Section 34 - Amendment of section 17 - Labour Provident Fund Laws (Amendment) Act, 1976

34. Amendment of section 17. In section 17 of the Employees Provident Funds Act,- (a) after sub-section (2), the following sub-sections shall be inserted, namely: - (2A) The Central Government may, if requested so to do by the employer, by notification in the Official Gazette, and subject to such conditions as may be specified in the notification, exempt any establishment from the operation of all or any of the provisions of the Insurance Scheme, if it is satisfied that the employees of such establishment are, without making any separate contribution or payment of premium, in enjoyment of benefits in the nature of life insurance, whether linked to their deposits in provident fund or not, and such benefits are more favourable to such employees than the benefits admissible under the Insurance Scheme. (2B) Without prejudice to the provisions of sub-section (2A), the Insurance Scheme may provide for the exemption of any person or class of persons employed in any establishment and covered by that scheme from the operation of all or any of the provisions thereof, if the benefits in the nature of life insurance admissible to such person or class of persons are more favourable than the benefits provided under the Insurance Scheme. ; (b) after sub-section (3), the following sub-section shall be inserted, namely : - (3A) Where, in respect of any person or class of persons employed in any establishment, an exemption is granted under sub-section (2A) or sub-section (2B) from the operation of all or any of the provisions of the Insurance Scheme (whether such exemption is granted to the establishment wherein such person or class of persons is employed or to the person or class of per- sons as such), the employer in relation to such establishment - (a) shall, in relation to the benefits in the nature of life insurance, to which any such person or class of persons is entitled, or any insurance fund, maintain such accounts. submit such returns, make such investments, provide for such facilities for inspection and pay such inspection charges, as the Central Government may direct; (b) shall not, at any time after the exemption without the leave of the Central Government, reduce the total quantum of benefits in the nature of life insurance to which any such person or class of persons was entitled immediately before the date of the exemption; and (c) shall, where any such person leaves his employment and obtains re-employment in any other establishment to which this Act applies, transfer within such time as may be specified in this behalf by the Central Government, the amount of accumulations to the credit of that person in the insurance fund of the establishment left by him to the credit of that person s account in the insurance fund of the establishment in which he is re-employed or, as the case may be, in the Deposit-linked Insurance Fund. ; (c) in sub-section (4), after clause (b), the following clauses shall be inserted, namely :- (c) in the case of an exemption granted under sub-section (2A), with any of the conditions imposed under that sub-section or with any of the provisions of sub-section (3A); (d) in the case of an exemption granted under sub-section (2B), with any of the provisions of sub-section (3A). ; (d) in sub-section (5),- (i) for the words, brackets and figure or sub-section (2) , the words, brackets, figures and letters , sub-section (2), sub- section (2A) or sub-section (2B) shall be substituted; (ii) for the words or the family pension fund , the words , the family pension fund or the insurance fund shall be substituted; (iii) after the words Family Pension Scheme , the words or the Insurance Scheme shall be inserted; (iv) after the words Family Pension Fund , the words or the Insurance Fund shall be inserted.