POST
OFFICE ANNUITIES RULES, 1957
No.
F. 7 (14)‑IF. III/57, 27th July, 1957, (Gazette, Extraordinary, 27th July 1957)
‑The Central Government is pleased to make the following rules to regulate the
issue of Post Office, Annuities. The right of making from time to time such
additions and alterations in the rules or in the premia to be paid as may be
considered necessary is reserved to the Central Government, provided that no
such addition or alteration shall affect the conditions of any contract for an
annuity which any person may have already made under these unless such person
has given his consent in writing to such addition or alteration.
1. Definitions.‑In
these rules:‑----
(i) "Annuity
policy" means the written document, containing the contract entered into
by Government to pay the annuity of any of the types prescribed in the annexed
tables I, II (a) and II (b) to an annuity policy holder or a
third party with effect from a specified date, provided the annuity policy‑holder
pays to the Government the prescribed premia.
(ii)
"Proposer" means the person who applies forpurchase of
any annuity policy;
(iii) "policy
holder" means the person to whom an annuity policy has been issued;
(iv) "The
annuitant" means the person to whom the annuity is to be paid:
(v) "Premium"
means the first and periodical payment by the policy holder for any policy;
(vi) "Post
Office" means a head or sub‑post office in Pakistan under the control of
the Director‑General of Pakistan Posts & Telegraphs. The Director‑General
may relax this rule and allow, in his discretion, a Branch Post Office also to
transact Post Office Annuity business:
(vii)
"Director" means the Director, Postal Life Insurance. This term
includes the Assistant Directors, Postal Life Insurance;
(viii) "Paid Up
Policy" is a Policy which requires no further payment of premium in
respect of it, and issued in lieu of, but maturing at the same date as the
original policy, either for the original annuity contracted when the future
premiums payable or compounded by a single payment or for a reduced annuity,
when the premiums in respect of the original policy are discontinued before the
stipulated term;
(ix) "Surrender
Value" of a policy is the amount that is payable to the policy holder or
the annuitant, as the case may be, when he foregoes the contingent benefit of
his policy and surrenders it for an immediate cash payment,
(x) Conversion means any
alteration in the terms of policy and includes change in the amount
of premium, the premium paying term, in the amount of annuity and in the
specified date.
2. The administration of
the Post‑office annuities under these rules is vested in the Director‑General
of Posts and Telegraphs, who is author raised to issue from time
to time such subsidiary regulations and orders as he may deem necessary,
provided that no such regulation or orders shall be inconsistent with any
provision of these rules or any rules that may hereafter be made by the Central
Government.
3. Policies of annuities
will be issued by the Director at Karachi in accordance with these rules and
such policies will be exempted from Stamp Duty.
4. The annuity payments
will not be liable to Pakistan Income‑tax and will not also be taken into
account in calculating the total income of the holder for the purpose of
income tax.
5. Any person who has
attained the age of 18 years may purchase a policy for an immediate annuity of
Rs. 300 per annum or a multiple thereof subject to a maximum of Rs. 2,400 per
annum payable for 5, 10, 15, 20 or 25 years, in lieu of a single premium or a
deferred annuity for a similar sum in lieu of a single premium or of premia
payable over a number of years in annual, six‑monthly or quarterly instalments
during the deferred period.
6. Tables I and II (a)
and II (b), showing the rates of premia in respect of the
immediate and deferred annuities respectively of Rs. 300 per annum, are
attached to these rules. Rates for higher amounts will be, proportionately,
higher.
7. An annuity policy,
like other personal property, forms the portion of the estate of the holder
before the commencement of the annuity. He may change the annuitant by giving
due notice to the Director, and getting the change endorsed on the policy.
After the annuity has commenced all rights in respect thereof will vest in the
annuitant.
8. The proposal for the
purchase of an annuity policy must be submitted by the proposer in the form
prescribed by the Director General of Post & Telegraphs to these rules at a
head or sub‑post office along with the premium or its first instalment, as the
case may be. The Post aster will give a receipt for the amount in the
prescribed form and reward the application to the Director.
9 The Director will
decide whether the proposal should be accepted or not, after satisfying
himself, among other things, that the premium, or its first instalment, has
been correctly paid and that the proposal form is in order. If he decides that
the proposal should be accepted, he will issue the annuity policy to
the proposer.
10. The policy will bear
the date on which the first premium was paid by the proposer. Every
subsequent premium will be due on the anniversary of this date or on the first
date of the six‑monthly or quarterly period as the case may be. It shall always
be paid in cash by the policyholder at the prescribed post office by the date
it is due. A period of grace, equal to one month, will be allowed in case of
annual and six-monthly payments and 10 days in respect of quarterly payments.
11. Payment of Annuity.‑The annuity will be payable monthly in
arrears in cash through the Post Office. The first monthly payment in
respect of the immediate annuity will commence after the
expiry of one calendar month from the date of payment of the
single premium and that in respect of a deferred annuity one
month after the expiry of the period of deferment.
12. Surrender of
an Annuity Policy.‑If a policy‑holder surrenders the annuity policy
before the annuity has commenced the amount of premia realised from him will be
refunded.
If the annuitant
surrenders the annuity after its commencement and foregoes his rights to the
subsequent payments due to him, the amount of premium, realised in
respect of the policy, plus interest on its monthly balance at
2 per cent. per annum compound in respect of single premium policies and li per
cent. per annum compound in respect of instalment premia policies, less the
amount of any annuity paid up to the date of surrender may be paid to him.
13. Death of the policy‑holder.‑A
policy‑holdermay nominate a successor
to him to meet the contingency of his death before the annuity commences. If
such a nomination is made, all the rights and liabilities in the policy shall
vest in him as if he were the policy‑holder. If no such nomination exists and
the death of the policy‑holder occurs before the commencement of the annuity,
all rights and liabilities in the policy shall vest in the annuitant.
If the policy‑holder is
himself the annuitant, the amount of the premium realised on the policy till
his death before the commencement of the annuity plus interest on its monthly
balance at 2 per cent. per annum in respect of single premium policies and 1i
per cent. per annum in respect of instalment premia policies will be refunded
to his heir or heirs.
14. Conversion of an
annuity policy.‑Apolicy‑holder may, at
any time, before the commencement of the annuity, apply for the reduction of
the amount of annuity; provided it is not reduced below Rs.
300, commutation of future premiums by payment of a lump sum, or may have his
policy made paid‑up for a reduced amount of annuity free from future payment of
premium provided the amount so reduced is not less than Rs. 300 per annum.
15. Lapse of policy.‑If the premium, due on a policy, be not paid within
the period of grace, the policy will lapse, but, if all the arrears of premia
along with interest at the rate of 4 per cent. per annum or a fine of Re. 1
whichever is more, are paid within 12 months from the day the premium was due,
the Director may, in his discretion, allow the policy to be revived.
16. The surrender value
of a policy under these‑rules may be paid to the policy‑holder or a paid up
policy may be issued to him on receipt of an application to that effect at any
time after the lapse of the policy.
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