Policybazaar launches dollar-denominated term insurance for NRIs via GIFT City

In a move aimed at eliminating currency depreciation risk for non-resident Indians, Policybazaar has begun offering US dollar-denominated term insurance plans from its partner insurers through the Gujarat International Finance Tec-City (GIFT City).

The launch allows overseas Indians to pay premiums in US Dollars and receive claim payouts in the same currency, addressing a long-standing financial gap created by exchange rate fluctuations. Traditionally, life insurance purchased from India has been denominated in Indian Rupees, exposing policyholders to purchasing power loss over time.

Over the last three decades, the Indian Rupee has depreciated by nearly 3% annually against the US Dollar. A ₹2 crore life insurance policy, which was worth nearly $550,000 in 1996 when the dollar stood at around ₹35, is worth approximately $200,000 today.

For NRIs managing dollar-denominated liabilities — such as overseas mortgages, foreign education, and family support — the rupee-denominated coverage often creates a major protection deficit.

The new product offering leverages India’s International Financial Services Centre (IFSC) at GIFT City to bridge this mismatch. Operating under a digital-first model, the platform enables eligible customers to navigate onboarding and medical underwriting remotely.

Commenting on the launch, Vivek Jain, Chief Business Officer, Life Insurance, Policybazaar, said: “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 expands its scope as a hub for cross-border financial services, Policybazaar plans to further streamline digital access to international-standard risk products for the global Indian diaspora.