Here we will see Section 2CB of The Insurance Act.
2CB. Properties in India not to be insured with foreign insurers except with the permission of Authority.—
(1) No person shall take out or renew any policy of insurance in respect of any property in India or any ship or other vessel or aircraft registered in India with an insurer whose principal place of business is outside India save with the prior permission of the Authority.
(2) If any person contravenes the provision of sub–section (1), he shall be liable to a penalty which may extend to five crore rupees.