Can a Resident Indian hold insurance policy issued by insurer located outside India?
RBI came out with a Notification No. FEMA. 91/2003-RB dated June 5, 2003 and allows the holding of insurance policy issued by insurer located outside India subject to following conditions; Permission to take or hold a life insurance policy issued by an insurer outside India A person resident in India may take or continue to hold a life insurance policy issued by an insurer outside India, provided that, the policy is held, under a specific or general permission of the Reserve Bank Of India. A person resident in India may continue to hold any life insurance policy issued y an insurer outside India when such person was resident outside India. Provided further that where the premium due on a life insurance policy has been paid by making remittance from India, the policy holder shall repatriate to India through normal Banking channels, the maturity proceeds or amount of any claim due on the policy, within a period of seven days from the receipt thereof.
