Q.1 Who is an NRI?

Ans. An Indian residing abroad is generally known as Non-Resident Indian (NRI).

Non-Resident Indian (NRI) means a person resident outside India who is a citizen of India or is a person of Indian origin.

NRI also includes the Person of Indian Origin (PIO). PIO is a person, who at any time held Indian Passport, or who, either of his parents or grand parents were a citizen of India, or a spouse of the persons mentioned as here.

Q.2 Can NRI buy life insurance policy in India?

Ans. Yes, like a resident Indian, the NRI, PIO are eligible to avail Life Insurance policies in India, whether they are currently residing in India or not.

Q.3 Can the policies be issued in foreign currencies?

Ans. No, Policies are issued only in Indian Rupees, however the payment for the policy premium can be made from outside India in foreign currency.

Q.4 How can NRI avail the Insurance policy, does he need to be present in India for buying the policy?

Ans. NRI can buy the insurance policy on their visit to India where all formalities are completed during his stay in India. He would be treated at par with Indian Lives for the purpose of availing the insurance policy.

NRI may also obtain insurance cover from their present country of residence where all formalities are completed in there.

Q.5 How the medical examination is done in case of NRI.

Ans. In case the NRI is present in India at the time of buying the insurance policy, the medical examination can be done here in India at the cost of the Insurance Company. However, the facility of the medical examination can also be availed by him in the country of his residence, in that case, he needs to go through the prescribed medical examination, and send the report to the Insurer.

Q.6 How can NRI make payment of Premium for the Insurance policy taken?

Ans. Payment of premium can be done from his NRO/NRE bank account in India. Payment can also be made from remittances from overseas account.

Q.7 What types of policies can be taken by NRI in India, is there any restrictions?

Ans. There is no restrictions on buying the insurance policy by NRI.

Q.8 How is the claim settled, can the claim amount be taken outside India?

Ans. The claim amount can be received only in India in Indian currency. The NRI can take out the amount outside India from the Indian account subject to the guidelines in this regard.

Q.9 What are the KYC documents needed for availing the insurance policy by the NRI?


  • Copy of Passport
  • OCI/ PIO card
  • Address proof document, viz. latest utility bill/ bank statement
  • Passport size pics
  • Proof of income in the form of income tax returns, copy of employment contract where emoluments are mentioned, Certificate from Chartered Accountant, Personal Financial Questionnaire (PFQ) etc.
  • Any other document as may be prescribed.

Q.10 What happens to the existing policies if a resident Indian moves out and becomes an NRI and the vice versa.

Ans. The existing policies taken while in India will continue in Indian Currency even after the life assured moves to foreign countries as NRI.

Similarly, in case of NRI returning to India, the policy will continue in his name.

Q.11 What is the term for NRI Life Insurance Policy?

Ans. NRI generally can have tenure till 25 years. The minimum age for getting NRI insurance is 18 years and the maximum age varies from 55 to 60 years depending on the terms and conditions stated in the policy.

Q.12 Can NRI buy ULIP?

Ans. NRIs are eligible to purchase Unit Linked Insurance Plan (ULIP).

Q.13 What are the benefits of availing Insurance in India by NRI.


  • One of the cheapest Premium in the world.
  • You can park your surplus funds here.
  • Gives you the comfort of buying through a known brand back in your homeland.
  • Inheritance Planning

Q.14 Name some companies offering Life Insurance to NRIs.


Aviva Life Insurance

ICICI Prudential Life Insurance

PNB Metlife Life Insurance

TATA AIG Life Insurance

Max Life Insurance

Kotak Life insurance

HDFC Life Insurance

SBI Life Insurance

Life Insurance Corporation of India (LIC)

Disclaimer: This article has been prepared in good faith on the basis of information available on the date of publication without any independent verification. The Author does not guarantee or warrant the accuracy, reliability, completeness or currency of the information in this publication nor its usefulness in achieving any purpose. The Author will not be liable for any loss, damage, cost or expenses incurred or arising by reason of any person using or relying on information in this publication. Readers are requested to consult a professional before taking any action.

(Author – Sonika Bharati, FCS, LLB, is a Company Secretary in Practice from Delhi and can be contacted at [email protected])

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  1. Daison Souza says:

    Can somebody please confirm if a NRI who has brought an Insurance in India is liable to pay the GST on the premiums ?
    I brought a policy while i was a NRI and was charged GST, how can i Claim it back for the paid premiums ?

  2. Mehul Vasoya says:

    In reference of this i just confirm that a case
    Mr abc is nri and Canadian citizen . He wants to take whole life term insurance in indian life insurance company let’s say max life .
    He pay all the premium from nro/nre account. Now if wil dye in next 20 years…His nominee get money in indian rupees in his nro/nre account. This is clear that as indian tax law 1010(D) all amount in India nomenee receive is tax free. It’s i thin clear inough.
    Now my question is .. what will be tax treatment in Canada on this amount if nominee remitt these amount to canada. I am confuse on this question.
    Also is nominee get tax clearance for transfer this amount to Canada???

  3. mehul vasoya says:


    If canada based client is taking Life Insurance Policy in India than at the time death claim, what is tax liability to pay by his nominee in India and/or Canada.

    Please Assist.

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September 2021