15B.4
- Document type
- Manual
- Dated
- Category
- Exchange Management Manual
Remittance of Premiums on Foreign Currency Policies
Persons who are permanently resident in India are not permitted to take life insurance policies with foreign insurance companies. In case of foreign currency life insurance policies taken out from foreign insurance companies by persons while they were resident outside India and have returned to India for permanent residence, premiums due on such policies can be paid by them out of their entitlements under the Returning Indians Foreign Exchange Entitlement Scheme (RIFEE Scheme) or out of funds held in their foreign currency accounts abroad or in India (RFC accounts). Remittances from India will, however, be allowed provided
(a)the policy had been in force for at least three years prior to policy holders return to India;
and
(b)an undertaking has been furnished by the policy holder to repatriate to India the maturity proceeds or any claim amounts due on the policy through an authorised dealer.
Assignment of foreign currency policies will not ordinarily be permitted by Reserve Bank. Similar regulations are applicable to foreign currency policies taken with overseas offices of LIC.