Insurance to Non-Resident Indians (NRIs) 8/31/2015 1 C. KARUNAGARAN DEVELOPMENT OFFICER

Insurance toInsurance to Non-Resident Indians (NRIs) Non-Resident Indians (NRIs)

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A non-resident Indian is a citizen of India temporarily residing in the country of his / her present residence and holding a valid passport issued by the Government of India.

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The NRI should not be a The NRI should not be a green card holdergreen card holder. He / . He / she should not have applied for or planning to apply she should not have applied for or planning to apply in the near future for acquiring citizenship of his / in the near future for acquiring citizenship of his / her present country of residence or any other her present country of residence or any other country.country.

Insurance is allowed to NRIs residing in 175 Insurance is allowed to NRIs residing in 175 countries, subdivided in 8 Residence Group countries, subdivided in 8 Residence Group mentioned in C.O. Circular No.2056/4 dated 25.2.2006 mentioned in C.O. Circular No.2056/4 dated 25.2.2006 subject to conditionssubject to conditions

NRIs residing in countries other than those NRIs residing in countries other than those mentioned in Residence groups 1 to 8 should be mentioned in Residence groups 1 to 8 should be sent to CUS for individual consideration. sent to CUS for individual consideration.

Foreign Nationals of Indian Origin are not to be Foreign Nationals of Indian Origin are not to be treated as NRIs for the purpose of allowing treated as NRIs for the purpose of allowing insurance.insurance.04/19/2304/19/23 33C. KARUNAGARAN C. KARUNAGARAN

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NRIs can be allowed insurance

1. On their visit to India 2. From their present country

of residence – known as MAIL ORDER BUSINESS

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Minimum Sum Assured

Rs.2lacs (Sum assured over Rs.2 lacs will be in multiple of Rs.1 lac) for Mail Order Business.

Maximum Sum Assured

Maximum S.A. for each Residence Group is as mentioned in the circular.

A maximum sum assured of Rs.1crore may be allowed under Mail Order Business, i.e., where all formalities are completed in the NRIs present country of residence.

The maximum sum assured to be allowed will be in accordance with the existing rules for financial underwriting.

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Total rated up sum assured (TRSA)Total rated up sum assured (TRSA)

(Existing +Proposed)(Existing +Proposed)Proof of income requiredProof of income required

TRSA does not exceed Rs 15 lacsTRSA does not exceed Rs 15 lacs Proposals can be considered on the Proposals can be considered on the basis of incomebasis of income

income shown in the proposal form income shown in the proposal form and MHR. and MHR.

TRSA exceeds Rs 15 lacs but is TRSA exceeds Rs 15 lacs but is

up to Rs. 25 lacs up to Rs. 25 lacs Personal Financial Questionnaire Personal Financial Questionnaire (PFQ) (PFQ)

TRSA exceeds Rs 25 lacs TRSA exceeds Rs 25 lacs Copies of Income Tax Returns for last Copies of Income Tax Returns for last three years filed in the country of three years filed in the country of residence duly attested by the residence duly attested by the proposer and his signature witnessed proposer and his signature witnessed by the DO/ Agent / ABM(S)by the DO/ Agent / ABM(S)

Or Or

Salary certificate from proposer’s Salary certificate from proposer’s employeremployer

OrOr

copy of the employment contractcopy of the employment contract

Or Or

Audited balance sheet and profit and Audited balance sheet and profit and loss account of the firm or company if loss account of the firm or company if the proposer is a businessman the proposer is a businessman

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Insurance above 25 lacs is allowed only to class I occupation such as managerial, skilled, high paying desk job type employment with proof etc

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Types of cover

All plans will be allowed subject to the following restrictions under “Mail order Business” :- Maximum SA under pure Term Insurance Plans – Rs.25lacs - Term Rider benefit will be allowed up to Rs.25lacs.- Critical Illness benefit will not be allowed

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Non-Medical SchemeNon-Medical Scheme Proposal under non-medical (special) scheme will be Proposal under non-medical (special) scheme will be

entertained subject to the following conditions:entertained subject to the following conditions: Maximum age at entry – not over 45 years n.b.d.Maximum age at entry – not over 45 years n.b.d. Maximum Sum Assured – Rs.5lacs – based on sum Maximum Sum Assured – Rs.5lacs – based on sum

under consideration – i.e., rated up sum assured during under consideration – i.e., rated up sum assured during last two full years.last two full years.

Plans not allowed: 2, 43, 52, 58, 133, 143, 160, 164, Plans not allowed: 2, 43, 52, 58, 133, 143, 160, 164, 177 and term rider177 and term rider

Maximum aggregate sum assured of Rs.2lacs under Maximum aggregate sum assured of Rs.2lacs under Table Nos. 88, 89, 91, 103, 106, 107, 108, 121, 150, 168.Table Nos. 88, 89, 91, 103, 106, 107, 108, 121, 150, 168.

The proposer should be employed in Government or The proposer should be employed in Government or reputed commercial firm or should be a professional reputed commercial firm or should be a professional such as Chartered Accountant, Cost Accountant, such as Chartered Accountant, Cost Accountant, Engineer, Architect, Management / computer Engineer, Architect, Management / computer consultant, Doctor, Lawyer, Teacher, Insurance Agent, consultant, Doctor, Lawyer, Teacher, Insurance Agent, etc.etc.

Non-medical scheme under Mail Order Business will Non-medical scheme under Mail Order Business will be allowed only if agent visits the present country of be allowed only if agent visits the present country of residence of the NRIs to complete all formalities.residence of the NRIs to complete all formalities.

MHR by agent in the prescribed format.MHR by agent in the prescribed format.

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Moral Hazard Report by Moral Hazard Report by AgentAgent

• The format of special MHR to be The format of special MHR to be filled in by agent when he visits filled in by agent when he visits the country of residence of the the country of residence of the NRI for completing the NRI for completing the formalities is given in Annexure – formalities is given in Annexure – 2 of the Circular 19232 of the Circular 1923

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Special Questionnaire for Mail Order Special Questionnaire for Mail Order Business under Medical SchemeBusiness under Medical Scheme

If the agent does not visit the country If the agent does not visit the country of residence of the NRI for completing of residence of the NRI for completing the formalities, a special the formalities, a special questionnaire has to be filled in byquestionnaire has to be filled in by

- the employer in the case of - the employer in the case of employed persons.employed persons.

- Dean or Principal of educational - Dean or Principal of educational institutes in the case of students.institutes in the case of students.

- personal physician in the case - personal physician in the case of self-employed / business people.of self-employed / business people.

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Foreign Nationals of Foreign Nationals of Indian originIndian origin Maximum S.A to be allowed - 50 lakhsMaximum S.A to be allowed - 50 lakhs No mail order business. Only Rupee currency policies to No mail order business. Only Rupee currency policies to

above persons during their stay in India.above persons during their stay in India. Non-medical will not be allowedNon-medical will not be allowed Joint lives, plans having higher term insurance element Joint lives, plans having higher term insurance element

are not allowed.are not allowed. MHR by CM/ZM’s club members and D.Os after verifying MHR by CM/ZM’s club members and D.Os after verifying

original passport, authenticity of sources of income.original passport, authenticity of sources of income. Such proponents to be introduced to M.E by CM/ZM’s Such proponents to be introduced to M.E by CM/ZM’s

club members and MDRT Qualifier Agent.club members and MDRT Qualifier Agent.

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Non-Resident Questionnaire in the prescribed format to Non-Resident Questionnaire in the prescribed format to be obtained.be obtained.

Claim to be paid in India in Indian currency only.Claim to be paid in India in Indian currency only. Consent for the above to be obtained in advance and Consent for the above to be obtained in advance and

this condition to be typed on the policy.this condition to be typed on the policy. Residence extra and other restrictive conditions as Residence extra and other restrictive conditions as

applicable to Residence Group I to VII.applicable to Residence Group I to VII.

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Documents

Insurance to Non-Resident Indians (NRIs) 8/31/2015 1 C. KARUNAGARAN DEVELOPMENT OFFICER