Question

What is the purpose of foreign currency accounts maintained by insurers outside India?

a.

To facilitate personal transactions of the insurer's employees

b.

To hold surplus funds for speculative investments

c.

To facilitate transactions and expenses related to general insurance business undertaken in foreign countries

d.

To avoid taxation on profits earned abroad

Answer: (c).To facilitate transactions and expenses related to general insurance business undertaken in foreign countries Explanation:The purpose of foreign currency accounts maintained by insurers outside India is to facilitate transactions and expenses related to general insurance business undertaken in foreign countries. These accounts help manage international financial activities efficiently and comply with local regulations.

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Q. What is the purpose of foreign currency accounts maintained by insurers outside India?

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