Foreign Exchange Management (Insurance) (Amendment) Regulations, 2003

In exercise of the powers conferred by sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999, (42 of 1999), and in partial modification of its Notification No.FEMA.12/2000-RB, dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following Regulations to amend the Foreign Exchange Management (Insurance) Regulations, 2000, namely :

(a) These Regulations may be called the Foreign Exchange Management (Insurance) (Amendment) Regulations, 2003.

(b)They shall come into force from the date of their publication in the Official Gazette.

In the Foreign Exchange Management (Insurance) Regulations, 2000, Regulations 3 and 4 shall be substituted by the following Regulations, namely :-

i) A person resident in India may take or continue to hold a general insurance policy issued by an insurer outside India, provided that, the policy is held, under a specific or general permission of the Central Government.

ii) A person resident in India may continue to hold any general insurance policy issued by an insurer outside India when such person was resident outside India.

Provided further that where the premium due on a general insurance policy has been paid by making remittance from India, the policy holder shall repatriate to India through normal banking channels, the maturity proceeds or amount of any claim due on the policy, within a period of seven days from the receipt thereof.

4. Permission to take or hold a life insurance policy issued by an insurer outside India

i) A person resident in India may take or continue to hold a life insurance policy issued by an insurer outside India, provided that, the policy is held, under a specific or general permission of the Reserve Bank of India.

ii) A person resident in India may continue to hold any life insurance policy issued by an insurer outside India when such person was resident outside India.

Provided further that where the premium due on a life insurance policy has been paid by making remittance from India, the policy holder shall repatriate to India through normal banking channels, the maturity proceeds or amount of any claim due on the policy, within a period of seven days from the receipt thereof.