Health Insurance For NRIs

Health insurance has become a necessity for everyone due to the increasing uncertainties in life. A health insurance policy is chosen after considering various factors like age, medical history, pre-existing ailments, etc. The non-resident Indians also need to buy health insurance covers for themselves and their families. But, various confusions and questions arise around the purchase of health insurance covers for NRIs. Even though they stay outside India for work, NRIs are eligible to purchase health insurance cover within their country. The NRIs have to produce an extra set of documents for the purchase which can include residence proof, ITR, etc. Persons of Indian Origin (PIOs) have to submit their Indian passports along with the other documents required for verification. 

Factors To Consider While Buying Health Insurance Cover For NRIs

Following is the list of some factors that you must keep in mind while buying a health insurance policy as an NRI: 

1. Tax Reduction Benefit 

Under section 80D of the Income Tax Act, the policyholders are eligible for a tax deduction on their premium payments of a health insurance policy. An NRI is also eligible for this tax deduction benefit under which amount of up to Rs. 25,000 can be deducted on health plans for self, spouse, children, and dependent parents under 60 years of age. An amount of up to Rs. 50,000 is deductible under health insurance plans for the main applicant or senior citizen above the age of 60 years. 

2. Family Status 

If you are an NRI, and your financially dependent parents or any other family members stay in India, then it is advisable to include them in a family floater plan. 

3. Period of Stay 

Your choice of health insurance policy is also influenced by the period of your stay abroad. If you are abroad or are going abroad and plan on returning to India in another 2 to 3 years, then you must buy a health insurance cover as until your return the waiting period of the policy will be covered. But, if you have no plans to come back to India in another 4 to 5 years, then you shouldn’t buy a health insurance policy as it may not be useful for you. 

4. Regular Travel To India 

If you stay abroad but give regular visits to India, then you must own a health insurance cover in India, to compensate for any medical expenses that might incur in case of an emergency during your stay within the subcontinent. It will ensure that you receive quality treatment in a  private hospital at an affordable cost. 

5. Geographic Restrictions

There is a limited number of insurance companies that provide health insurance plans to NRIs. Therefore, you must carefully read your policy-related documents to make sure that enough coverage is provided to you with required inclusions and exclusions. 

Key Points About The Health Insurance Policies For NRIs

Let us look at some key points that you must be aware of before buying a health insurance cover for the NRIs: 

• Insurance companies are extra precautious while rolling out health insurance plans to the NRIs and therefore, have strict claim practices like claim settlement within the subcontinent, etc. You must be well aware of such terms and conditions of your policy. 
• You must check the geographic coverage of the policy offered to the NRIs for accidents and illnesses. 
• According to the new rules, the repatriated claim amount ought to be to the extent of the premium paid in foreign currency.  

Conclusion 

The key to having a suitable health insurance policy is carefully checking all the inclusions and exclusions of your health insurance policy mentioned in fine print within your policy. You must raise queries regarding any other confusion related to the health insurance policy for NRIs with the insurance providers as they can make the whole picture clear for their policyholders. You must conduct your own research and compare several plans before choosing the best one for yourself. 

Also Read: A Handy Guide for NRIs Seeking Health Insurance in India

Can an NRI Save Tax Through Health Insurance Purchased in India?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.