Health Insurance for NRIs in India: Coverage, Benefits & FAQs (2024)

The world has become a global village thanks to technological advancements, digital and otherwise. Yes, the COVID-19 pandemic has restricted the frequency of travel, but people still and will continue to move across countries and continents. Some do it as a part of their work, while some do it for personal reasons. Whatever the reason to travel, one must be covered under health insurance. But where does this leave Non-resident Indians (NRIs)? Read ahead for the answer, as this article focuses on health insurance for NRIs in India.

If you are an NRI and thinking of visiting India, then you must have some sort of health insurance coverage to ensure financial support in case of a medical emergency. Whether you want to purchase it for the short term or a long term is up to you and your travel plans.

Health insurance for NRIs is a category based on the legal residential status of the person willing to get insured in India. There can be legal and tax implications to this; therefore, one must strictly adhere to the stated documentation process while buying or renewing and raising a claim against this policy.

As a Non-Resident Indian (NRI) living abroad, you can buy health insurance policies in India to cover yourself and your family in India. To be eligible, you simply need to provide documentation that proves your Indian citizenship, such as a valid address proof, recent ITR filing, or PAN card.

For Persons of Indian Origin (PIOs), a copy of your passport is required to purchase an NRI health plan in India.

It is highly recommended for NRIs planning to permanently move back to India within the next 3-4 years to buy health coverage in advance. This ensures your policy's waiting periods for pre-existing conditions are completed by the time you relocate.

Getting health insurance in place while still abroad also avoids the need to urgently shop for plans after arriving in India. You can have peace of mind knowing you and your family will be covered as soon as you return.

Purchasing NRI health insurance in India well ahead of an intended move back can provide vital financial protection.

The process for purchasing NRI insurance can vary from one insurer to another. Also, the process might not be as straightforward as it is for a resident Indian, where the resident can directly buy an online health insurance policy via the insurer’s website or app without documentation.

Here’s an overview of the application process.

• Step 1: Get in touch with the insurer via website/app/call/email.

• Step 2: Meet their criteria by submitting required documents such as Passport number, Permanent Account Number (PAN) details, etc.

• Step 3: Select a plan of your choice.

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

• Step 5: Pay the applicable premium.

• Step 6: Receive the policy.

• Step 7: Verify the details and get them rectified if there’s an issue.

Yes, NRIs can purchase a health insurance policy in India even if they are covered under some policy in their country of residence. Some NRIs might be insured by their employers or might have a wide-ranging policy offering domestic as well as international coverage (with limitations). Even in such a scenario, NRIs can opt for a health insurance policy in India for enhanced coverage.

If you are an NRI looking to avail of health insurance in India, you need to adhere to the Foreign Exchange Management Act (FEMA) regulations.

Here’s what it mainly deals with.

• Provision to hold health insurance policies offered by the insurer in the country of residence.

• Guidelines regarding the repatriation of claim amount in foreign currency.

The crucial point to note while insuring NRI senior citizens is to purchase a dedicated policy (Individual Health Insurance Policy) for them instead of including them in a group cover such as a Family Floater cover. If you want to include them in a group cover, make sure the sum insured is substantial, for example, Rs. 1 crore.

If you purchase health insurance in India, you are eligible for a tax deduction as per the prevailing Income Tax guidelines. Therefore, buying health insurance can help you save tax.

There are tax benefits for NRIs if they purchase health insurance in India. This is applicable in case the policy is purchased in the country for an individual as well as for parents.

Usually, the term Mediclaim pertains to insurance coverage in case of hospitalisation. Whereas the term Health Insurance can also offer insurance coverage before and after hospitalisation and not just during hospitalisation. However, health insurance for NRI and Mediclaim for NRI might be used interchangeably in some cases for basic plans. Thus, it’s best to discuss the coverage with the insurer before purchasing either policy.

For an NRI, it’s better to be covered under some sort of health insurance purchased in India while in the country. However, in certain situations, it might be okay to not purchase ahealth insurance policy in India. Here’s a list of such situations.

• If the health insurance policy purchased in the country of residence offers extensive coverage even in India.

• If you are visiting India only for a few days and your travel insurance covers health-related risks.

• If you are certain that you will not be returning to India permanently anytime soon.

When purchasing health coverage as an NRI in India, it is important to review the policy terms and conditions closely. Some key points to understand include:

• Geographical Limits: Most NRI health plans only cover medical expenses incurred within India. Overseas emergency treatment may be included but is often limited and requires higher premiums or co-payments.

• Limited Coverage: Insurers tend to offer lower sum insured amounts for NRIs compared to Indian residents. This is because they view NRIs as higher risk since they live abroad, making verification difficult. Preventive health check-ups may also not be included.

• Pre-existing Diseases: Pre-existing conditions are usually only covered after 2-4 years of continuous coverage. Look for policies with the shortest wait periods.

• Grace Period: Policies have a grace period, typically 30 days, to renew after expiry without losing continuity benefits. Understand renewal timeframes to avoid gaps.

• Claim Settlement: Medical records and bills are essential for claims processing and reimbursem*nt. Save all documents and submit them promptly for faster payout.

Thoroughly reviewing the fine print ensures you understand applicable terms so there are no surprises at the time of claim. Look for an NRI policy that balances your coverage needs with competitive pricing.

Here are some important things to remember that were covered in this article.

• NRIs should be covered under at least onetype of health insurance policywhen they are in India to ensure financial assistance.

• NRIs can purchase a health policy for themselves as well as for dependent parents and avail of corresponding tax benefits as per The Income Tax regulations.

• It’s better to buy health insurance in India to ensure hassle-free claim settlement.

• It’s better to purchase health insurance in India if you plan to permanently settle in the country after spending a few years in a foreign land.

• NRIs can skip purchasing health insurance in India if their existing health insurance cover offers extensive health insurance coverage even during their stay in India.