Circular No.ES/176 / 2016-17 November 19, 2016
To: Members of the Council
Sub: - Foreign Exchange Management (Insurance) Regulations, 2015
Dear Member,
This is to inform you that the Reserve Bank of India has issued Circular No.18 [(1)/12 (R)] dated November 17, 2016 revising the General and Health Insurance Manual.
On a review, RBI felt necessary to revise the regulations issued under the Foreign Exchange Management (Insurance) Regulations, 2000 notified vide Notification No. FEMA. 12/2000 - RB dated May 03, 2000. Accordingly, the said Regulations have been repealed in consultation with the Government of India and superseded by the Foreign Exchange Management (Insurance) Regulations, 2015 notified vide Notification No. FEMA. 12(R)/2015-RB dated December 29, 2015.
The revised notification has come into force with effect from December 29, 2015.
The Major changes effected in the revised General/ Health Insurance Manual (GIM) are as follows :
|
Sl. No. |
Subject matter |
Changes |
|
1. |
Policies allowed to be placed in foreign exchange. |
All general/health insurance policies permitted by IRDAI are allowed to be placed in foreign exchange. No RBI permission is required for issuance/renewal of any insurance policy. |
|
2. |
Payment of insurance premium by Indian Resident |
Payment of insurance premium in foreign currency by Indian Resident is no longer required irrespective of currency for settlement of claim. |
|
3. |
Payment of insurance premium by Resident outside India |
Resident outside India may obtain general/health insurance policy on payment of insurance premium in foreign currency irrespective of currency for settlement of claim. However, if the premium is paid in INR, settlement of claim will be in INR. |
|
4. |
Health insurance policy by resident going abroad. |
|
|
5. |
Investments abroad |
Overseas investment by Insurance companies enabled. |
|
6. |
Quarterly report by insurance companies on settlement of claims of policies issued with permission of RBI. |
Quarterly Report discontinued. |
Members may kindly make note of the above.
Thanking you,
V. ANIL KUMAR
EXECUTIVE DIRECTOR
