The process of issuing Life Insurance Policies to Non Resident Indians (NRI), the way of collecting premiums, way of settling claims, loans and all related matters are governed by the Memorandum of Exchange Control Regulations. This Memorandum is framed and modified from time to time by the Reserve Bank of India (RBI).
If a policy issued in rupee currency on the life of person resident in India is required to be transferred out if India or converted into foreign currency then the prior permission of the Reserve Bank has to be taken.
Policies on the life of Non Resident Indian can be issued in other currencies provided premiums are paid in a manner approved by Reserve Bank of India (RBI) in its Manual of Exchange Control or by specific permission.
Any violation in fulfilling of any of the provision of Memorandum of Exchange Control Regulations invites severe penalties and problems.
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