GIFT City Insurance Push: Banks Get NRI Corporate Agent Nod
Why in the news
In April 2025 three financial entities in GIFT City got approval to market insurance to overseas Indians, widening services at India’s first IFSC.
Key facts
- Regulator: IFSCA.
- Approved agents: HDFC Bank, the IFSC arm of IDFC First Bank, and Stock Holding Securities IFSC.
- Products: life, health and other general insurance, including dollar-denominated plans.
- Inheritance edge: the Indian Succession Act governs GIFT City policies, whereas a Dubai-bought policy falls under Sharia law.
- NRIs opening a GIFT City bank account can buy insurance without visiting separate providers.
About GIFT City
- Gujarat International Finance Tec-City, India’s first International Financial Services Centre, on the Sabarmati bank between Ahmedabad and Gandhinagar.
- Plans: attract global insurers and Global Capability Centres, and offer data processing, underwriting and accrual services to world markets.
Standing Committee on Insurance
- Formed by IFSCA; chair M.R. Kumar, ex-LIC chairman.
- Role: benchmark rules against other IFSCs, improve ease of doing business, suggest product innovation and digital retail channels.
Impact
- Boosts India’s standing as an insurance hub and taps over $80 billion in annual NRI remittances.
Exam angle
- Regulator of IFSCs: IFSCA.
- Governing law for NRI policies via GIFT City: Indian Succession Act.