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There is no ceiling on the sum insured, except in the case of persons of Indian
origin who can be covered upto a maximum of Rs.20 lakh. PIOs are also not
eligible for some joint life plans and plans having a term insurance element.
Since life insurance policies are classified as securities by the foreign
exchange regulations act, insurance policy documents cannot be taken out of the
country without the formal approval of the Reserve Bank of India.
Consent from the RBI is also required to assign rupee policies held in India by
a resident Indian in favour of an NRI, or by a NRI in favour of another NRI
living abroad. Prior approval is not required where the assignment is without
consideration in favour of the policy-holder's non-resident wife or other
dependent relatives.
Payment
While on-line payment of insurance premium is the most preferred option, NRIs
can choose to remit directly from abroad through approved banking channels,
foreign money orders, debits from their NRE or
FCNR account
in India, or in cash. Employers in India can also make payments on behalf of
their employees deputed abroad by them.
Payment of claims
While settlement of claims is generally made in Indian currency, insurance
companies do settle claims in foreign currency as an exception, subject to
approval from the Reserve Bank of India. The policy holder needs to be a
permanent overseas resident who has paid his entire premium in foreign currency
to avail this benefit.
However, Persons of Indian Origin can neither make payments nor receive
settlements in foreign currency. Their settlements cannot be repatriated outside
India either.
The range of products offered by insurance firms includes: life insurance,
health insurance, overseas travel insurance, student medical insurance, home
insurance, car insurance and two wheeler insurance.
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