How to Claim Term Insurance for NRI?

Can NRIs File a Term Insurance Claim from Outside India?

Yes. Your nominee can complete the entire claim process remotely. Physical presence in India is not required at any stage. Documents can be uploaded online or sent by courier, and the insurer communicates by email and phone.

Indian term insurance policies cover death anywhere in the world, provided all premiums are paid and all information was disclosed correctly when the policy was bought. Claims involving deaths abroad may take slightly longer, because foreign documents need attestation and verification.

Will My Term Insurance Stay Valid If I Move Abroad?

Yes. Your policy remains valid even if you move abroad after buying it in India, as long as you continue paying premiums on time. However, you should inform your insurer about your change of residential status and share your updated contact details. This avoids complications at the time of a claim.

Step-by-Step NRI Term Insurance Claim Process with Policybazaar

• Intimate the claim immediately
  Notify the insurer and Policybazaar’s Dedicated Claim Assistance Team (phone 1800-258-5881 or via “My Account”/app). You'll get a document list and upload links.

• Collect required documents
  Your family will need a few papers to file the term insurance claim. These include passport, the death certificate (attested, if it’s issued outside India), any medical or accident records, the nominee’s KYC, and details of an Indian bank account where the money can be paid.

• Upload/submit documents
  Share soft copies with Policybazaar's dedicated claim assistance team. Provide translations where applicable and embassy/consular attestation for overseas certificates.

• Verification & updates
  The insurer may seek additional papers (especially for early or accidental deaths). Policybazaar’s relationship managers track status and coordinate with the claims team for you.

• Timelines you can expect
  Per IRDAI’s latest TATs: death claims without investigation must be settled in 15 days; those requiring investigation within 45 days from intimation (earlier norms were 30/90 days). Delays may attract interest.

• Payout & banking
  On successful verification, the insurer will pay the death benefit to the nominee’s bank account.

• Closure
  The nominee should keep the settlement letter and TDS certificate (if any). For tax-free death benefits, TDS is generally not applicable in India.

If I Die Abroad, Will My Family be Able to Claim it Easily?

Yes. Most Indian term insurance plans cover death anywhere in the world, so your family can still claim if you pass away outside India. The only conditions are the usual ones: your premiums should be paid up, and the details you gave when buying the policy should be correct.

The claim may take a little longer, though, because the insurer has to verify documents issued in another country. You can save your family a lot of back-and-forth by making sure your nominee knows where to find:

• Copies of your passport, visa and any medical reports from the country you live in

• A death certificate attested by the Indian embassy or consulate

• English translations of any documents issued in another language

What Documents are Required to Claim NRI Term Insurance?

The claim process for NRI term insurance plans requires you to submit the following documents:

Additional documents (if applicable)

The insurer may request additional documents depending on the circumstances of the claim.

How Is the Claim Amount Paid to NRI Families?

The claim is always paid in Indian Rupees, into a bank account in India. The account it goes to depends on two things: where your family lives, and how you paid your premiums.

If your family lives in India: The money can go into their savings, current, NRE or NRO account.

If your family lives abroad: The money goes into their NRE or NRO account in India. From there, they can move it to their bank account overseas.

NRE or NRO: which account gets the money?

It comes down to how the premiums were paid. If you paid in foreign currency, the matching share of the claim can go into an NRE account, and anything left over goes into an NRO account. Say you paid 70% of your premiums from an NRE account and 30% from an NRO account. The insurer may then pay 70% of the claim into the NRE account, where it can be sent abroad without limits, and the remaining 30% into the NRO account.

Sending the money abroad

Money in an NRE account can be sent abroad freely. With an NRO account, there's a cap of USD 1 million per financial year, and the bank will want to know where the money came from and see the right tax paperwork.

Before sending money out of an NRO account, the bank will ask for certain tax forms. These used to be called Form 15CA and Form 15CB. Since 1 April 2026, they're known as Form 145 and Form 146, though what you need to provide is mostly the same as before.

Is the Term Insurance Claim Tax-Free for NRIs?

Tax in India

Yes. The death benefit from a term insurance policy is fully exempt from income tax in India, so the nominee receives the full sum assured. This exemption was earlier provided under Section 10(10D) of the Income-tax Act, 1961, and continues under the Income-tax Act, 2025.

Tax on premiums

NRIs who have taxable income in India may be able to claim a deduction for term insurance premiums (earlier under Section 80C) if they opt for the old tax regime. Check the applicable provisions under the Income-tax Act, 2025.

GST on premiums

GST on all individual life insurance policies has been reduced from 18% to zero, effective 22 September 2025. This applies to NRIs as well, regardless of whether premiums are paid through NRE accounts, foreign currency or domestic savings accounts.

Tax in your country of residence

This part depends on where you live. In some countries, life insurance payouts aren't taxed at all. In others, your family may have to pay inheritance or estate tax in certain cases.

Always confirm home-country tax treatment with a local advisor; cross-border taxation can differ from Indian rules.

Country-wise Term Insurance Claim Process for NRIs

The claim process is largely the same wherever you live, but how the payout reaches your family and the tax treatment in your country of residence can differ. Below mentioned is how it works for NRIs in some of the countries:

How Does Policybazaar Help with NRI Claim Support?

If the policy is purchased through Policybazaar, the claim experience becomes more guided and hands-on:

• Claim Assistance Card: When you buy a term plan, you get a card to give your nominee. It has your policy details and your Relationship Manager's name, phone number and email, so your family knows exactly who to call.

• One point of contact: As soon as the claim is raised, your family is assigned a dedicated claim handler, so they won't be passed between different people. The handler collects documents like the death certificate, policy papers and nominee KYC, and submits them to the insurer. Documents can even be picked up from home for free. Your family is kept informed at every stage until the claim is settled.

• Support until settlement: Policybazaar takes up your case with the insurer from day one, follows up on delays and pushes for the claim to be settled.

• On-ground support: In 85+ cities in India, a representative can visit your family at home to help file the claim.

• Easy to reach: The nominee can file claims easily from the official website or the Policybazaar app. One can also get in touch with them through the 24x7 helpline number at 1800-258-5881.

Points to Keep in Mind While Claiming NRI Term Insurance

• Inform your insurer when you move abroad, and keep your contact details updated.

• Add a nominee and keep both your KYC and theirs up to date

• Keep copies of your policy, passport, medical records, and embassy contacts where your nominee can find them. .

• Pay premiums from an NRE account so the claim can be sent abroad easily.

• Individual term insurance premiums no longer attract 18% GST.

Wrapping it Up!

Claiming an NRI term insurance policy is a well-structured process once your nominee knows the steps and has the right documents ready. Your NRI term insurance plan works worldwide, so it does not matter which country you live in or where you pass away. With this dedicated support for NRIs from India, claim settlement becomes easier, ensuring families receive the financial protection they deserve without unnecessary delays.

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