Policybazaar has launched US dollar-denominated term insurance plans for Non-Resident Indians (NRIs) through partner insurers operating out of the International Financial Services Centre (IFSC) at GIFT City, Gujarat. The new offering allows NRIs to pay premiums and receive claim payouts in US dollars, eliminating the currency mismatch that has long affected overseas Indians holding rupee-denominated life insurance policies. This marks a significant expansion of India’s cross-border insurance product suite and strengthens GIFT City’s role as a global financial hub.
What Is GIFT City and the IFSC?
GIFT City, short for Gujarat International Finance Tec-City, is India’s first operational smart city and designated International Financial Services Centre (IFSC). Located between Ahmedabad and Gandhinagar in Gujarat, it was conceptualized in 2007 and its foundation was laid in 2011. The IFSC within GIFT City functions as a special economic zone where financial services are conducted in foreign currencies, effectively allowing India to offer offshore financial services on its own soil.
The International Financial Services Centres Authority (IFSCA) was established on April 27, 2020, under the International Financial Services Centres Authority Act, 2019, as the unified regulator for all financial activities within the IFSC. Headquartered at GIFT City in Gandhinagar, the IFSCA regulates banking, insurance, securities markets, and other financial services in the zone. Before the IFSCA was created, these sectors were regulated by multiple authorities including the RBI, SEBI, IRDAI, and PFRDA, each with jurisdiction over their respective domains.
In recent years, the GIFT City IFSC has emerged as a hub for dollar-denominated financial products, including banking accounts, investment funds, aircraft leasing, reinsurance, and now insurance policies for NRIs.
How the US Dollar Term Insurance Product Works
The term insurance plans are offered by partner insurers registered with the IFSCA and are sold through Policybazaar’s digital platform. Eligible NRIs can complete the entire purchase process remotely, including document submission and medical underwriting, without needing to visit India.
Key Features
| Feature | Detail |
|---|---|
| Currency | Premiums and claim payouts in US dollars |
| Coverage type | Term life insurance (pure protection) |
| Target customers | Non-Resident Indians and Overseas Citizens of India (OCI) |
| Purchase process | Fully digital, remote onboarding and underwriting |
| Jurisdiction | Regulated by IFSCA at GIFT City, Gujarat |
The Currency Depreciation Problem
This product directly addresses a long-standing issue for NRIs. Life insurance policies bought in India have traditionally been issued in Indian rupees. Over time, the depreciation of the rupee against the US dollar significantly reduces the international purchasing power of the payout.
For instance, a term cover of ₹2 crore was equivalent to approximately $550,000 in 1996, when the exchange rate was around ₹35 to a dollar. At current exchange rates, the same rupee-denominated cover is worth roughly $200,000. This means that an NRI family living abroad would receive substantially less real value from the same nominal cover amount.
Over the past three decades, the Indian rupee has depreciated by nearly 3% annually against the US dollar.
By denominating both premiums and claim payouts in US dollars, the new plans ensure that the coverage amount remains consistent in real terms, regardless of what happens to the exchange rate over the policy term.
Policybazaar and PB Fintech: Company Background
Policybazaar was founded in June 2008 by Yashish Dahiya and Alok Bansal and is headquartered in Gurugram. It is India’s largest online insurance marketplace, operated by PB Fintech Limited, a publicly listed company. The platform allows consumers to compare and purchase insurance policies from multiple insurers across life, health, motor, and travel segments.
PB Fintech was listed on Indian stock exchanges in November 2021 through an initial public offering. The company has been expanding its international footprint, and the launch of USD-denominated insurance through GIFT City is part of its strategy to serve the global Indian diaspora, estimated at over 35 million people worldwide.
Why This Matters for NRIs and India
For NRIs
The product addresses three major pain points for overseas Indians. First, it eliminates currency risk. The payout value is no longer eroded by rupee depreciation, ensuring families receive the full intended benefit in the currency they earn and spend in. Second, it simplifies financial planning. NRIs with dollar-denominated liabilities abroad, such as home loans in the US or children’s education fees, can now match their insurance cover with their actual financial exposure. Third, the fully remote digital onboarding process removes the need for physical presence in India, a significant barrier for many NRIs who may not visit the country frequently.
For India’s Financial Ecosystem
The launch reinforces the strategic importance of GIFT City as a destination for international financial services. By allowing NRIs to access globally competitive insurance products within India’s regulatory framework, the government aims to bring financial transactions that would otherwise flow through Singapore, Dubai, or London back to Indian shores.
The IFSCA has progressively liberalized the insurance regime at GIFT City, issuing the IFSCA (Insurance) Regulations, 2020 and later amendments to enable foreign currency-denominated insurance products. As of March 2026, the GIFT IFSC ecosystem had grown to over 1,200 registered entities, reflecting sustained interest from global financial services firms.
The Way Forward
The introduction of dollar-denominated term insurance is expected to prompt other insurers operating within GIFT City to launch similar products, expanding choice for NRIs. The IFSCA continues to refine its regulatory framework for cross-border insurance, including reinsurance and insurance intermediation.
Policybazaar’s move also signals a growing trend among Indian fintech platforms to use GIFT City as a launchpad for foreign currency products. As the IFSC matures, more insurance, investment, and banking products denominated in dollars and other foreign currencies are likely to become available to overseas Indians through digital channels.
Key Takeaways
- Policybazaar, founded in 2008 by Yashish Dahiya and Alok Bansal, has launched US dollar-denominated term insurance for NRIs through partner insurers at GIFT City IFSC.
- Premiums and claim payouts are in US dollars, protecting policyholders from the erosion of real coverage value due to rupee depreciation.
- The Indian rupee has depreciated by nearly 3% annually against the US dollar over the past three decades.
- The International Financial Services Centres Authority (IFSCA), established in 2020 under the IFSCA Act, 2019, regulates these products from its headquarters at GIFT City in Gandhinagar, Gujarat.
- The entire purchase process, including medical underwriting, can be completed digitally without requiring NRIs to visit India.
