15B.2
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Assignment of Policies
(i)Resident policy holders are not permitted to assign rupee life insurance policies in favour of any person resident outside India without prior approval of Reserve Bank except in favour of policy holders non-resident wife or other dependent relative without consideration. Similarly, assignment of a rupee life insurance policy held in an Indian register by a non-resident in favour of another non-resident in a different country requires prior approval of Reserve Bank. There is, however, no objection to technical assignments by non-resident policy holders in favour of overseas banks situate in the same country for the purpose of obtaining loans etc. abroad. Transfer of any claims eventually to the assignee bank will require prior approval of Reserve Bank (See paragraph 15B 4 also).
(ii)Technical assignments of rupee life insurance policies may be freely made by non-residents in favour of banks or LIC in India for obtaining loans, provided the loan amount is paid locally in rupees to the policy holders or their close relatives in India.