Policybazaar offers dollar life cover to Indians overseas

Premiums and claims can both be paid in US dollars.

Policybazaar has started offering US dollar-denominated term insurance plans to non-resident Indians through GIFT City, allowing customers to pay premiums and receive claim payouts in US dollars.

The plans, offered through Policybazaar’s partner insurers, are available through India’s International Financial Services Centre. 

The company said the products are aimed at NRIs who earn and meet financial obligations in foreign currencies but may otherwise hold life insurance policies denominated in Indian rupees.

Policybazaar said the move is intended to reduce the impact of currency depreciation on insurance cover. 

Over the past three decades, the Indian rupee has depreciated by about 3% a year against the US dollar, according to the company.

It said a Rs 2 crore life insurance policy was worth about $550,000 in 1996, when the exchange rate was around Rs 35 to the dollar. 

At current exchange rates, the same rupee-denominated cover is worth about $200,000.

For NRIs with overseas commitments such as home loans, children’s education or other family expenses, this fall in the dollar value of rupee-based cover can reduce the amount available to meet those obligations.

Under the new plans, premiums and claim benefits are denominated in US dollars. 

This means beneficiaries receiving a payout overseas would not need to convert a rupee-denominated claim at the exchange rate prevailing at the time.

Policybazaar said the purchase process is digital-first, with eligible customers able to complete onboarding and medical underwriting remotely.

Vivek Jain, chief business officer for life insurance at Policybazaar, said GIFT City was enabling financial products designed for Indians living overseas and that Policybazaar aimed to make those products easier for NRIs to access.