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CS Professional · IFSCA - Regulations, Listing and Compliances · Insurance and Reinsurance

Tara Insurance Office, registered in GIFT IFSC, wishes to sell a policy to a resident Indian who is not in the IFSC and has no foreign exchange connection, in rupees, through its IFSC office. How do the Regulations view this?

This is not permitted as a general matter. IFSC insurance offices do business in permitted foreign currency with customers the Regulations specify, so selling rupee-denominated domestic cover to an ordinary resident through the IFSC office falls outside the permitted activities.

  1. APermitted freely, as any customer may be served in the IFSC
  2. BPermitted if the premium is under a prescribed threshold
  3. CPermitted once IRDAI approves each policy
  4. DNot permitted as a general matter, because IFSC insurance offices operate in permitted foreign currency and serve the specified categories of customers, not domestic retail business in rupeesCorrect

Explanation

IFSC insurance business is meant to be conducted in permitted foreign currency with the customers the Regulations specify, such as non-residents and certain others. Selling rupee domestic cover to an ordinary resident through the IFSC office falls outside this framework. The other options invent freedoms, thresholds or approvals not found in the framework.

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