Business insurance
How does a global insurance programme work for an MNC in India?
Most multinationals insure their Indian operations through a local Indian policy that sits inside the group’s global programme. Indian law generally requires property and risks in India to be insured with insurers registered in India, unless IRDAI permits otherwise. The global master policy then fills gaps in the local policy’s terms or limits, within what the law allows.
In short
- Indian risks are generally insured with insurers registered in India.
- A local policy sits inside the group’s global programme.
- The global master policy can fill gaps in local terms or limits.
- Claims and premiums must follow Indian rules.
Why does an MNC need a local policy in India?
Because Indian law generally requires risks in India to be insured with insurers registered here. Section 2CB of the Insurance Act, 1938 restricts insuring property in India with insurers based outside India without IRDAI’s permission. So a global policy issued abroad usually cannot simply cover Indian assets on its own.
How does the local policy fit the global programme?
The local policy covers the Indian risk on Indian terms; the global master policy sits above it. Where the master policy’s wording or limits are wider, the programme can be structured so that gaps are filled, within the law. Getting this alignment right is the work: local terms, global standards and claims that are paid where the loss happens.
What should an MNC’s risk team check in India?
| Check | Why it matters |
|---|---|
| The local insurer and broker | Cover must be placed with an insurer registered in India |
| Local wording against the global standard | Gaps in terms or limits need a planned answer |
| How claims are paid | Indian claims are settled in India under Indian rules |
| Employee benefits | Group health, accident and life cover follow Indian regulations too |
Frequently asked questions
Can a global insurance policy cover assets in India?
Generally, risks in India must be insured with insurers registered in India unless IRDAI permits otherwise, so MNCs usually need a local Indian policy.
What is a local policy in a global programme?
A policy issued in India by an Indian insurer, covering the Indian risk within the group's global insurance programme.
Who can place an MNC's Indian insurance?
An IRDAI-licensed broker, with an insurer registered in India.
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A note on this page. Everything here is general information, not legal advice, and nothing is an offer. Statutory positions are as understood at the review date and must be checked against current law before relying on them. For advice about your situation, talk to us.