(i)GIC and its subsidiaries have been permitted to settle claims against marine insurance policies covering exports from India out of foreign currency balances held by them, provided they are satisfied that ownership of the goods lost, damaged, etc. vests in such claimant and that the latter is not making the claim merely as agent of the real owner of the goods in India. In cases where the funds held by the insurers abroad are inadequate, claims will have to be settled by remittance from India. Authorised dealers may permit such remittances without reference to Reserve Bank, on application from insurers on form A2 together with documents listed in paragraph A.7 of Memorandum GIM after verifying that the statement of claim has been duly completed and signed by an authorised official of the insurer and that the remittance is prima facie in order. Where any document is not produced in original, an explanation for the insurers inability to do so should be obtained. In all cases, the statement of claim (form GIM1) should be enclosed to form A2 and submitted to Reserve Bank with appropriate R Return. The other documents may be returned to the applicant insurer after marking them.

(ii)GIC and its subsidiaries may sometimes make arrangements with overseas claims-settling agents for facilitating speedy settlement of claims relating to exports from India. In such cases, authorised dealers may on receipt of requests from GIC/its subsidiaries, open revolving letters of credit in favour of established claims-settling agents abroad providing payment against production of documentary evidence viz. statement of claim, survey report or other documentary evidence of loss/damage, original policy or certificate of insurance, etc. Reimbursement of claims under the credit may be made by authorised dealers on verification of the required documents.

(iii)Where GIC and its subsidiaries have settled claims against marine insurance policies covering exports from India in favour of Indian exporters, authorised dealers may allow remittance of claims by Indian exporters to overseas buyers on production of documentary evidence in support of the claim, provided export proceeds have been realised in full by the exporter. A declaration from the Indian exporter that the overseas buyer has not been compensated in any other manner for the loss of/damage to goods exported from India in respect of which claim has been settled by GIC or its subsidiary, should also be obtained.