Health insurance purchases by non-resident Indians (NRIs) have surged by 126% year-on-year, with nearly half of the total demand coming from Gulf countries, according to data released by Policybazaar. The sharp increase signals a structural shift in how the Indian diaspora approaches healthcare, with more NRIs turning to India’s insurance ecosystem for affordable and quality medical treatment.
The report attributes the growth to several enabling factors, including AI-powered tele-medical check-ups, digital-first onboarding processes and regulatory reforms such as the removal of GST on select NRI health policies. These developments have significantly reduced cross-border barriers, allowing NRIs to seamlessly purchase and manage Indian health insurance policies from anywhere in the world.
The Gulf Cooperation Council (GCC) region — particularly the UAE, Saudi Arabia and Kuwait — accounts for nearly 50% of total NRI demand. Shorter travel durations and a substantial cost difference have made India an attractive healthcare destination. Annual premiums for Indian health insurance typically range between $120 and $300, compared to $2,000–$3,000 for similar coverage in Gulf countries.
Europe contributes around 25% of the demand, largely driven by long waiting periods for non-emergency procedures in public healthcare systems. NRIs based in Europe increasingly rely on Indian health insurance to access quicker treatment in private hospitals, especially for elective surgeries such as cataracts and joint replacements. Meanwhile, the US and Canada together account for nearly 17% of purchases, as soaring healthcare costs overseas make India a cost-effective alternative, even after factoring in travel expenses.
A notable trend is the shift toward comprehensive family coverage. The share of family-floater policies has jumped from 20% to 70% year-on-year, with many NRIs opting for higher sum insured amounts of ₹25 lakh and above. Policies specifically purchased for parents have also risen significantly, from 32% to 60%, reflecting growing concern for the health security of ageing family members in India.
Outpatient department (OPD) coverage has seen strong growth as well, nearly tripling from 7% to 20%. NRIs are increasingly viewing health insurance not just as hospitalisation cover but as a complete healthcare solution. OPD benefits, which include doctor consultations, diagnostics, dental care and pharmacy expenses, are particularly useful for managing chronic conditions such as diabetes and hypertension.
There has also been a 70% rise in customers choosing higher coverage amounts, driven by awareness of medical inflation — currently estimated at around 14% annually — and the rising cost of advanced treatments, including robotic and specialised procedures.
Multi-year health insurance policies have registered a 19% increase in adoption. NRIs are opting for longer tenures to lock in premiums, shield themselves from rising healthcare costs and reduce the hassle of annual renewals. Extended policy durations also lower the risk of lapses, ensuring uninterrupted protection for family members in India.
Siddharth Singhal, Business Head – Health Insurance at Policybazaar.com, said the data reflects a fundamental behavioural shift. He noted that technology has eliminated geographical barriers, enabling NRIs to use Indian health insurance not only for emergencies but also for preventive care, planned treatments and long-term health management. With international medical costs continuing to rise, India’s combination of quality healthcare and cost advantages of up to 40% is positioning the country as a preferred healthcare hub for the global Indian diaspora.
