Policybazaar has launched new US dollar-denominated term insurance plans, specifically designed for Non-Resident Indians (NRIs), facilitated through the Gujarat International Finance Tec-City (GIFT City). This strategic offering aims to address a critical financial gap faced by overseas Indians due to exchange rate fluctuations.
Traditionally, life insurance policies purchased from India have been denominated in Indian Rupees, exposing policyholders to potential purchasing power loss over time. With the Indian Rupee depreciating against the US Dollar by approximately 3% annually over the past three decades, a policy valued at $550,000 in 1996 could be worth significantly less in dollar terms today.
Eliminating Currency Risk for Global Indians
The new product allows NRIs to pay premiums and receive claim payouts directly in US Dollars. This eliminates the currency depreciation risk, which is particularly vital for NRIs managing dollar-denominated liabilities such as overseas mortgages, foreign education expenses, and family support abroad. Rupee-denominated coverage often creates a protection deficit in such scenarios.
Leveraging India’s International Financial Services Centre (IFSC) at GIFT City, Policybazaar’s digital-first platform enables eligible customers to complete the entire onboarding process, including medical underwriting, remotely. This streamlined approach ensures accessibility and convenience for global Indians.
Vivek Jain, Chief Business Officer, Life Insurance, Policybazaar, emphasized the significance of this launch: “GIFT City has created the foundation for a new generation of financial products for global Indians. Our role at Policybazaar is to ensure that these opportunities don't remain limited to the ecosystem, but reach customers in a simple and accessible manner. We see ourselves as the bridge between world-class financial solutions and the evolving needs of NRIs, helping them access products that are aligned with where they live, earn and plan their future.”
As GIFT City continues to expand its role as a hub for cross-border financial services, Policybazaar plans to further enhance digital access to international-standard risk products for the Indian diaspora worldwide.