Forex norms relaxed in Life Insurance

The Reserve Bank of India has relaxed norms relating to Life Insurance, as per this residents Indians can retain life insurance benefits received in foreign currency in their resident foreign currency account.

Insurance companies can now settle their claims in foreign currency favouring residents and credit their Resident Foreign Currency accounts. Earlier residents were not allowed to retain any receipts in foreign currency.

With respect to situtation involving non resident Indians the Insurance company can settle their claims by crediting their NRE/FCNR accounts.

 The proceeds of policies denominated in foreign currency or rupee for which insurance premium was paid in foreign currency through NRE/FCNR accounts will now be paid by crediting the NRE/FCNR account of the non resident India.