One Policy Isn’t Enough: The Case For Dual Insurance For NRIs

The Non-Resident Indians (NRIs) would have health coverage in their country of residence. However, if they frequently travel to India, just travel insurance may not be enough

Travel insurance covers unforeseen medical emergencies, accidents, and illnesses that occur during a specific trip abroad. While some policies might offer limited coverage for pre-existing conditions or follow-up care related to the emergency, they generally do not cover routine medical check-ups or planned treatments abroad, long-term treatments, or chronic conditions. Health insurance bought in India is designed for healthcare needs within India. 

While invaluable for covering treatments, hospitalizations, and pre-existing conditions within India, it typically does not cover medical expenses incurred outside of India (except for plans with global coverage). Dual coverage provides a more comprehensive safety net. 

“Travel Insurance can cover unexpected medical events, accidents, and illnesses while travelling outside of India. And health insurance addresses pre-existing conditions (after waiting periods), routine check-ups, planned treatments, and any medical needs while in India or if the NRI plans to return permanently,” says Siddharth Singhal, head, health insurance, Policybazaar. 

NRIs who rely solely on one insurance policy may not have adequate coverage. “International health insurance may not be valid in India for planned or emergency treatment, while domestic coverage typically doesn't extend to medical emergencies abroad. This can result in uncovered medical expenses, treatment delays, and significant financial burdens for NRIs, especially during unexpected health crises,” says Singhal. In fact, NRIs should continue their health insurance in India even when they move abroad. In fact, some insurers also provide discounts on health insurance plans for NRIs. 

NRIs should analyse their healthcare needs in both their country of residence and India, considering visit frequency and family living in India. 

The best combination depends on your situation and how frequently you travel overseas or visit your home country. “For NRIs who frequently visit India or might return, the best health insurance strategy often involves either combining an India-based health policy with travel insurance for each trip or opting for a comprehensive international health insurance plan,” says Singhal.

If you visit India infrequently but have family there, you might consider either robust travel insurance for your trips or a separate India-based policy specifically for your family.