Question

Under what circumstances can insurers make investments abroad without prior approval from the Reserve Bank of India?

a.

Only for meeting statutory requirements in the foreign country concerned

b.

Only for speculative purposes

c.

Only for funding acquisitions of foreign insurance companies

d.

For renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits

Posted under IC 14 Regulations of Insurance Business

Answer: (d).For renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits Explanation:Insurers can make investments abroad without prior approval from the Reserve Bank of India for renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits. These investments are permitted to meet specific requirements and are subject to regulatory guidelines.

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Q. Under what circumstances can insurers make investments abroad without prior approval from the Reserve Bank of India?
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