Who handles the claim when you’re abroad? The NRI guide to authorisation, nominees, power of attorney

It was 2 am in California when her phone rang. Her mother had been rushed to a hospital in Pune. Suspected stroke. The hospital wanted a ₹2 lakh deposit before starting treatment. She booked the earliest flight home. It was still 24 hours away. Her brother was already at the hospital. He had their mother’s insurance card. He knew the policy number. He had even helped buy the policy two years ago. Confidently, he approached the insurance desk to initiate a cashless claim.

That’s when the process stopped.

“We need the policyholder’s authorisation to process the claim,” the insurer said. “Or someone with documented authority to act on her behalf.” Their mother was unconscious. She was 8,000 miles away. Her brother had no legal authority to sign anything. They paid out of pocket and filed for reimbursement later.

This is a reality many NRIs discover the hard way: Having insurance isn’t enough if no one can legally use it when it matters.

The Authorisation Gap Nobody Warns You About

If you live abroad and your parents are in India, ask yourself one uncomfortable question: If something happens to them tomorrow, who can actually deal with their insurance? Most families assume a sibling or relative can handle it. Legally, that’s often not true. Insurance companies are bound by privacy and consumer protection laws. They cannot share policy information or process claims for “family members” unless those members are formally authorised. This isn’t insurers being rigid. It’s compliance. But in emergencies, it becomes a painful bottleneck.

Why Being a Nominee Isn’t Enough

One of the biggest misconceptions NRIs have is around nominees. A nominee is the person who receives benefits after death. They have no automatic rights to manage claims while the policyholder is alive. So yes, your name may be on the policy but that doesn’t mean you can initiate a cashless request, sign claim documents, or even get information when your parent is hospitalised.

The Three Things That Actually Work

1. Authorised Representative Most insurers allow policyholders to formally add an authorised person who can interact with the insurer on their behalf. This person can submit claims, access details, and coordinate approvals.

2. Power of Attorney (POA) A POA gives legal authority to act on someone’s behalf. For insurance and healthcare, this can be general or specific. POA must be created while the person is mentally competent. You cannot do this after an emergency occurs. For elderly parents or those with health conditions, this is one of the strongest safeguards an NRI family can put in place.

3. Digital Access Insurance today is app-driven. Without login credentials, OTP access, and registered email or phone numbers, claims stall fast. Families lose days simply because no one can log in.

What NRIs Should Set Up

Before the next emergency, ensure this is in place:

● Add authorised representatives to your parents’ insurance policies

● Confirm authorisation directly with the insurer (email or written acknowledgment)

● Set up insurance app access for at least two family members

● Create a healthcare-focused POA where appropriate

● Ensure bank access for receiving reimbursements

● Store all documents digitally and share access securely

The Conversation That Feels Awkward But Matters Most

Many parents say, “Your sibling is here, they’ll manage.” Being present is not the same as being authorised. This conversation isn’t about mortality. It’s about practicality. About ensuring insurance, something they’ve paid for diligently actually works under pressure.

For NRIs, distance isn’t the biggest risk during a medical emergency. Delay is. The families who navigate crises smoothly aren’t lucky. They’re prepared. They handled the paperwork before it became urgent. Because the worst time to discover who can’t handle a claim is when someone you love is already in a hospital bed and you’re thousands of miles away.

(Views are personal; the author is CEO at BajajCapital Insurance Broking Ltd)