Question

Under what conditions can the premium on a marine insurance policy for exports from India be accepted in rupees?

a.

If the exporter is not making the payment on behalf of any non-resident

b.

If the exporter is defraying insurance charges on behalf of the overseas buyer and agrees to recover the payment from the buyer in an approved manner

c.

Both a and b

d.

If the exporter has sufficient funds in their foreign currency account

Answer: (c).Both a and b Explanation:The premium on a marine insurance policy for exports from India may be accepted in rupees if either (a) the exporter is not making the payment on behalf of any non-resident, or (b) the exporter is defraying insurance charges on behalf of the overseas buyer and agrees to recover the payment from the buyer in an approved manner.

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Q. Under what conditions can the premium on a marine insurance policy for exports from India be accepted in rupees?

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