You are an NRI with strong roots in India then you should consider buying insurance in India. Needless to say, India’s economy is booming and any investment on Indian soil will further boost your finances. Insurance companies now offer customized plans to meet the requirements of NRIs.
Here is a list of 5 things that you need to consider buying taking the plunge into buying insurance in India.
NRIs and PIO are allowed to buy life insurance in India, subject to fulfillment of certain conditions. NRI refers to an Indian national resident abroad for certain duration, and PIO is a citizen of any country other than Bangladesh or Pakistan, if:
1) the individual has held Indian passport, any time in the past
2) the person or either parents or grand-parents were a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
3) the individual is a spouse of an Indian citizen or a person referred to in clauses 1 or 2.
If you are an NRI and want to purchase life insurance in India, you should have a valid passport issued by government of India. And for PIO, if you come under any of the above-mentioned categories then surely you can buy life insurance plan in India.
As now you are eligible, the next step is to find a reliable insurer. There are over 23 life insurance companies offering a wide range of products to choose from. Consider factors such as the pedigree of the management, company’s claim settlement ratio, track record, and parent group’s experience. There are no specific policies offered by insurance companies for non-residents, but a few insurers have actually restructured their processes of issuing insurance policies to NRIs. They will help you with documentations and other requirements for medical tests, etc. Here’s the list of some of the companies who have managed to streamline their NRI centers:
Check the premium payment methods of the policy in advance so that you don’t have to face any trouble later. There are two ways of premium payment; one is foreign currency-denominated policies in which you pay the premiums in foreign currency or through your NRE/FCNR account, and second is rupee denominated policies in which you pay premiums in rupees using NRO accounts.
Here’s the table showing comparison between NRE, NRO and FCNR accounts:
Criteria/Accounts |
NRE (Non-Resident External Account) |
NRO (Non-Resident Ordinary Account) |
FCNR (Foreign Currency Non-Resident Account) |
Suitable For |
NRI’s whose income source is only from abroad |
NRI’s who have income source from both India as well as abroad |
NRI’s who want to invest in India but don’t want to take currency risk |
Account Type |
Saving , Current or Fixed Deposits account |
Saving , Current or Fixed Deposits account |
Fixed Deposit only |
Money can be deposited from |
Abroad |
India and abroad |
Abroad |
Currency of money deposit |
Rupees |
Rupees |
Any of U.S. Dollar , Pound Sterling , Euro , Australian Dollar , Canadian Dollar |
Tax |
Exempt |
Taxable |
Exempt |
Buying a life insurance means, you have to go through medical examination. There are two ways to get it done. One is, you come to India and your insurer will bear the medical expenses, and second option is to do it overseas and send the report to the insurance company in India. In second case, you would have to bear the cost, unless you are buying a policy targeted specifically for non-residents, in which case, the insurer would have tied up with an overseas medical facility for the purpose.