How to Claim Term Insurance for NRIs in the UAE: Process, Documents, Payout and Tax Rules (2026)

For UAE-based NRIs whose families depend on this income, an Indian term plan can help protect it.

But the real question is: what does the family actually have to do on the day a claim needs to be made? The answer is reassuring. An NRI's family does not have to fly to India, stand in queues, or deal with a foreign insurer. The whole claim can be handled online. Let us understand each regulations in detail:

Can an NRI's family claim term insurance from the UAE?

Yes. An NRI's family can claim term insurance from the UAE. The nominee does not need to live in India: RBI's foreign exchange rules for life insurance specifically provide for death claims paid to nominees living outside India. Documents for term insurance for NRIs in the UAE are uploaded online or sent by courier, and the insurer's claims team or your Policybazaar relationship manager coordinates the entire process.

Step-by-Step: How To Claim Term Insurance When Death Happens In The UAE

Step 1: Obtain the UAE death certificate.
The process for obtaining a death certificate varies by emirate. In Dubai, the Consulate General of India describes the process as follows: the concerned police station issues an NOC for the issuance of the death certificate; the Preventive Medicine Department at Rashidiya Clinic issues the death certificate; and the death is registered at the Consulate after the UAE death certificate is issued. In the other emirates, the Prosecution gives the NOC and the concerned Health Department issues the death certificate.

For deaths in Abu Dhabi, the death can be reported to the Embassy of India at cons.abudhabi@mea.gov.in or on 0564038863 (death cases only).

Step 2: Get it attested.
According to the UAE Ministry of Foreign Affairs, a birth or death certificate issued by MOHAP is attested by MoFA upon issuance, with digital seals of the Ministry of Health and Prevention, the Ministry of Foreign Affairs and the UAE Embassy in the destination country.

Indian insurers usually also require the certificate to be attested by the Indian Embassy or Consulate. Many UAE death certificates are issued in both Arabic and English. If yours is in Arabic only, get a legal English translation.

Step 3: Intimate the claim.
The nominee informs the insurer online, by phone or by email. At this stage, the family only needs basic details: the policy number, the name of the life assured, the date and place of death, and the nominee's contact details. The documents can follow. Intimating early avoids unnecessary delays.

If the policy was bought through Policybazaar, one call to the claim helpline (1800-258-5881) starts the process, and a dedicated relationship manager takes over from there.

Step 4: Submit documents.
Upload scans or courier originals, as the insurer requires.

Step 5: Settlement.
Once the claim is approved, the insurer pays the benefit according to the policy. Under IRDAI's rules, insurers must settle death claims within 15 days, or within 45 days if the claim needs investigation. If the insurer delays beyond this, it must pay interest at 2% above the bank rate. If a claim is rejected, the insurer must give its reasons in writing.

What Documents are required for an NRI term insurance claim?

Requirements vary a little by insurer and by the circumstances of death. The standard document list to raise a term insurance claim for NRI is as follows:

• Claim form, filled in and signed by the nominee

• Death certificate. If the death happened in the UAE, this is the UAE-issued certificate, attested as described above

• Proof of registration of death with the Indian Embassy or Consulate, if the insurer asks for it

• Original policy document, or an indemnity bond if it has been lost

• Photo ID and address proof of the nominee

• Emirates ID and UAE visa copy of the deceased

• Passport copy of the deceased, and of the nominee if the nominee is an NRI

• Bank details of the nominee: savings, current, NRE or NRO account, with a cancelled cheque or bank statement

• Medical records, where relevant: hospital admission notes, discharge summary, test reports

• For accidental or unnatural deaths: police report and forensic or post-mortem report, legally translated into English if issued in Arabic

Where does the claim money go? Dependants in India vs dependants in the UAE

This is where most NRI families get confused, so here it is plainly.

If the dependants live in India

The claim is credited to the nominee's Indian bank account, which can be a savings, current, NRE or NRO account. If the nominee lives in India, the money usually goes to a regular savings or current account. If the nominee is an NRI (for example, a family member living abroad), the payment can be made into their NRE or NRO account. Either way, the claim amount is tax-free.

If the dependants live in the UAE

The claim is paid in rupees to the nominee's NRE or NRO account in India. From there, it can be sent to a bank account in the UAE. There is no tax on this transfer: nothing is deducted in India on a death benefit, and the UAE does not tax the money when it arrives.

NRE or NRO Account for the Insurance Claim: What Decides It?

It depends on one thing: how the premiums were paid. Under RBI's foreign exchange rules for life insurance, the claim follows the money that paid for the policy.

If premiums were paid from your NRE account or by remittance from the UAE, the claim can be paid into the nominee's NRE account. Money in an NRE account can be sent abroad freely, with no upper limit.

If premiums were paid from your NRO account or from income earned in India, the claim can be paid only into the nominee's NRO account. The money can still be sent abroad, but with a limit and some paperwork.

Money in an NRO account can be sent abroad up to USD 1 million per financial year (April–March), after submitting Form 15CA and, where required, a chartered accountant's certificate in Form 15CB.

If premiums came from both accounts over the years, the claim is split in the same proportion. For example, if 70% of the premiums came from your NRE account and 30% from your NRO account, the insurer can pay roughly 70% of the claim into NRE and 30% into NRO, based on your premium payment records.

Sending the Claim Money to the UAE

• From an NRE account: Fully repatriable, with no limit.

• From an NRO account: Up to USD 1 million per financial year (April to March). The bank will ask for Form 145 and, where required, a chartered accountant's certificate in Form 146. (These were earlier called Form 15CA and Form 15CB, and were renamed from 1 April 2026.)

Is a Term Insurance Claim Taxable for NRIs in the UAE?

In India: no income tax applies. The death benefit on a life insurance policy is fully exempt from tax, no matter how large the premium or the coverage. This applies to NRIs as well as resident Indians. This rule is part of India's new Income-tax Act, 2025, which started on 1 April 2026. You'll find it in Section 11, read with Schedule II (Table: Sl. No. 2). Under the old law, it was known as Section 10(10D). Only the section number has changed; the rule itself is exactly the same.

In the UAE: zero repatriation tax. There is no personal income tax, no payroll withholding, no employee social security contribution for expatriates, and no capital gains tax on a private individual's investments. A nominee who is resident in the UAE and receives the claim in a UAE bank account does not pay tax on it there.

Claiming Term Insurance in Special Cases

Most claims follow the standard process described above. But some families face situations that require a few extra steps. Here is what to expect in each case.

If the Nominee Is a Minor

Many UAE-based parents name a young child as the nominee. In that case, the policy should also name an appointee: an adult who receives the claim money on the child's behalf until the child turns 18.

When a claim is made, the appointee submits their own ID, address proof and bank details along with the other claim documents. If no appointee was named on the policy, the insurer may ask for a guardianship certificate from a court before paying the claim, which can take several months.

If you are the policyholder and your nominee is a child, check today that an appointee is recorded on your policy. It takes a few minutes and can save your family a long wait.

If There Is No Nominee, or the Nominee Has Also Passed Away

If the policy has no nominee, or the nominee died before the policyholder, the claim is paid to the policyholder's legal heirs.

In this case, the family will usually need to submit:

• A succession certificate or legal heir certificate

• An indemnity bond

• ID and address proof of all the legal heirs

• Bank details of the heir or heirs receiving the money

Getting a succession certificate from a court can take time, so these claims take longer than a normal one. The simplest way to avoid this is to keep the nomination on your policy up to date, especially after events like marriage, the birth of a child, or the death of a nominee.

If the Death Happened Outside the UAE

A term plan from an Indian insurer covers death anywhere in the world, so the claim process stays the same. Only the death certificate changes.

If an NRI passes away while visiting India, the family submits the death certificate issued by the local municipal authority in India.

If the death happens in a third country, the family needs the death certificate issued by that country. It should be attested or apostilled as required, and the death should be registered with the Indian Embassy or Consulate there. If the certificate is not in English, a legal translation is also needed.

All other documents and steps remain the same as for a death in the UAE.

Why NRI Term Claims get Rejected?

Non-disclosure at the time of buying. This is the most common reason. NRIs sometimes don't mention their country of residence, occupation, smoking habit or an existing medical condition. If the claim arises in the first three years, the insurer can examine these gaps.

The three-year rule (Section 45). After three years, the policy is largely protected. Section 45 of the Insurance Act says that no policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of issuance of the policy.

Late intimation. Families abroad sometimes delay the claim while they deal with the funeral and paperwork. IRDAI has told insurers that a time limit on intimation should not prevent settlement of genuine claims, particularly when there is delay in intimation or in submission of documents due to unavoidable circumstances.

Incomplete documents. A missing translation or attestation is not a rejection. It is a pause. The insurer will raise a requirement, and the claim moves again once it is met.

How Policybazaar helps NRI families with Claims?

Buying a term plan is the easy part. The claim is when the family needs someone on their side, and often that someone has to work across two countries.

Policybazaar runs a Dedicated Claim Assistance Program for every term customer, including NRIs. Each policy comes with a Claim Assistance Card that states the policy name and number, the life assured's name, sum assured and date of birth, along with the relationship manager's name, phone number and email address. When a claim arises, your relationship manager will:

• Register the claim and tell the family exactly which documents are needed for a death in the UAE.

• Help collect and check the papers, including free doorstep pick-up in India. Policybazaar's claim handlers can visit the nominee's doorstep in 85+ cities, act as the single point of contact for all claim queries, and coordinate directly with the insurer.

• Represent the case with the insurer from day one, track progress and escalate delays.

• Step in if a claim is rejected. If a claim is unfairly rejected, Policybazaar escalates it to the insurer's grievance cell and, if needed, helps the family approach the Insurance Ombudsman and represents the case until it is resolved. The team also helps build a second-opinion case for review by the insurer's senior claims authorities.

Families in the UAE can reach Policybazaar on the 24x7 India claim helpline, 1800-258-5881. Policybazaar.ae can also be reached on 800800001 or at communication@policybazaar.ae.

NRI claims supported by Policybazaar, by country of residence

The average UAE claim was about ₹1.65 crore, which shows how large the covers held by Gulf-based NRIs tend to be. This is one reason many NRIs in the UAE choose term plans from India, as high cover comes at a comparatively lower premium.

Key takeaways

• NRI term insurance claims can be filed and completed entirely online, from the UAE or anywhere else.

• The claim is paid in Indian rupees. Dependants in India can receive it in a savings, current, NRE or NRO account, depending on the nominee's residential status. Dependants in the UAE can receive it in an NRE or NRO account and then move it to a UAE bank account.

• The death benefit is tax-free in India, and the UAE levies no personal income tax, so the payout reaches the family without tax deductions on either side.

• Insurers must settle death claims within 15 days, or within 45 days if an investigation is needed.

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