Settlement of insurance claims in foreign currency

Settlement of insurance claims in foreign currency permitted for non resident beneficiaries subject to prior approval and specified conditions.

Settlement of insurance claims in foreign currency is permitted where the policy was issued with specific prior approval, the loss occurred during the policy period, the claim is admitted by the insurer and supported by surveyor reports and documents, reinsurance recoveries follow agreement terms, remittances are made to non resident beneficiaries only (residents to be paid in rupee equivalent), and R Returns reporting must quote the RBI approval.