Unique accident insurance cover for NRIs

Sonny Abraham in Dubai

All non-resident Indians will soon able to take a unique insurance policy being planned by the government of India. For a small one-time premium, the policy brings in a compensation as high as Rs 500,000. In addition, in case of death abroad, Rs 50,000 would be paid towards transportation of the body to India.

Taking a leaf out of the Kerala government's accident insurance scheme for Malayalees working abroad, the Indian government proposes a similar scheme for all NRIs.

Disclosing this in Dubai, top Indian officials said the compensation for accidental death or total disability will be Rs 500,000 for a premium of Rs 990 and Rs 250,000 for a premium of Rs 650.

The one-time premium is valid for five years in the case of the Kerala scheme, drawn up by the state government's department for non-resident Kerala affairs. Basically intended for the unskilled and semi-skilled sectors, where Kerala's NRI workforce is concentrated, the scheme has saved several families from financial hardship and emotional distress. For most such families were too poor to raise funds even for the repatriation of bodies of their near ones who were not covered under similar insurance schemes of their employers.

Foreign secretary Salman Haider said the Kerala scheme, the first of its kind in India for NRIs, was a "promising initiative and needs serious attention".

K C Singh, joint secretary (consular, passport and visa) in the external affairs ministry, said the scheme would be finalised soon after discussions with the labour ministry.

Dhirendra Swarup, joint secretary in the finance ministry, said the scheme, being hammered out in association with New India Assurance Company, would be in place in about three months.

The officials were in Dubai to study ways of improving the consular, labour welfare and other services provided by Indian missions abroad.

UNI