Policybazaar to sell insurers’ dollar term cover via GIFT City
Policybazaar started offering U.S.-dollar denominated term insurance to NRIs through IFSC operations at GIFT City, Gujarat.
- IFSC at GIFT City is a financial hub that supports globally oriented financial services under a special regulatory framework.
- Currency depreciation risk means NRIs may lose value when premiums and claim payouts use different currencies; dollar-denominated premiums and payouts match currency exposure.
- Policybazaar sells the dollar term insurance plans through partner insurers to NRIs via the IFSC at GIFT City.
What happened
Policybazaar started offering U.S.-dollar denominated term insurance plans to non-resident Indians (NRIs). Policybazaar stated that these U.S.-dollar term cover plans are provided by partner insurers through the International Financial Services Centre (IFSC) at GIFT City in Gujarat.
Policybazaar stated that NRIs can pay premiums in U.S. dollars and receive claim payouts in U.S. dollars.
UPSC may use the Policybazaar–GIFT City case to discuss how IFSC operations can enable internationally aligned product access in India and how currency matching in insurance payments (U.S.-dollar premiums and U.S.-dollar claim payouts) can reduce exchange-rate uncertainty for NRIs.
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