The scheme will offer the NRIs a cover for normal hospital expenses and unforeseen events such as repatriation and accidents, among others.
The cover also includes legal/litigation cover, hospitalisation cover, personal accident cover, medical floater cover for family and maternity benefit.
"This amalgamation will help us achieve our growth objectives and also provide our existing clientele with better investment alternatives.
This step will enable us to make the most of the strategic opportunities offered by a dynamic and evolving market," Federal Bank Managing Director and Chief Executive Shyam Srinivasan said in a statement.
Federal Bank has over 750 branches and 825 ATMs.