NRI FAQs

A Non Resident Indian is considered as an Indian only when he/she comes back to India for employment, vocation or carrying out business work or some other reason that imply an uncertain stay in the country. In case the person comes to the country with intention of a short stay he/she may not be regarded as a resident in India.
Those who take up jobs in abroad after the completion of their higher studies are regarded as NRIs. (Only from the time they take up jobs in abroad).
'Non Resident Indian' widely termed as NRIs broadly covers three types of individuals/entities. They are as follows:
Indian citizens who stay abroad for employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India. Indian citizens working abroad on assignments with foreign Governments/Government agencies or International/Regional Agencies like the United Nations Organisation, International Monetary Fund, World Bank, etc.
Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.

A person is considered to be of Indian Origin (excluding countries like Pakistan, Bangladesh or as announced by the state from time to time) if he/she at any time held an Indian passport or he/she or either of his/her parents or any of his/her grandparents was an Indian and a permanent resident in Undivided India at any time. A wife of an Indian Citizen or of a person of Indian Origin is also considered to be of Indian Origin if she may be of non-Indian parentage.

According to Income Tax Act, 1961, an individual is said to be a �resident� in any year if he has been in India in that year:
for a period of 182 days or more; or for a period of 60 days or more and has also been in India within the preceding four years for a period of 365 days or more
However, the period of 60 days is increased to 150 days in case of citizen of India or a person of Indian Origin who has been outside India and comes on a visit to India, and to 182 days in case when a citizen of India who leaves India for purposes of employment outside India, or as a member of a crew of an Indian ship.

Yes, NRIs can buy Life Insurance Policies issued by Insurance companies registered in India. The Policy premiums have to be paid in Indian Rupees.

All plans are allowed for NRIs subject to few restrictions.

The settlement of claims (in rupee) of life insurance policies in favour of claimants� residing outside India will be permitted in foreign currency only in proportion in which the amount of premiums paid in foreign currency is in relation to the total premiums payable.

Eligibility criteria: NRIs holding valid passport issued by the Government of India and who are Indian National can take LIC policies in Indian Rupee currency from any of LIC�s 2048 branches in India. LIC also accepts proposals for Life Insurance in Rupee currency from Persons of Indian Origin who have acquired Foreign Nationality / Green Card holders.

On their visit to India. All the formalities of proposal completion, medical examination reports/Special reports and Moral hazard report are required to be completed during their stay in India.
From their present country of residence through Mail Order Business. All the formalities of proposal completion, obtaining medical & special reports etc, are to be completed in the present country of residence. (Applicable to NRIs only)

Claims of any nature arising under the policy will be settled in Indian currency in India. The payment of policy monies in foreign currency can be made proportionate to the premiums paid in foreign currency by direct Remittance or from the Non Resident (External) Account or Foreign currency Non Resident Account with a Bank in India.

A copy of Income Tax Return filed in the country of residence, if the Sum Assured exceeds Rs.15 lakhs.
If no Income Tax return is filed, then a copy of employment contract mentioning salary or a certificate from a C.A. regarding business / other income can be submitted.
Personal Financial Questionnaire (PFQ) duly filled in and signed by the proposer and counter signed by the official filling in the MHR can also be accepted as proof of income up to a sum assured of Rs. 25 lakhs.