay of the insured or by other prescribed method of payment every month till the insured completes 55 years of age.

[2]Order

(1)     The pay and allowances of State Government Employees have been revised in the G. O. 2nd cited. In the letter read as third paper above, the Director of Insurance has recommended to revise the pay range and rate of subscription of the employees subscribing towards State Life Insurance Scheme.

(2)     Government have examined the matter in detail and are pleased to revise the pay ranges and rate of subscription of the employees subscribing towards the State Life Insurance Scheme as detailed below in modification to Rule 4(I) of State Life Insurance Rules.

(3)     The revised rates will be effective from 1-4-1999.

(4)     Employees now subscribing to State Life Insurance Scheme and eligible for additional policies should take additional policies covering the balance premia, immediately.

Payment from Insurance Fund

(4)     The sum assured under the policy plus eligible bonus declared by Government from time to time shall be payable to the insured on his completing 55 years of age or at his death whichever is earlier.

(5)     When an insured ceases to be in the Service of Government of Kerala before completing the age of 55 years he may elect within 12 months from the date he cease to be in service may of the following courses:-

(a)      continue to pay the premium due on his policy till it becomes nature or

(b)      to take up paid up policy for a reduced sum assured bearing the same proportion to the original sum assured as the total premia paid under the policy bears to the total premia payable if the original policy is continued in force until the insured attains the age of 55.

(c)      Surrender the policy and receive as "Surrender Value" forty per cent of the sum total of the premia paid by him upto the date of the surrender of the policy and bonus if any due to him.

(d)      In the case of an officer who retired from service before attaining the age of 55 years and finds it difficult to continue to pay the premia due on an endowment policy till the date of maturity. To treat the premia due on the policy from the date of retirement to the date on which the policy is to mature as a debit on the policy due to the fund carrying interest at 6 per cent per annum which shall be recovered from the amount of the sum assured and bonus, if any, payable on the date of maturity of the policy.

Rule - 5.

An insured person whose communication intimating election of one of the four alternatives of Rule 4 does not reach the Director of insurance within one year from the date with effect from which he ceases to be in service, will be held to be entitled only to the third alternative of Rule 4 and the surrender value will be paid to him or his heirs on demand, according to rules, if applied for at any time within a period of ten years from the date of discontinuous of payment of premium.

Rule - 6.

If the insured, who has not taken a policy as a compulsory measure wishes to withdraw from insurance after the policy had been in force for not less than two years, he may surrender his policy and apply for the surrender value of the sum assured thereby, which will be 40% of sum total of all the premia paid by him upto the date of such surrender along with bonus if any due to him. No surrender value will be allowed for policies of less than two years duration.

Rule - 7. Management.

(1)     The business of the State Life insurance shall be managed by the Director of Insurance.

(2)     All receipts and disbursements on account of the State Life Insurance shall be carried to a separate head of account and the funds belonging to this account may, at the end of each year be invested in such manner as Government may prescribe.

Rule - 8. Procedure for applying for Insurance.

An employee proposing to insure his/her life under these rules shall submit proposal in Form No. 1 written in his/her own hand wherever possible and shall sign it in the presence of the head of office. The latter will in turn sign the certificate to the effect that he has read and explained the form to the proposer who signature was affixed in his presence and that the entries made therein are correct and send it along with the original chalan receipt towards the payment of 1st premium to the Director of Insurance.

Rule - 9.

Director of Insurance shall be competent to decide finally whether the proposal is to be accepted or not.

(1)     If it is decided to accept the proposal and if the chalan for the 1st instalment of premium is also received along with proposal form the acceptance shall be communicated and a policy shall be issued in the appropriate prescribed form to the insured under intimation to the employer concerned. The policy shall take effect from the date of the payment of the 1st premium.

Rule - 10.

The policy will bear a Serial No. All policies having sum insured up to a limit of Rs. 25,000 will be signed by an officer not below the rank a Deputy Director of insurance and all policies above Rs. 25,000 will be signed by the Director of Insurance. The policy and premium receipt book will then be forwarded to the Insured through the Head of Officer with instructions for the realisation of premia due on the policy.

Rule - 11.

When an insured wishes to effect further Insurance by taking an additional policy on his life, he shall submit a proposal in Form No. 1 along with the chalan for the remittance of 1st instalment of premium for the additional policy. The procedure prescribed in rule 8 shall be applicable to such cases also.

Rule - 12. Procedure for sanction of loan against policies.

(1)     Loans carrying 6% interest per annum may be sanctioned on unencumbered policies by the Director of insurance upto a maximum of 80% of the surrender value of the policy, the policy being assigned in favour of the Director of insurance, Trivandrum in consideration as security for the loan.

(2)     Loan granted under the above rules shall be repaid in monthly instalments not exceeding 20 along with premium.

(3)     Repayment of such loan may either be separately shown in the pay or salary bill of the officer concerned or remitted into the treasury under separate chalans to the credit of the State Life Insurance Fund. Interest due upto the date shown be cleared before setting aside amounts against the principal of the loan. The loan shall be a primary charge on the policy and any payment outstanding shall be deducted from the surrender value if the policy is surrendered or from the sum assured if policy becomes a claim by death of maturity.

Rule - 13. Payment of claims.

(1)     Subject always to the production of the policy and the establishment of the claimants' title, the sum assured by a policy (including bonus, if any) less the amount (if nay) due to the fund on account of arrears of premia, loan etc, will be paid to the insured.

(2)     In the case of endowment policies maturing for payment on attaining fifty-five years of age, to the insured.

(3)     In all other cases, to the registers, surviving nominee or nominees of the insured on he insured's death and if thereby no surviving nominee, to such person or persons as certified to be the legal heirs as per the heirship certificate issued by the Tahsildar. If the sum assured exeeds [3][Rs. 25, 0001 the amount due shall be paid to the legal heirs declared as such by a competent civil court having jurisdiction.

Rule - 14.

If the policy holder so desires he can get the discounted value of the sum assured within eleven months before the date of maturity of the policy. The table showing the value of Re. 1 payable at the end of the months is given in appendix of this rule.

Rule - 15.

The nomination referred to in the foregoing rule shall be made in the prescribed form appended to the rules. Such nomination completed and signed by the insured in the presence of two witnesses shall be sent to the Director of Insurance along with Form No. 1 who shall register it in the books. If the inured has a family at the time of his making the nomination he/she shall make such nomination only in favour of his/her family. In the case of married insured the family for this purpose will include only the wife/husband and children of the insured. In case he/she does not have a family at the time of making the nomination he/she may nominate any person coming under family as defined in Rule 71 Part III, Kerala Service Rules. However such nomination will become invalid in the event of is acquiring a family and he shall make a fresh nomination in favour of the family.

(1)     When the person nominated does before the insured the nomination becomes ipso facto void and the heirs of the nominee will have no claim.

(2)     If the insured nominates more than one person, he shall specify the amount of share payable to each of the nominees, failing which the amount payable shall be equally distributed among the nominees by the Director of Insurance.

(3)     The insured may at any time cancel nomination by sending a notice to the Director of Insurance along with a fresh nomination made in accordance with the above provision.

(4)     When a nominee predeceases the insured, the nomination become ipso facto void and it shall be competent for the Director of Insurance to require the claimant (s) to produce satisfactory evidence of title on the claim amount under the policy.

Rule - 16.

The following documents will be accepted as satisfactory evidence of title unless the Director of Insurance considers the production of further evidence necessary.

(i)       If the amount payable does not exceed [4][Rs. 25,000] a heirship certificate issued by the Tahsildar.

(ii)      In all other cases a succession certificate under the Indian Success Act 39 of 1925.

(iii)     Certificate of heirship, probate or letter of administration granted by any Court of law in India, although such certificate probate or letter of administration does not expressly mention the sum due under the State Life Insurance Policy.

(1)     Where the deceased has by a registered will bequeathed the sum assured to any particular individual, a probate of the will granted by a competent Civil Court.

Rule - 17.

In case where there are more than one claimant the sum assured by the policy will be paid to the person who seem to the Director of Insurance to have the best claim on his giving a good and tangible security to indemnify the Government against any loss that may accrue in the event of the Government being compelled by a decree of a Court to pay the sum assured over again to another calimant.

Rule - 18.

The Director of Insurance may consult the Secretary to Government, Law Department, Secretariat, Trivandrum on any legal points connected with the settlement of claims.

Rule - 19. Manner of realising premia.

(i)       The first premium on each policy may be paid either in any treasury under the head of account "8011 insurance and Pension Funds -105 State Government Insurance Fund - 03 State Life insurance Fund" or any other head of account to be specified from time to time.

(ii)      As demand draft in Favour of the Director of Insurance payable at Trivandrum; or

(iii)     In cash in the offices of the Director of insurance.

Rule - 20.

Subsequent premia will be payable in advance and be recovered monthly by deduction from the pay of the insured. The insured person is responsible to see that the amount of the premium which is due on the 1st day of each month is deducted from his/her pay for the preceeding month. If the premium due for any month is omitted to be deducted from the salary bill of the insured person, or from the establishment bill of the office in which his pay is drawn (by oversight or otherwise) whether such omission was on the part of the insured or on the part of the other whose duty it is to draw and disburse his pay, the insured should pay the premium in cash into the nearest treasury within the period of grace period of one month from the date of receipt of pay without deduction of premium drawing officers concerned shall give every facility for such a remittance. A deduction statement in the schedule appended to these rules, indicating therein particulars of individual deduction, may be attached to the salary bill. These schedules should reach the Directorate of Insurance, after their correctness is checked by the Accountant General (A&E), with reference to the gross and net amounts of the bills.

(1)     In case of employees on deputation in the service of Panchayats Municipalities and Corporations or on deputation to foreign service such as Boards, Corporations and similar autonomous bodies, already insured under these rules, the premium, shall be recovered monthly and remitted by chalan in the treasury under the proper head of account relating to State Life insurance by the respective drawing and disbursing officers. The original chalan receipts thereof together with recovery schedule shall be sent to the Director of Insurance. He is also permitted to remit the premium recovered as above by way of Demand Drafts drawn in favour of the Director of Insurance payable at Trivandrum.

(2)     In the case of employees, on leave without allowances or under suspension etc. , already insured under these rules, it is to be ensured that the monthly premium is paid in time either by way of chalan in the treasury or as Demand Draft or in cash in the office of the Director of insurance.

Exemption:

In the case of employees, on leave without allowance on Medical Ground the recovery of premium shall commence only with effect from the month in which he resumes duty after leave. However arrears of premia for such period shall be treated as a debt on the policy carrying interest at 9% per annum and shall be recovered from his future pay is not more than ten instalments, commencing from the month in which he resumes duty after such leave. If the insured dies while on leave without allowances on Medical Ground the arrears of premia due from him shall be recovered with interest at 9% per annum from the payments admissible under his policy.

(3)     In every other case of non recovery on payment of premium for a period of 6 months, the policy shall lapse as from the due date of defaulted premium and all claims to the policy moneys thereunder forfeited subject to the relevant Rules 20. 4 below.

(4)     A lapsed policy on which at least three years premia have been duly paid before the date of lapse, shall automatically secure a fully paid up assurance for a reduce sum which will bear the same promotion to the original sum assured as the total amount of premium paid bears to the amount payable if the original policy continued in force until the assured attained his fifty years of age. A claim arising within six months from the of lapse of such policy, will however be treated as good and will be paid in full subject to the deduction of ordinary revial charges specified in rule 2. 1 below.

(5)     A lapsed policy on which three years premia have not been paid before the date of lapse shall be void and no claim on it will be recognised.

Rule - 21. How a lapsed policy revived.

(1)     A lapsed policy may be revived on payment of all arrears of premia with compound interest calculated from the 1st due date to the date of payment at 9% per annum. Such revival should be done within a period of three years from the date of the lapse of policy.

Rule - 22. Miscellaneous.

When an insured who has ceased to be in the service of Government has elected to continue to pay such premia, he may be allowed by the Director of Insurance to pay such premia in advance, monthly, quarterly, half yearly or yearly into any Government Treasury. A grace period of one month shall however be allowed. If the insured fails to pay the premium within the days of grace he shall be deemed to have withdrawn under Rule 4. 5(c) and he shall be paid back the surrender value of the sum assured which will be 40% of the sum total of all the premium paid by him upto date along with bonus if any.

Rule - 23.

Every insured shall be supplied with a premium receipt book in which payment of each premium shall be acknowledged by the officer realising the same and keep the book under his safe custody with upto date entries. In the case of Gazetted Officers the premium may be noted in the PRB and duly attested by the officer himself. Final payment in their case will be made subject to test checking of the remittance of few months with the Treasury Records.

Rule - 24.

If an insured should apply for the issue of a duplicate premium receipt book on the ground that the original is lost or damaged the same shall be issued to him by the Director of Insurance on his paying a fee of Rs. 10.

Rule - 25.

If an insured should apply for the issue of duplicate of the policy because the original is damaged or lost the same shall be issued to him by the Director of Insurance on his paying of a fee of Rs. 10 and on his executing an indemnity bond in the case of damage.

Rule - 26.

False or incorrect information furnished by any insured or production by him of any false evidence in connection with the insurance of his life shall render his policy null and void and the premium paid by him shall be forfeited to Government.

Rule - 27.

Actual valuation of the State Life insurance Fund shall be conducted once in every five years.

Rule - 28.

The Director of Insurance may with the sanction of Government frame such subsidiary rules for the transaction of business as may be found necessary. All matters not provided for in these rules and all doubts about the construction or interpretation of the rules shall be placed before the Government by the Director of insurance and the Orders thereon of the Government shall be final. These rules come into force from the date of the order.

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THE KERALA STATE LIFE INSURANCE RULES, 1988

 

PREAMBLE

Government reserve to themselves the right to add or modify at any time these rules and the rates contained in the tables appended, provided that no such additions or modifications shall affect the conditions of any contract for a policy which any person may have made under these or any other rules in force at the time of making the contract unless such person has given his consent in writing to such addition or modification.

Rule - 1. Title and the date of effect.

(1)     These rules shall be called the Kerala State Life Insurance Rules.

(2)     These rules shall be come into force from the date of the order.

(3)     The State Life Insurance (Official Branch) Rules, 1940 shall stand repealed on the date on which these rules are made applicable to Government Servants Governed by the said rules:

Provided that anything done under the rules hereby repealed or any insurance or further insurance effected there under shall not withstanding such repeal, continue in force as if it was done or effected under these rules.

Rule - 2. Definitions.

(1)     "Proposer" means the person whose life is proposed to be insured

(2)     "Insured" means the person who has insured his life under these rules.

(3)     "Policy" means the written document containing the contract for the payment under these rules of a certain sum of money on the occurrence of the event specified therein in consideration of the premium paid by the insured.

(4)     "Premium" means the periodical payment made by or on behalf of the insured for any policy.

(5)     "Surrender Value" of a policy means the amount that is payable to an insured when he forgoes the contingent benefit of his policy and surrenders it for an immediate cash payment.

(6)     "Pay" means the amount drawn monthly by an officer in respect of which office he may become entitled under the Kerala Service Rules.

Rule - 3. Eligibility to become a policy holder.

(1)     All State Government employees holding permanent or officiating appointments under the Government of Kerala and who are below the age of 45 years on the date of 1st remittance of premium.

(2)     The age of the proposer shall be taken to be the age at his last birth day or next birth day which ever is nearer to the date on which the 1st premium is paid, if equidistant, it shall be taken to be his age at his last birth day.

(3)     Documentary proof in support of age of the proposer will be the certificate to that effect furnished in the proposal form by the Head of Office/ Institution.

Rule - 4. Premium[1]

(1)     Insured shall have to pay a minimum monthly premium fixed by Government from time to time. The existing rates effective from 1-7-1986 are the following.

(2)     Insured will have to take additional policies when they cross frome one pay range to the next pay range.

When an employee crosses one pay range to the next higher range, he should take additional policy within 2 years of his coming to the higher pay range. But this condition will not apply to an employee who has attained 45 years of age at the time of crossing over to the next pay slab.

(3)     The premium shall be payable monthly in advance and shall be recovered by deduction from the pay of the insured or by other prescribed method of payment every month till the insured completes 55 years of age.

[2]Order

(1)     The pay and allowances of State Government Employees have been revised in the G. O. 2nd cited. In the letter read as third paper above, the Director of Insurance has recommended to revise the pay range and rate of subscription of the employees subscribing towards State Life Insurance Scheme.

(2)     Government have examined the matter in detail and are pleased to revise the pay ranges and rate of subscription of the employees subscribing towards the State Life Insurance Scheme as detailed below in modification to Rule 4(I) of State Life Insurance Rules.

(3)     The revised rates will be effective from 1-4-1999.

(4)     Employees now subscribing to State Life Insurance Scheme and eligible for additional policies should take additional policies covering the balance premia, immediately.

Payment from Insurance Fund

(4)     The sum assured under the policy plus eligible bonus declared by Government from time to time shall be payable to the insured on his completing 55 years of age or at his death whichever is earlier.

(5)     When an insured ceases to be in the Service of Government of Kerala before completing the age of 55 years he may elect within 12 months from the date he cease to be in service may of the following courses:-

(a)      continue to pay the premium due on his policy till it becomes nature or

(b)      to take up paid up policy for a reduced sum assured bearing the same proportion to the original sum assured as the total premia paid under the policy bears to the total premia payable if the original policy is continued in force until the insured attains the age of 55.

(c)      Surrender the policy and receive as "Surrender Value" forty per cent of the sum total of the premia paid by him upto the date of the surrender of the policy and bonus if any due to him.

(d)      In the case of an officer who retired from service before attaining the age of 55 years and finds it difficult to continue to pay the premia due on an endowment policy till the date of maturity. To treat the premia due on the policy from the date of retirement to the date on which the policy is to mature as a debit on the policy due to the fund carrying interest at 6 per cent per annum which shall be recovered from the amount of the sum assured and bonus, if any, payable on the date of maturity of the policy.

Rule - 5.

An insured person whose communication intimating election of one of the four alternatives of Rule 4 does not reach the Director of insurance within one year from the date with effect from which he ceases to be in service, will be held to be entitled only to the third alternative of Rule 4 and the surrender value will be paid to him or his heirs on demand, according to rules, if applied for at any time within a period of ten years from the date of discontinuous of payment of premium.

Rule - 6.

If the insured, who has not taken a policy as a compulsory measure wishes to withdraw from insurance after the policy had been in force for not less than two years, he may surrender his policy and apply for the surrender value of the sum assured thereby, which will be 40% of sum total of all the premia paid by him upto the date of such surrender along with bonus if any due to him. No surrender value will be allowed for policies of less than two years duration.

Rule - 7. Management.

(1)     The business of the State Life insurance shall be managed by the Director of Insurance.

(2)     All receipts and disbursements on account of the State Life Insurance shall be carried to a separate head of account and the funds belonging to this account may, at the end of each year be invested in such manner as Government may prescribe.

Rule - 8. Procedure for applying for Insurance.

An employee proposing to insure his/her life under these rules shall submit proposal in Form No. 1 written in his/her own hand wherever possible and shall sign it in the presence of the head of office. The latter will in turn sign the certificate to the effect that he has read and explained the form to the proposer who signature was affixed in his presence and that the entries made therein are correct and send it along with the original chalan receipt towards the payment of 1st premium to the Director of Insurance.

Rule - 9.

Director of Insurance shall be competent to decide finally whether the proposal is to be accepted or not.

(1)     If it is decided to accept the proposal and if the chalan for the 1st instalment of premium is also received along with proposal form the acceptance shall be communicated and a policy shall be issued in the appropriate prescribed form to the insured under intimation to the employer concerned. The policy shall take effect from the date of the payment of the 1st premium.

Rule - 10.

The policy will bear a Serial No. All policies having sum insured up to a limit of Rs. 25,000 will be signed by an officer not below the rank a Deputy Director of insurance and all policies above Rs. 25,000 will be signed by the Director of Insurance. The policy and premium receipt book will then be forwarded to the Insured through the Head of Officer with instructions for the realisation of premia due on the policy.

Rule - 11.

When an insured wishes to effect further Insurance by taking an additional policy on his life, he shall submit a proposal in Form No. 1 along with the chalan for the remittance of 1st instalment of premium for the additional policy. The procedure prescribed in rule 8 shall be applicable to such cases also.

Rule - 12. Procedure for sanction of loan against policies.

(1)     Loans carrying 6% interest per annum may be sanctioned on unencumbered policies by the Director of insurance upto a maximum of 80% of the surrender value of the policy, the policy being assigned in favour of the Director of insurance, Trivandrum in consideration as security for the loan.

(2)     Loan granted under the above rules shall be repaid in monthly instalments not exceeding 20 along with premium.

(3)     Repayment of such loan may either be separately shown in the pay or salary bill of the officer concerned or remitted into the treasury under separate chalans to the credit of the State Life Insurance Fund. Interest due upto the date shown be cleared before setting aside amounts against the principal of the loan. The loan shall be a primary charge on the policy and any payment outstanding shall be deducted from the surrender value if the policy is surrendered or from the sum assured if policy becomes a claim by death of maturity.

Rule - 13. Payment of claims.

(1)     Subject always to the production of the policy and the establishment of the claimants' title, the sum assured by a policy (including bonus, if any) less the amount (if nay) due to the fund on account of arrears of premia, loan etc, will be paid to the insured.

(2)     In the case of endowment policies maturing for payment on attaining fifty-five years of age, to the insured.

(3)     In all other cases, to the registers, surviving nominee or nominees of the insured on he insured's death and if thereby no surviving nominee, to such person or persons as certified to be the legal heirs as per the heirship certificate issued by the Tahsildar. If the sum assured exeeds [3][Rs. 25, 0001 the amount due shall be paid to the legal heirs declared as such by a competent civil court having jurisdiction.

Rule - 14.

If the policy holder so desires he can get the discounted value of the sum assured within eleven months before the date of maturity of the policy. The table showing the value of Re. 1 payable at the end of the months is given in appendix of this rule.

Rule - 15.

The nomination referred to in the foregoing rule shall be made in the prescribed form appended to the rules. Such nomination completed and signed by the insured in the presence of two witnesses shall be sent to the Director of Insurance along with Form No. 1 who shall register it in the books. If the inured has a family at the time of his making the nomination he/she shall make such nomination only in favour of his/her family. In the case of married insured the family for this purpose will include only the wife/husband and children of the insured. In case he/she does not have a family at the time of making the nomination he/she may nominate any person coming under family as defined in Rule 71 Part III, Kerala Service Rules. However such nomination will become invalid in the event of is acquiring a family and he shall make a fresh nomination in favour of the family.

(1)     When the person nominated does before the insured the nomination becomes ipso facto void and the heirs of the nominee will have no claim.

(2)     If the insured nominates more than one person, he shall specify the amount of share payable to each of the nominees, failing which the amount payable shall be equally distributed among the nominees by the Director of Insurance.

(3)     The insured may at any time cancel nomination by sending a notice to the Director of Insurance along with a fresh nomination made in accordance with the above provision.

(4)     When a nominee predeceases the insured, the nomination become ipso facto void and it shall be competent for the Director of Insurance to require the claimant (s) to produce satisfactory evidence of title on the claim amount under the policy.

Rule - 16.

The following documents will be accepted as satisfactory evidence of title unless the Director of Insurance considers the production of further evidence necessary.

(i)       If the amount payable does not exceed [4][Rs. 25,000] a heirship certificate issued by the Tahsildar.

(ii)      In all other cases a succession certificate under the Indian Success Act 39 of 1925.

(iii)     Certificate of heirship, probate or letter of administration granted by any Court of law in India, although such certificate probate or letter of administration does not expressly mention the sum due under the State Life Insurance Policy.

(1)     Where the deceased has by a registered will bequeathed the sum assured to any particular individual, a probate of the will granted by a competent Civil Court.

Rule - 17.

In case where there are more than one claimant the sum assured by the policy will be paid to the person who seem to the Director of Insurance to have the best claim on his giving a good and tangible security to indemnify the Government against any loss that may accrue in the event of the Government being compelled by a decree of a Court to pay the sum assured over again to another calimant.

Rule - 18.

The Director of Insurance may consult the Secretary to Government, Law Department, Secretariat, Trivandrum on any legal points connected with the settlement of claims.

Rule - 19. Manner of realising premia.

(i)       The first premium on each policy may be paid either in any treasury under the head of account "8011 insurance and Pension Funds -105 State Government Insurance Fund - 03 State Life insurance Fund" or any other head of account to be specified from time to time.

(ii)      As demand draft in Favour of the Director of Insurance payable at Trivandrum; or

(iii)     In cash in the offices of the Director of insurance.

Rule - 20.

Subsequent premia will be payable in advance and be recovered monthly by deduction from the pay of the insured. The insured person is responsible to see that the amount of the premium which is due on the 1st day of each month is deducted from his/her pay for the preceeding month. If the premium due for any month is omitted to be deducted from the salary bill of the insured person, or from the establishment bill of the office in which his pay is drawn (by oversight or otherwise) whether such omission was on the part of the insured or on the part of the other whose duty it is to draw and disburse his pay, the insured should pay the premium in cash into the nearest treasury within the period of grace period of one month from the date of receipt of pay without deduction of premium drawing officers concerned shall give every facility for such a remittance. A deduction statement in the schedule appended to these rules, indicating therein particulars of individual deduction, may be attached to the salary bill. These schedules should reach the Directorate of Insurance, after their correctness is checked by the Accountant General (A&E), with reference to the gross and net amounts of the bills.

(1)     In case of employees on deputation in the service of Panchayats Municipalities and Corporations or on deputation to foreign service such as Boards, Corporations and similar autonomous bodies, already insured under these rules, the premium, shall be recovered monthly and remitted by chalan in the treasury under the proper head of account relating to State Life insurance by the respective drawing and disbursing officers. The original chalan receipts thereof together with recovery schedule shall be sent to the Director of Insurance. He is also permitted to remit the premium recovered as above by way of Demand Drafts drawn in favour of the Director of Insurance payable at Trivandrum.

(2)     In the case of employees, on leave without allowances or under suspension etc. , already insured under these rules, it is to be ensured that the monthly premium is paid in time either by way of chalan in the treasury or as Demand Draft or in cash in the office of the Director of insurance.

Exemption:

In the case of employees, on leave without allowance on Medical Ground the recovery of premium shall commence only with effect from the month in which he resumes duty after leave. However arrears of premia for such period shall be treated as a debt on the policy carrying interest at 9% per annum and shall be recovered from his future pay is not more than ten instalments, commencing from the month in which he resumes duty after such leave. If the insured dies while on leave without allowances on Medical Ground the arrears of premia due from him shall be recovered with interest at 9% per annum from the payments admissible under his policy.

(3)     In every other case of non recovery on payment of premium for a period of 6 months, the policy shall lapse as from the due date of defaulted premium and all claims to the policy moneys thereunder forfeited subject to the relevant Rules 20. 4 below.

(4)     A lapsed policy on which at least three years premia have been duly paid before the date of lapse, shall automatically secure a fully paid up assurance for a reduce sum which will bear the same promotion to the original sum assured as the total amount of premium paid bears to the amount payable if the original policy continued in force until the assured attained his fifty years of age. A claim arising within six months from the of lapse of such policy, will however be treated as good and will be paid in full subject to the deduction of ordinary revial charges specified in rule 2. 1 below.

(5)     A lapsed policy on which three years premia have not been paid before the date of lapse shall be void and no claim on it will be recognised.

Rule - 21. How a lapsed policy revived.

(1)     A lapsed policy may be revived on payment of all arrears of premia with compound interest calculated from the 1st due date to the date of payment at 9% per annum. Such revival should be done within a period of three years from the date of the lapse of policy.

Rule - 22. Miscellaneous.

When an insured who has ceased to be in the service of Government has elected to continue to pay such premia, he may be allowed by the Director of Insurance to pay such premia in advance, monthly, quarterly, half yearly or yearly into any Government Treasury. A grace period of one month shall however be allowed. If the insured fails to pay the premium within the days of grace he shall be deemed to have withdrawn under Rule 4. 5(c) and he shall be paid back the surrender value of the sum assured which will be 40% of the sum total of all the premium paid by him upto date along with bonus if any.

Rule - 23.

Every insured shall be supplied with a premium receipt book in which payment of each premium shall be acknowledged by the officer realising the same and keep the book under his safe custody with upto date entries. In the case of Gazetted Officers the premium may be noted in the PRB and duly attested by the officer himself. Final payment in their case will be made subject to test checking of the remittance of few months with the Treasury Records.

Rule - 24.

If an insured should apply for the issue of a duplicate premium receipt book on the ground that the original is lost or damaged the same shall be issued to him by the Director of Insurance on his paying a fee of Rs. 10.

Rule - 25.

If an insured should apply for the issue of duplicate of the policy because the original is damaged or lost the same shall be issued to him by the Director of Insurance on his paying of a fee of Rs. 10 and on his executing an indemnity bond in the case of damage.

Rule - 26.

False or incorrect information furnished by any insured or production by him of any false evidence in connection with the insurance of his life shall render his policy null and void and the premium paid by him shall be forfeited to Government.

Rule - 27.

Actual valuation of the State Life insurance Fund shall be conducted once in every five years.

Rule - 28.

The Director of Insurance may with the sanction of Government frame such subsidiary rules for the transaction of business as may be found necessary. All matters not provided for in these rules and all doubts about the construction or interpretation of the rules shall be placed before the Government by the Director of insurance and the Orders thereon of the Government shall be final. These rules come into force from the date of the order.