| FAQ’s |
| Who is an NRI? |
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The commonly used nomenclature "Non Resident Indian" actually covers three types of individuals/entities. They are as under: |
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Non Resident Indians |
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Non Resident Indians fall under the following broad categories: |
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Indian citizens who stay abroad for employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India |
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Indian citizens working abroad on assignments with foreign Governments/government agencies or International/Regional Agencies like the United Nations Organisation, International Monetary Fund, World Bank, etc |
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Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad |
| Non Resident Indians become Residents of India only when they come back to the country for employment or for carrying on in India any business or vocation or for any other purpose indicating an indefinite period of stay in India. They are not regarded as persons resident in India during their short visits to India, say for holidays, business, etc. Indian citizens who take up jobs on completion of their higher studies abroad are regarded as Non Resident Indians only from the time they take up jobs abroad. |
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Persons of Indian Origin |
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A person is deemed to be of Indian origin if he at any time held an Indian passport or he or either of his parents or any of his grandparents was an Indian and a permanent resident in undivided India at any time. A wife of citizen of Indian or of a person of Indian origin is also deemed to be of Indian origin even though she may be of non-Indian parentage. For the purpose of the facility of opening and maintenance of various types of bank accounts and making investment in shares and securities in India, a foreign citizen (not being a citizen of Pakistan or Bangladesh) is deemed to be a person of Indian origin if (i) he, at any time, held an Indian passport, or (ii) he, or either of his parents or any of his grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955. A spouse (not being of citizen of Pakistan or Bangladesh) of an Indian citizen or of a person of Indian origin is also treated as a person of Indian origin for the above purpose provided the bank accounts are opened or investments in shares and securities in India are made by such persons jointly with their NRI spouses only. |
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Overseas Corporate Bodies |
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Overseas Corporate Bodies (OCBs) include overseas companies, partnership firms, trusts, societies and other corporate bodies which are owned directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which at least 60% of the beneficial interest is irrevocably held by such persons. |
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| Definition of NRI for Income Tax Purpose |
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Resident Indian |
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Apart from the aforesaid definition under FERA, there is another definition of NRI under the Income Tax Act, 1961. In terms of this Act, an individual is said to be ‘Resident’ in any year if he has been in India in that year: |
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For a period of 182 days or more; or
For a period of 60 days or more and has also been in India within the preceding four years for a period of 365 days or more |
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However, the period of 60 days is increased to 150 days in case of citizen of India or a person of Indian origin who has been outside India and comes on a visit to India, and to 182 days in case when a citizen of India who leaves India for purposes of employment outside India, or as a member of a crew of an Indian ship. |
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Non Resident Indian |
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An individual is a Non Resident for income tax purpose, when he is "not a resident" as per above definition or who is "not ordinarily resident". A person is treated as "not ordinarily resident" when any of the following conditions is satisfied: |
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If he has not been resident in India in nine out of ten preceding years; or |
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If he has not been in India for a period of 730 days or more during the preceding seven years.
A person, who is a Non Resident in India or Not Ordinarily Resident, is taxed in India only for his income in India. He is not taxed in India for income abroad |
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| Can NRIs invest in a Life Insurance Policy? |
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Yes, NRIs can invest in Life Insurance Policies issued by Insurance companies registered in India. The Policies are Rupee denominated and the premiums and claim amounts are payable in Indian Rupees. |
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| What are the laws in India governing investment by NRIs in Life Insurance Policies? |
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Investments by NRIs in Life Insurance Policies in India are governed by the regulations issued by the Reserve Bank of India (RBI). These regulations are known as the ‘Life Insurance Manual’ which is a part of the Exchange Control Manual issued by the RBI. The Insurance Regulatory and Development Authority (IRDA) does not specifically regulate issue of insurance policies to NRIs. No specific approval is required for this purpose. |
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| What are the laws in India governing investment by NRIs in Life Insurance Policies? |
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Investments by NRIs in Life Insurance Policies in India are governed by the regulations issued by the Reserve Bank of India (RBI). These regulations are known as the ‘Life Insurance Manual’ which is a part of the Exchange Control Manual issued by the RBI. The Insurance Regulatory and Development Authority (IRDA) does not specifically regulate issue of insurance policies to NRIs. No specific approval is required for this purpose. |
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| How will the medical tests be done? |
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Medical tests can be done by you at the time you visit India. The costs of such medical tests will be borne by HDFC Standard Life. In case you intend to carry out the medical tests abroad, the same has to be carried out by a Doctor with a minimum qualification of an M.D. or its equivalent. The costs of such tests will have to be borne by you. |
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| I have taken an Insurance Policy when I was a resident in India. I have now shifted permanently to a foreign country. What happens to my insurance policy? |
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Your insurance policy continues to be in force so long as the premiums are being paid regularly. A Surrender / Maturity or Death claim on such a policy will have the same treatment as explained above. Upon intimation to HDFC Standard Life, your status will be changed from a resident Indian to an NRI. However the communications will continue to be sent to your address in India. |
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| If I return permanently to India in future, what happens to my insurance policy? |
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Your insurance policy continues to be in force and will continue to be treated as an NRI Policy so long as the premiums are being paid regularly. A Surrender / Maturity or Death claim on such a policy will have the same treatment as explained above. Upon intimation to HDFC Standard Life, your status will be changed from an NRI to a resident Indian. |
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| Once I have taken a Policy, whom do I communicate with for any service requirements? |
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You can approach HDFC Standard Life through any of our Branches for any of your service requirements like change of address, nominations, premium payments, claims etc.
You can also approach us through our website or send us an email at nri@hdfcinsurance.com. |
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Call us at 1800-227-227