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NRIs Buying Life Insurance in India: Points to Consider

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Understanding NRI Insurance: A Quick Guide

Insurance Samadhan consistently receives queries on NRI Insurance. Through this blog, we have tried to explain NRI Insurance.

  1. NRI Insurance: Indian Insurance Companies can insure anyone as per their underwriting norms through proper solicitation. NRI insurance can be provided to Indian Passport holders as well as foreign passport holders.
  2. Can insurance be given to an NRI while the person is living in a foreign land: Yes, it can be given through proper solicitation from India. An intermediary cannot solicit insurance while visiting a foreign land because they are not licensed in that foreign land. But they can solicit by sending mail from India. They need to give an introduction to the Insurance Company and provide details of the plan.
  3. Can Insurance be given while visiting India: Yes, like a normal prospect.
  4. Documents required for NRI Insurance: Besides all normal KYC documents, an NRI questionnaire is required, which gives details of the policyholder.
  5. Can the premium be paid in foreign currency: Yes, the premium can be paid in foreign currency. Generally, companies take online payment for the equivalent amount in Indian rupees.
  6. Would service tax be applicable: If Insurance is being given to an NRI, then service tax can be waived off as per government guidelines.
  7. What happens to Policies where a Policyholder becomes an NRI: The policy remains active, and all claims will be payable.
  8. How will the claim be payable: All claims like maturity, death, or partial surrender claim would be payable in Indian Rupees only and would be credited to an Indian account. It is necessary that the policyholder maintains an NRE account to receive the proceeds.
  9. Are claims payable if death happens in a foreign land: Yes, however, there are some listed countries that are not considered safe. It is necessary that the insured gives a declaration in the NRI questionnaire if they intend to visit such countries. In such cases, Insurance companies put an exclusion with the names of those countries.
  10. Can a foreigner be given Insurance: Yes, an NRI with a foreign passport can be insured. However, a foreigner can be insured only if the prospect is on Indian Land. But once the insurance has been bought, it will remain active even if they leave India. All proceeds would be payable in Indian Rupees only.

Insurance Samadhan

Anyone can reach Insurance Samadhan at corporate@insurancesamadhan.com for any queries on NRI Insurance.

By- Shailesh Kumar

Also Read:  Understanding the Different Types of Life Insurance Policies in India

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