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FOREIGN EXCHANGE MANAGEMENT (INSURANCE) REGULATIONS, 2000
Notification
No. 12 dated 3rd May 2000
GSR
395 (E), dated 3.5.2000: In exercise of the powers conferred by
sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42
of 1999), the Reserve Bank makes the following regulations with respect to the
holding by a person resident in India of a general or life insurance policy
issued by an insurer outside India, namely:
(I)
These Regulations may be
called the Foreign Exchange Management (Insurance) Regulations, 2000.
(ii)
They shall come into force on
1st day of June 2000.
In
these Regulations, unless the context otherwise requires, -
(I)
�Act� means the Foreign Exchange Management Act, 1999 (42 of 1999);
(ii)
The words and expressions used but not defined in these Regulations shall
have the same meaning respectively assigned to them in the Act.
Save
as otherwise provided in the Act, rules or regulations made or orders or
directions issued under the Act, no person resident in India shall take any
general or life insurance policy issued by an insurer outside India:
Provided
that the Reserve Bank may, for sufficient reasons, permit a person resident in
India to take any life insurance policy issued by an insurer outside India.
(1)
A person resident in India but not permanently resident therein may
continue to hold any insurance policy issued to him by an insurer outside India,
if the premium on such policy is paid out of foreign currency resource outside
India.
Explanation-
For the purpose of this clause, �not permanently resident� means a person
resident in India for employment of a specified duration (irrespective of
length thereof) or for a specific job or assignment, the duration of which
does not exceed three years.
(2)
A person resident in India may
take or continue to hold a general insurance policy issued by an insurer outside
India, provided that, before taking the policy in either case, he had obtained a
no objection certificate from the Central Government.
(3)
(I) A
person resident in India may continue to hold any insurance policy issued by an
insurer outside India when such person was resident outside India:
Provided
that the premium on the policy is paid out of his foreign currency account
maintained with a bank outside India or out of funds held in his Resident
Foreign Currency account maintained with an authorised dealer:
Provided
further that where the policy is a life insurance policy in force for a period
of not less than three years prior of the policyholder�s return to India, the
premium due on the policy may also be paid by making remittance from India.
(ii)
The maturity proceeds/ amount of claim received in respect of the policy
referred to in sub-clause (I), may
be credited to the policy holder�s foreign currency account maintained with a
bank outside India or, as the case may be, to his Resident Foreign Currency
account maintained with an authorised dealer in India:
Provided
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 period of seven days from the receipt thereof.
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