Since 2022, the healthcare industry has reported a 30-35% growth in Non-Resident Indians (NRI) inquiries and purchases of health insurance plans in India. In line with the trend, 2024 recorded more than 2.1 million medical tourists. This growing affinity of NRIs toward Indian healthcare and insurance has stemmed from a range of factors. Rising sophistication and affordability of Indian healthcare, paired with faultlines in global health insurance, are some contributors to the trend.
As an NRI, unpack the causes behind the popularity of health insurance for NRIs and some major aspects to make the right choice.
Causes for Rising NRI Demand for Indian Health Insurance
Understanding the causes behind the popularity of health insurance for NRIs reveals their strengths and concerns. Therefore, before deciding on an Indian health insurance plan, NRIs must decode the causes listed below.
● Globally Competitive Indian Healthcare
The following parameters make the Indian health insurance plans lucrative to NRIs.
- Growing Size: The Indian healthcare industry recorded a 17.5% Compound Annual Growth Rate (CAGR) over 10 years. It is expected to reach USD 638 billion by 2025.
- International Accreditation: Hospitals in key metropolitan cities have accreditation at par with global standards from institutes like the Joint Commission International.
- Government Support: Schemes like Ayushman Bharat aim to make healthcare affordable and efficient.
- Pharmaceutical and Digitisation: The pharmaceutical industry is expected to reach USD 130 billion by 2030, backed by rapid digitisation and innovation.
● Affordability
Due to its high-quality services at reasonable prices, India appears to promote itself as a desirable healthcare tourism destination when compared to international players. The factors below cause key developments in health insurance for NRIs.
- Insurance Premiums: Compared to certain foreign locations, the insurance premiums in India are more affordable, as shown in the table below.
| Country | India (₹) | USA (USD) |
| Individual | 12,000 to 18,000 | 8,951 (Around ₹7.94 lakhs) |
| Family | 28,000 to 35,000 | 25,572 (Around ₹22.70 lakhs) |
- Expensive Healthcare: The low insurance premium rates in India stem from the controlled healthcare costs. The table below compares healthcare in India with other countries.
| Procedure | A top-tier hospital in India (₹) | USA, UAE and UK (₹) |
| MRI | 3,000 to 5,000 | 45,000-60,000 |
| Knee Replacement | 2.5 lakhs to 3.5 lakhs | 18 lakhs to 22 lakhs |
| Cardiac Bypass | 2 lakhs to 4 lakhs | 20 lakhs to 30 lakhs |
| Per Cycle of Chemotherapy | 30,000 to 70,000 | 2.5 lakhs to 3.5 lakhs |
- GST Benefits: The individual insurance premiums and key healthcare services by hospitals, diagnostics and doctors are exempt from GST.
- Direct Tax Benefits: Under the old tax regime, section 80D of the Income Tax Act allows deductions for health expenses and premiums based on certain criteria and restrictions.
● Other Factors
Other than the factors discussed above, the following parameters also contribute to the rising popularity of Indian Insurance among NRIs.
- Healthcare Costs: Some countries like the USA, Norway, etc., have high healthcare and premium costs, creating an affinity among NRIs towards Indian insurance
- Future Plans: Retirement and return to India plans can also motivate insurance purchase in India.
- Dual Households: Some NRIs can have dependents in India, making Indian medical insurance a convenient cover.
- Overseas Coverage: Often, the overseas packages do not cover certain ailments in India. This diminishes their appeal to NRIs who visit India often.
While health insurance plans in India seem lucrative, certain considerations are necessary to choose the right plan.
Factors to Consider Before Selecting a Plan
Parameters like coverage, claim process, etc., help prospective NRI insurance policyholders compare policies and make an optimal choice. The following parameters must be considered.
- A comparison of coverage and premiums offered by various insurance companies.
- Popular health insurance policies for NRIs can cover not only the insured abroad but also their families in India.
- The network of hospitals where the cashless facility can be availed.
- The healthcare procedures that the policy covers.
- Disclosure of past ailments and other habits that affect health is important.
- Comparison of the no-claim bonus is helpful to increase the cover over time.
- Refer to the claim settlement ratio and understand the settlement process.
- The currency of settlement and mechanism of international disbursal should be considered.
Read More: National One Cent Day: Celebrating the Legacy of America’s Smallest Coin
How to Buy Health Insurance for NRIs
NRIs who wish to get health insurance in India can refer to the following steps.
- Get a KYC using Aadhaar or Passport.
- Select an insurance plan that suits your needs.
- Apply for the policy online through the insurance company website, bank or agent platform.
- Payment via NRE, NRO accounts or international cards is commonly possible.
Bottomline
India has become a popular destination for medical tourism due to its improving healthcare system. The efficiency of Indian medical services, paired with its competitive prices, has made NRIs interested in Indian medical insurance. However, they must decode the advantages and caveats of Indian insurance before investing.
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