Insurance company for an Austrian Schengen visa

Question

I am applying for the Austrian short-term Schengen visa. The checklist on the website of the Austrian embassy in Canada states that health insurance has to be issued by a Canadian, Austrian or German Insurance Company:

https://www.bmeia.gv.at/fileadmin/user_upload/Vertretungen/Ottawa/Dokumente/Visa/Checklist_Visa_C.pdf

I have never seen this before when applying for other Schengen visas. E.g. I had an insurance from a Spanish company when applying for a Greek visa and had no problems with my application.

How strict is this requirement?

Any suggestions how to find such companies? Preferably Austrian ones, since it may be easier to arrange with a local company in case an accident happens, but really any will do.

Also, such a company should not do reimbursement (so I guess it should pay directly to the hospital). But so far all the companies I found do use the word reimbursement in their policies so I am really lost here...

Answer 1

So I finally managed to find a German insurance company by intensive googling + google translate from German. The general conditions indicated that the payments would be done directly to the German doctors (no information about the Austrian ones though). And since my visa application was approved, I guess it was sufficient.

However, according to the VFS agent that was handling my documents, the requirement about Canadian/Austrian/German insurance is not really important, and any Schengen insurance could have been used.