The Reserve Bank of India (RBI) has amended the memorandums of foreign exchange management regulations relating to general/health insurance and life insurance, in line with the repeal in 2015 of the Foreign Exchange Management (Insurance) Regulations, 2000, and their replacement, via a notification date 29 December 2015, with the Foreign Exchange Management (Insurance) Regulations, 2015.
- All general/health insurance policies permitted by the Insurance Regulatory and Development Authority of India are allowed to be placed in foreign exchange. No RBI permission is required for issuance/renewal of any insurance policy.
- Payment of insurance premium in foreign currency by an Indian resident is no longer required irrespective of the currency for settlement of a claim.
- A resident outside India may obtain a general/health insurance policy on payment of the insurance premium in foreign currency irrespective of the currency for settlement of a claim. However, if the premium is paid in Indian rupees, settlement of a claim will be in rupees.
- A resident going abroad for employment purposes may take a health insurance policy on the payment of a premium in Indian rupees. Claims settlement under cashless international health insurance policies to hospitals providing treatment, or through third party administrator arrangements, is now allowed.
- Overseas investment by insurance companies is enabled.
- Quarterly reports by insurance companies on settlement of claims of policies issued with RBI permission are discontinued.
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