Foreign Exchange Management (Insurance)Regulations, 2000 AP(DIR Series) Circular o!

"# (Se$tem%er "2, 2002) RESER&E 'A ( )F I DIA E*C+A ,E C) -R). DEPAR-ME CE -RA. )FFICE M/M'AI 0 100 00" AP(DIR Series) Circular No.18 September 12, 2002 To All Aut orise! Dealers i" #orei$" %&c a"$e Dear Sirs'(a!am, Foreign Exchange Management (Insurance)Regulations, 2000 Atte"tio" o) aut orise! !ealers is i"*ite! to t e Noti)icatio" No.#%(A 12'2000+ R, !ate! -r! (a. 2000 *i/. #orei$" %&c a"$e (a"a$eme"t (I"sura"ce) Re$ulatio"s, 2000. T e (emora"!um o) %&c a"$e Co"trol Re$ulatio"s relati"$ to 0e"eral I"sura"ce i" I"!ia (0I() si"ce brou$ t out is e"close!. T e ma1or c a"$es i" proce!ure as per t e (emora"!um are summarise! i" t e A""e&ure. 2. Aut orise! !ealers ma. bri"$ t e co"te"ts o) t is circular to t e "otice o) t eir co"stitue"ts co"cer"e!. -. T e Directio"s co"tai"e! i" t is circular a*e bee" issue! u"!er Sectio" 10(2) a"! Sectio" 11(i) o) t e #orei$" %&c a"$e (a"a$eme"t Act, 1333 (22 o) 1333). 4ours )ait )ull., ,race (oshie C ie) 0e"eral (a"a$er

E*/RE

5A.P.6DIR Series) Circular No.18 !ate! September 12, 20027 Ma2or changes e33ecte4 in the re5ise4 ,IM Sr! o! 1. Su%2ect matter Scope o) (emora"!um Changes T e earlier i"structio"s o) 0I( co*ere! o"l. public sector $e"eral i"sura"ce compa"ies. T e prese"t i"structio"s co"tai"e! i" t e (emora"!um are applicable to public sector $e"eral i"sura"ce compa"ies as 8ell as $e"eral i"sura"ce compa"ies 8 ic are re$istere! 8it IRDA. T e rei"sura"ce arra"$eme"t o) public sector $e"eral i"sura"ce compa"ies re$istere! 8it IRDA are to be !eci!e! b. t e respecti*e ,oar!s o) t e i"sura"ce compa"ies a"! IRDA is to be 9ept i")orme!. ADs !esi$"ate! b. t ese i"sura"ce compa"ies are "o8 permitte! to ma9e remitta"ces )alli"$ u"!er suc appro*e! rei"sura"ce arra"$eme"ts 8it out re)ere"ce to t e ,a"9. ADs a*e bee" permitte! to allo8 remitta"ce o) rei"sura"ce premia b. local bro9ers o) i"sura"ce compa"ies a)ter *eri).i"$ !ebit "otes )rom t e o*erseas i"sura"ce compa"., stateme"t o) accou"t a"! CA:s certi)icate o) bro9er certi).i"$ t e sum etc. Public sector $e"eral i"sura"ce compa"ies a"! $e"eral i"sura"ce compa"ies re$istere! 8it IRDA are permitte! to ope", mai"tai" a"! ol! a )orei$" curre"c. ba"9 accou"t 8it a ba"9 outsi!e I"!ia )or t e purpose o) )acilitati"$ tra"sactio"s a"! e&pe"ses relati"$' i"ci!e"tal to $e"eral i"sura"ce busi"ess u"!erta9e" i" )orei$" cou"tries. #or settleme"t o) claims i" )orei$" curre"c. i" respect o) policies issue! i" )orei$" curre"c., i"sura"ce compa"ies are "o8 permitte! to ma9e remitta"ces sub1ect to certai" co"!itio" as stipulate! i" t e (emora"!um, 8it out re)ere"ce to Reser*e ,a"9 as re<uire! i" t e past.

2.

Rei"sura"ce Arra"$eme"t

-.

Remitta"ce o) Rei"sura"ce Premia b. local bro9ers

2.

#orei$" curre"c. accou"ts abroa!

;.

Settleme"t o) claims i" )orei$" curre"c.

,IM
MEM)RA D/M )F E*C+A ,E C) -R). RE,/.A-I) S RE.A-I , -) ,E ERA. I S/RA CE I I DIA Intro4uction 0e"eral i"sura"ce busi"ess i" I"!ia is u"!erta9e" b. i"sura"ce compa"ies 8 ic are re$istere! 8it I"sura"ce Re$ulator. a"! De*elopme"t Aut orit. (IRDA). Sco$e o3 Memoran4um 2. (i) (ii) %&c a"$e Co"trol re$ulatio"s $o*er"i"$ $e"eral i"sura"ce busi"ess 8ritte" i" I"!ia are set out i" t is (emora"!um. Directio"s co"tai"e! i" t is (emora"!um a*e bee" issue! u"!er Sectio" 10(2) a"! Sectio" 11(1) o) #orei$" %&c a"$e (a"a$eme"t Act 1333 (22 o) 1333). De3initions -. #or t e purpose o) t is (emora"!um, t e terms =Perso" resi!e"t i" I"!ia= a"! =#orei$" Curre"c.= 8ill a*e t e same mea"i"$ as !e)i"e! u"!er #orei$" %&c a"$e (a"a$eme"t Act, 1333. 'an6 Encashment Certi3icates 2. > ere I"surers a*e bee" permitte! to issue policies e&presse! i" )orei$" curre"c. a$ai"st premium pa.able i" )orei$" curre"c., t e. s oul! i"sist o" submissio" o) suitable !ocume"t to satis). t emsel*es t at t e premium as bee" recei*e! b. )orei$" e&c a"$e remitta"ce t rou$ ba"9i"$ c a""els or i" rupees !eri*e! b. sale o) )orei$" e&c a"$e to a" aut orise! !ealer i" )orei$" e&c a"$e or a" aut orise! mo"e.+c a"$er. Direct Insurance outsi4e In4ia %7 Resi4ents ;. Perso"s, )irms, compa"ies etc. resi!e"t i" I"!ia are "ot permitte! to ta9e i"sura"ce co*er o) a". 9i"! 8it i"sura"ce compa"ies i" )orei$" cou"tries 8it out t e prior permissio" o) Reser*e ,a"9. ,esi!es, permissio" o) 0o*er"me"t o) I"!ia u"!er 0e"eral I"sura"ce ,usi"ess (Natio"alisatio") Act, 13?2, is also re<uire! to be ta9e" i" suc cases.

-ransaction in e$al an4 'hutan @. I"!ia"s, Nepalese a"! , uta"ese resi!e"t i" Nepal a"! , uta" as 8ell as o))ices

a"! bra"c es o) I"!ia", Nepalese a"! , uta"ese )irms, compa"ies or ot er or$a"isatio"s i" t ese t8o cou"tries are treate! as resi!e"t i" I"!ia )or purposes o) tra"sactio"s i" I"!ia" rupees. Pa.me"t o) claims to suc perso"s a$ai"st mari"e or "o"+mari"e policies ma. be )reel. ma!e i" rupees. Pa.me"ts i" )orei$" curre"c. to8ar!s claims u"!er mari"e or "o"+ mari"e policies 8ill re<uire prior appro*al o) Reser*e ,a"9, e&cept 8 ere premiums t ereo" 8ere also collecte! i" )orei$" curre"c.. ?. T e (emora"!um is !i*i!e! i"to )our parts as u"!er PART A PART , PART C PART D + + + + (ARIN% INSARANC% NBN+(ARIN% INSARANC% R%INSARANC% #BR%I0N CARR%NC4 ACCBANTS AND INC%ST(%NTS A,RBAD PAR- A 8 MARI E I S/RA CE Currenc7 in 9hich Marine Policies ma7 %e issue4 A!" (i) (ii) (ari"e i"sura"ce policies o" coastal s ipme"ts ma. be issue! o"l. i" I"!ia" rupees. (ari"e i"sura"ce policies o" s ipme"ts bet8ee" I"!ia a"! ot er cou"tries as also bet8ee" t8o poi"ts outsi!e I"!ia ma. be issue! i" rupees or i" a". )orei$" curre"c.

Premiums on Marine Policies co5ering Ex$orts A!2 Pa.me"t o) premium o" a mari"e i"sura"ce polic. o" e&ports )rom I"!ia ma. be accepte! i" rupees pro*i!e! e&porter )ur"is es to t e i"surer a certi)icate to t e e))ect eit er (a) t at i"sura"ce c ar$es o" t e s ipme"t i" <uestio" a*e to be bor"e b. im i" terms o) co"tract 8it o*erseas bu.er a"! t at e is "ot ma9i"$ t e pa.me"t o" be al) o) a". "o"+resi!e"t or (b) t at e is !e)ra.i"$ i"sura"ce c ar$es o" t e s ipme"t i" <uestio" o" accou"t o) o*erseas bu.er o) t e $oo!s a"! e u"!erta9es to a!! t e amou"t o" t e i"*oice a"! reco*er t e pa.me"t so ma!e )rom t e bu.er i" a" appro*e! ma""er.

NBT%SDA. B*erseas bu.ers ma. sometimes approac

I"surers !irectl. or

t rou$ t eir o*erseas o))ices'a$e"ts )or e&te"sio" o) co*er )or a!!itio"al ris9s or )or e&te"!e! tra"sit ris9s "ecessitate! b. circumsta"ces "ot e"*isa$e! 8 e" t e mari"e i"sura"ce 8as ori$i"all. co*ere! i" I"!ia 8it collecte! )rom o*erseas bu.ers i" )orei$" curre"c.. ,. Certai" cou"tries operate restrictio"s re<uiri"$ importers i" t eir cou"tries to obtai" mari"e i"sura"ce co*er )rom local i"surers, settleme"t u"!er 8 ic ma. "ot be possible i" t e e*e"t o) car$o $etti"$ lost be)ore reac i"$ port o) !esti"atio" !ue to %&c a"$e Co"trol re$ulatio"s $o*er"i"$ remitta"ces a$ai"st imports i"to t ose cou"tries. I"surers ma. issue i" suc cases, co"ti"$e"c. mari"e i"sura"ce policies to e&porters to protect t eir i"terest till $oo!s are pai! )or. T e policies s oul! be issue! 8it a co"!itio" t at t e. 8ill "ot be assi$"able to o*erseas bu.er or a". ot er "o"+resi!e"t part.. Claims o" suc policies s oul! be pai! o"l. to e&porters i" I"!ia. Premiums on Marine Policies co5ering Im$orts A!: (i) Pa.me"t o) premium o" a mari"e i"sura"ce polic. o" imports i"to I"!ia ma. be accepte! i" rupees pro*i!e! importer )ur"is es to t e i"surer a certi)icate to t e e))ect t at (a) t e i"sura"ce c ar$es are re<uire! to be bor"e b. im i" terms o) t e co"tract 8it t e o*erseas seller a"! (b) 8 ere t e import is ma!e a$ai"st a" Import Eice"ce, e u"!erta9es to e"sure t at t e amou"t o) i"sura"ce premium is e"!orse! o" t e import (ii) lice"ce i" !ue course. I" case o) imports b. t e public sector (*i/. Ce"tral 0o*er"me"t, a". State 0o*er"me"t, Statutor. or public bo!ies a"! 0o*er"me"t u"!erta9i"$s), pa.me"t o) (iii) i"sura"ce premium i" rupees ma. be )reel. accepte!. I" all ot er cases, 8 ere pa.me"t o) premium i" respect o) imports is o))ere! i" rupees, prior appro*al o) Reser*e ,a"9 8ill be re<uire!. Applicatio"s )or t e purpose s oul! be ma!e b. letter (i" !uplicate) )ur"is i"$ )ull particulars. Premiums on Marine Policies co5ering Shi$ments %et9een Countries outsi4e In4ia t e I"surers. Suc e&te"sio"s ma. be ma!e b. I"surers pro*i!e! t e a!!itio"al premiums are

A!1

(i)

Premiums o" mari"e i"sura"ce policies co*eri"$ s ipme"ts bet8ee"

cou"tries outsi!e I"!ia must or!i"aril. be recei*e! i" )orei$" curre"c., but pa.me"t i" rupees ma. be accepte! pro*i!e! a certi)icate )rom a" aut orise! !ealer i" )orei$" e&c a"$e is pro!uce! to s o8 t at t e rupees are !eri*e! b. a remitta"ce )rom abroa! i" a" appro*e! ma""er. NBT%D B*erseas o))ices o) t e I"surers ma. $ra"t mari"e i"sura"ce co*er )or tra!e bet8ee" C i"a a"! t ir! cou"tries a"! recei*e premium'settle claims t rou$ )orei$" curre"c. accou"ts mai"tai"e! b. t eir o*erseas o))ices 8it out prior appro*al o) Reser*e ,a"9. (ii) Sometimes, )irms a"! compa"ies i" I"!ia )i"a"ce merc a"ti"$ tra!e i.e. $oo!s s ippe! )rom o"e )orei$" cou"tr. to a"ot er a"! )i"a"ce! b. a" i"terme!iar. i" I"!ia. I" some o) t ese cases $oo!s ma. be purc ase! o" ).o.b.'c.F ). terms a"!'or sol! o" c.i.). terms, t e mari"e i"sura"ce co*er bei"$ arra"$e! b. t e i"terme!iar. i" I"!ia. I"sura"ce compa"ies

re$istere! 8it IRDA ma. issue policies co*eri"$ tra"sit ris9s bet8ee" t e loa!i"$ a"! t e !esti"atio" ports i" rupees or i" a". )orei$" curre"c. i" suc cases, a$ai"st pa.me"t o) premium i" rupees b. t e i"terme!iar., a)ter satis).i"$ t emsel*es t at t e co"tract pro*i!es )or mari"e i"sura"ce bei"$ ta9e" b. t e i"terme!iar.. Claims against Marine Policies A.; Claims a$ai"st mari"e i"sura"ce policies, 8 e" pa.able to perso"s, )irms or

compa"ies i" I"!ia s oul! be pai! o"l. i" rupees, irrespecti*e o) t e curre"c. i" 8 ic relati*e policies a! bee" issue!. > ere claima"t is "ot a resi!e"t o) I"!ia, I"surers ma.

settle t e claim out o) )orei$" curre"c. bala"ces el! b. t em, pro*i!e! t e. are satis)ie! t at o8"ers ip o) t e $oo!s lost, !ama$e! etc., *ests i" suc claima"t a"! t at t e latter is "ot ma9i"$ t e claim merel. as a$e"t o) t e real o8"er o) t e $oo!s i" I"!ia. Remittance o3 Claims on Ex$orts A!; (i) I" t e case o) mari"e claims a$ai"st e&ports, remitta"ces o) claim 8ill be

permitte! b. aut orise! !ealers i" )orei$" e&c a"$e o" applicatio" o" )orm A2 pro*i!e! t e I"surer as satis)ie! imsel) t at t e o8"ers ip o) t e $oo!s o" 8 ic claim as arise" *ests i" t e "o"+resi!e"t claima"t. Applicatio"s s oul! be supporte! b. )ollo8i"$ !ocume"tsD (a) Stateme"t o) claim !ul. certi)ie! b. a" o))icial aut orise! b. i"sura"ce compa". re$istere! 8it IRDA )or t is purpose. (b) (c) (!) (e) ()) I"sura"ce polic.. Sur*e. report or ot er customar. proo) o) loss. ,ill o) la!i"$'Air8a. bill. Certi)ie! cop. o) i"*oice. A". ot er !ocume"ts or!i"aril. re<uire! to support t e claim. t e

> ere ori$i"al !ocume"ts are "ot a*ailable )or a". reaso", p oto copies ma. be pro!uce! to aut orise! !ealer to$et er 8it reaso"s )or "o"+a*ailabilit. o) t e ori$i"al !ocume"ts. T is pro*isio" !oes "ot appl. to remitta"ces )or

reple"is me"t o) )orei$" curre"c. bala"ces 8 ic 8ill re<uire speci)ic appro*al o) Reser*e ,a"9. NBT%D I"surers ma. settle claims i" rupees i" )a*our o) I"!ia" e&porters e*e" i"

cases 8 ere title to t e $oo!s as passe! to )orei$" bu.er, i) a re<uest to t at e))ect

as bee" ma!e b. t e "o"+resi!e"t claima"t. A certi)icate i"!icati"$ )ull particulars o) t e tra"sactio" i"clu!i"$ "umber o) relati*e 0R'PP )orm a"! amou"t pai! i" settleme"t o) claim s oul! be issue! to t e e&porter to e"able t e latter to obtai" "ecessar. appro*al )rom Reser*e ,a"9 )or ma9i"$ replaceme"t s ipme"ts. (ii) Claims a$ai"st mari"e i"sura"ce policies co*eri"$ e&ports ma. also be t e o*erseas claims settli"$ a$e"ts, i) so !esire! b. i"surers.

settle! t rou$

Aut orise! !ealers a*e bee" permitte! to ope" re*ol*i"$ letters o) cre!it i" )a*our o) establis e! claims+settli"$ a$e"ts abroa! a"! reimburse claims u"!er t e cre!it o" *eri)icatio" o) t e "ecessar. !ocume"tar. e*i!e"ce *i/. stateme"t o) claim, sur*e. report or ot er !ocume"tar. e*i!e"ce o) loss'!ama$e, ori$i"al polic. or certi)icate o) i"sura"ce etc. Pa7ment in Foreign Currenc7 o3 certain Im$ort Claims A!< Alt ou$ it is a basic rule t at mari"e claims o" imports s oul! be settle! locall.

i" rupees i" )a*our o) importer i" cases 8 ere o8"ers ip o) t e $oo!s lost, !ama$e!, etc. *ests i" t e importer, I"surers ma. settle claims )rom t eir )orei$" curre"c. bala"ces i" )a*our o) o*erseas suppliers i" t e )ollo8i"$ cate$ories o) imports, i" or!er to )acilitate earl. replaceme"t o) t e lost, !ama$e!, etc. $oo!s, o" re<uest bei"$ recei*e! i" t is re$ar! )rom importersD (a) (b) Imports b. 0o*er"me"t Departme"ts a"! public sector u"!erta9i"$s Imports b. pri*ate sector u"!erta9i"$s a$ai"st )orei$" cre!its pro*i!e! t e terms o) t e )orei$" cre!it re<uire t at i"sura"ce co*er s oul! be ta9e" i" )orei$" curre"c. )or replaceme"t o) lost'!ama$e! $oo!s.

(c)

I" all ot er cases, 8 ere t e o8"ers ip o) t e $oo!s lost'!ama$e!, etc. *ests 8it t e o*erseas supplier a"! "o pa.me"t as bee" ma!e to8ar!s a". part o) t e cost o) t e $oo!s.

T ese pro*isio"s are applicable "ot o"l. to mari"e policies, but also to mari"e+ cum+erectio" policies, 8 et er issue! separatel. or combi"e!. Claims on Policies Co5ering Merchanting -ra4e A!# Claims arisi"$ )rom mari"e i"sura"ce policies co*eri"$ merc a"ti"$ tra!e

)i"a"ce! t rou$ I"!ia ma. be settle! b. I"surers 3rom their 3oreign currenc7 %alances o"l. i) + (a) (b) t e o8"ers ip o) t e $oo!s *ests 8it t e o*erseas part. a"! 8 ere t e claim is propose! to be settle! i" )a*our o) t e o*erseas supplier, pa.me"t )or t e $oo!s as "ot bee" ma!e to t e supplier a"! 8 ere claim is propose! to be settle! i" )a*our o) t e o*erseas bu.er, pa.me"t )or t e $oo!s as bee" recei*e! b. t e I"!ia" i"terme!iar. )rom t e bu.er. PAR- ' 8 ) 8MARI E I S/RA CE Assets in In4ia '!" I"sura"ce co*er o" ris9s i"si!e I"!ia (i"clu!i"$ All Ris9s I"sura"ce)o" assets i" I"!ia o8"e! b. resi!e"ts o) I"!ia ma. be issue! o"l. i" rupees. T is is also applicable to assets o) I"!ia" bra"c es'o))ices o) )orei$" compa"ies, ba"9s, etc. Assets outsi4e In4ia '!2 No"+mari"e ris9s i" respect o) assets outsi!e I"!ia o8"e! b. resi!e"ts o) I"!ia

ma. be co*ere! i" rupees or i" )orei$" curre"c. pro*i!e! t at i" respect o) immo*able

propert. el! outsi!e I"!ia b. I"!ia" "atio"als, permissio" o) Reser*e ,a"9 )or ol!i"$ t e propert. a! bee" obtai"e!, (8 ere "ecessar.). Settleme"t o) claims u"!er suc policies s oul! be ma!e o"l. i" rupees locall.. #orei$" curre"c. policies pro*i!i"$ )or pa.me"t o) claims i" )orei$" curre"c. i" t e )orei$" cou"tr. ma., o8e*er, be issue! o"l. i) t e premiums are pai! i" )orei$" curre"c. out o) eli$ible )orei$" curre"c. assets el! b. I"!ia" "atio"als'perso"s o) I"!ia" ori$i" 8 o a*e retur"e! to I"!ia )rom abroa! a)ter a mi"imum co"ti"uous sta. abroa! )or at least o"e .ear or out o) )u"!s el! i" t eir R#C accou"ts 8it aut orise! !ealers i" I"!ia. Issue o) )orei$" curre"c. policies i" ot er cases 8ill re<uire prior appro*al o) Reser*e ,a"9. Policies in 3oreign currenc7 a$$ro5e4 %7 Reser5e 'an68 Settlement o3 claims '!:(i) Re<uest )or issue o) policies i" )orei$" curre"c. 8 ic are "ot co*ere! b. t e abo*e $ui!eli"es are e&ami"e! o" merits b. R,I. #or suc re<uests 8 ere R,I $ra"ts speci)ic appro*al )or issue o) polic. i" )orei$" curre"c., accepta"ce o) premium i" )orei$" curre"c. a"! settleme"t o) claim i" )orei$" curre"c., i"surers ma. approac

A.D. )or remitta"ce o) claims u"!er policies sub1ect to t e )ollo8i"$ co"!itio"s D+ (a) t e polic. as bee" issue! i" )orei$" curre"c. 8it speci)ic appro*al o) R,IG (b) t e claim as bee" a!mitte! b. t e compete"t aut orit. o) t e i"sura"ce compa".. (c) t e claims as bee" settle! as per t e sur*e.ors report a"! ot er

substa"tiati"$ !ocume"tsG

(!)

claims o" accou"t o) rei"sura"ce are bei"$ lo!$e! 8it t e rei"surers a"! 8ill be recei*e! as per rei"sura"ce a$reeme"tG

(e)

t e remitta"ce is bei"$ ma!e to t e "o"+resi!e"t be"e)iciar. u"!er t e polic.. #or resi!e"t be"e)iciaries t e claim ma. be settle! i" Rupee

e<ui*ale"t o) )orei$" curre"c. !ue. A"!er "o circumsta"ces pa.me"t i" )orei$" curre"c. be ma!e to a resi!e"t be"e)iciar.. '!: (ii) I"surers ma. submit, to t e Re$io"al B))ice o) R,I u"!er 8 ose

1uris!ictio" it operates, a report o" <uarterl. basis o) t e claims settle! i" )orei$" curre"c. alo"$ 8it supporti"$ !ocume"ts o) eac claim settle! b. t em. T ese reports ma. be submitte! 8it i" 1; !a.s )rom t e e"! o) eac <uarter o) t e cale"!ar .ear. 'aggage an4 &alua%les in transit '!1 (i) I"sura"ce co*er o" ba$$a$e or *aluables i" tra"sit bet8ee" I"!ia a"! ot er

cou"tries or bet8ee" t8o cou"tries outsi!e I"!ia ma. be issue! i" rupees or i" )orei$" curre"c.. (ii) Premiums o" suc policies ma. be collecte! i" rupees o"l. i) t e o8"er o) t e ba$$a$e or ot er *aluables is eit er a" I"!ia" "atio"al or is "ormall. resi!e"t i" I"!ia. I" ot er cases, premiums s oul! be recei*e! i" )orei$" curre"c. or i" rupees !eri*e! b. surre"!er o) )orei$" curre"c. to a" aut orise! !ealer i" )orei$" e&c a"$e or aut orise! mo"e.+c a"$erG suc pa.me"ts s oul! be supporte! b. a certi)icate )rom t e aut orise! !ealer'mo"e.+c a"$er i" t e prescribe! )orm. (iii) Claims o" suc policies ma. be pai! o"l. i" rupees i" I"!ia e&cept 8 ere t e polic. ol!er is a perso" "ormall. resi!e"t outsi!e I"!ia a"! premiums

a$ai"st t e polic. a! bee" collecte! eit er i" )orei$" curre"c. or i" rupees !eri*e! b. surre"!er o) )orei$" curre"c.. Remitta"ces o) claims i" )orei$" curre"cies i" ot er cases 8ill re<uire prior appro*al o) Reser*e ,a"9. (i*) Remitta"ces to8ar!s claims o" perso"al ba$$a$e res ippe! )rom I"!ia b. )orei$" "atio"als o" completio" o) t eir assi$"me"ts i" I"!ia ma. be allo8e! b. i"surers, i) t e. are eli$ible )or or a*e bee" accor!e!

remitta"ce )acilities at t e time o) retireme"t )rom I"!ia. =ar etc! Ris6s Insurance on Marine +ulls '!> I"sura"ce o" I"!ia" mari"e ulls co*eri"$ All Ris9s a$ai"st 8ar a"! ot er allie!

ris9s arisi"$ out o) ci*il commotio", political or labour !isturba"ces etc. are re<uire! to be obtai"e! )rom t e I"surers i" I"!ia o"l.. Personal Acci4ent Insurance '!; Perso"al acci!e"t policies ma. be issue! o"l. i" rupees a"! claims t ereo" settle!

o"l. i" rupees, i" case o) I"!ia" "atio"als a"! perso"s o) I"!ia" ori$i" "ormall. resi!e"t i" I"!ia. I" ot er cases, perso"al acci!e"t policies ma. be issue! i" )orei$" curre"c., pro*i!e! premiums t ereo" are pai! eit er i" )orei$" curre"c. or i" rupees !eri*e! b. surre"!er o) )orei$" curre"c. to a" aut orise! !ealer or aut orise! mo"e.+c a"$er. Claims i" t ese cases ma. be settle! i" curre"c. o) t e polic. or i" rupees as !esire! b. t e polic. ol!er. NBT%DI"!ia" compa"ies e&ecuti"$ co"structio" a"! tur"9e. co"tracts i" )orei$" cou"tries ma. at times !esire to obtai" perso"al acci!e"t co*er )rom I"!ia" I"surers )or t e 8or9me" a"! tec "ical sta)) actuall. e"$a$e! i" t e o*erseas co"tracts pro*i!i"$ )or

settleme"t o) claims i" )orei$" curre"c.. I"surers ma. permit suc i"sura"ce bei"$ ta9e" pro*i!e! premiums 8ill be pai! b. remitta"ces i" )orei$" curre"c. )rom out o) t e )orei$" curre"c. ear"i"$s $e"erate! b. t e co"tracts. Claims i" suc cases ma. be settle! i" )orei$" curre"c. or i) so !esire!, i" rupees locall.. )5erseas Me4ical Insurance Scheme 3or In4ians -ra5elling A%roa4 '!< Policies ma. be issue! i" I"!ia u"!er t e B*erseas (e!ical I"sura"ce Sc emes as

appro*e! b. Reser*e ,a"9 to I"!ia" resi!e"ts tra*elli"$ abroa! )or a". appro*e! *isits *i/. busi"ess, stu!. tour, specialise! trai"i"$, co")ere"ces, emplo.me"t or Premiums o" suc i$ er

stu!ies.

policies, ot er t a" )or *isits )or emplo.me"t, ma. be

collecte! i" rupees a"! )or emplo.me"t i" )orei$" curre"c.. I"surers ma. also ope" a re*ol*i"$ letter o) cre!it 8it a" I"!ia" ba"9 i" Eo"!o" )or settleme"t o) its s are i" t e claims t at ma. e*e"tuall. arise u"!er t e policies. Miscellaneous '!# (i) I"surers ma. issue pro!uct liabilit. policies )or e&ports a"! %rrors a"!

Bmissio"s Polic. i" respect o) computer so)t8are e&ports i" )orei$" curre"c. a$ai"st receipt o) premium i" rupees a"! settle claims i) a". i" )orei$" curre"c. i" respect o) suc policies. (ii) Claims arisi"$ outsi!e I"!ia a$ai"st policies issue! u"!er >or9me"Hs

Compe"satio" Act a"! (erc a"t S ippi"$ Act ma. be pai! i" appropriate )orei$" curre"c.. Remitta"ces 8ill be allo8e! )or meeti"$ speci)ic claims o" applicatio" b. t e I"surers )ur"is i"$ )ull !etails o) t e claims. PAR- C 8 REI S/RA CE

C.1

As per t e e&ta"t 0o*t. o) I"!iaHs i"structio"s, rei"sura"ce arra"$eme"ts o) t e IRDA are to be !eci!e! b. t e compa"ies

i"sura"ce compa"ies re$istere! 8it

t emsel*es o" a" a""ual basis, 8 ic is to be appro*e! b. t e respecti*e i"sura"ce compa".Hs ,oar!s i" co"sultatio" 8it IRDA. Aut orise! !ealer, !esi$"ate! b. t ese i"sura"ce compa"ies ma. allo8 remitta"ces )alli"$ !ue u"!er suc appro*e! rei"sura"ce arra"$eme"ts, b. t e i"surers i" accor!a"ce 8it t e terms a"! co"!itio"s lai! !o8" b. t eir ,oar!s. C!2 Remittance o3 Reinsurance Premia %7 .ocal 'ro6ers > ere*er local bro9ers arra"$e t e rei"sura"ce o" be al) o) i"surers, local bro9ers ma. remit t e premia t rou$ t e bra"c o) t e aut orise! !ealer !esi$"ate! b. t e i"sura"ce compa". i" terms o) para c.1 abo*e sub1ect to t e pro!uctio" o) u"!er"ote! !ocume"tsD i) ii) Relati*e !ebit "otes )rom o*erseas i"sura"ce compa".. Detaile! stateme"t o) premia settle! b. t e i"!i*i!ual i"sura"ce compa"., alo"$ 8it a certi)icate to t e e))ect t at t e amou"t o) rei"sura"ce

busi"ess is 8it i" t e o*erall limit appro*e! b. t e i"sura"ce compa".Hs ,oar! a"! t at t e ris9s co*ere! u"!er t e rei"sura"ce arra"$eme"ts are 8it i" t e scope o) t e Rei"sura"ce Pro$ramme, appro*e! b. t e i"sura"ce compa".Hs ,oar! i" co"sultatio" 8it IRDA. iii) A certi)icate )rom t e C artere! Accou"ta"t o) t e local bro9er, prepare! o" t e basis o) certi)icates a"! stateme"ts obtai"e! )rom t e i"sura"ce compa"ies, to t e e))ect t at t e propose! remitta"ce o) rei"sura"ce

premia sou$ t, is i" a$reeme"t 8it t e *arious stateme"ts'certi)icates obtai"e! )rom t e i"sura"ce compa".'compa"ies. PAR- D 8 F)REI, C/RRE C? ACC)/ -S A D I &ES-ME -S A'R)AD Foreign Currenc7 Accounts A%roa4 D!" I"surers ma. ope", ol! a"! mai"tai" 8it a ba"9 outsi!e I"!ia )orei$" curre"c. $e"eral

accou"ts )or )acilitati"$ tra"sactio"s a"! e&pe"ses relati"$'i"ci!e"tal to

i"sura"ce busi"ess u"!erta9e" i" )orei$" cou"tries i" accor!a"ce 8it re$ulatio"s lai! !o8" i" t is (emora"!um. I"surers s oul! e"!ea*our to 9eep i" t eir )orei$" curre"c. accou"ts o"l. t e mi"imum bala"ces re<uire! )or "ormal busi"ess a"! tra"s)er to I"!ia re$ularl. all surplus )u"!s el! at )orei$" ce"tres. In5estments a%roa4 D!2 Re"e8al o) e&isti"$ i"*estme"ts, rei"*estme"t o) re!emptio" procee!s o) e&isti"$

i"*estme"ts a"! )res i"*estme"t out o) )u"!s abroa!, i" $o*er"me"t'semi+0o*er"me"t securities a"! ba"9 !eposits ma. be ma!e b. I"surers )reel. 8it out prior appro*al o) Reser*e ,a"9, pro*i!e! t e. are )or meeti"$ statutor7 re@uirements in the 3oreign countr7 concerne4! All ot er i"*estme"ts 8ill re<uire prior appro*al o) Reser*e ,a"9 o) I"!ia.