Policybazaar launches US dollar-denominated term insurance for NRIs via GIFT City
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Policybazaar has launched US dollar-denominated term insurance plans for non-resident Indians (NRIs) through insurers operating in Gujarat International Finance Tec-City (GIFT City), allowing policyholders to pay premiums and receive claim payouts in US dollars.
The company said the offering, available through India's International Financial Services Centre (IFSC), is aimed at protecting NRIs from currency depreciation risks by aligning insurance coverage with the currency in which many of them earn and spend.
The launch marks another step in GIFT City's efforts to position itself as a hub for cross-border financial services. In recent years, the IFSC has introduced a range of banking, investment and insurance products designed for global Indians within India's regulatory framework.
Addresses currency depreciation risk
Policybazaar said rupee-denominated life insurance policies may not provide adequate protection for NRIs with overseas financial commitments, such as home loans, children's education or family expenses abroad, due to the long-term depreciation of the Indian currency.
According to the company, the Indian rupee has depreciated by nearly 3% annually against the US dollar over the past three decades, reducing the international value of insurance payouts over time.
For instance, a ₹2 crore life insurance cover was worth nearly $550,000 in 1996 when the exchange rate was around ₹35 to a US dollar. At current exchange rates, the same cover is worth roughly $200,000, highlighting the impact of currency movements on overseas purchasing power.
By offering policies denominated in US dollars, Policybazaar said the new product eliminates this currency mismatch and provides more predictable financial protection for NRIs.
Digital-first purchase journey
The company said beneficiaries will receive claim payouts in US dollars, eliminating uncertainty arising from exchange rate fluctuations at the time of settlement.
The product also features a digital-first onboarding process, enabling eligible NRIs to complete policy purchase and medical underwriting remotely.
Vivek Jain, Chief Business Officer, Life Insurance, Policybazaar, said GIFT City has laid the foundation for a new generation of financial products for global Indians. "Our role at Policybazaar is to ensure these opportunities are easily accessible to customers. We see ourselves as the bridge between world-class financial solutions and the evolving needs of NRIs, helping them access products that align with where they live, earn and plan their future," he said.
Policybazaar said it aims to further expand access to cross-border financial products for NRIs through its digital platform as GIFT City continues to strengthen India's global financial ecosystem.