Foreign Exchange Management Act, 1999 – Insurance - FEMA - 047/2002

Foreign Exchange Management Act, 1999 - Insurance Reserve Bank of India Exchange Control Department Central Office Mumbai 400 010 A.P (DIR Series) Circular No.47 May 17, 2002 To All Authorised Dealers in Foreign Exchange Madam/Sirs, Foreign Exchange Management Act, 1999 - Insurance Attention of authorised dealers is invited to the Notification No. FEMA.12/2000-RB dated 3 rd May 2000 whereby a person resident in India is prohibited from taking any general or life insurance policy issued by an insurer outside India. 2. It has since been decided, in consultation with Government of India, to exempt units located in Special Economic Zones (SEZs) from the purview of the above Notification for the purpose of taking out general insurance policies. Accordingly, authorised dealers are free to allow remittances towards premium for general insurance policies taken by units located in SEZs from insurers outside India provided the premium is paid by the units out of their foreign exchange balances. 3. Authorised Dealers may bring the contents of the circular to the notice of their constituents concerned. 4. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace KoshieChief General Manager