A latest analysis by Policybazaar shows a 126% year-on-year rise in health insurance purchases by non-resident Indians (NRIs), supported by digital onboarding, AI-led tele-medical assessments and comparatively lower premiums than overseas markets.
The findings point to a change in how the Indian diaspora is planning healthcare, with a growing tilt toward family-floater plans, higher sum insured options and longer-duration policies.
The platform attributes the sharp growth to simplified cross-border buying enabled by AI-based tele-medical check-ups and fully digital policy issuance. Tax-related changes and smoother remote documentation processes have also contributed to the momentum.
Family-floater plans gain traction
Family-floater policies witnessed a significant jump in adoption, with their share climbing from 20% to 70% over the past year. The average sum insured has crossed ₹25 lakh, reflecting a preference for broader financial protection.
Policies purchased specifically for parents residing in India also increased, rising from 32% to 60% of total purchases. The report suggests ageing parents and the need for coordinated care from abroad as major factors. Some insurers now offer concierge-style services to assist NRIs in managing healthcare remotely.
Gulf region accounts for half of demand
The Gulf Cooperation Council (GCC) region contributes nearly 50% of total NRI policy purchases, led by the UAE, Saudi Arabia and Kuwait. Proximity to India and substantial differences in healthcare costs are cited as key drivers.
Europe accounts for about 25% of demand, where long waiting periods in public health systems are prompting NRIs to opt for quicker treatment access in India’s private sector.
The United States and Canada make up around 17% of purchases, largely due to high medical expenses. The remaining 8% comes from Asia-Pacific, Australia-New Zealand and African countries, where Indian policies are often used as supplementary coverage for elective or high-cost procedures.
OPD coverage sees strong growth
Outpatient department (OPD) coverage adoption nearly tripled, increasing from 7% to 20%. This indicates that NRIs are increasingly relying on Indian policies for routine consultations, diagnostics and pharmacy expenses, not just hospitalisation.
Higher utilisation has been observed among families managing chronic illnesses such as diabetes and hypertension, along with claims linked to cataract surgeries, dental care, respiratory conditions, maternity services and oncology treatments.
Shift toward higher cover and longer tenures
There has been a 70% increase in customers opting for higher sum insured amounts, reflecting concerns over medical inflation, estimated at around 14% annually.
Multi-year policies also recorded a 19% rise, as NRIs seek to lock in premiums for two to three years to hedge against rising costs and avoid policy lapses.
Cost advantage and quicker access key factors
The report highlights cost arbitrage as a central factor. In certain cases, annual premiums in India range between $120 and $300, compared with $2,000 to $3,000 in some Gulf markets. Procedure costs in India are also estimated to be 70-90% lower than in several developed countries.
In addition to affordability, faster access to specialists and elective procedures in India’s private hospitals is influencing buying decisions, particularly among NRIs facing long waiting periods in public healthcare systems abroad.
Siddharth Singhal, Business Head Health Insurance at Policybazaar, said the surge reflects a broader behavioural shift, with NRIs increasingly treating Indian health insurance as a comprehensive solution covering preventive care, outpatient needs, planned treatments and emergencies.
