Non-Resident Indians are increasingly purchasing health insurance policies in India, with annual growth of 126 percent recorded in policies bought by NRIs, according to the latest report by digital platform Policybazaar.
The report attributes the rise to affordable premiums in India, simplified digital processes, and AI-based telemedical services, with NRIs opting for comprehensive coverage for family members and parents residing in India.
Digital Adoption Expands Access
Policybazaar Health Insurance Head Siddharth Singhal stated that digital onboarding and AI-based medical examinations have nearly eliminated geographical barriers, enabling NRIs to purchase policies in India and secure healthcare coverage for their families.
The report shows a 70 percent increase in demand for family floater policies and a 60 percent rise in separate coverage purchases for parents.
Geographical Distribution of Demand
Gulf countries account for approximately 50 percent of total NRI customers, led by the United Arab Emirates, Saudi Arabia and Kuwait. In these countries, treatment costs are high and premiums can reach between 2,000 and 3,000 dollars, while similar coverage in India is available between 120 and 300 dollars.
Europe contributes around 25 percent of demand. The report states that long waiting periods for non-emergency surgeries in Europe have led several NRIs to travel to India for treatment at private hospitals. Policies are being used for procedures including hip replacement and cataract surgeries.
The United States and Canada together account for 17 percent of demand, where treatment expenses are high. Even after including airfare, undergoing surgery in India is often less expensive.
Asia, Australia, New Zealand and Africa contribute 8 percent of demand. NRIs from these regions are choosing Indian insurance plans for knee replacement and major cardiac surgeries, which are 70 to 80 percent less expensive in India.
Shift Toward Higher Coverage and Family Policies
The share of family floater policies has increased from 20 percent to 70 percent. The average insured amount is reported to exceed Rs 25 lakh. Following GST exemptions, NRIs are opting for higher coverage for entire families under single plans.
The share of policies purchased for parents has risen from 32 percent to 60 percent. Several plans include concierge services, allowing treatment processes to be managed remotely.
Impact of Medical Inflation
The report records a 70 percent increase in the number of buyers opting for higher insured sums. Medical inflation in India is estimated at approximately 14 percent annually, prompting demand for policies that cover high-cost treatments and robotic surgeries.
Demand for multi-year policies of two to three years has increased by 19 percent, enabling premium lock-in and reducing annual renewal requirements.
Rising Preference for OPD Coverage
The percentage of buyers opting for OPD coverage has increased from 7 percent to 20 percent. This includes expenses for doctor consultations, MRI scans, blood tests and medicines for non-hospitalised treatment. NRIs are using such coverage during visits to India for full health check-ups and specialist consultations, particularly for parents managing chronic conditions such as diabetes and hypertension.
Claims Data Trends
Insurance claims data indicates that NRIs are availing treatment in Indian hospitals for respiratory illnesses, maternity services, cancer treatment and other critical diseases. Cataract surgery claims have also risen due to ageing populations. Dental treatment has emerged as another factor, as dental procedures abroad are comparatively expensive.
