Payment of insurance premiums by policy holders resident outside India may be made by remittance in foreign currency or by payment from their Ordinary Non-resident Rupee/Non-resident (External) Rupee/FCNR accounts with authorised dealers in India. Manner of settlement of claims on policies is dependent on the exact manner in which premium payments have been made by policy holders. Accordingly, settlement of claims in foreign currency will be allowed only in the proportion that premiums paid in foreign currency or in a manner which has resulted in accrual of foreign exchange to India [e.g. payment by debit to Non-resident (External) Rupee accounts or FCNR accounts] bear to the total premiums paid. When non-resident policy holders pay their premiums locally in rupees by debit to their Ordinary Non-Resident Rupee accounts, settlement of claims by remittance in foreign currency will not ordinarily be allowed. In order that LIC can maintain a systematic record of premium payments which would facilitate identification of the source of funds at a later date when claims have to be settled, authorised dealers should advise LIC the exact manner of premium payment and the type of account debited as and when instructions in this regard from their non-resident constituents are complied with.