Master Direction – Insurance

Question 1

Whether Resident Person can take General/ Health Insurance from outside insurance companies, if yes on what condition?

Answer 1

Yes, subject to the aggregate remittance limit including amount of premium does not exceed LRS limit.

Question 2

Units in SEZ can take insurance provided the premium is paid by the units out of their ………………………

Answer 2

foreign exchange balances

Question 3

No person shall take out or renew any policy of insurance in respect of ……………………………………………….with an insurer whose principal place of business is outside India without permission of Insurance Regulatory and Development Authority of India (IRDAI).

Answer 3

any property in India or any ship or other vessel or aircraft registered in India

Question 4

Insurance on …………………….. covering All Risks against war and other allied risks (arising out of civil commotion, political or labour disturbances etc.) is required to be obtained only from the Insurers in India.

Answer 4

Indian Marine Hulls

Question 5

A person resident in India may take or continue to hold a life insurance policy issued by an insurer outside India, provided that …………………………..

Answer 5

the policy is held under a specific or general permission of the Reserve Bank of India

Question 6

LIC Policies may be issued in foreign currency to resident persons of Indian nationality or overseas citizens of India who have returned to India after being resident outside India, provided the premium are paid out of remittances from …………………

Answer 6

foreign currency funds held by them abroad or from their Resident Foreign Currency (RFC) account with authorised dealers in India

Question 7

Conversion of Rupee policies on the lives of persons resident in India into foreign currency or transfer of records of such policies to a country outside India ……………

Answer 7

is not permitted without prior approval of Reserve Bank