A Guide On Health Insurance For NRIs

Increasing globalization led to integrated economies providing business opportunities across the world. Parallelly, we are witnessing a large chunk of the population migrating across the globe in search of higher education and career growth.

An NRI or Non-Resident Indian, is a person who was born in India but currently lives outside India. An NRI health insurance is a must if you are someone traveling to India for adequate financial support in case of medical emergencies. You can purchase it for short-term or long-term at your convenience and have peace of mind for future years.

NRI health insurance plans are a popular category applicable to people based on their legal status of residence. If you are an NRI and are looking for health insurance plans for yourself or your family members in India you are at the right place.

Let us explore health insurance for NRIs in detail and learn more about its benefits and other important features.

NRI Health Insurance Plans 2024

Here are our top NRI health insurance plans that will cover you for medical procedures and hospitalization expenses:

What is Health Insurance for NRIs?

Health Insurance for NRIs in India is a category wherein a non-resident Indian can avail health insurance policy. The policy is based on the legal residential status of the person willing to get insured in India.

Are NRIs eligible to buy Health Insurance in India?

Yes, NRIs are eligible to buy a NRI health insurance policy in India. However, one needs to submit their address proof, passport and other necessary documents.

Why is Health Insurance for NRIs important?

Having health Insurance when you are a Non Residential Indian has its own importance. Read on the below sections to explore the importance and benefits of the same

1. Geographical restrictions

   Geographic restrictions are often a part of health insurance policies. If you currently have health insurance in your home country (the country where you are residing or working), it may have no or restricted coverage outside of its geographical boundaries. When you get health insurance in India, you won't be limited by geography and will be able to get coverage anywhere around India.

2. Sufficient Coverage

   Being an NRI may make you prone to India's environment. Moreover, while visiting India as an NRI, you may be prone to various health risks. For instance, problems with the illness or gastrointestinal problems. If you get a health insurance policy in India, you will be able to get appropriate coverage to meet your needs.

3. Ease in Claim Settlement

   Suppose you are in India, and suddenly need medical assistance. With your foreign-based policy you may face problems in filing a claim as there would be a lot of communication, documentation, inspection, and other activities which would create a lot of stress.

   However, on the other hand, dealing with an Indian insurer is likely to be easier than dealing with one headquartered in another country. With health insurance in India you may make cashless claims right away because they would have partnerships with multiple hospitals. As a result, the procedure will be painless.

4. Geographical restrictions

   Geographic restrictions are often a part of health insurance policies. If you currently have health insurance in your home country (the country where you are residing or working), it may have no or restricted coverage outside of its geographical boundaries. When you get health insurance in India, you won't be limited by geography and will be able to get coverage anywhere around India.

5. Tax benefits

   Purchasing a health insurance policy not only offers financial support for covered medical issues but also offers tax benefits. You can avail of tax benefits under section 80 D of the Indian Income Tax Act for purchasing health insurance in India. This provision is related to reducing the tax liability for taxable income in India. The exact benefit will depend upon the premium and the tax benefit slabs for the financial year.

Factors to Keep in Mind before buying Health Insurance for NRIs

1. Family & dependants

   If you have your parents, children or family staying in India, who are financially dependent upon you, then in such scenarios, you can opt for a family floater insurance plan. In this way, you can cover your dependent family as well as by the time you return to India many diseases' waiting periods will be ended.

   However, if you want to stay overseas for more than 4 to 5 years, purchasing an insurance policy in India is not the best option; instead, consider purchasing one in the nation where you will be residing.

2. Regular Traveler

   If you often go to India for business or work-related purposes you should get health insurance coverage in India. In the event of an emergency, your health insurance plan will cover you, and you don't have to worry about the treatment costs.

3. Go through the company's policies

   Health Insurance companies stay cautious while offering health insurance policies to NRIs, and even have different claim standards. Therefore, take a thorough understanding of your policy before buying a policy.

Health Insurance Companies

How can NRIs buy health insurance in India?

Buying Health Insurance in India is a simple process, but may vary from insurer to insurer. Below mentioned is a process which you need to follow in order to buy a Health Insurance for NRIs

Step 1: Choose your ideal Health Insurance company and get in touch with the insurer.

Step 2: Understand their terms & conditions, inclusions, exclusions and eligibility criteria.

Step 3: Submit the required documents such as Passport number, Permanent Account Number (PAN) details, etc.

Step 4: Undergo medical tests required (if any) by the insurer.

Step 5: Pay the premium that is applicable on your policy.

Step 6: Once the payment is confirmed, you will receive the policy details on your registered email address.

Wrapping it up

Having NRI Health Insurance in India is a good idea if you want to settle in India. Because once you move abroad, coming back to India would be a tough decision. Thus, before buying a plan ensure whether you want to return or not.Otherwise, the annual premium of your Health Policy here in India might become a burden on you.

If you still want to buy a plan then go through the policy documents and do not hesitate to ask if something is unclear.

FEMA (Foreign Exchange Management Act) Regulations For NRI Health Insurance

FEMA (Foreign Exchange Management Act) is a law practiced by the Indian Government. The FEMA Act governs the inflow and outflow of foreign currency in the country.

According to the FEMA regulations

• If you paid your NRI health insurance premiums in Indian currency then the claim amount can also be paid in Indian currency.
• If your NRI health insurance provides global coverage then you can settle your claim outside India in a foreign land. However, claims settled in foreign currency will be subject to the amount of premiums paid in that foreign currency.