DISCONTINUANCE OF SCHEME Clause Samples
The "Discontinuance of Scheme" clause defines the process and conditions under which a particular scheme, program, or plan may be terminated before its intended completion. Typically, this clause outlines who has the authority to discontinue the scheme, the notice requirements, and any obligations or procedures that must be followed upon discontinuance, such as settling outstanding benefits or liabilities. Its core practical function is to provide a clear and orderly mechanism for ending the scheme, thereby reducing uncertainty and protecting the interests of all parties involved.
DISCONTINUANCE OF SCHEME. The Policyholder shall have the right to terminate the Policy by giving written notice to the Company. The Policy will terminate from the date the Company receives the written notice and any cancellation will not be backdated and premiums will be charged for the time on risk. The Company reserves the right to cancel the Policy if the Policyholder fails to comply with the Conditions of the Policy. The Scheme will cease immediately should the provision of the benefits payable under the Policy cease to be paid in accordance with Sections 481 and 482 of the Income Tax (Trading and Other Income) Act 2005.