How to transfer insurance money across borders?

20 18-07- 10 00:00

Author | Zheng Heng

Lawyer of Shanghai Efu Law Firm

In the past two years, China's insurance industry has made continuous breakthroughs in opening up. 20 17 1 1 Zhu Guangyao, vice minister of finance, said that the shareholding ratio of foreign shareholders in foreign-funded life insurance companies will be gradually liberalized through a transition period of three years and five years. Sure enough, on June 29th, 2008,2065438, the National Development and Reform Commission and the Ministry of Commerce jointly issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2065438+2008 Edition), which clearly mentioned that in 2065438+2008, the foreign share ratio of life insurance companies will be relaxed from 50% to 5/kloc-.

The increasingly open insurance industry means that more well-known overseas insurance companies will enter the domestic market, and the competition in the domestic insurance industry will become more and more fierce. But it also means that more customers in China can enjoy the services provided by the world's top insurance institutions without going abroad.

However, this brings a problem that customers will be very concerned about: now domestic insurance products are good. I bought whole life insurance in China, but the beneficiary, my child, intends to emigrate. If I buy insurance for myself in China, my child will be the beneficiary. By the time I die, my child will have emigrated. Then can the death insurance after the claim be transferred to the child's overseas account? Will it be subject to foreign exchange control?

I believe many employees have experienced customers' inquiries: How can the insurance money obtained by foreigners in China be transferred overseas? Once there is no clear answer, customers are likely to give up buying insurance in China and go abroad to buy insurance. And when most customers ask questions, they will mention whether they are subject to $50,000 foreign exchange control. Then let's talk about what is usually called "foreign exchange control".

As we all know, China implements the annual total management policy for individual foreign exchange purchase and individual foreign exchange settlement. At present, each individual in China has a foreign exchange purchase quota and a foreign exchange settlement quota equivalent to US$ 50,000 per year. Foreign exchange purchase refers to the purchase of other currencies with equivalent value in RMB, and foreign exchange settlement refers to the exchange settlement of other currencies held into equivalent RMB. Therefore, what we often call "foreign exchange control" is aimed at individuals in China, that is, people with China nationality. If the beneficiary is already a foreigner, of course, it is not limited by this "50,000 US dollars".

Then, in the case of whole life insurance, can overseas beneficiaries transfer death insurance benefits to overseas accounts? The answer is yes. According to the Interim Measures for the Administration of Foreign Transfer, Sale and Payment of Personal Property issued by the People's Bank of China, immigrants can realize their legal property in China before obtaining immigration status, and overseas heirs can realize their legally inherited domestic heritage, purchase foreign exchange through designated foreign exchange banks, and apply to the local foreign exchange administration department for one-time remittance. Therefore, as long as the property is legally acquired in China before immigration, or the overseas heirs inherit the domestic heritage according to law, they can apply for remittance abroad at one time, and the amount is not limited.

Because insurance money is not an inheritance in China, the transfer of insurance money belongs to "the transfer of immigrant property". Although the death insurance money was obtained after the child immigrated, the insurance contract was established before the immigration. As the beneficiary, the child has the right to claim the insurance money. So I think it belongs to "transfer of property". If the beneficiary has emigrated when the insurance contract is signed, the transfer of insurance benefits is based on the "legal property transfer of overseas individuals in China" stipulated in Article 26 of the Measures for the Administration of Personal Foreign Exchange, which belongs to personal foreign exchange business under capital account. The insurance compensation obtained as a beneficiary belongs to legal property and can be transferred to the foreign exchange administration department.

It should be noted that although it is a one-time application, it cannot be remitted at one time, and it should be remitted step by step. According to the Interim Measures for the Administration of Foreign Exchange Sale and Payment of Personal Property, the transfer of immigrant property must apply for transferring all the property abroad in one lump sum and remit it step by step. The amount that can be remitted for the first time shall not exceed half of all the property applied for transfer; After the first remittance of 1 year, the remaining property cannot be remitted more than half; After 2 years from the first remittance, all the remaining property can be remitted. If all the properties applied for transfer are less than RMB 200,000 (including RMB 200,000), they can be remitted once approved.

If the total amount of property applied for foreign transfer is less than 500,000 yuan (including 500,000 yuan), it shall be examined and approved by the local foreign exchange bureau. If it exceeds the above amount, it shall be submitted to the State Administration of Foreign Exchange for examination and approval after preliminary examination by the local foreign exchange bureau.

Assuming that the death insurance money received by the child is RMB 5 million, the child should apply to the foreign exchange bureau where the original household registration was located before immigration for a one-time transfer of all RMB 5 million. You can remit up to 2.5 million yuan for the first time, up to 1 .25 million yuan for the second time after1year, and the remaining 1.25 million yuan can be remitted completely after one year.

In addition, it is worth noting that when the beneficiary comes to handle the transfer of insurance money, it means that the insured dies and the insured may have other inheritance. If the beneficiary is the heir of the insured, he can be reminded to transfer the property of other estates at the same time. According to the Interim Measures for the Administration of Foreign Transfer, Sale and Payment of Personal Property, if all the property inherited from the same decedent is to be transferred out of the country after being realized, it must be applied in one time, and it can be remitted 1 time, or it can be remitted in several times. Property inherited by heirs from different decedents shall be separately applied for and remitted.

To apply for cross-border transfer of insurance benefits, the following materials are generally required:

(1) A written application. The contents include: the reasons for applying for immigration transfer; A detailed description of the source of property income and the realization of property.

(2) Application Form for Transfer of Immigrant Property.

(3) Application Form for Foreign Exchange Business of Personal Property Transfer.

(4) the identity certificate of the applicant. Immigrants should provide the cancellation certificate of China household registration issued by the public security organ and the certificate of the applicant's going abroad to settle down issued or certified by the China embassy or consulate abroad.

(five) the applicant's certificate of property rights.

(6) the tax payment certificate or tax payment certificate issued by the competent tax authorities in the place where the property transfer application is made or the source of income.

(seven) other information required by the foreign exchange bureau.

I believe that with the continuous upgrading of the service level and products of the domestic insurance industry, more and more customers will choose to buy domestic insurance products, which also requires us to constantly improve our knowledge and broaden our horizons.