All
Head Offices/Principal Offices of
Authorised Dealers in Foreign Exchange.
Dear
Sirs,
REMITTANCE
OF LIFE INSURANCE PREMIUM
Attention of the Authorised Dealers
is invited to FE Circular No.16 of 2002 in terms of which
remittances of re-insurance premia on policies issued in
respect of accidental death risks was allowed. To further
liberalize the forex regime, it has now been decided to
remove restriction of “accidental death risks only”
and hence to allow remittance of re-insurance premia on
life insurance policies for sums over Rs 3.5 lacs without
any restriction whatsoever. Accordingly 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:
Reinsurance
premia on policies reinsured before 29th December, 1970.
Reinsurance
premia on policies issued and reinsured on or after 25th
May, 1973 for sums over Rs 3.5 lacs.
Remittances
in respect of (a) and (b) 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.