India evolves into a major destination for investment, there
has been a natural spark amongst the NRI community to return
to India. And as they repatriate with investment options, some
of them are caught in the dilemma of their future course of
an NRI from Boston Vishal Shekhar says, that like many of his
friends he would also like to return to India in the near
future. However, there are the issues of insurance policies
which he is finding difficult to decide. He is confused as his
friend are contemplating taking out insurance policies in the
US though they are returning to India.
there are several policy announcements recently made
pertaining to insurance policies issued by insurance companies
registered with the Insurance Regulation and Development
Authority in India. As per the rules and regulations, policies
can be issued in foreign currency to resident PIOs who have
returned to India after a stint of being NRI, provided the
premium are paid out of remittances from foreign currency
funds held by them abroad or from their Resident Foreign
Currency (RFC) account with banks in India.
conversion of rupee policies on the lives of resident Indians
into foreign currency or transfer of records of such policies
to a country outside India is not permitted without prior
approval of the RBI. Insurers may issue policies denominated
in foreign currency through their offices in India or abroad
to non-residents, provided the premium are collected in
foreign currency from abroad or out of the Non-Resident
accounts of the insured or his family members held in
obtaining a policy an NRI has to undergo all the steps of
obtaining a policy viz, filling of proposal form, medical
examination report, moral hazard report and payment of
are convenient modes of payment of premiums which include
direct remittance from abroad through banking channels in the
approved manner or by remittances through postal channels like
Foreign Money Order.
payment out of funds held in Non-Resident (External) Account
or Foreign Currency (Non- Resident) Account with a Bank in
cheques drawn by Non-resident policy holder on Bank Accounts
held in India in his own name (either solely or jointly with
another member of the family) whether or not the account has
been designated as non-resident.
cheque drawn on account maintained by resident parent or
spouse of policy holder in their own name or joint names
with other close relatives.
the absolute Assignee in India wherever such policies have
been absolutely assigned to a resident in India.
the employers in respect of policies issued to their
employees who have been deputed abroad by them.
can be paid in cash by a resident parent or spouse of the
non-resident policyholder subject to his / her submitting a
letter stating the relationship with the policyholder.
due on policies issued to Indian students who have gone
abroad for higher studies may be collected in Rupees out of
the Resident Bank Account in India or any of their
representatives in India by cash or cheques.
insurance companies offering NRI Accident Insurance are
National Insurance Company Ltd. and Policy for Non-Resident
Indians and HDFC Tricare Plan. The insurance covers
Non-Resident Indians from 3 months of age till 70 years. It is
a comprehensive insurance scheme that covers everything from
accidental loss, permanent disablement due to accident,
medical expenses incurred due to illness in a foreign country
to education fund of dependent children and others.
the event of claim, written intimation must be given by the
insured/assignee to the insurance company. Reporting on a
company's toll free number is also an option. The lien of
action is that upon receipt of the intimation of claim the
company deputes its surveyor or claim representative and
processes the claim. Copy of the claim format is annexed. The
claim process can take anywhere between 7-15 days.
documents required for NRI Accident Insurance Claim consists
of Claim form, FIR Form, prescriptions given by the treating
Doctor, hospital discharge card, diagnosis reports like the
X-ray report and disability certificate.