(1) Whenever a policy of industrial assurance becomes forfeited after the 31st day of December, 1937, by reason of the non-payment of a premium payable thereunder, the person entitled to such policy shall on such forfeiture become entitled to the free paid-up policy hereinafter mentioned and the industrial assurance company which issued such forfeited policy shall, subject to the provisions of this section, issue as soon as may be after such forfeiture to the person entitled to such policy a notice that such policy has been converted into a free paid-up policy assuring the payment, in accordance with the terms (other than payment of premiums) contained in such forfeited policy, of a sum calculated in accordance with the rules contained in the Third Schedule to this Act.
(2) The next preceding sub-section of this section shall not apply to a policy which is not an endowment or endowment assurance policy issued on the life of a child aged less than ten years unless, before such forfeitur
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