☞ Who is an NRI?

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:

☞ Who is a Person of Indian Origin (PIO)

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.

☞ How are the claims settled for beneficiaries?

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:

☞ Can NRIs buy Life Insurance Policies?

Yes, NRIs can buy Life Insurance Policies issued by Insurance companies registered in India. The Policy premiums have to be paid in Indian Rupees.

☞ Are Green Card holders and Foreign Nationals of Indian Origin treated as NRIs?

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.

☞ In which currency can NRIs buy Insurance policies?

The NRIs will be allowed insurance policies in Indian Rupee Currency only.

☞ When can NRIs/ Foreign Nationals of Indian Origin buy insurance policies?

☞ Which plans can NRIs buy?

All plans are allowed for NRIs subject to few restrictions.

☞ Which documents are required for income proof?

☞ What documents have to be submitted for a proposal under medical business?

☞ How are the premiums for NRI policies paid?

The premium can be paid by any of the following manner

☞ How are the claims settled?

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.

☞ How are the claims settled for beneficiaries?

☞ Which laws in India govern the investments done by NRIs in Life Insurance Policies?

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’.

☞ How are the medical tests done?

☞ Does LIC offer its policies to PIOs also?

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,

☞ Eligibility criteria

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.

☞ Remittance of premium

☞ Settlement of claims

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.