An individual, who has bought a plan at any of LIC’s international offices, can ask for a transfer of the policy when he decides to permanently return to India. The overseas bought policies are repatriable to any of the 2,048 branches of LIC of India, once the customer returns to India. LIC has a product whereby revenue can be transferred to India. In which LIC transfer the surplus to the Indian book, and this will ensure that the full value of the policy is realised.
Benefits of Transferring Insurance Policies to India:
1. The risk is transferred to LIC’s Indian books and individuals need not take a new policy or pay a higher premium when they return to India.
2. Portability of risk covers ensures continuity of an insurance policy bought overseas, which otherwise would need to be surrendered at the time of leaving the country.
3. When an individual returns back to India, his risk premium continues to be the same despite having advanced in age. This is because he had already undergone the necessary risk assessment when he initially bought the cover overseas.
4. If the individual surrenders his policy taken from an international insurance company, he would get the surrender value of the cover. He would not get very much on surrendering his policy and would lose a significant amount of the premium paid on account of expenses.
What all policies you can transfer?
All policies (other than pension plan policy) can be transferred, after a minimum of one-year premium payment. The pension plan policy can be transferred only after two years.
Conditions to be met to transfer Overseas LIC policies to LIC India
1. The policy holder should be permanently repatriated to India.
2. One full year premium must have been paid and adjusted.
3. The policy must be in-force.
4. Policies in lapse condition (whether pure lapse or reduced paid up) cannot be transferred. The same can be transferred only after revival.
5. The policies which have acquired paid up value, but are in lapse condition for more than 5 years cannot be transferred.
6. If any loan is outstanding against any policy, the loan amount with interest will have to be paid before transfer of the policy to India..
How you can transfer Overseas LIC policies to LIC India?
1. The Policy holder has to submit, request of transfer in prescribed form along with the original policy document to the LIC International Office.
2. LIC International Office will forward the Policy records to Foreign Operation Branch (FOB) of LIC of India at Mumbai.
3. The original policy document will be sent to FOB for necessary endorsement and stamping.
4. The Sum Assured and the premium in foreign currency shall stand altered to equivalent Indian Rupee amount at the rate of exchange current on the date on which the request of transfer is received by the LIC International Office.
5. The place of payment of policy monies shall be altered to a place in India instead of the place specified in the schedule of the Policy.
6. The Policy Bond will be stamped
7. A suitable endorsement will be placed by FOB and the Policy document will be sent to the policy holder and policy docket to the concerned Branch Office in India for future servicing.
8. The policy shall be entitled to Bonus declared by LIC International for the period of the premiums collected by LIC International and Bonus declared by LIC of India for the period of premiums collected by LIC of India.
9. For policies which are entitled for Guaranteed Addition (like Bima Nivesh), the policy money under the Guaranteed Addition will be given as declared by LIC International at the time of inception of the policy.
Things you should know:
1. If you decide to buy a life cover from LIC India while overseas, the corporation caps the sum assured at Rs 1 crore.
2. If you buy life cover from LIC’s international companies abroad, then there is no cap on the sum assured. It depends upon underwriting rules and the earnings and paying capabilities of the individual.
3. The customer has an option to retain his/her policies in dollar overseas, even if he goes back to India, provided he continues to pay premium in the same currency.
4. You can only transfer LIC international policies to India only on permanent transfer of residence.
5. Green Card holders and Foreign Nationals of Indian origin are not treated as NRIs for the purpose of allowing Insurance.
6. LIC international companies/offices – Fiji, UK, Mauritius, Bahrain, Dubai, Abu Dhabi, Kuwait, Qatar, Oman, Nepal, SriLanka, Riyad, Nairobi.