Key Insurance Issues NRIs Must Fix For Parents Before Flying Back After The Holidays

Priya had been home in Bengaluru for barely three weeks during this holiday season. Between festival lunches, family catch-ups and hurried meetings with old friends, time slipped by. Two nights before her return flight to Singapore, she opened the policy documents she hadn’t revisited since buying them. Everything looked fine at first. The policy was active. Premiums were paid. And yet, as she read closer, it became clear her parents were far less protected than she had assumed.

This is a pattern becoming increasingly common among non-resident Indian (NRI) families. “The biggest insurance risks for parents don’t usually surface during medical emergencies. They emerge quietly during brief home visits and document reviews that reveal how much has changed while children are away,” says Venkatesh Naidu, CEO at BajajCapital Insurance Broking.

The Illusion Of Protection

Managing parents’ healthcare from thousands of miles away often creates a false sense of comfort. 

Video calls show smiling faces. Occasional updates sound reassuring. What they don’t show are outdated policy limits, hospitals that no longer offer cashless treatment, or clauses that made sense a few years ago but feel dangerously inadequate today.

Priya’s parents had a Rs 5 lakh health insurance policy with a one per cent room rent cap. On paper, nothing looked wrong. In a metro city like Bengaluru, it meant a maximum room rent of Rs 5,000 per day. When she called a few nearby hospitals, she discovered that even a basic private room now costs Rs 7,500-8,000 per day.

“The real shock for families is that the extra room rent isn’t the only cost. Once you breach the room rent limit, insurers apply proportionate deductions across the entire bill. A Rs 3 lakh hospitalisation can suddenly leave families paying 30–40 per cent out of pocket,” says Naidu.

What Breaks When Children Are Not Around

Several issues which consistently emerge during annual visits are:

Room rent limits that no longer match hospital pricing: Medical inflation in India is estimated at around 14 per cent annually, while most policies remain unchanged unless actively reviewed. “Every year the policy stays the same, the gap widens,” says Naidu.

Network hospitals that quietly change: Hospitals move in and out of insurer networks regularly. “Families often assume a hospital will remain cashless because it was last year. That assumption can be costly during an emergency,” says Naidu.

Expired or misplaced documents: Physical health cards expire, and third party administrator (TPA) contact details change. In late‑night emergencies, missing paperwork becomes a real barrier to timely admission.

Undeclared health changes: New medication, a minor procedure or a diagnostic finding may seem insignificant at the time. “If these aren’t formally disclosed, they can complicate claims later even if the hospitalisation is unrelated,” Naidu adds.

Sum insured frozen in time: A Rs 5 lakh or even Rs 10 lakh cover that felt adequate a few years ago may fall short today. “Cardiac care, orthopaedic surgeries and ICU stays routinely exceed these limits at quality hospitals,” says Naidu.

The Before‑You‑Fly Checklist

Experts advise NRIs to use their India visits to fix these gaps. They should review the room rent clause and compare it with current rates at nearby hospitals. If there’s a mismatch, they should explore policies without room rent caps.

They should also verify the insurer’s latest network hospital list instead of relying on memory or old printouts. Ideally, one should look at least two reputable hospitals close to home that offer cashless treatment.

They should also update documents and access. Health cards should be valid, emergency numbers saved, and digital copies stored on both the parents’ and children’s phones.

They should also declare health updates proactively. “Disclosure protects families from unpleasant surprises later,” says Naidu.

Lastly, they should reassess the sum insured. For parents over 60, individual covers of Rs 10–15 lakh or higher depending on city and health profile are increasingly becoming a necessity rather than an upgrade.

A Different Kind Of Packing

Priya spent the final day of her holiday not shopping for gifts, but fixing gaps. She upgraded both parents to Rs 15 lakh covers, moved them to a no‑cap policy, verified cashless hospitals within a short radius and set up app access on their phones. Before boarding the return flight amid the hugs, airport selfies and promises to call every weekend, experts suggest setting aside a few hours for this unglamorous work. The best time to fix insurance gaps was last year. The second‑best time is now, while families are still sitting across the table.