Policybazaar has introduced US dollar-denominated term insurance plans for non-resident Indians (NRIs) through GIFT City's International Financial Services Centre (IFSC). According to reports from Business Standard, this offering allows policyholders to pay premiums and receive claim payouts in US dollars instead of Indian rupees. The move specifically targets NRIs whose income, loans, and financial commitments are largely in foreign currency, addressing a previously overlooked risk where life insurance payouts can lose value due to currency movements. As reported by Policybazaar, the launch reflects the growing role of GIFT City in bringing global financial products closer to the Indian diaspora, with the platform now operating under a digital-first model that enables eligible customers to navigate onboarding and medical underwriting remotely.
The significance of dollar-denominated policies becomes clear when examining long-term currency trends. As reported by Policybazaar, the Indian rupee has depreciated by around 3% annually against the US dollar over the past three decades. The company illustrated that a ₹2 crore insurance cover, which was worth nearly $550,000 in 1996, is worth only around $200,000 at current exchange rates. This example demonstrates how rupee-denominated insurance payouts can lose substantial value when converted to dollars over time, potentially leaving families abroad with insufficient funds for expenses like mortgage repayments or children's education. The launch specifically addresses one of the biggest but least discussed financial risks faced by Indians living overseas - currency depreciation, with the new offering eliminating currency depreciation risk for non-resident Indians by keeping both premium payments and claim settlements in the same currency.
Under the new offering, eligible NRIs can pay premiums in US dollars, receive death claim payouts in US dollars, complete digital onboarding, and undergo medical underwriting remotely subject to eligibility. According to Business Standard, keeping both premium payments and claim settlements in the same currency reduces uncertainty from exchange rate fluctuations. The product is particularly useful for NRIs who earn salaries in US dollars, have overseas home loans, plan to fund children's education abroad, or have long-term liabilities linked to the US dollar. However, it may be less relevant for NRIs whose future financial needs are primarily in India and denominated in rupees. As reported by Policybazaar, global Indians can now access internationally aligned financial products while remaining within India's regulatory framework, with the platform's digital-first approach making the entire process more accessible and efficient.
The plans are being offered through GIFT City's IFSC, India's international financial services hub, which has emerged as a platform for cross-border banking, investment, and insurance products under India's regulatory ecosystem. As reported by Business Standard, insurance products denominated in foreign currencies have traditionally been more accessible through overseas financial centres, but this offering indicates such products are gradually becoming available through Indian institutions. Over the last few years, the IFSC has enabled several banking, investment and insurance solutions traditionally available only through overseas financial centres. GIFT City's role as India's international financial services hub continues to expand its offerings for cross-border customers, with the new launch demonstrating how the platform is creating the foundation for a new generation of financial products for global Indians.
Chief Business Officer-Life Insurance at Policybazaar Vivek Jain emphasized the strategic importance of this development, stating that GIFT City has created the foundation for a new generation of financial products for global Indians. According to Policybazaar, their role is to ensure these opportunities don't remain limited to the ecosystem, but reach customers in a simple and accessible manner. The launch represents a significant step in making international financial products more accessible to the Indian diaspora while maintaining regulatory compliance within India's framework. This development reflects the growing sophistication of India's financial services sector in serving global Indian communities, with the platform's digital-first approach making these traditionally complex products more accessible to a wider customer base.
