Procedure to buy LIC policy for NRIs, FNIOs & PIOs
Procedure:
NRIs are allowed insurance on their visit to India where all the formalities are completed during their stay in India in such cases they would be treated at par with Indian lives to allow life insurance.
When Not in India: Mail order business (MOB)
The minimum sum assured allowed would be 10 lacs and the maximum would depend on the condition of insurability however under mail order business, the maximum sum assured would be limited to Rs 3 Crores only.
NRI may obtain life insurance coverage under Non-Medical(Special) Subject to certain restriction
The proposer should be employed in a government or reputed commercial firm or should be a professional such as a Doctor, Charted accountant, Teacher, Lawyer, Accountant, Engineer, etc.
Maximum age entry is 50yrs
Plans with high-risk cover and term riders are not allowed
Exception: Proposals of NRI, FNIOs with Valid OCI cards living in Group V countries under NMP & NMS scheme based on VMER under Mail Order Business.
Kind of NRI Accounts
NRO Account
Non-Resident Ordinary Account
- NRO accounts may be opened/maintained in the form of Savings, recurring, or fixed deposit accounts.
- These are rupee accounts opened to deposit income earned in India
- These accounts can be held jointly with NRI / resident Indians
- Repatriation: The NRO account is repatriable within certain limits
- NRO account and credit balance are subject to respective income tax brackets and are also subject to applicable wealth and gift tax
- Funds generated in India: Only allowed in NRO account
- NRO account can be held jointly with NRI as well as resident Indian jointly as per sec 6 of companies act 1956
NRE Account
Non-Resident External Account
- NRO accounts may be opened/maintained in the form of Savings, current, recurring, or fixed deposit accounts.
- NRE accounts are opened for the purpose of depositing income earned overseas
- The funds held in these accounts can be remitted back overseas freely subject to the terms and conditions of the resident country.
- Repatriation: The NRE account is freely repatriable
- NRE account is tax-free (No income tax, wealth tax & gift tax) in India
- Funds generated in India: Not allowed to deposit in NRE account (be it salary, rent, dividend)
- NRE account can be held jointly with another NRI but not with a resident Indian as per sec 6 of Companies Act 1956
1. Eligibility Conditions :
| Groups | Few Names of Countries… |
| Group 1 | Afghanistan, Iran, Palestine, Burundi, Iraq, Somalia, Chad, Israel – West Bank, Gaza, Jerusalem, Sudan, Chechen Republic, Liberia, Western Sahara, Democratic Republic of the Conao (Zaire), North Korea, Yemen, Haiti, Pakistan, Zimbabwe |
| Group 2 | Angola, Mayanmar(Burma), Camroon, Coloumbia, Tajakistan.. |
| Group 3 | Niger, Nigeria, Uganda, Lebnan.. |
| Group 4 | Algeria, Namibia, Botswana, Combodia, South Africa.. |
| Group 5 | UAE, USA, UK, Canada, Germany, Australia.. |
The Detailed list of countries are given at the bottom of the page (Group wise)
Documents Required
- Full attested copy of passport
- Proof of Residence in foreign country
- Indian Address Proof
- Visa Copy/Visa Status
- 3 Yrs income proof (ITR or CA certificate)
- Employment Contract-Appointment Letter
- Salary Slip of Last 6 months
- Bank Statement of last 6 months showing Salary Credit
- PAN or Form 60
- NRI Questionaire
- Payment Details & Bank Account Details
- Annexures, Proposals & Medical Forms etc
Click on the icon below to know more about NRI’s
Click on the icon below to know more about NRI’s
Why one should buy LIC Policies?
LIC is a the best life insurance company in India, and its policies have best features, highest bonus rates, best death claim ratio, It is no.1 trusted brand in India for many years. Its traditional policies are backed by the sovereign guarantee of the Central government. LIC’s Sovereign Guarantee enhance financial stability and trust in LIC Policies.
What is “sovereign guarantee” of LIC?
A sovereign guarantee is a promise or assurance provided by a central government, to back the financial obligations or liabilities of a government-owned entity or a state-owned enterprise. In the context of LIC, it means that the Indian government stands behind LIC to fulfill its financial obligations. That in case of any bankruptcy, Central govt will be responsible for the people’s money. LIC of India is the safest financial institution in India even more safer than your bank.
FAQs for LIC for NRIs