The premium can be paid by any of the following manner

• By cheques drawn on his/her Non-Resident (External) Account or Foreign Currency (Non-Resident) Account with a Bank in India (or Joint Account provided the policyholder is one of the account holders)
• By cheques drawn on bank accounts held in India in their own names, either solely or jointly with the resident member of their family i.e. father, mother, husband, wife, children, brother or sister whether the accounts have been designated as non-resident or not.
• By cheques drawn on an account maintained by a resident parent or spouse of the non-resident policyholder with a bank in India, held solely or jointly with their close relatives. If the life assured is a bonafied student, premiums can be accepted if paid in India, by somebody else on his behalf.
• By the absolute assignee in India wherever such policies have been assigned to a resident in India.
• By the employers in respect of policies issued to their employees who have been deputed abroad by them.
• Premiums can be paid in cash by a resident parent or spouse of the Non-Resident policyholder subject to his/her submitting a letter stating the relationship with the policyholder.

The settlement of claims (in rupee) of life insurance policies in favour of claimants’ residing outside India will be permitted in foreign currency only in proportion in which the amount of premiums paid in foreign currency is in relation to the total premiums payable.

• For Non-Resident Beneficiaries: Non-resident beneficiaries of Insurance claims/maturity/surrender value settled in foreign currency may be permitted to credit the same to NRE (Non-Resident External)/ FCNR (Foreign Currency Non-Resident) Account if they so desire.
• Claims/maturity proceeds/Surrender Value in respect of rupee life insurance policies issued to non-resident Indians for which premiums have been collected in non-repatriable rupees may be paid only in rupees by credit to NRO (Non-Resident Ordinary) account of the beneficiary. This would apply in cases of death claims being settled in favour of non-resident assignees.
• For Resident Beneficiaries: Resident beneficiaries of Insurance claims/maturity/Surrender values settled in foreign currency may be permitted to credit the same to RFC (Resident Foreign Currency) Account if they so desire