Studying abroad: How about insurance from Indian firms?

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The thought of buying insurance may not cross a student’s mind. Buying an insurance policy is, however, essential for students, particularly if they are pursuing higher studies overseas.

If you are travelling overseas for higher education, you must keep in mind that the cost of medical treatment there will be higher and even a small medical procedure can cause a dent in your finances. Hence, if you are studying abroad, buying insurance is all the more important.

In fact, student insurance is mandatory in some countries.

Students can buy an insurance policy from an insurer in India, or from a foreign insurer approved by their university. Buying from an Indian insurer that is acceptable to the university is cheaper, though.

“Indian policies are significantly cheaper than the ones facilitated by universities abroad. So, you must go through the university policy’s features first and look for an equivalent from an Indian insurer,” Nikhil Apte, chief product officer, Health Insurance, Royal Sundaram General Insurance said.

The policies offered by Indian insurers also cover many non-medical emergencies. “They offer 360degree protection against problems like passport loss, baggage loss, etc,” says Rakesh Goyal, director, Probus Insurance.

According to brokers, the premium would be around Rs 9,000-15,000 for a cover of $100,000 for a 20-plus youth headed to an American university, it added.

“The amount of cover must be adequate for taking care of all medical costs. And the policy should cover you for hospitalisation, prescription medicines, private nurse, dental care, and accident and disability,” said Raj Khosla, founder and managing director, MyMoneyMantra”. It should offer features like assistance in repatriation (transporting mortal remains to India in case of demise) and should pay for the return ticket of a family member in case he falls ill and requires someone to take care of him, he added.

Some education consultants, however, recommend university-facilitated policies over Indian overseas student insurance covers. “The terms of coverage are better as these policies are designed by local insurers in consultation with the universities. These fulfil all the requirements that universities specify,” Rohan Ganeriwala, Co-founder and Director, Collegify said.