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?
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.
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])