Non-Resident Indians are now the target of private insurance players as they see sizeable premiums coming from this segment of society.

Birla Sun Life Insurance Company and SBI Life Insurance are among the few that are planning special insurance-cum-investment products targeted at NRIs.

SBI Life Insurance Company CEO and managing director R Krishnamurthy told Business Standard: "NRIs are keen to subscribe to Indian products especially as they find few good investment opportunities overseas."

Both Birla Sun Life and SBI Life are looking at offering NRIs specially tailored investment-cum-insurance products to suit their needs.

Of Birla Sun Life's total premium income of Rs 170 crore in fiscal 2003, 10 per cent came from NRIs, mainly those having families in Kerala.

Krishnamurthy also said that SBI Life managed to sell a few policies to NRIs last year, and hopes to increase the premium inflow from this segment.

Birla Sun Life CEO Nani Javeri said that many NRIs tend to give first preference to India so far as investments are concerned.

"The NRI market has remained largely untapped by the private insurance players even as most of them tend to return back to the country and are interested in various investment solutions," said Javeri.

The company is trying to understand their needs and design a product to meet their requirements, he added.

Senior company officials at Birla Sun Life stated that the product could be in the nature of five to 10-year single premium bonds. The product yet on the drawing board is expected to help NRIs capitalise on the interest rate differential in India and overseas.

To date, no life insurance company has targeted this segment of individuals even as many NRIs have their families in the country, and are more than likely to return back.

Meanwhile, Birla Sun Life through its tie up with Catholic Syrian Bank, has seen a huge inflow of NRI funds into the country following the outbreak of the Iraq War.