GIFT City: Policybazaar Launches US Dollar-Denominated Term Insurance for NRIs
Policybazaar has launched US dollar-denominated term insurance plans for non-resident Indians (NRIs) through insurers operating in Gujarat International Finance Tec-City (GIFT City). This move aims to eliminate currency mismatch and provide more predictable financial protection for NRIs.
The company said that rupee-denominated life insurance policies may not provide adequate protection for NRIs with overseas financial commitments due to the long-term depreciation of the Indian currency. Over the past three decades, the Indian rupee has depreciated by nearly 3% annually against the US dollar.
A ₹2 crore life insurance cover was worth nearly $550,000 in 1996 when the exchange rate was around ₹35 to a US dollar. At current exchange rates, the same cover is worth roughly $200,000, highlighting the impact of currency movements on overseas purchasing power.