A Complete Guide to Health Insurance Plans for NRIs in India

Can NRIs Buy Health Insurance in India?

Yes, NRIs can buy health insurance in India for themselves and their families. This is very useful for NRIs who plan to return to India within three or four years. The hassles of getting a new policy immediately after relocation are thus avoided by buying a policy now. Plus, the waiting period for pre-existing conditions will be completed by the time they return and they can claim all the expenses of treatment immediately.

To purchase a health insurance policy, NRIs have to provide valid address proof and their latest ITR as proof of Indian citizenship. Persons of Indian Origin (PIOs) can also get health insurance in India by providing their passports.

Why Should NRIs Buy Health Insurance in India?

Here are some simple and important reasons why NRIs should consider buying health insurance in India:

1. Affordable Premiums

Health insurance premiums in India are much lower compared to other countries due to the affordable cost of healthcare. This makes Indian health insurance plans a cost-effective option for NRIs.

2. Medical Coverage in India

If you already have health insurance abroad (like in the UK), it might not cover medical expenses in India because most foreign policies have geographical restrictions. An NRI-specific health insurance policy in India can cover your medical costs during visits.

3. Advantage on Waiting Periods

Many health insurance policies in India have waiting periods for pre-existing conditions, usually 2 to 4 years. By purchasing a policy early, NRIs can complete the waiting period in advance, ensuring immediate coverage when they move back to India.

4. Continued Coverage During Visits

For NRIs who visit India often, having an Indian health insurance policy provides continuous coverage without the hassle of buying travel insurance for every trip.

5. Hassle-Free Claim Settlement

Filing claims with Indian health insurers is usually easier and quicker compared to foreign insurers. With an Indian policy, you can access cashless treatment facilities during your visits, avoiding complicated claims processes abroad.

6. Coverage for Common Health Issues

Some illnesses are more common when traveling to India, such as stomach infections or flu. Health policies issued in your country of residence might not cover these; however, an Indian health insurance policy will ensure that all expenses are covered.

7. GST Refund on Premiums

NRIs can claim an 18% GST refund on health insurance premiums if they meet the required conditions. This includes being a member of the policy and making payments from an NRE account along with submitting other required documents, such as a Tax Residency Certificate (TRC).

Health Insurance for NRIs and FEMA Rules

FEMA is a Foreign Exchange Management Act, introduced in 1999, that sets rules for handling foreign currency in India. For NRI health insurance, FEMA says,

• 1. The amount of NRI health insurance claims would be paid in Indian rupees if one pays a premium in Indian rupees.
• 2. In the case that the policyholder owns global coverage, his/her claim would then be settled in foreign currency in the event he/she files a claim outside India.
• 3. Claims, however, will only be paid in foreign currency if the premium was paid in the same foreign currency.

These rules facilitate the smooth processing of health insurance claims for NRIs, whether they are in India or elsewhere.

How Does Health Insurance Work for NRIs?

Health insurance for NRIs functions exactly like that for Indian residents. You purchase the policy, pay premiums to the insurance company, and receive protection for hospital bills and other medical expenses.

However, there are some differences for NRIs:

• 1. Some insurers only allow NRIs to buy health insurance when they are in India. Others let you buy the policy online while you’re abroad.
• 2. You’ll need to provide important documents like proof of Indian citizenship, your passport, and bank details.

All payments for premiums and other transactions must be done in Indian rupees.

Important Terms & Conditions for NRI Health Insurance in India

While purchasing health insurance for NRIs in India, a buyer must read and understand the terms and conditions of the policy. So here are key things to know about it:

Geographical Coverage

Most of the NRI health insurance plans only cover the medical costs within India. Some may provide emergency coverage outside India, but this is normally restricted to serious medical conditions like critical illness. These plans may also have high co-payments and require a higher premium. It’s important to check the policy details to understand where the coverage applies.

Limited Coverage

Insurance companies in India often offer NRIs a limited amount of coverage. Since NRIs do not live in India, insurers consider them higher risk. As a result, they may limit the sum insured and may not cover benefits like regular health check-ups. Always check the coverage details before buying a policy.

Conclusion

In conclusion, health insurance is an essential investment for NRIs who visit or plan to return to India. With affordable premiums, comprehensive coverage, and easier claim processes, buying health insurance plans for NRI in India can provide financial security and peace of mind. Whether you’re looking for continuous coverage or protection against medical emergencies, choosing the right plan is crucial to protect your health and your family’s well-being.