Reserve Bank of India
Exchange Control Department
Central Office
Mumbai 400 001
Notification No. FEMA. 12(R)/2015-RB
December 29, 2015
Foreign Exchange Management (Insurance) Regulations, 2015
In exercise of the powers conferred by sub-section (2) of Section 47 of the
Foreign Exchange Management Act, 1999, (42 of 1999), and in super cession of its
Notification No.FEMA.12/2000-RB, dated May 3, 2000, as amended from time to
time, the Reserve Bank of India 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:
1. Short Title and Commencement:
- These Regulations may be called the Foreign Exchange Management
(Insurance) Regulations, 2015.
- They shall come into force from the date of their publication in the
Official Gazette.
2. Definitions:
In these Regulations, unless the context otherwise requires,-
- ‘Act’ means the Foreign Exchange Management Act, 1999 (42 of 1999);
- The words and expressions used but not defined in these Regulations shall
have the same meaning respectively assigned to them in the Act.
3. Permission to take or hold a general insurance policy issued by an
insurer outside India
- A person resident in India may take or continue to hold a health
insurance policy issued by an insurer outside India provided aggregate
remittance including amount of premium does not exceed limit prescribed
under the Liberalised Remittance Scheme.
- No person shall take out or renew any policy of insurance in respect of
any property in India or any ship or other vessel or aircraft registered in
India with an insurer whose principal place of business is outside India
without permission of Insurance Regulatory and Development Authority of
India (IRDA).
- A person resident in India may take or continue to hold a general
insurance policy other than referred in (i) and (ii) above, issued by an
insurer outside India, provided that, the policy is held, under a specific
or general permission of the Central Government.
- A person resident in India may continue to hold any general insurance
policy issued by an insurer outside India when such person was resident
outside India.
Provided further that where the premium due on a general 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.
4. 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 by 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.
(B P Kanungo)
Principal Chief General Manager
Published in the Official Gazette of Government of India –
Extraordinary –Part-II, Section 3, Sub-Section (i) dated 29.12.2015-
G.S.R.No.1007(E)
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