Demand from NRIs for cover in India set to rise: General insurers

Estimates suggest that there is 20-25% rise in the business from the NRI segment, even though it contributes a small percentage to the overall business

Non-resident Indians (NRIs) are increasingly looking to take insurance cover for their property in India, apart from health and medical cover for their family here, general insurance companies offering packaged and individual-specific products for NRIs said. Renuka Kanvinde, assistant vice-president (health insurance) at Bajaj Allianz General Insurance, said there has been an increase in demand for health insurance products from NRIs for their parents and dependents in India.

“This is not only because of higher awareness about health insurance but also because of the many innovative products available in the Indian market today. NRIs usually look for a higher sum insured, comprehensive health insurance coverage with benefits suitable for parents and spouses such as pre-existing and maternity,” said Kanvinde.

NRI insurance packages offered by general insurance firms include health cover with worldwide coverage (especially when parents travel abroad), overseas travel insurance for family, health insurance with emergency medical services and home insurance for the property. Sector officials said although motor insurance for any cars in India constitutes a very small percentage of the NRI Insurance business, covers are usually taken for luxury cars.

“Third-party motor insurance especially for high-end sports cars and premium luxury cars are being taken by NRIs, to ensure that their liability is covered if any family member takes out the car for a drive, when they are away,” said the head of products at a mid-size private general insurer. Unlike other countries, in India, the liability for third-party motor accidents is on the owner of the car and the insurance policy. Hence, even if the owner does not drive the car, s/he will be liable to pay the third-party in case of an accident.

Estimates suggest there is a 20-25 per cent rise in the business from the NRI segment, even though it contributes a small percentage to their overall business.  Not just for family, NRIs also take policies (especially health) for themselves. Manasije Mishra, CEO, Max Bupa Health Insurance, said it has various products offered for NRIs and special services for their family members back home.

“An NRI can opt for our indemnity plan for self and family in India. He can avail all the benefits as per the terms and conditions of the policy, just like any other customer. Basis a generic questionnaire that entails details of the customer’s NRI status. place of residence etc, the customer can purchase a health policy in India which will cover him/her and his/her family for treatment in the country," he said.

Max Bupa has products for extended families as well. Its Heartbeat Family First health plan caters to the need of extended families (up to 13 relationships). Mishra said this is a popular plan among customers.

For basic policies, the premium can range from Rs 20,000 a year to Rs 50,000, whereas packaged policies are more expensive. Since the buyers of these policies are NRIs, they are provided additional services such as emergency medical attention to family members in India and additional customer services are provided for the family.

Rakesh Jain, CEO of Reliance General Insurance, said it had seen a significant rise in demand for general insurance products from NRIs for both their dependents and properties back in India.

He said demand from NRIs are mostly in three product categories – health insurance for dependent parents in India, insurance for property back in India and travel insurance for their parents when they decide to visit abroad.

“They usually buy property and health insurance during the New Year period, when they visit home for longer holidays. NRIs, mostly from Western countries, buy travel insurance during the March-July period, when their parents visit them due to the relatively warmer climate. We have seen most insurance queries coming from NRIs residing in the US, European countries and Australia," he added.