A Non Resident Indian is considered as an Indian only when he/she comes back to India for employment, vocation or carrying out business work or some other reason that imply an uncertain stay in the country. In case the person comes to the country with intention of a short stay he/she may not be regarded as a resident in India.
Those who take up jobs in abroad after the completion of their higher studies are regarded as NRIs. (Only from the time they take up jobs in abroad).
Non Resident Indian’ widely termed as NRIs broadly covers three types of individuals/entities. They are as follows:
A person is considered to be of Indian Origin (excluding countries like Pakistan, Bangladesh or as announced by the state from time to time) if he/she at any time held an Indian passport or he/she or either of his/her parents or any of his/her grandparents was an Indian and a permanent resident in Undivided India at any time. A wife of an Indian Citizen or of a person of Indian Origin is also considered to be of Indian Origin if she may be of non-Indian parentage.
According to Income Tax Act, 1961, an individual is said to be a ‘resident’ in any year if he has been in India in that year:
However, the period of 60 days is increased to 150 days in case of citizen of India or a person of Indian Origin who has been outside India and comes on a visit to India, and to 182 days in case when a citizen of India who leaves India for purposes of employment outside India, or as a member of a crew of an Indian ship.
Yes, NRIs can buy Life Insurance Policies issued by Insurance companies registered in India. The Policy premiums have to be paid in Indian Rupees.
No, Green Card holders and Foreign Nationals of Indian origin are not treated as NRIs for the purpose of allowing Insurance. They are treated as Foreigners and the underwriting rules as those prescribed for foreigners will be applicable.
The NRIs will be allowed insurance policies in Indian Rupee Currency only.
All plans are allowed for NRIs subject to few restrictions.
The premium can be paid by any of the following manner
The settlement of claims (in rupee) of life insurance policies in favour of claimants’ residing outside India will be permitted in foreign currency only in proportion in which the amount of premiums paid in foreign currency is in relation to the total premiums payable.
Life Insurance Policies bought by NRIs in India are governed by the regulations issued by the Reserve Bank of India (RBI). These regulations are known as the ‘Life Insurance Manual’.
LIC offers its services to Non Resident Indians (NRI) as well as to People of Indian Origin (PIO) having foreign nationality and residing in foreign countries,
NRIs holding valid passport issued by the Government of India and who are Indian National can take LIC policies in Indian Rupee currency from any of LIC’s 2048 branches in India.
LIC also accepts proposals for Life Insurance in Rupee currency from Persons of Indian Origin who have acquired Foreign Nationality / Green Card holders.
Claims of any nature arising under the policy will be settled in Indian currency in India. The payment of policy monies in foreign currency can be made proportionate to the premiums paid in foreign currency by direct Remittance or from the Non Resident (External) Account or Foreign currency Non Resident Account with a Bank in India.
The LIC offices are located in the following foreign offices, viz. U.K; MAURITUS & FIJI, which issue policies in local currencies to Local NRIs. The following are the addresses of the office located in abroad.