My Life Insurance policy in India matured last year and received maturity amount in India. Do I need to report this in my US tax return? is this taxable income?

Yes, if you are a U.S. citizen or resident alien, you must report worldwide income on your U.S. tax return.  You can use the foreign tax credit so that the income is not double-taxed.  See Claiming the Foreign Tax Credit with Form 1116 - TurboTax.