218. Pay insurance premiums

from India to foreign insurance

company

Q: Dear Sir, I've an insurance policy with Zurich insurance. I'm paying USD 150.00 per month. The policy term is 20 years I've completed 6 years term. I'm an NRI, at present residing in Dubai. Now I want to settle in India. My question now is how to remit the funds to a foreign bank account from India? Whether I can invest in a foreign insurance policy from India ? I've to pay the premium for another 13 years. How much USD I can buy per year ? What are the Income Tax implications ? Please advise in detail. Ravindra Shenoy A. Persons who are permanently resident in India are not permitted to take foreign currency life insurance policies, However there are provisions for paying insurance premiums for policies where NRIs who bought insurance policies while they were residing abroad and then return to India. In case of foreign currency life insurance policies taken out while residing abroad, premiums due on such policies can be paid from foreign currency accounts held abroad or in India. Reserve Bank of India (RBI) also allows remittances from India provided the policy had been in force for at least three years prior to policy holder's return to India and an undertaking is furnished by the policy holder to repatriate to India the maturity proceeds or claim amounts paid out under the policy. Foreign currency life insurance policies are considered to be foreign securities. Check with your accountant who can provide you more information about tax implications that you are concerned about.