Article 1
These Regulations are enacted in accordance with Paragraph 7, Article 29 of the Labor Insurance Act (hereinafter referred to as the Act).

Article 7
When insured persons who have not paid up the principal and interest of the loan or their beneficiaries apply for the insurance benefits specified in Subparagraph 1, Paragraph 1, Article 5, the insurer shall act according to the following and make deductions from the benefits payable until the principal and interest of the loan are paid up:
1. With benefits to be paid in one lump sum, the owed principal and interest shall be deducted completely from the payment except for funeral and burial allowance payments.
2. With pension benefits, one third of the amount to be paid shall be deducted each time until the owed principal and interest are paid up. However, when an insured person has deceased while receiving old age or disability pension benefits and his or her beneficiary chooses to apply for payment of such benefits in one lump sum, the owed principal and interest shall be deducted completely from the payment.
When an insured person applying for payment of National Pension Insurance benefits as stated in the preceding paragraph and years of Labor Insurance coverage are to be calculated, the insurer shall deduct one third of each pension payment calculated according to years of Labor Insurance coverage until the owed principal and interest are paid up.
Pursuant to the 2nd sub-paragraphs of first paragraph or the preceding paragraph after the deduction of pension amount is lower than NT $ 3,000, the insurer can only deducte the difference between the pension benefits and NT $ 3,000.

Article 8
When an insured person applies for Labor Insurance benefits other than those specified in Paragraph 1 of the preceding article, the insurer shall deduct one third of each payment until the principal and interest of the loan are paid up. However, no deduction shall be made with insurance benefits less than NT$10,000 or medical benefits.

Article 12
These Regulations shall take effect on the day they are promulgated.
The regulations are amended on February 5, 2015, and apply on March 1, 2015.