Innovative health insurance products for NRIs on offer

[Parag]

Banks and insurance companies in India are offering increasingly innovative products to suit the diverse and at time complex needs of non-resident Indians (NRIs).

The latest such offering has come from the Kerala-based Federal Bank which has tied up with the state-run Oriental Insurance Company to create a unique insurance scheme for NRIs. The product, named ‘Fed Oriental Pravasi Insurance,’ NRI customers’ hospitalisation expenses arising from unforeseen eventualities such as repatriation and accidents. The scheme provides cashless treatment facility at more than 3,000 hospitals across India.

It also offers overseas treatment in recognised hospitals, medical floater cover for family in the event of death or disability of the insured as well as economy class airfare for a dependent or bystander in case of accident or airlifting along with the patient.

According to Federal Bank sources, all new NRI customers, who maintain a minimum balance of Rs5,000 or more are eligible for the insurance coverage. Medical floater cover for family is available in the event of death or disability of the insured for Rs1m. Overseas treatment in recognised hospitals for an amount up to Rs75,000 per annum is also offered under the scheme.

Overseas Indians, particularly those in the Gulf have peculiar needs. They have families, parents or other dependents back home who they need to care for. Having roots back home also means that they travel to India more frequently than do NRIs in other parts of the world. They also repatriate money more regularly and face greater uncertainties about their length of stay in the host country. Such NRIs are more likely to keep a better part of their portfolio invested in India as loss of job and imminent return is an ever-looming possibility. The insurance companies and banks have taken all of this into account while designed products and schemes dedicated to them.

Earlier this year, Oriential Insurance Company teamed up with the Al Mulla Group to launch a new medical insurance product for Indians living in Kuwait under the motto ‘Insuring a Better future’.

The new insurance product is available to all Indian residents in Kuwait and their dependants, including parents if they are permanent residents in Kuwait. The scheme allows the continuous cover on returning to India.

Another south India-based bank, the State Bank of Travancore is already offering ‘SBT NRI Care, a personal accident and health insurance plan to NRE account holders of the bank. The scheme is operated in association with United India Insurance Co Ltd and is open to all Non Resident Indians holding NRE account with the bank.

The upper age limit is fixed at 80 years. Dependent children in the age group of three months to 21 years are eligible for coverage under this scheme provided one or both parents are covered under the scheme concurrently.

The package covers personal accident insurance to the NRI, death, permanent total disability (PTD), repatriation expense of body (all arising out of an accident) and hospitalisation expenses for the NRI, spouse and two children in India. It covers the NRI for personal accident. The NRI and his family get hospitalisation cover which is a floating amount covering the expenses. It further provides for compensation towards education fund upto Rs10,000/- for the dependent’s insured children in the event of accidental death or disability of the insured NRI.

The claim becomes payable on death or disability of the NRI in India or abroad. The Policy also covers total loss of limbs or eye or both (all arising out of an accident). For hospitalisation component the policy is activated when either the NRI or the family members gets hospitalised in India for an illness or accident. When the NRI takes the policy, their family members can be residing either in India or abroad to become eligible for claim.

The policy covers treatment taken in India only, but provides compensation for accidents occurring anywhere in the world.

The state-run New India Assurance Company as well as private operators like ICICI Lombard, Bajaj Allianz, Tata AIG and others have also come up with special products to suit the requirements of overseas Indians.

ICICI Lombard, for example, also offers ‘Rishtey’, a health insurance scheme specially for the parents of NRIs. It is a comprehensive health plan that takes care of the NRI’s family’s hospitalisation expenses, even when they are unable to be around. It has cashless claim facilities in over 4,000 hospitals across India. It even offers re-imbursement of return airfare in case the NRI is required to visit his dependents. Nursing benefits are also provided in case the insured person needs post-operative care. Tax benefits can also be availed of under this scheme. The company also offers a comprehensive Travel Insurance policy, again aimed at visiting dependents of the NRI, that covers unexpected medical and non-medical expenses such as loss or delay of checked-in baggage or passports.

Read more at: THE NR EYE: Innovative health insurance products for NRIs on offer

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