Regulation 10
1. Subsection (1) of section 23 of the Industrial Assurance Act 1923, as it applies to an industrial assurance contract to which the prescribed scheme, or an approved scheme which provides for payment of net premiums, applies, shall have effect as if for the words “the amount due” there were substituted the words “the amount of the net premiums, as defined in the Industrial Assurance (Life Assurance Premium Relief) Regulations 1977, due”.
2. In its application to the valuation of a policy of which the sum assured or guaranteed has been increased under regulations 5 or 6, Schedule 4 to the Industrial Assurance Act 1923 shall have effect subject to the following modifications—
(a)The value of the policy shall be the aggregate of the value of the sum assured or guaranteed by the policy immediately before the increase and of the value of the increase in the sum assured or guaranteed.
(b)For the purpose of the valuation of the increase in the sum assured or guaranteed, paragraphs 1 and 2 of Schedule 4 shall have effect as if the increase had been assured by a policy effected on the next anniversary date of the policy after 6th April 1979 for the then unexpired term of the policy.
3.
4. In its application to a policy of which the sum assured or guaranteed has been increased under regulations 5 or 6, paragraph 1 of the said Schedule shall have effect subject to the following modifications:—
(a)For the purpose of calculating the amount assured by the free paid up policy the sum assured by the surrendered policy shall be divided into the original sum assured and the increase in the sum assured, any addition to the sum assured by the surrendered policy by way of bonus on or after 6th April 1979 to be allocated proportionately between and to be treated as comprised in the original sum assured and the increase in the sum assured respectively.
(b)The amount assured by the free policy shall consist of the aggregate of proportions of the original sum assured and of the increase in the sum assured calculated as follows:—
(i)The proportion of the original sum assured shall be the same proportion as the amount of the original premiums actually paid bears to the amount of the original premiums which would have been payable under the surrendered policy had the full number of original premiums become payable thereunder;
(ii)The proportion of the increase in the sum assured shall be the same proportion as the amount of the increase in premiums actually paid bears to the amount of the increase in premiums which would have been payable under the surrendered policy had the full number of increases in premium become payable thereunder.
5. For the purposes of sub-paragraph (b)(i) of the preceding paragraph and this paragraph
“the original premiums” means
“the original sum assured” means
“the amount of the increase in the sum assured” means
6. For the purpose of subsection (2) of section 2 of the Industrial Assurance and Friendly Societies Act 1948 (power to insure life of parent or grandparent for not more than £30) there shall be excluded so much of any sum insured to be paid, or paid, on the death of any one of a person's parents or grandparents as represents any increase in any sum assured or guaranteed effected under regulations 5 or 6.
7. Subsection (3) of section 56 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951, as it applies to an industrial assurance contract or a collecting society contract of which the sum assured or guaranteed has been increased under regulations 5 or 6 and which is a contract for the whole term of life, shall have effect as if it provided that the terms of the contract shall be varied in accordance with the following provisions—
(a)The relevant arrears shall be extinguished by a reduction of the sum assured or guaranteed under the policy, the amount of the reduction to be such an amount as shall be determined by an actuary.
(b)The industrial assurance company or collecting society shall at the time for writing off give written notice to the owner of the policy of the amount of the reduction so determined.
(c)The owner of the policy may, within six months of receiving such notice, appeal to the Industrial Assurance Commissioner on the ground that such reduction is not fair in relation to the amount of the extinguished relevant arrears.
(d)If on such appeal, and after giving the owner of the policy and the company or society an opportunity of being heard, the Industrial Assurance Commissioner is satisfied that the reduction is not fair, he may direct the company or society to make such increase as he may consider appropriate in the sum assured or guaranteed to which the appeal relates.
8. In applying the limits imposed by section 64 of the Friendly Societies Act 1974 (limits on amounts which a member, or person claiming through a member, of a registered friendly society is entitled to receive from one or more such societies) there shall be disregarded any increase in any sum assured or guaranteed which is effected under regulations 5 or 6.
9. For the purposes of section 72 of the Friendly Societies Act 1974 (power of registered friendly societies to insure life of parent or grandparent for not more than £30) there shall be excluded so much of any sum insured to be paid, or paid, on the death of any one of a person's parents or grandparents as represents any increase in any sum assured or guaranteed which is effected under regulations 5 or 6.
1929 c. 28