Want to Invest in Real Estates?
Want to invest in Mutual funds?
Planning to take Insurance?
Dont know how to go about it then this blog is for you, dedicated for NRI
Insurance to NRI
The procedure and rules relating to issuance of policies to Non-resident Indians were reviewed and it has been decided to issue the following revised instructions:
Non-Resident Indian:
A non-resident Indian is a citizen of India temporarily residing in the country of his / her present residence and holding 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 to be treated as NRIs for the purpose of allowing insurance.
NRIs can be allowed insurance:
i. On their visit to India – 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 are completed during their stay in India.
ii. From their present country of residence – known as MAIL ORDER BUSINESS – where all or some of the formalities regarding filling in the proposal forms, obtaining medical and special reports are completed in their present country of residence.
Minimum Sum Assured
Proposals from NRIs will be considered for a minimum basic sum assured of Rs. two lacs. Sum assured over Rs. two lacs will be in multiple of Rs. one lac.
Maximum Sum Assured
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 NRIs’s present country of residence.
The maximum sum assured to be allowed will be in accordance with the existing rules for financial underwriting.
Income Proof
Proof of income in the form of income tax returns filed in the country of residence is to be called for when the total rated up sum assured exceeds Rs. 15 lacs. If tax returns are not filed, then copy of employment contract mentioning salary or a certificate from a Chartered Accountant regarding business / other income is to be called for. 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 lacs.
Types of cover:
All plans will be allowed subject to the following restrictions:
- Maximum SA under pure Term Insurance Plans – Rs. 25 lacs
- Term Rider benefit will be allowed up to Rs. 25 lacs.
- Critical Illness benefit will not be allowed.
Non-Medical Scheme
Proposal under non-medical (special) scheme will be entertained subject to the following conditions:
i. Maximum age at entry – not over 45 years nbd.
ii. Maximum Sum Assured – Rs. 5 lacs – based on sum under consideration – i.e., rated up sum assured during last two full years.
iii. Plans not allowed: 2, 43, 52, 58, 133, 143, 160, 164 and term rider
iv. Maximum aggregate sum assured of Rs. 2 lacs under Table Nos. 88, 89, 91, 103, 106, 107, 108, 121
v. 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.
vi. 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.
vii. MHR by agent in the prescribed format.
Procedure to be followed
Non-medical business
a. On NRIs’ visit to India – same procedure as applicable to Indian lives. A copy of the passport is to be called for.
b. 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
a. On NRIs’ visit to India – same procedure as applicable to Indian lives. A copy of
the passport is to be called for.
b. Mail Order Business:
The procedure to be followed is given in Annexure – 1.
Moral Hazard Report by Agent
The format of special MHR to be filled in by agent when he visits the country of residence of the NRI for completing the formalities is given in Annexure – 2.
At present only Chairman’s Club Member agents are allowed to 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
The format of the special questionnaire is given in Annexure - 3.
NRI Questionnaire –
Format of the Questionnaire to be completed by NRIs and to be sent along with the proposal form is given in Annexure - 4.
Life Insurance Memorandum (LIM)
Salient Features of Exchange Control Regulations governing issue of policies to non-residents, collection of premiums, settlement of claims, etc as per “Life Insurance Memorandum (LIM) are given in Annexure - 5.
Residence Rating for the Overseas Countries
Proposals from NRIs residing in certain countries are not to be entertained. Residence extra is to be charged in respect of some of the countries. A list of such countries is given in Annexure - 6.
**Will be soon updating with Annexure and other details
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NRI HOME LOAN
Documents requried and procedure to take home loans
Requirements of NRI Home Loan details (Pan Card / DL / Election ID is a MUST for availing loan)
A) For PROCESSING of LOAN (initial stage)
1) Applicant (if NRI) : 1) photo, Age proof2) Address proof (abroad as well as Indian)
3) Income proof (last 3 months salary slips)
4) form 16 / W2 / IT Filed
5) Bank statement (last 6 months abroad where Salary is credited & Indian a/c transactions)
6) Pan card Xerox7) Pass port, VISA copy
8) Appointment letter / offer letter (Photocopy of the Employment Contract
(if the contract is in a language other than English, an English translation of the same duly attested by employer)
9) Latest work permit10) Power of Attorney – As per Banks format
11) Identity card (issued by the current employer)
2) Co-applicant : 1) Photo, age & address proof
2) Last 3 months salary slip
3) Guarantor : 1) Photo, Age & address proof
2) Last 3months salary slips.
B) AFTER CONFIRMATION of LOAN FOLLOWING PROCEDURES TO BE DONE:-
4) Plan approval and copy of documents of the property
5) Legal opinion & Up-to-date EC
6) Valuation report
7) Estimation / sale cum construction agreement
8) Post dated cheque -12 no’s / ECS
9) Permission to mortgage
10) Documentation.
11) EMI pm for ______yrs. @______% = Rs.
Other Charges:
Stamp Charges
CIBIL
Processing fee
Building Insurance
Deposit of Title Deeds
Tata Aig Insurance
Vetting
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NRI Mutual Funds:
PAN: It is mandatory for all investors (including NRIs) to submit a copy of PAN card for all types of financial transactions. It stands for Permanent Account Number, which is ten-digit alphanumerical number issued by Income Tax Department of the Government of India. We assist all our NRI clients to comply with this requirement.
KYC: For any investment of Rs.50000/- and above, it is mandatory for all investors to comply with “Know Your Client” requirement. Under the requirement of Prevention of Money Laundering Act, 2002, and the subsequent guidelines issued by the Securities and Exchange Board of India ("SEBI") and Association of Mutual Funds india
India ("AMFI") it is mandatory for all investors to ensure compliance with the same. As per the law all mutual Funds are required to verify identity and maintain records of all their investors through the mandated Know Your Customer ("KYC") process with effect from February 01, 2008.
NRE/NRO Bank A/C: When a NRI wants to invest in Mutual Funds offered in India, it becomes mandatory for him to open an NRE / NRO /FCNR Bank Account . All Investments made in Mutual Fund ( offered in India ) by an NRI has to be made through his NRO / NRE / FCNR Bank Account.
Non-Resident (External) Rupee (NRE) account is a rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable
Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such an account are generally non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/as per various directives in force at the time of repatriation. More details can be found on the Reserve Bank of India (RBI) website.
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