Should NRIs Buy Health Insurance in India?

Posted on: Jan 24, 2023 | | Written by:

Should NRIs Buy Health Insurance in India?

Published on January 24, 2023. EST READ TIME: 4 minutes

Indians are known for the skills that are valued across the globe. That’s why we see so many Indians finding great job opportunities outside the country. However, some countries they are settled in may not have the healthcare infrastructure India offers, or it may be too costly. Irrespective of the reason, the question that arises is how an NRI can get quality treatment using health insurance in India. If you are an NRI, let’s learn more about the terms and conditions before selecting one.

Conditions for Making an Insurance Application

In order to apply for health insurance in India, an NRI must submit a duly filled form along with documents like an attested copy of his/her PANCard, Passport, and bank account details where the person is an account holder in India. After the procedures are completed, the policy will be issued. However, all future transactions will be made in Indian currency.

8 things to considerwhen buying Health Insurance in India as an NRI

The cost of health insurance in India, whether individual health insurance or family health insurance,is way cheaper than in other countries. This is because medical expenses in many developed countries, particularly the US, areincredibly high. However, buying a health insurance policy in India because of its affordable premium is not enough; there are certainlyother factors to be kept in mind:

1. Almost all health insurance policies have geographical restrictions, which means the healthcare plan bought in India will not cover expenses incurred on medical treatment outside India. The benefits and coverage are meant only for treatment in India. For instance, if you are residing in Singapore, you cannot avail of any benefits of the healthcare plan (purchased in India) there.

2. If you plan to relocate to your home country in 2-3 years, buying a health insurance policy in India is advisable. This will be helpful in 2 ways – one, while on vacation in India, if there’s a medical emergency, you can avail of the benefits of the health insurance policy. Second, most policies have a waiting period of 1-2 years before certain pre-existing ailmentsare covered. If you buy a healthcare plan in advance, you can complete the waiting period before landing in India.Some pre-existing diseases like diabetes and heart diseases have a waiting period of 2-4 years, and an infant is covered after 90 days of buying the policy.

3. Some policies cover medical treatments done abroad if the particular procedures and required medical infrastructure are not available in India.

4. For NRIs, the terms and conditions are different from that of an Indian policyholder residing in India. There is also a certain limit on the sum insured for an NRI.

5. NRIs can avail of tax benefits on the premium paid for health insurance in India under section 80D of the Income Tax Act. For self and family, the tax deduction is up to Rs 25,000 and for parents, there will be an additional deduction of Rs 25,000. For senior citizens, you can avail of a tax benefit of up to Rs 50,000. But remember, the tax benefits are applicable only if the NRI files returns in India.

6. If you already have a health insurance policy and are moving out of India for a short duration, you can keep the plan active by paying the premium regularly. When you are back in your home country, you won’t have to purchase a new policy and go through all the formalities again.

7. If you plan to settle abroad, buying a healthcare policy in India for your parents can be the best gift for them as they can address their health issues without any financial strain.

8. Research well about the insurance company, its coverage and benefits, claims process, network hospitals, claim settlement ratio, exclusions, etc. This will help you pick the right plan from the best insurance company that suits your needs and budget. Remember that some health insurance policies don’t cover specific illnesses and pre-existing diseases.

Conclusion

It wouldn’t be wise for NRIs to buy health insurance in India if they are not returning within 2-3 years. However, whenever an NRI travels to India on vacation or business, it is advised to buy medical insurance to stay prepared for any medical emergencies. Most health insurance companies have tailor-made plans to suit your budget but remember to study the co-payment clause in detail before you purchase one.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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