AP (DIR Series) (2001-2002) Circular No. 47, dated 17-5-2002
Attention
of authorised dealers is invited to the Notification No. FEMA.12/2000-RB, dated
3rd May, 2000, whereby a person resident in India is prohibited from taking any
general or life insurance policy issued by an insurer outside India.
2. It has
since been decided, in consultation with Government of India, to exempt units
located in Special Economic Zones (SEZs) from the purview of the above
Notification for the purpose of taking out general insurance policies.
Accordingly, authorised dealers are free to allow remittances towards premium
for general insurance policies taken by units located in SEZs from insurers
outside India provided the premium is paid by the units out of their foreign
exchange balances.
3. Authorised
Dealers may bring the contents of the circular to the notice of their
constituents concerned.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).