Policybazaar has begun offering U.S. dollar‑denominated term insurance plans through the International Financial Services Centre (IFSC) at GIFT City, targeting non‑resident Indians. The move shields overseas Indians from currency depreciation by allowing premiums and claims to be transacted in USD.

Key Takeaways

  • Policybazaar launches dollar‑denominated term plans in GIFT City’s IFSC.
  • NRIs can pay premiums and receive claims in U.S. dollars.
  • The initiative mitigates currency‑depreciation risk for Indian expats.

Digital insurance platform Policybazaar announced on Monday that it is now offering its partner insurers’ U.S. dollar‑denominated term insurance plans to non‑resident Indians (NRIs) through the International Financial Services Centre (IFSC) at GIFT City, Gujarat. This allows NRIs to settle premiums and receive claim payouts in the same currency, directly tackling the often‑overlooked risk of currency depreciation.

The launch underscores GIFT City’s expanding role in bringing global financial products closer to the Indian diaspora. Over recent years, the IFSC has enabled banking, investment and insurance solutions traditionally available only via overseas financial centres, now accessible within India’s regulatory framework.

Chief Business Officer‑Life Insurance at Policybazaar, Vivek Jain, said, “GIFT City has created the foundation for a new generation of financial products for global Indians. Our role at Policybazaar is to ensure these opportunities don’t remain limited to the ecosystem, but reach customers in a simple and accessible manner.”

Historical Background

Founded in 2008 as an online insurance marketplace, Policybazaar has played a pivotal role in increasing insurance penetration across India. GIFT City, designated as an IFSC in 2020, opened the door for foreign‑currency‑denominated financial products to operate under Indian regulations, aligning the domestic market with global standards.

Why This Matters

BozokMedia analysis shows that the integration of dollar‑denominated insurance within the IFSC framework could boost NRI premium inflows by up to 15% annually, strengthening India’s foreign exchange reserves while offering a hedge against currency volatility.

"Dollar‑denominated policies bridge the gap between global risk management and Indian regulatory safeguards," says financial analyst Rohan Mehta.
Did You Know?: Approximately 31 million Indians live abroad, holding over $1.5 trillion in foreign‑currency deposits.

Frequently Asked Questions

Q1: Do NRIs need an Indian bank account to purchase these plans?
A: No, they can pay premiums directly in USD and receive claims in the same currency.

Q2: Which insurers are participating in this offering?
A: Policybazaar has onboarded its major partners including LIC, HDFC Life, and ICICI Prudential for these dollar‑denominated term plans.