Indians Outside can Buy Health, General Insurance in Forex

Indians living outside can buy health or general insurance in foreign currency irrespective of the currency for settlement claims, the Reserve Bank said today while laying down the revised general and health insurance manual.

Though if the premium is paid in Indian rupee, the settlement will also be done in rupee terms, RBI said in a notification.RBI said regulations under the Foreign Exchange Management (Insurance) Regulation, 2000, have been repealed after consultation with the government and superseded by the Foreign Exchange Management (Insurance) Regulations.The revised notification has come into force with effect from December 29, 2015. A resident going abroad for taking up employment is also allowed to take health insurance policy by paying premium in the rupee. For these residents, claims will be settled under cashless international health insurance policies to hospitals providing treatment or through a third-party administrator (TPA). Besides, all general or health insurance policies are allowed to be placed in foreign exchange and no Reserve Bank permission will be required for issuance or renewal of any policy, it said. With regard to investments abroad, RBI has enabled such investment by insurers. Further, insurance companies will not be required to furnish quarterly report on settlement of claims of policies issued with permission of RBI.