Can a NRI buy Insurance in India

Can a NRI buy Insurance in India? With the steady growth of Insurance awareness in India, majority of the population are insuring themselves. Even Non Resident Individuals, NRIs prefer to buy insurance in India, but is it possible?

Can a NRI buy a policy in India?

Yes, NRIs can buy policies from Indian insurers.

Are there specialized policies for NRIs?

No, they are sold the same policies which are sold to Indian citizens. They simply need to fill up an additional Questionnaire which is attached to the basic policy.

Are the NRIs charged higher premiums?

No, the premium charged is at par with what is charged to Indian citizens. However, if the NRI resides in a country which is prone to higher risks (like in an earthquake prone region), the premium charged is higher.

What is the process of buying the policy?

NRIs can buy the policy during their visit to India or form their country of residence through direct correspondence with the insurer. The medical tests, if required, can be done in India or abroad respectively. If the tests are done in India, the charges are included in the premium amount. However, if the tests are done abroad, the proposer needs to bear the medical costs himself and dispatch the test results to the insurer in India. The policy is then issued after necessary underwriting.

What is the method of making payments and collecting benefits?

The payments can be made either in INR or foreign currency through:
1) Remittance in foreign currency
2) NRO bank account
3) NRE/FCNR bank account

The benefits are paid into the NRE account and are repatriable in proportion to the premiums paid in foreign currency corresponding to the total premiums payable. If premiums are fully paid in INR, the benefits are not repatriable.

Thus, NRIs can buy policies in India and even the insurers have made the process simple and appealing.

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