Indians (NRIs) on short-term or long-term assignments abroad
can safeguard the interests of their families and assets in
India through purchase of customised insurance products
offered by a host of insurance companies in the country. NRIs
are treated at par with resident Indians in all terms, and
also entitled to avail loans against their
is no ceiling on the sum insured, except in the case of
persons of Indian origin who can be covered upto a maximum of
Rs.20 lakh. PIOs are also not eligible for some joint life
plans and plans having a term insurance element.
life insurance policies are classified as securities by the
foreign exchange regulations act, insurance policy documents
cannot be taken out of the country without the formal approval
of the Reserve Bank of India. Consent
from the RBI is also required to assign rupee policies held in
India by a resident Indian in favour of an NRI, or by a NRI in
favour of another NRI living abroad. Prior approval is not
required where the assignment is without consideration in
favour of the policy-holder's non-resident wife or other
While on-line payment of insurance premium is the most
preferred option, NRIs can choose to remit directly from
abroad through approved banking channels, foreign money
orders, debits from their NRE or FCNR account in India, or in
cash. Employers in India can also make payments on behalf of
their employees deputed abroad by them.
settlement of claims is generally made in Indian currency,
insurance companies do settle claims in foreign currency as an
exception, subject to approval from the Reserve Bank of India.
The policy holder needs to be a permanent overseas resident
who has paid his entire premium in foreign currency to avail
Persons of Indian Origin can neither make payments nor receive
settlements in foreign currency. Their settlements cannot be
repatriated outside India either.
range of products offered by insurance firms includes: life
insurance, health insurance, overseas travel insurance,
student medical insurance, home insurance, car insurance and
two wheeler insurance.