In exercise of the powers
conferred by sub-section (2) of Section 47 of the Foreign Exchange Management
Act, 1999 (42 of 1999), and in supersession of its Notification No. FEMA. 12/2000-RB,
dated May 3, 2000, as amended from time to time, the Reserve Bank of India
makes the following Regulations with respect to the holding by a person
resident in India of a general or life insurance policy issued by an insurer
outside India, namely: (i)
These Regulations may be called the Foreign Exchange Management
(Insurance) Regulations, 2015. (ii)
They shall come into force from the date of their publication in
the Official Gazette. In these Regulations, unless the
context otherwise requires,- (i)
'Act' means the Foreign Exchange Management Act, 1999 (42 of
1999); (ii)
The words and expressions used but not defined in these
Regulations shall have the same meaning respectively assigned to them in the
Act. (i)
A person resident in India may take or continue to hold a health
insurance policy issued by an insurer outside India provided aggregate
remittance including amount of premium does not exceed limit prescribed under
the Liberalised Remittance Scheme. (ii)
No person shall take out or renew any policy of insurance in
respect of any property in India or any ship or other vessel or aircraft
registered in India with an insurer whose principal place of business is
outside India without permission of Insurance Regulatory and Development
Authority of India (IRDA). (iii)
A person resident in India may take or continue to hold a general
insurance policy other than referred in (i) and (ii) above, issued by an
insurer outside India, provided that, the policy is held, under a specific or
general permission of the Central Government. (iv)
A person resident in India may continue to hold any general
insurance policy issued by an insurer outside India when such person was
resident outside India. Provided further that where the
premium due on a general insurance policy has been paid by making remittance
from India, the policy holder shall repatriate to India through normal banking
channels, the maturity proceeds or amount of any claim due on the policy,
within a period of seven days from the receipt thereof. (i)
A person resident in India may take or continue to hold a life
insurance policy issued by an insurer outside India, provided that, the policy is
held, under a specific or general permission of the Reserve Bank of India. (ii)
A person resident in India may continue to hold any life insurance
policy issued by an insurer outside India when such person was resident outside
India. Provided further that where the
premium due on a life insurance policy has been paid by making remittance from
India, the policy holder shall repatriate to India through normal banking
channels, the maturity proceeds or amount of any claim due on the policy,
within a period of seven days from the receipt thereof.FOREIGN
EXCHANGE MANAGEMENT (INSURANCE) REGULATIONS, 2015
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