Insurance to Non-Resident Indians (NRIs)

Buying an insurance policy is a simple procedure. However, there are certain requirements that you would need to fulfill as an NRI. The details are as follows:

  • A non-resident Indian should hold a valid passport issued by the Government of India. The NRI should not be a green card holder. He/she should not have applied for or planning to apply in the near future for acquiring citizenship of his/her present country of residence or any other country. Foreign Nationals of Indian Origin are not treated as NRIs for the purpose of buying insurance.
  • Insurance cover is canvassed in India and all formalities regarding filling in the proposal forms, obtaining medical examination report / special medical reports and Moral Hazard Report should be completed during their stay in India, if not it can be completed on their visit to India.
  • From their present country of residence known as ‘mail order business’, all or some of the formalities regarding filling in the proposal forms, obtaining medical and special reports should be completed in their present country of residence.
  • Proposals from NRIs will be considered for a minimum basic sum assured of Rs. two lakhs. Sum assured over Rs. two lakhs will be in multiple of Rs. one lakh.
  • There is no maximum sum assured limit when all formalities are completed in India on the NRIs’ visit to India.
  • A maximum sum assured of Rs. 1 crore may be allowed under ‘Mail Order Business’, i.e., where all formalities are completed in the NRI’s present country of residence. The maximum sum assured to be allowed would be in accordance with the existing rules for financial underwriting.
  • For proof of income, income tax returns filed in the country of residence is needed when the total rated up sum assured exceeds Rs. 15 lakhs. If tax returns are not filed, then copy of employment contract mentioning salary or a certificate from a Chartered Accountant regarding business or other income can be submitted. Personal Financial Questionnaire (PFQ) duly filled in and signed by the proposer and countersigned by the Official filling in the MHR can be accepted as proof of income up to a rated up sum assured Rs. 25 lakhs.

An NRI can buy any insurance policy of his choice. However, the following are the restrictions.

  • Maximum sum assured under pure Term Insurance Plans is Rs. 25 lakhs
  • Term Rider benefit will be allowed up to Rs. 25 lakhs.
  • Critical Illness benefit will not be allowed.

Proposal under non-medical (special) scheme will be entertained subject to the following conditions:

  • Maximum age at entry should not be over 45 years of age.
  • Maximum sum assured is Rs. 5 lakhs, which is based on sum under consideration i.e. rated up sum assured during last two full years.
  • The plans that are not allowed are – Whole life with profits, Jeevan Mitra (Triple cover), Jeevan Bharati, Anmol Jeevan and Term rider.
  • Maximum aggregate sum assured of Rs. 2 lakhs under Table Nos. Jeevan Mitra (Double Cover), Jeevan Saathi, New Janaraksha, Jeevan Chhaya, Jeevan Surabhi-15, 20 and 25 years.
  • The proposer should be employed in Government or reputed commercial firm or should be a professional such as Chartered Accountant, Cost Accountant, Engineer, Architect, Management / computer consultant, Doctor, Lawyer, Teacher, Insurance Agent, etc.
  • Non-medical scheme under ‘Mail Order Business’ will be allowed only if agents visit the present country of residence of the NRIs to complete all formalities.
  • MHR by agent should be in the prescribed format.

Procedure to be followed for Non-medical business

The procedure of buying insurance for NRIs is similar to that of selling any regular insurance policy. A copy of the passport is needed.
‘Mail order business’ – Non-medical scheme is allowed only if the agent visits the present country of residence of the NRI for completing the formalities. The agent should complete the usual procedure for non-medical business. He should either send the proposal papers including NRI Questionnaire, Special Questionnaire and a copy of the passport by mail or hand over the papers personally to the concerned Branch Office.

Medical business

  • On NRIs’ visit to India, similar procedure of selling insurance is followed. A copy of the passport is needed.For ‘Mail Order Business, the procedure to be followed is given below:

For ‘Mail Order Business, the procedure to be followed is given below:

  • The format of special MHR is to be filled in by the agent when he visits the country of residence of the NRI to complete the formalities. Chairman’s Club Member agents can complete formalities under proposals from NRIs during their visit to countries of their present residence. It has now been decided to allow other agents also to complete formalities under proposals from NRIs during their visit to NRIs’ present countries of residence.
  • Special Questionnaire for ‘Mail Order Business’ under Medical Scheme-if the agent does not visit the country of residence of the NRI for completing the formalities, a special questionnaire has to be filled in by
  • The employer in the case of employed persons
  • Dean or Principal of educational institutes in the case of students
  • Personal physician in the case of self-employed / business people