Yes, a life insurance policy can be offered to NRIs subject to filling up of an NRI questionnaire and company's underwriting norms. There is no limit on the applicable cover. It depends on the financial capacity and the medical condition of the policyholder. No health riders are available to an NRI customer.
As per existing laws, NRI policyholders can pay premium in convertible foreign exchange subject to exchange regulations as amended from time to time. There is no restriction on paying premium in foreign currency provided the premium is paid in an approved manner. For policies denominated in rupees issued to NRI, funds held in NRO account can be accepted towards payment of premium.
NRIs can pay insurance premium through the following channels in INR only.
You can claim the amount of your policy at the time of maturity. Or the claim would be given to the nominee incase of an unfortunate demise.
The Income Tax Act, 1961, provides various rebates/benefits for the NRIs on insurance policies.
|80C||Premiums paid towards a life insurance policy are eligible for a deduction of up to Rs 1 lakh from the taxable income.|
|80D||Premiums paid towards health insurance are eligible for a tax rebate of a maximum of Rs 15000 (Rs 20,000 for senior citizens) from the taxable income.|
|10(10D)||Any benefits received on your life insurance policy is tax free|
|10(10A)(iii)||With respect to insurance proceeds, one third of the value at vesting Date would be tax free|
Tax benefits / exemptions are applicable irrespective of the status of the NRIs (NRIs/PIOs or OCIs).
Yes, it is possible to secure a policy under MWPA.
Yes, a PIO can take an insurance policy as per guidelines of the company subject to submission of proof of being a PIO.
Yes, a Non Resident policyholder can assign his policy to his Non Resident wife or other dependants without the prior approval of the Reserve Bank of India, provided there is no monetary consideration. However, the assignee will be entitled to the same treatment as regards the proceeds as would be applicable in case of the NRI policyholder.
A foreign national can be the nominee depending upon the "existence of the insurable interest norms" or other nomination rules issued by various insurance companies. However, the foreign national in his capacity as a nominee will be entitled to same treatment as regards the proceeds as would be applicable in case of the NRI policyholder. In case the NRI policyholder has paid for the premiums in rupees, the foreign national would be entitled to proceeds in rupees only.
Foreign citizens, who are resident in India purely on account of their employment, profession or business with a valid employment/business visa, are treated as persons not permanently resident in India.
Policies denominated in rupees may be issued to foreign nationals not permanently resident in India provided the premiums are paid out of foreign currency funds or out of NRE/FCNR account of the insured or his family members held in India. and s/he provides a copy of the passport, valid work permit, and employment contract clearly stating the duration of the contract, which should be greater than the term of the policy.
The following documents are required from an NRI policyholder:
Units in the funds may not be offered or sold within the United States or to United States Persons, except in a transaction not subject to, or pursuant to an exemption from, the registration requirements of the Securities Act and any applicable state securities laws and which would not require the funds to register under the Investment Company Act. The term "United States Person" shall have the meaning ascribed to such term in Regulations under the Securities Act.