In a world where borders are mere lines on maps and frequent flyer miles are the new currency, Non-Resident Indians (NRIs) find themselves navigating between embracing opportunities abroad and maintaining ties with their homeland. In such a dynamic scenario, where life juggles across different corners of the globe, adequate NRI health insurance becomes the topmost priority.
For NRIs, health insurance obtained in their resident country often falls short, as it does not cover medical expenses incurred in India. This emphasises the need to understand eligibility and coverage for health insurance for NRIs in their home country.
Documents Required for Health Insurance Plans
NRIs are eligible for health insurance in India. For this, certain documents are mandatory, while the list may vary depending on the chosen insurer and plan.
Original passport and attested copy
PAN card details
Bank account details in India
Address proof
ID proof
Latest ITR
Limitations of Health Insurance for NRIs
NRIs must remember certain rules to benefit from health insurance in India:
Geographical Location: Indian health insurance for NRIs only covers medical expenses incurred in India. Some policies do cover expenses incurred abroad, but such coverage is limited to critical illness and the premiums are higher than average.
Claim Payout Repatriation: According to FEMA (Foreign Exchange Management Act) regulations, the claim amount for NRI health insurance can be repatriated only to the amount of the total premiums paid in foreign currency. This amount can be credited to your foreign bank account or resident foreign currency account in India.
Benefits of Health Insurance for NRIs in India
Health insurance for NRIs is now even more accessible and affordable. Here are some advantages of buying a health cover in India.
Adequate Coverage: Health insurance in India for NRI guarantees sufficient financial assistance for medical expenses if you have any health emergency while in India. Additionally, NRIs can also buy health insurance for their parents living in India.
Savings on Treatment: India is a hub of medical tourism as the expenses are significantly lower than in most developed countries, even in hospitals that have world-class equipment and facilities. If you are an NRI with adequate health insurance in India, you can always come back to your home country for costly treatments.
Tax Benefits: Since NRIs meet tax obligations in their country of residence, they are eligible for a refund of the 18% GST applicable on premiums paid. The process is easy, and the amount typically gets refunded in around two weeks.
Planning for Future: If you plan to settle down in India in the next few years, it may make a lot of sense to begin your health insurance policy right away. This will help you to overcome the non-coverage period for many of the critical illnesses that range between one to four years.
It’s a good idea to check whether an NRI health insurance policy taken in India that provides international coverage is more economical than taking separate policies. Typically, NRIs buy separate policies as this approach ensures a more robust safety net.
