Source - licindia.com

What is 'NRI' ?
A citizen of Indian (having a valid passport of govt. of India) living temporarily in another country of his/her present Residence is called an NRI. If an NRI has applied or planning to apply for acquiring the citizenship of his/her present country of residence. Then he doesn't fall under the NRI class. Green Card holders and foreign Nationals of Indian origin are not considered as NRIs. They are treated as foreigners.

Insurance of NRI
The formalities of proposal can be completed on the visit of an NRI to with medical test report or special medical report & MHR competed in India. The formalities of proposal can be completed through mail Order business from their present country of residence with medical test report /special medical report completed in present country of residence.

Salient Features
Age at entry: max 45 years.

For NRI all plan are allowed with the following restriction;
  • Under pure term insurance plan Max. sum Assured: Rs.25 lakhs
  • T.R. Benefit allowed: Max. Rs.25lakhs
  • C.I.R. Benefit: Not Allowed

Income proof: following documents are valid for income proof -
  • The copy of ITR filed in the country of residence.
  • In case of ITR is not filed, a copy of employment contract mentioning salary or a certificate from a C.A. regarding business / other source of income.
  • Personal financial questionnaire (PEO) duly filled in and signed by the as proof of income up to a sum assured of Rs.25Lacs.

Sum Assured:
  • Minimum sum assured of Rs.2lacs.
  • Maximum sum Assured: No limit in multiples of Rs.1lac when all the formalities completed in India on his/her visit to India.

Requirements
  • Proposal from: Duly filed & signed by the proposer.
  • Medical examination repot along with special report, if any.
  • More Hazard Report (MHR) by the competent authority.
  • A copy passport.
  • Duly completed NRI questionnaire.

Payment of premiums under NRI policy
  • Through banking channels by direct remittance from the country of his/her present residence.
  • By cheques drawn on his/her non-resident (External) account foreign currency (Non -Resident) account with a bank in India (or joint account provide the policy holder is one of the account holder).
  • By cheques drawn on bank account held in India in their own names either solely or jointly with any resident member of their family whether the accounts have been designated as Non-Resident or not.
  • By cheques drawn on an account maintained by a resident parent or spouse of the non-resident policyholder with a bank in India, held solely or jointly with their close relatives. If the L.A. is a bonafied student, premiums can be accepted if paid in India, by some other person on his behalf.
  • If such policies have been assigned to resident of India, the premiums can be paid by the absolute assignee in India.
  • The premiums can be paid by the employers in respect of policies issued to their employees who have been deputed abroad by them.
  • A resident parent or spouse of the Non-Resident life assured can pay the premiums in cash by submitting a latter stating the relationship with the policyholder
.
Non-Medical scheme
  • Under Non-Medical scheme the insurance is allowed to the NRI who are employed in Government or reputed commercial firm or to the professionals such as chartered accountants, cost Accountants, Engineers, Architects, Teachers, Doctors, Lawyers etc.
  • Max. age at enter: 45yrs NBD
  • restricted plan: 2,43,52,58,133,143,160,164, and TR
  • max S.A. : Rs5lacs, according to SUC i.e. rated up sum assured during last two full yes.
  • Max. aggregates S.A. : under plan nos.88,89,91,103,106,107,108,- rs2lacs
  • Under mail order business non-medical scheme is allowed only if all the formalities are completed during the agent's visit to the NRI,S present country of residence.
  • In the prescribed format MHR should be filled by the agent

Procedure for Non-Medical business
  • When NRI visits to India :- A copy of the passport is required
  • Mail order Business:- Under Non-Medical business an agent can completed proposal papers with nri questionnaire, special questionnaire and a copy of passport should be sent by the agent either by mail or handed over personally to the concerned Branch office.

Procedure for medical business
  • When NRI visits to India:- A copy of passport is required.
  • Mail order Business: The given procedure should be followed.

Agent's moral hazard report (MHR)
According to the present condition only chairman's club members have right to complete the formalities of NRI'S proposals if they visits to countries of their present residence. According to the recent decision this right has been give to the other agent also if they visits to NRI'S present country of residence.


Under medical business special questionnaire for mail order business
A special questionnaire is required if the agent does not visits the country of residence of the NRI to complete the formalities. The special questionnaire should be filled by:
  • Dean or principal of educational institutes if the proposer is a student.
  • The personal physician if the proposer is a self-employed / businessman.
  • The employer if the proposer is an employee
.
The specified format of the questionnaire should be filled by the NRI'S and sent along with the completed proposal. Residence rating for the overseas countries Insurance for NRI'S residing in certain countries is not allowed. In respect to some of the countries residence extra is to be charged.

Settlement of claims:
The claimants residing outside India will get the claim amount in foreign currency only in proportion to which the amount of premiums paid in foreign currency in relation to the total premiums payable.

Settlement of claims for beneficiaries :
  • For non-resident beneficiaries: if non-resident beneficiaries desire their Insurance claims/maturity/surrender value to be settled in foreign currency, they may be permitted to credit the same to NER (non-resident external) FCNR (foreign currency non-resident). In cases of death claims begin settled in favour of non-resident assignees, claims/maturity proceeds/surrender value in respect of rupee life insurance policy issued to non-resident India for which premiums have been collected in non-repatriable rupees may be paid only in rupees by credit to NRO (non-resident ordinary) account of the beneficiary.
  • For resident beneficiaries: if the insurance claim / maturity / surrender values of the resident beneficiaries have been settled in foreign currency, it may be permitted to credit the same to REC (resident foreign currency) account on their desire.


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