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