If you are planning of going abroad for work or higher studies purpose, The Reserve Bank of India has a perfect news for you.
The Reserve Bank of India broke a good news for Indians living abroad who might have gone to pursue new career opportunities or for pursuing higher studies.
These Indians living in foreign countries can now buy health and general insurance in any foreign currency irrespective of the currency for settlement claims. The Reserve Bank of India laid a guideline revising the existing general and health insurance manual.
To add, even though the premium is paid in Indian rupee, the settlement will also be done in Indian rupee only.
The RBI revoked the regulations under the Foreign Exchange Management Insurance Regulation, 2000 post consultation with the government and superseded by the Foreign Exchange Management Insurance Regulations.
This revision in the notification has come into force with effect from December 2015.
The good news is, Indian residents going to foreign countries for seeking job opportunities can now take a health insurance policy merely by making a payment in Indian rupee.
For such residents, claim settlement would be carried out under cashless hospitalization health insurance policies to hospitals that provide treatment or through a third-party administrator (TPA).
Moreover, all the companies providing health and general insurance will allow the policy holders to place their health and general insurance policies in foreign currency. And, no permission would be required for the renewal or a fresh issuance of any policy. RBI has permitted such investments by insurers, with regards to investments abroad.
The insurance companies which earlier used to furnish quarterly report on settlement of claims of policies, would not be compelled to do so now.