Head
Offices/Principal Offices of all
Authorized Dealers In Foreign Exchange.
Dear
Sirs,
Remittance
of Life Insurance Premium for Accidental Death Risk
With
a view to further liberalize the foreign exchange regime,
it has been decided to allow remittances of re-insurance
premia on policies issued in respect of accidental death.
In
this regard, Para 23 Chapter XV of Foreign Exchange Manual
(eighth edition – 2002) has been amended as reproduced
below:-
“Reinsurance
– Life.
Remittance
of reinsurance premia both under treaty and facultative
cover arising from the life insurance policies is not permissible
except in the following cases:
a)
Reinsurance premia on policies reinsured before 29th December,
1970. b)
b) Reinsurance
premia on policies issued and reinsured on or after 25th
May, 1973 for sums over Rs. 3.5 lacs in respect of death
risk only.
c)
Re-insurance premia on policies issued in respect of accidental
death risks for any amount.
Remittances
in respect of (a), (b) and (c) above will be allowed by
the State Bank in accordance with the procedure set out
in the following paragraph No. 24.”
2.
Please bring the above changes to the notice of your constituents.
