Persons, firms, companies, etc. resident in India are not permitted to take general insurance of any kind with insurance companies in foreign countries without prior approval of Reserve Bank. Besides, permission of Government of India under General Insurance Business (Nationalisation) Act, 1972, is also required in such cases. Proposals for direct insurance outside India should be submitted to Reserve Bank explaining reasons for seeking such insurance cover and producing a certificate issued by GIC or any of its subsidiaries to the effect that the proposed insurance cover cannot be obtained from them.