The Industrial Assurance (Life Assurance Premium Relief) Regulations 1977

The Industrial Assurance and Friendly Societies Act 1929(1)

3.  In the Schedule to the Industrial Assurance and Friendly Societies Act 1929 the words “premiums actually paid”, in their application to a policy in respect of which under the prescribed scheme or an approved scheme payment of any premium due has been discharged by payment of 82½ per cent of that premium, shall include premiums in respect of which such payment has been made.

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 premiums of the amount payable under the policy before the increase in premium was effected under regulations 4(1) or 6(2), including, in respect of premiums paid, or which would have been payable, after 6th April 1979, payments of that amount included in premiums paid, or which would have been payable, after that date;

“the original sum assured” means the sum (including any addition by way of bonus) assured or guaranteed under the surrendered policy on 6th April 1979 before the increase under regulations 5 or 6 takes effect, together with any addition made thereto in respect of the due proportion of any bonus added on or after 6th April 1979;

“the amount of the increase in the sum assured” means the sum assured by the surrendered policy in so far as it exceeds the original sum assured as at 6th April 1979, together with any addition made thereto in respect of the due proportion of any bonus added on or after 6th April 1979.

(1)

1929 c. 28