Tata AIA introduces life insurance tailored for non-resident Indians
Tata AIA introduces life insurance tailored for non-resident Indians | Insurance Business Asia
Life & Health
Tata AIA introduces life insurance tailored for non-resident Indians
Product launch aligns with establishment of new offshore branch
Life & Health
By
Roxanne Libatique
Tata AIA Life Insurance Co Ltd (Tata AIA), a joint venture between Tata Sons Pvt Ltd (Tata Sons) and AIA Group Ltd (AIA) has introduced US dollar-denominated life insurance products specifically targeted at non-resident Indians.
The launch of the new product is part of the insurer’s establishment of a new offshore branch at Gujarat-based Gujarat International Finance Tech-City (GIFT City), India’s first International Financial Services Centre (IFSC).
Tata AIA joins GIFT City
The newly launched products are available through Tata AIA’s dedicated website.
Venky Iyer, managing director and CEO of Tata AIA, emphasised that the launch aligns with the Indian government’s broader initiatives to enhance the country’s financial services landscape.
“The setting up of IFSC GIFT City is a remarkable step by the government of India towards widening the scope of Indian financial services,” he said.
He added that the IFSC platform provides insurers with the opportunity to offer products in foreign currencies, catering to the unique needs of non-resident Indians looking to secure financial protection for their families.
Tata AIA’s life insurance solutions in US dollars
The initial product offering from Tata AIA’s GIFT City branch includes the Life Protect Supreme plan, a term insurance plan with benefits paid in US dollars.
The plan covers a range of risks, including death, accident, disability, and critical illness, with coverage available up to the age of 100.
Non-resident Indians have the option to tailor their policies with five different plans, depending on factors such as lifestyle and medical history.
Additional riders, such as coverage for accidental death, critical illness, and waiver of premium in case of permanent disability, can also be added to the plans.
Tata AIA also plans to roll out Unit Linked life insurance products in the near future, which will allow policyholders to invest in global equity markets.
India to reassess FDI limits in insurance industry
Tata AIA launched its US dollar-denominated life insurance products for non-resident Indians amid broader industry shifts in the country.
Currently, the FDI ceiling for life and general insurance companies is set at 74%, while 100% FDI is allowed for insurance intermediaries.
According to The Economic Times, the government is contemplating these adjustments despite the existing competition and profitability within the life insurance sector. The review aims to facilitate smoother FDI flows and ensure regulatory processes are followed in a timely manner.
Their discussions have centred on increasing public awareness of insurance, developing new and innovative products, and expanding career opportunities within the industry.
Among the recommendations put forward by IBAI are the recognition of insurance expenditures as Corporate Social Responsibility (CSR) activities, the promotion of industry-specific educational programs, and the development of composite insurance products to expand coverage options.
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