India’s healthcare system has scaled new heights in recent years, with advancing medical infrastructure and technology vastly improving the end-experience — from outpatient care to complex treatments.
This is a boon not just to Indians, but also people from foreign destinations — medical tourists. In fact, the growing traction among non-resident Indians (NRIs) to buy health insurance from India is unmissable, as data shows.
Our recent study on the financial behaviour of NRIs indicates an impressive growth in the buying of health insurance from India over three years. To be precise, a 70 per cent increase in FY 23; 140 per cent in FY 24; and 100 per cent in FY 25.
The reasons are clear. Many NRIs travel frequently to India and a lot of them have family with elderly parents here. Some even plan to move back in a few years. In all these cases, healthcare remains a constant requirement. India’s improved and affordable healthcare, low cost of health insurance premiums, and the exponential rise in global healthcare costs motivate NRIs to opt for health insurance here.
Amit Chhabra, Chief Business Officer-General Insurance, Policybazaar.com.
The research shows 71 per cent of policyholders are in the 28-35 age group, while the insured belong to the 50-plus category. This indicates that healthcare for the elderly is top priority among NRI customers, especially after the pandemic. It’s also heartening to see a slight but steady growth in the number of women buying health insurance for themselves and family members.
When it comes to geographical distribution, the Gulf countries lead with 60 per cent of the NRI customer base. The UAE accounts for 31 per cent of customers followed by Saudi Arabia, Qatar, Oman and Kuwait. The other countries include the US/Canada (11 per cent), the UK (9 per cent), Australia (5 per cent) and Singapore (4 per cent).
Coverage of outpatient care is up from 5 per cent in FY22 to 25 per cent in FY24. With greater awareness on preventive healthcare, NRIs plan visits to manage their healthcare needs in India. They can access quality outpatient treatment at an affordable price, as compared to the higher costs in the US or UAE.
Popular plans
Nearly 25 per cent of the NRIs buying insurance for family members in India opt for global coverage plans for comprehensive care, irrespective of location. Another attractive feature is the Day 1 coverage, with 40 per cent of NRI customers with pre-existing conditions choosing this for immediate access to healthcare.
The number of claims seems to surge between October and December, when many NRIs return to India for planned medical procedures. Most policies (34 per cent) offer coverage between ₹25 lakh and ₹1 crore, while 27 per cent exceed ₹1 crore. Financial savviness among NRI customers is also on the rise as 40-45 per cent now utilise GST (Goods and Services Tax) refunds on health insurance premiums.
The rising number of NRIs seeking health insurance in India shows the growing acknowledgement of the country’s healthcare system as a trustworthy, cost-effective alternative to global healthcare.
As the NRI health insurance market grows, India will remain a key player in meeting NRIs’ healthcare needs, offering peace of mind and financial protection.
(The writer is Chief Business Officer-General Insurance, Policybazaar.com. Views are personal)
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Published on November 3, 2024
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