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TMI BlogMaster Direction - Insurance (Updated as on December 07, 2021)X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. This Master Direction consolidates the existing instructions on the subject of Insurance at one place. Reporting instructions, if any, can be found in Master Direction on Reporting ( Master Direction No. 18 dated January 01, 2016 ). 4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are to be conducted by the Authorised Persons with their customers/ constituents. The Master Direction issued herewith shall be amended suitably simultaneously. Yours faithfully, (R. S. Amar) Chief General Manager Master Direction - Insurance INDEX Sr. No. Contents 1. Introduction 2. Foreign Exchange Regulations relating to General / Health / Life Insurance from Insurers outside India. 3. Foreign Exchange Regulations relating to General/ Health Insurance from insurers in India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate 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. 3. Foreign Exchange Regulations relating to General/ Health Insurance from insurers in India 3.1 Definitions Person resident in India and Foreign Currency will have the same meaning as defined under Foreign Exchange Management Act, 1999. Insurers means the Indian Insurance Companies as defined in Section 3(9) of The Insurance Laws (Amendment) Act, 2015 and registered with Insurance Regulatory and Development Authority of India (IRDAI) to carry out general/health insurance/reinsurance business in India. 3.2 Payment of insurance premium in foreign exchange. Payment of premium in foreign exchange means and includes payment of premium in foreign exchange and/or payment of premium in INR derived by sale of foreign exchange to an authorised dealer or an authorised money-changer. Appropriate documentary evidence may be insisted upon at the time of accepting payment. 3.3 General/ Health Insurance policies by Indian Residents Resident of India may take general/health ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and If Import is made against Import Licence, the amount of insurance policy premium is endorsed on the import licence; vi) In case of settlement of insurance claims of export from India, Insurance company is satisfied that the payment is received in foreign exchange by the Indian exporter; vii) In case of settlement of insurance claims in respect of assets located outside India owned by residents of India, permission of Reserve Bank of India for holding the property had been obtained, (wherever necessary); viii) Claims arising outside India against policies issued under Employers Liability Act and Merchant Shipping Act may be paid in appropriate foreign currency. Remittances will be allowed for meeting specific claims on application by the Insurers furnishing full details of the claims; ix) In case of cashless international health insurance products remittances may be allowed to the hospital which has provided the treatment/Third Party Administrator with which the insurer or the hospital has entered into a contractual arrangement in accordance with applicable IRDAI regulations or to the insured person resident outside India. Note: (a) Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurer's Board in compliance with IRDAI Regulations. iii) A certificate from the Chartered Accountant of the broker, prepared on the basis of certificates and statements obtained from the insurers, to the effect that the proposed remittance of reinsurance premium sought, is in agreement with the various statements/certificates obtained from the insurer/s. iv) Copy of approval letter from IRDAI for placing business outside India by direct insurance brokers. 3.9 Foreign Currency Accounts Abroad Insurers may open, hold and maintain with a bank outside India foreign currency accounts for facilitating transactions and expenses relating/incidental to general/health insurance / reinsurance business undertaken in foreign countries in accordance with regulations laid down. Insurers should endeavour to keep in their foreign currency accounts only the minimum balances required for normal business and transfer to India regularly all surplus funds held at foreign centres. 3.10 Investments Abroad General/health insurers may invest freely, out of their funds abroad, without prior approval of Reserve Bank of India subject to the following conditions: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o residents outside India, funds held in NRO accounts can be accepted towards payment of premium. (iii) Policies issued to Indian nationals and overseas citizens of India resident abroad by overseas offices of Insurer in India may be transferred to Indian register, together with the actuarial reserves held against the policies, on the policy holders return to India. Foreign currency policies in such circumstances shall be converted into rupee policies except in cases where the policy has been in force for at least 3 years prior to policy holder s return to India and the policy holder wishes to retain and continue the foreign currency policy. Requests received for payment in foreign currency towards premium on such policies may be permitted by authorised dealers provided the policy holder undertakes to repatriate to India the maturity proceeds or any claim amounts due on the policy through normal banking channels with in a period of seven days from the receipt thereof. 4.3. Settlement of claims (i) The basic rule for settlement of claims on rupee life insurance policies in favour of claimants resident outside India is that payments in foreign currency will be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... companies may allow remittances falling due under such approved reinsurance arrangements by the insurer in accordance with the terms and conditions laid down by their Boards. 4.6 Foreign Currency accounts Insurer in India may open, hold and maintain with a bank outside India foreign currency accounts for facilitating transactions and expenses relating /incidental to life insurance business undertaken in foreign countries in accordance with the above guidelines. Insurer in India should transfer to India regularly all surplus funds held at foreign centres and endeavour to keep in their foreign currency accounts only minimum balances required for normal business. 4.7 Investments abroad Insurer in India invest freely, out of their funds abroad without prior approval of Reserve Bank subject to Statutory requirement of host country concerned and IRDAI guidelines if any and in accordance with applicable FEMA regulations relating to investment abroad. 4.8 Utilisation of Foreign Currency Funds (i) Insurer in India may freely use its foreign currency balances for meeting all the normal expenses of its overseas offices inclusive of taxes and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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