NRIs can buy LIC Life Insurance cover under Non-Medical (Special) scheme or Medical scheme, depending on their health, sum insured they are opting for and where (country) they are working –
What is a Non-Medical (Special) Scheme?
1- Applicable if insurance is obtained during visit to India or through Mail Order Business (when LIC Agents visits the country of residence of NRI for completing the necessary formalities)
2- Maximum age at entry would be 45 years
3- LIC Plans with high risk cover and term rider benefits would not be allowed.
4- The proposer should be employed in Government or reputed commercial firm or should be a professional such as Chartered Accountant, Doctor, Teacher, Lawyer, Accountant, Engineer, etc.
5- This scheme is applicable to those NRIs who are residing in Group VI, VII and VIII countries only. ( See Annexure-V for group details).
What is a Medical Scheme?
When proposer has to undergo medical tests (special medical tests) to buy LIC Policies. Blood, Sugar, Heart, S.Chol, ECG, Thread Mill etc required as per policy Amount and age.
Who is a Non-Resident Indian as per LIC?
As per LIC following persons will be treated as NRIs for taking Life Insurance Policy –
1- A non-resident Indian is a citizen of India temporarily residing in the country of his/her present residence and holding a valid passport issued by the Government of India.
2- NRI should not be a green card holder. He/She should not have applied for or planning to apply in the near future for acquiring citizenship of his /her present country of residence or any other country.
3- It is clarified that People of Indian Origin having foreign nationality and residing in foreign countries (PIO) are not considered as NRIs for the purpose of allowing insurance.
What Documents Required by NRIs to apply for LIC NRI Life Insurance?
1- Prescribed Proposal Form depending on the type of policy selected (Form No. 300 in majority of the cases).
2- NRI Questionnaire (Annexure-II).
3- Medical Report (not applicable if the proposal is under non-medical scheme).
4- Special Questionnaire (Annexure-III) (if proposal is under ‘Mail Order Business’ and if the agent does not visit the country of residence of proposer).
5- Special Medical Reports, if called for.
6- Attested Copy of Relevant Pages of Proposer’s Passport.
7- Proof of Age and Income.
8- Initial Deposit equivalent to Instalment Premium under the proposed plan of insurance.
Things to Take Care
1- Minimum Sum Assured allowed would be Rs. 2 lakhs and maximum would depend on conditions of insurability. However, under mail order business, maximum sum assured would be limited to Rs. One Crore only.
2- Personal Financial Questionnaire (PFQ) and/or Proof of income in the form of income tax returns, copy of employment contract where emoluments are mentioned, Certificate from Chartered Accountant, etc. would be required if the sum assured is high or if the proposal is submitted through Mail Order Business.
3- All types of plans are allowed subject to the conditions that –
a- Critical Illness Benefit is not granted.
b- Term Rider Benefit would be restricted to certain limit of Sum assured
c- Sum Assured would be restricted in respect of term insurance plans.
4- Policies are issued in Indian Rupees only
Are LIC’s premiums higher for NRIs as compared to resident Indians?
No. The premiums are the same for residents and non residents. However, if NRIs are living in countries where risks are higher, premiums maybe higher.
Are there any limits on the sum assured?
In case of LIC policies, if the NRI chooses to conduct his medical examination in the foreign country, the sum assured will be limited to Rs 1 crore. If the NRI has his medical examination done on a visit to India, then he can get a higher cover. But it depends on individual underwriting.