According to Govt. of India regulations NRI (Non Resident Indian) or PIO (Person of Indian Origin) can take Lic Policy through Authorized Agents or Financial Advisors appointed by LIC of India and approved by IRDA.
NRI Insurance Policy
NRI can easily buy a new Lic policy without leaving their current country of residence. All paperwork needs to be completed by courier service which is known as Mail Order Business.However you need to select an agent who will be a point of contact between you and the parent company. You may need to undergo medical test based on the Plan and term of the specific policy. All charges related to medical test need to be borne by the proposer. In case proposer is in India then the medical tests charges are borne by LIC. Regular Premium can be paid by the NRI proposer through Direct Remittances, NRO and NRE Banks accounts.
Premium remains uniform for all Indian's whether resident, non-resident or PIO. Service Tax which is added on top of the Premium amount has been waived off for NRI's by providing necessary supporting documents. NRI Proposer will get higher sum assured if he is present in India during application process for new policy, otherwise the maximum ceiling for Sum Assured of Rs. 1,00,00,000 (1 CRORE only). Lic provides worldwide cover to all its policyholders irrespective of the current resident status.
It is 100% effective to invest in LIC as all premium paid is returned back on happening on the event i.e. maturity or death whichever is earlier. In other countries there is no ROI on Insurance policies. India is the only country in the world and LIC is the only company in the world which can give you 7-8% returns on your investments.
Welcome to NRI Centre. We have made an attempt here to furnish important features applicable to Non-Resident Indians (NRI) and People of Indian Origin (PIO) having foreign nationality and residing in foreign countries.
Concept of insurance and different types of plans:
- Life risk cover i.e. financial protection to the family in case of an unforeseen event- say death, illness, disability on account of accident, etc is the main purpose of insurance.
- It's also seen as a 'compulsory savings' leading to creation of wealth which can be utilized for education/marriage of children; for old age provision; for construction of house; etc.
- Policies are taken to get exemption from Income Tax and to assign these to financial institutions as collateral security while availing different type of credit facilities including housing loan.
- In order to meet various socio-economic needs of different people. There are various types of plan available.Each has distinct features covering certain type of benefits. The selection depends on your needs.