Beginners Guide- Health Insurance for the NRIs in India

Over the last few decades, the number of Indian living in a foreign land due to work has increased. Although with the onset of the pandemic, the frequency of travel was somewhere restricted. However, now that things are getting better people have started traveling to various parts of the world. No matter whether you live in the native country or abroad, having health insurance is a necessity and not a choice. A common question that comes to the mind of every non-Indian resident is can an NRI buy health insurance in India? In this article, we briefly discuss health insurance for the NRIs in India.

Is NRI Eligible to Buy Health Insurance in India?

Let us clear the basics. NRIs have a common misconception that they cannot purchase a health insurance plan in India. Yet, this remains untrue. The NRI is eligible to buy the health insurance plan by providing evidence such as residence proof, ITR, and various other documents that are required to make the buy. An NRI is also eligible to buy medical insurance in India even if the individual is covered under a plan in their residence country.

Understand Health Insurance Policy Wordings

When it comes to buying online health insurance, it is recommended to take some time out and take a thorough understanding of the plan. The key to buying any insurance plan is not to be in a hurry and understand the terms and conditions offered within medical insurance in India. There are health insurance plans that have a clause of geographical restrictions. This clause is indicative that the respective plan will not cover any expenses incurred outside the boundary of India. A simple example to understand this is that Mr. X resides in the UK and needs immediate medical attention. The insurer in India will not cover any expenses for the incurred medical treatment. However, there are health insurance companies in India that offers cover when availing any treatment outside India subject to terms and conditions as applicable. So, the NRIs need to be careful of the policy wording as it will help them to make an informed decision. *Standard T&C apply

An Overview: Health Insurance Tax Benefits for NRIs in India

Under Section 80D of the Income Tax Act, the health insurance premium paid remains exempted from the tax deductions. This applies to the NRIs as well who can easily avail this facility like an Indian resident. Within this Act, a person with an individual health insurance plan can easily claim a tax exemption for up to a premium of Rs 25,000. For senior citizens, the tax benefit availed can be up to Rs 25, 000. This all means that if an individual has a tax liability in India and a health insurance premium is paid, then the tax benefits can be availed. *Tax benefit is subject to change as per the prevailing laws.

Are There Any Specific Guidelines for the NRIs?

There are defined guidelines for the NRIs that the insurance companies need to adhere to without a miss. As per the insurance companies, the NRIs are on a riskier side than the ones residing in India because of the difficulties in corroborating facts when making a claim and the resulting struggle to determine the authenticity of the same when the person is living abroad. Hence, the insurance companies reject any such cases. In case they offer cover for any such situation then they have a limited sum insured. The terms in regards to getting medical check-ups in India and so forth also remain rigid.

Wrapping it Up

Regardless of the country, choose medical insurance that fulfills your prerequisites. In case you have a family, choose a family floater health insurance plan. Remember, any NRI looking forward to avail of health insurance benefits in India should strictly stick to the regulations of the Foreign Exchange Management Act.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.