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Insurance - FEMA Ready Reckoner - FEMAExtract Introduction Issuance of insurance is regulated under section 47(2) of FEMA Act, 1999 read with Foreign Exchange Management (permissible Capital Account Transaction (Regulation),2000 and Foreign Exchange Management (Insurance) Regulations, 2015 . RBI FED master Direction No. 9/2015-16 dated 01-01-2016 on Insurance all instruction of RBI on this issue. Life insurance and General Insurance Business in India can be undertaken by Insurance companies registered with Insurance Regulation and Development Authority, (IRDA). Regulation 3 , of Foreign Exchange Management (Insurance) Regulations, 2015 provide permission to take or hold a general insurance policy issued by an insurer outside India (i) Health Insurance policy outside India A person resident in India may take or continue to hold a health insurance policy issued by an insurer outside India . But aggregate remittance including amount of premium does not exceed limit prescribed under the LRS (Liberalised Remittance Scheme). (ii) Restriction on policy in respect of any property in India or ship or vessel registered in India No person shall take out or renew any policy of insurance in respect of any property in India or any ship or other vessel or aircraft registered in India with an insurer whose principal place of business is outside India without permission of IRDA ( Insurance Regulatory and Development Authority of India). (iii) General/Health insurance policy by SEZ unit outside India A person resident in India may take or continue to hold a general insurance policy other than referred in (i) and (ii) above, issued by an insurer outside India, the policy is held, under a specific or general permission of the Central Government. (iv) 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. (v) Payment of Premium due Where the premium due on a general insurance policy has been paid by making remittance from India . (vi) Maturity or any claim shall be Repatriate to 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 7 days from the receipt thereof . Regulation 4 , Permission to take or hold a life insurance policy issued by an insurer outside India [ Foreign Exchange Management (Insurance) Regulations, 2015 ] (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. (iii) Payment of Premium due Where the premium due on a general insurance policy has been paid by making remittance from India . (iv) Maturity or any claim shall be Repatriate to 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 7 days from the receipt thereof .
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