As GIFT City expands India’s global financial ecosystem, Policybazaar has started offering US dollar-denominated term insurance plans of its partner insurers for NRIs through India’s International Financial Services Centre. Marking an important step in the evolution of cross-border financial solutions from India, the launch allows NRIs to pay premiums in US Dollars and receive claim payouts in the same currency, addressing one of the biggest but least discussed financial risks faced by Indians living overseas – currency depreciation.
The launch reflects the growing role of GIFT City in bringing global financial products closer to the Indian diaspora. Over the last few years, the IFSC has enabled several banking, investment and insurance solutions that were traditionally available only through overseas financial centres. With this step, global Indians can now access internationally aligned financial products while remaining within India’s regulatory framework.
Insulation from currency depreciation
For many NRIs, financial responsibilities extend across countries. Income may be earned in US Dollars, while commitments range from overseas home loans and children’s education to supporting parents and families in India. Yet, until now, most life insurance purchased from India has been denominated in Indian Rupees. This creates an often-overlooked risk.
Over the last three decades, the Indian Rupee has depreciated by nearly 3 per cent annually against the US Dollar. While this is a normal economic phenomenon, it substantially reduces the international purchasing power of a rupee-denominated insurance payout over time.
To put this into perspective, a Rs 2 crore life insurance cover was worth nearly USD 550,000 in 1996, when one US Dollar was around Rs 35. At today’s exchange rates, the same cover is worth only about USD 200,000. For families with overseas financial commitments, this can leave a significant protection gap. The new dollar-denominated term insurance seeks to eliminate this mismatch by aligning insurance cover with the currency in which many NRIs earn and meet their long-term financial obligations.
Making the currency navigation easier
Apart from protecting against currency fluctuations, the product also makes claim payouts more meaningful for families living overseas. Since benefits are paid in US Dollars, beneficiaries do not have to worry about exchange rate movements at the time of claim. This provides greater certainty while meeting long-term financial commitments abroad.
The entire purchase journey has also been designed to be digital-first, allowing eligible customers to complete onboarding and medical underwriting remotely, making it easier for NRIs across the world to access protection from India.
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 continues to expand the possibilities for cross-border financial services, Policybazaar aims to make these opportunities easier to access for NRIs through a simple, digital-first platform.
About Policybazaar:
As one of India’s largest digital insurance platforms, Policybazaar is committed to making insurance accessible, transparent, and personalised for every Indian and global customer. Since 2008, Policybazaar has issued 62.9 million (till December 2025), and helped protect families against death, disease, and disability. Policybazaar works with 50+ insurance partners offering products across health, life, motor, and corporate insurance. The company supports customers with 24/7 digital assistance and on-ground insurance advisors, ensuring a seamless experience across all touchpoints.
