US, UAE, Canada NRIs fuel 126% jump in India health insurance cover: Report

Overseas Indians are opting for Indian health plans for lower premiums, GST relief and AI-led onboarding, says Policybazaar data

Non-Resident Indians from the Gulf to the United States are increasingly turning to India for medical treatment, drawn by lower costs and easier access to health insurance, according to data from Policybazaar. Purchases of health policies by NRIs have risen 126 per cent year-on-year, supported by AI-based tele-medical check-ups, digital onboarding and GST exemption. Insurers are offering up to 40 per cent lower premiums for the NRI segment, positioning Indian healthcare as a cost-effective option for families living abroad.

 

Policies are no longer seen only as a back-up for emergencies. Many are treating Indian insurance as a complete healthcare solution for themselves and for ageing parents based in India, according to the report.

 

“We’re seeing a fundamental shift in how NRIs approach health insurance in India. Our 126 per cent NRI growth proves that tech has finally dissolved the borders of healthcare. With AI-telemedicals removing physical hurdles and family-floater and parental policies adoption jumping 70 per cent and 60 per cent respectively, we’re seeing a global shift: NRIs are no longer buying insurance only as a contingency for emergencies,” said Siddharth Singhal, Business Head – Health Insurance, Policybazaar.com.

 

Regional shift in demand

 

The Gulf region accounts for 50 per cent of the NRI customer base, led by the UAE, Saudi Arabia and Kuwait. Shorter travel time and lower costs are central factors. Indian health plans cost between $120 and $300, compared with $2,000 to $3,000 in Gulf countries.

 

Europe holds a 25 per cent share. Long waiting periods for non-emergency surgeries are prompting NRIs to seek quicker treatment in Indian private hospitals. Instead of waiting months for procedures such as hip replacements or cataract surgeries, many use Indian cover to access care during visits home.

 

The US and Canada together account for 17 per cent of the market. Even after factoring in return flights, treatment in India often costs less than planned procedures overseas.

 

Asia, Australia, New Zealand and Africa contribute 8 per cent. Many NRIs in these regions use Indian plans as financial cover for major elective surgeries, including knee replacements and cardiac procedures, which remain 70 per cent to 80 per cent cheaper in India. A high-cover Indian policy of ₹1 crore can cost less annually than a single month’s premium abroad.

 

Family cover takes centre stage

 

Family-floater policies have recorded sharp growth. Their share has increased from 20 per cent to 70 per cent year-on-year, with average coverage exceeding ₹25 lakh. Adoption gathered pace after GST exemption, with NRIs opting for higher coverage for the entire household under a single plan.

 

Policies bought for parents have risen from 32 per cent to 60 per cent year-on-year. Many of these plans include concierge support to help NRIs manage treatment remotely.

 

“They are increasingly viewing it as a comprehensive healthcare solution, covering preventive care, outpatient expenses, planned treatments, and long-term needs for themselves and their families, especially aging parents back home. As international medical expenses skyrocket, the 40 per cent cost advantage of our domestic world-class facilities is making India the global value-hub for the diaspora’s healthcare,” said Singhal.

 

Higher coverage and inflation concerns

 

There has been a 70 per cent increase in customers opting for a higher sum insured. Insurers say this reflects awareness of medical inflation, estimated at around 14 per cent annually. NRIs are choosing policies that can cover advanced procedures, including robotic surgeries and specialised treatments, without additional out-of-pocket expenses, according to Policybazaar.

 

Multi-year policies have also gained ground, with a 19 per cent rise in adoption. By locking in premiums for two to three years, policyholders can avoid annual renewals and protect against rising healthcare costs. This also ensures uninterrupted cover for parents and family members in India.

 

OPD cover nearly triples

 

Outpatient department cover has nearly tripled, rising from 7 per cent to 20 per cent. OPD benefits pay for doctor consultations, diagnostic tests such as MRIs and blood work, and medicines that do not require hospital admission.

 

Many NRIs use trips to India for full health check-ups and specialist consultations. For parents managing chronic conditions such as diabetes or hypertension, OPD cover helps manage recurring medication and monitoring costs.

 

Claims trends

 

Policybazaar report showed that NRIs are using Indian healthcare for a range of needs, from chronic respiratory conditions and maternity care to oncology and other critical treatments. Insurers report high claim volumes for cataract surgeries, linked to ageing and vision-related concerns.

 

Dental care has also emerged as a key driver. Some NRIs are opting specifically for plans with OPD benefits to manage dental expenses, which can be far higher overseas.

 

India’s cost advantage

 

Premiums remain up to 40 per cent lower than similar coverage in the US, Canada, Europe or the Gulf. Surgeries, consultations and medicines can cost 70 per cent to 90 per cent less. Faster access to specialists in private hospitals adds to the appeal for overseas Indians balancing healthcare needs across borders, according to the report.