The offering allows eligible NRIs to pay premiums and receive claim payouts in US dollars instead of Indian rupees. The company said the move is aimed at customers who earn and have financial liabilities overseas, including home loans, education expenses and other long-term commitments.
According to Policybazaar, dollar-denominated policies are designed to reduce the impact of exchange rate movements on the value of insurance payouts. The company said that over time, depreciation of the rupee against the US dollar can lower the overseas purchasing power of a rupee-denominated insurance cover.
For example, Policybazaar said a ₹2 crore life insurance cover that was equivalent to about $550,000 in 1996, when the exchange rate was around ₹35 per US dollar, would be worth about $200,000 at current exchange rates.
The company said beneficiaries of these policies will receive claim payouts in US dollars, eliminating the need for currency conversion at the time of settlement. It added that the purchase process, including onboarding and medical underwriting for eligible customers, has been designed to be completed digitally.
The launch comes as GIFT City’s IFSC continues to expand its portfolio of financial products for global investors and overseas Indians. In recent years, the IFSC has introduced banking, investment and insurance offerings aimed at facilitating cross-border financial services under India’s regulatory framework.
Policybazaar said the dollar-denominated term insurance plans are being offered through its partner insurers operating within the GIFT City ecosystem.
