From medical care to loss of life, insurance acts as a saviour in times of emergencies. The various insurance policies available in India enable citizens to have a financial safety net. The good news is that even non-resident Indians can buy ‘NRI insurance’ in India to ensure financial coverage for themselves and their families. Here’s an overview of NRI life and health insurance.
The main criterion for purchasing an NRI insurance policy in India is that you must hold an Indian passport. Depending on the insurance company and scheme you choose, you may be asked to present additional documents, such as ITR, PAN card, valid address proof, and documents specifying your health condition. You may even be asked to fill up a Personal Financial Questionnaire (PFQ), apart from the application form for NRI insurance in India.
What Types of Insurance Policies Can NRIs Get in India?
Life Insurance
Term Life Insurance
Health Insurance
Home Insurance
Travel Insurance
Do I Need to be Present in India to Buy an NRI Insurance Policy?
No, you can compare and buy a suitable policy online from anywhere. However, if you are present in India, the insurer will bear the cost of your medical checkup, while you will need to do so if you’re residing outside India.
Is the Premium Higher for NRI insurance in India?
NRIs typically need to pay the same premium as resident Indians for comparable insurance policies. However, the premium could be higher if you’re residing in a high-risk country.
In fact, insurance premium in India is lower than in most developed countries, making it a more affordable option.
Do I Need to Pay the Premiums in Rupees?
Not necessarily. There are several payment modes for paying the premiums for NRI insurance in India. You can pay in the currency of the country in which you are residing, using your bank’s debit or credit card. Alternatively, you can pay from your Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts.
When deciding between paying the premiums in foreign currency or rupees, remember that the death or maturity benefits of NRI insurance can only be repatriated to your resident country, to the extent of the total premiums paid in foreign currency. If you pay the complete premium in Indian rupees, the benefits cannot be transferred to foreign currency.
Are Payout Benefits Different from Resident Indians?
For NRI life insurance, the payout is the same as for resident Indians and the policy will cover death irrespective of the location of the tragedy. However, in the case of NRI health insurance, you can only claim medical expenses that are incurred during your visit to India.
NRI insurance in India provides financial support during emergencies at an affordable premium. Moreover, there are tax benefits of NRI life insurance under Section 80C and health insurance under Section 80D of the Income Tax Act of 1961.
