LIC is probably the most renowned company in the insurance sector in India. It has been around for decades and is probably the first thing that comes to an insurance aspirant’s mind when he/she thinks of term insurance. With a high claim settlement ratio, this public sector insurance provider is aiming to cater to the needs of all segments of customers. If one is an NRI living in Canada looking to buy term insurance, LIC can be a good option to consider. However, there are several rules and regulations one needs to keep in mind if he/she wishes to purchase a LIC policy being an NRI resident of Canada.
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So what are those rules? Find all the information in this article.
Someone with the status of an Indian citizen but is living in a different country (like Canada) and owns an authentic identity card allotted by the Indian Government is deemed to be a non-resident Indian.
As an NRI, you are not allowed to apply (or expect to do so for the future) to become a citizen of the country that you currently living in.
The Joint-Venture Corporations and LIC branches grant plans in the local currency. For instance, the Canada office grants plans in Canadian dollars. Additionally, the policy will be issued in INR only.
You, as an NRI, can avail of insurance during your trip to India, and all procedures are followed while you are in your home country. In these cases, you will be treated as an Indian citizen and will be able to get insurance.
Non-residents of the country can also avail of insurance coverage from their current nation in which all paperwork is wrapped in their current place of residency. This method is known as Mail Order Business.
The minimum amount for Sum Assured is Rs.10 lakhs. The maximum amount is dependent on the circumstances of insurance. This could be restricted to Rupees. Three Crore for mail-order businesses.
Income proof by way of tax returns for income and a copy of an employment contract in which emoluments are stated, a certificate from a Personal Financial Questionnaire (PFQ), Chartered Accountant, etc. will be necessary when the amount that is assured is substantial.
All plan types are allowed, though with certain conditions such as:
There is a Non-Medical (Special) scheme under which it offers insurance cover to NRIs. However, these are bound by specific restrictions as listed below:
The regulations for granting NRI insurance coverage when they visit India are similar to the rules for Indian people. Assistance from the area/development officer/branch office LIC can be availed.
The primary documents needed to be submitted for insurance could be:
Current policies that were bought in India will be in effect in Indian currency even after the life assured moves to other countries like Canada as an NRI. It would help if you keep the servicing branch of LIC up to date with the new situation i.e. NRI as well as your address change. You must also fill out the NRI questionnaire, which must be filled out and signed. You can continue paying premiums via various channels to LIC.
You need to keep the information mentioned above to ensure that your LIC term insurance applies to you without any roadblocks. Note that failure to submit proper documents or providing incomplete documents may lead to termination of your application. Moreover, you can consider terminating your LIC term plan and request a refund only during the free-look period, post which you can only surrender the policy as per LIC's norms.
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
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