NRI health insurance purchases jump 126% YoY; Gulf countries account for half of demand: Report

Health insurance purchases by non-resident Indians (NRIs) have surged 126% year-on-year, with Gulf countries accounting for nearly 50% of total demand, according to data released by Policybazaar. The report noted that the sharp rise indicates a structural shift in how the Indian diaspora approaches healthcare, increasingly relying on India’s insurance ecosystem for cost-effective, high-quality medical treatment.

The growth has been driven by the rapid adoption of AI-enabled tele-medical check-ups, digital-first onboarding and regulatory changes such as the removal of GST on select NRI health policies. Together, these factors have significantly reduced cross-border friction, allowing NRIs to buy and manage health insurance in India seamlessly, regardless of their country of residence.

Gulf countries vs others

The Gulf Cooperation Council (GCC) region -- led by the UAE, Saudi Arabia and Kuwait -- emerged as the largest contributor, accounting for around half of NRI health insurance purchases. Shorter travel times and a stark cost differential have made Indian healthcare an attractive option for NRIs in the region. Annual premiums for Indian health insurance typically range between $120 and $300, compared with $2,000 to $3,000 for comparable coverage in the Gulf.

Europe accounted for about 25% of demand, largely driven by long waiting periods for non-emergency procedures in public healthcare systems. NRIs based in Europe are increasingly using Indian health insurance to access faster treatment in private hospitals, particularly for surgeries such as cataracts, joint replacements and elective procedures. The US and Canada together contributed around 17% of demand, as high medical costs abroad push NRIs to seek treatment in India, where even airfare plus surgery is often cheaper than planned procedures overseas.

Comprehensive family coverage

A major trend emerging from the data is the strong shift towards comprehensive family coverage. The share of family-floater policies has jumped from 20% to 70% year-on-year, with NRIs opting for higher sum insured levels, typically ₹25 lakh and above. At the same time, policies purchased specifically for parents rose from 32% to 60%, underscoring the growing priority NRIs place on safeguarding the health of ageing family members in India.

Another significant shift is the rising popularity of outpatient department (OPD) coverage. OPD adoption nearly tripled, increasing from 7% to 20%, as NRIs increasingly view Indian health insurance not just as protection against hospitalisation but as a complete healthcare solution. OPD benefits cover doctor consultations, diagnostics, dental care and pharmacy expenses, making them particularly useful for parents managing chronic conditions such as diabetes or hypertension.

NRIs are also moving decisively towards higher coverage levels, with a 70% increase in customers opting for larger sum insured policies. This reflects greater awareness of medical inflation, estimated at around 14% annually, and the desire to access advanced treatments such as robotic surgeries and specialised procedures without out-of-pocket costs.

Multi-year policies

Multi-year health insurance policies have seen a 19% rise in adoption, as NRIs seek to lock in premiums, hedge against rising healthcare costs and avoid the administrative burden of annual renewals. Longer tenures also reduce the risk of policies lapsing, ensuring uninterrupted cover for family members back home.

Siddharth Singhal, Business Head – Health Insurance at Policybazaar.com, said the data points to a fundamental shift in NRI behaviour. “The data points to a fundamental shift in how NRIs approach health insurance in India. Technology has effectively dissolved geographical barriers to healthcare, enabling NRIs to use Indian health insurance not just for emergencies but also for preventive care, planned treatments and long-term health management. As international medical costs continue to rise, India’s combination of world-class care and up to 40% cost savings is positioning the country as a global healthcare value hub for the diaspora,” said Singhal.