Can a policy-holder assign his policy?
Prior approval of the Reserve Bank of India is required for assignment of rupee policies held on Indian Register by a resident of India in favour of any person resident outside India, or by a non-resident in favour of another non-resident in a different country, except where the assignment is without consideration in favour of the policy-holder’s non-resident wife or other dependent relatives. Rupee policies may be freely assigned by non-residents in favour of banks or LIC in India for obtaining loans, provided the loan amount is paid in rupees in India to the policy-holder or his close relatives or by credit to the policy-holder’s Ordinary Non-resident Account with an authorised dealer in India not being a Non-resident External Account or Foreign currency Non-resident (FCNR) Account.
