


First  Previous (SECOND SCHEDULE. Additional Particulars of Industrial Assurance Valuations.)  Next (FOURTH SCHEDULE. Limitations on Rights on Forfeiture for Nonpayment of Premium.) 
INSURANCE ACT, 1936
[GA]  
[GA] 
THIRD SCHEDULE. Rules for Ascertaining the Amount of a Free Paidup Policy and the Cash Surrender Value of any Policy of Industrial Assurance.  
PART I.  
General Rules.  
1. Interest is to be assumed at the rate of four per cent. per annum.  
2. The rate of mortality is to be assumed according to the Saorstát Life Table No. 1 (Males).  
3. The age of the person whose life is assured under a policy of industrial assurance in respect of which premiums are payable shall be obtained by adding to the age attained by such person at his birthday next after the date of the issue of such policy, the duration of such policy in completed years at the date at which the last premium paid thereon became due.  
4. The age of the person whose life is assured under a free paidup policy of industrial assurance shall be obtained by adding to the age attained by such person at his birthday next after the date of the issue of the original policy of industrial assurance the number of completed years which have elapsed between that date and the date as at which the value of such free paidup policy is required to be ascertained.  
5. The net premium shall be such premium as at the assumed rate of interest and the assumed rate of mortality and at the age of the person whose life is assured at such person's birthday next following the date of the policy is sufficient to provide for the risk incurred by the industrial assurance company in issuing such policy, exclusive of any addition thereto for office expenses and other charges, but where the risk so incurred has been increased after the issue of such policy the net premium shall be calculated as though such increased risk had attached to such policy at the date of the issue of such policy.  
6. The value of a policy of industrial assurance in respect of which premiums are payable shall be taken to be the difference between the present value, as at the date on which the last premium paid became due, of the reversion in the sum assured, including any bonus added thereto, according to the contingency upon which it is payable, and the present value as at the said date of the future net premiums.  
7. The value of a free paidup policy of industrial assurance shall be taken to be the present value at the date as at which the value is required to be ascertained of the reversion in the sum assured, including any bonus added thereto, according to the contingency upon which it is payable.  
8. Notwithstanding anything contained in this Schedule, a policy of industrial assurance in respect of which premiums are payable shall not for the purposes of this Schedule attain a value unless and until such policy has been in force for two completed years.  
PART II.  
Policies of Industrial Assurance for the Whole Term of Life.  
1.—(1) In the case of a policy of industrial assurance, other than any such policy issued before the person whose life is assured attained the age of six years, the date of the policy may be assumed to be one year after the actual date thereof, and, if it is so assumed, the duration of the policy may be assumed to be one year less than the actual duration.  
(2) In the case of a policy of industrial assurance issued before the person whose life is assured attained the age of six years, no account shall be taken of any period for which the policy was in force before the anniversary of the date of the issue of such policy next preceding the date on which such person attained the age of seven years.  
2. The amount of a free paidup policy of industrial assurance shall be a sum bearing the same proportion to seventyfive per cent. of the value of the policy in relation to which such free paidup policy is issued as the sum of one pound bears to the value of the reversion in the sum of one pound payable on the death of the person assured.  
3. The cash surrender value of the surrendered policy shall be 90 per cent. of the present value, at the date as at which such value is required to be ascertained, of the reversion in the sums assured (including any bonus added thereto) under the free paidup policy which the surrendered policy would be entitled to receive, or, if the surrendered policy is a free paidup policy, to 90 per cent. of the present value at the said date of the reversion in the sums assured (including any bonus added thereto) under such free paidup policy.  
PART III.  
Endowment and Endowment Assurance Policies.  
1.—(1) Every free paidup policy shall assure on the events on which the sums assured by the surrendered policy were payable, payment of sums bearing the same proportion to the said sums assured by the surrendered policy (including any addition by way of bonus) as the amount of the premiums actually paid under the surrendered policy bears to the amount of all of the premiums which would have been payable under the surrendered policy had the full number of premiums become payable and been paid thereunder.  
(2) The date of a policy of industrial assurance may be assumed to be one year after the actual date thereof, and, if it is so assumed, the amount of the premiums assumed under the next preceding subparagraph of this paragraph to have been paid, and the full number of premiums payable thereunder may be calculated from the assumed date of the policy.  
2. Where the surrendered policy provided for the payment of a sum by way of return of premium on a specified event, the free paidup policy shall provide for the repayment on the happening of that event of such part of the premiums actually paid under the surrendered policy as would have been repayable on that event if such policy had remained in force.  
3. The cash surrender value of the surrendered policy shall be ninety per cent. of the present value (at the date as at which such value is required to be ascertained) of the reversion in the sums assured (including any bonus added thereto) under the free paidup policy which the surrendered policy would be entitled to receive, or, if the surrendered policy is a free paidup policy to ninety per cent. of the present value (at the said date) of the reversion in the sums assured under such free paidup policy, but so that, where the remaining term of the surrendered policy is less than five years, the following percentages shall be substituted for the said ninety per cent., that is to say:—  
(a) ninetytwo per cent. where the remaining term is less than five years but not less than four years, and  
(b) ninetyfour per cent. where the remaining term is less than four years but not less than three years, and  
(c) ninetysix per cent. where the remaining term is less than three years but not less than two years, and  
(d) ninetyeight per cent. where the remaining term is less than two years.  
PART IV.  
Basis of computation when Parts I, II and III of this Schedule do not apply.  
Where the terms or conditions on which the sums assured by a policy of industrial assurance are payable, whether as originally agreed on or as subsequently varied, are such as to render the method of calculating the amount of the free paidup policy mentioned in Parts I, II and III of this Schedule inapplicable, the basis of computation of the amount of such free paidup policy shall be such as shall be approved of by the Minister. 