Insurers offering up to 40% discount on health premiums for NRIs

Several health insurers have begun offering substantial discounts of up to 40% on health insurance premiums specifically for Non-Resident Indians (NRIs), as per Policybazaar. This initiative is designed to alleviate the financial burden NRIs face from high premiums on insurance policies, which they may seldom use. The discount applies both at the time of purchasing a policy and during each renewal, provided no claims are made during the policy period.

For instance, a couple aged 45 and 42 residing in the UAE can secure a health plan with a base premium of Rs 45,000 annually. With the NRI discount applied, their annual cost reduces to Rs 27,000. 

However, if a claim of Rs 5 lakh is raised in the third year, the pending premium amount of ₹18,000 must be settled before the claim is processed. This financial strategy aims to encourage NRIs to maintain their health while ensuring they have access to necessary care when required. 

The discount is contingent on several criteria. Applicants must submit a declaration form, a copy of their passport with entry and exit stamps, proof of residence both in India and abroad, and evidence of employment.

Additionally, all premiums must be paid through a Non-Resident External (NRE) account. The discount, however, does not extend to global health insurance plans. Companies currently participating include HDFC Health, offering a 40% discount, ICICI Health with a 25% discount, and Star Health's Super Star plan offering a 10% discount.

Siddharth Singhal, Head of Health Insurance at Policybazaar, stated, "The NRI discount rewards low-claim risk profiles with a premium reduction, making it more cost-effective over time. This model encourages policyholders to stay healthy while ensuring access to care when truly needed." This statement underscores the dual benefit of cost savings for insurers and enhanced health outcomes for policyholders.

The insurance industry is increasingly looking to tap into the NRI market, recognising the potential of offering tailored products.

The introduction of these discounts positions insurers to potentially increase their market share and attract more NRIs who are enticed by the prospect of reduced premiums. As insurers like HDFC, ICICI, and Star Health make these strategic moves, they may set new precedents within the insurance sector, encouraging other companies to follow suit in offering competitive benefits for NRIs.