Insurers can settle claims only with the policyholder

I have a relative living in Africa. His daughter lives with our family. He has a mediclaim policy also covering his daughter on which he pays a premium into his non-resident external (NRE) account. The daughter was hospitalized recently. The insurance firm said it is ready to cover the expenses in the name of the person who operates the NRE account. But the bank is not ready to credit the amount into the NRE account. What should I do?

—Name withheld on request

Indian insurers can settle claims in Indian rupees only. Further, the claim can be paid only to the policyholder. Since the NRE account cannot accept the payment from the Indian insurer, you can explore a standard bank account for the relative. You can share details of this bank account, including a cancelled cheque of the said account. Alternatively, if you have still not paid the bill to the hospital, you could try for a direct settlement between the hospital and the insurer.