I recently received an email query about Health insurance Plans for NRI in India. The query was very simple, I am an NRI living in Bahrain and looking for the Best health insurance plan in India. Kindly suggest a suitable family cover plan covering basic and critical illnesses.
Can NRI get a health insurance policy in India? Can NRI travel to India for treatment and claim? What does NRI need to know before buying health insurance in India? These are the most common questions asked by NRI. In this post, I will try to answer these questions.
Also Read – Best Health Insurance Plans in India
Health Insurance Plans for NRI in India
Can NRI Buy a health insurance policy in India?
Yes, NRI can purchase a health insurance policy in India. They can buy a policy whenever they visit India as they may need to undergo a medical checkup. All procedures for purchasing health insurance should be completed during their period of stay in India. NRI needs to submit residence proof, passport copy, and PAN card while applying for health insurance in India. If NRI cannot produce these documents they are not eligible to buy health insurance in India. The payment of the premium should be made from the NRE account. NRI can travel to India for treatment and claim.
In the first instance, health insurance by NRI in India seems to be a lucrative option. The cost of medical treatment and premiums in India is very low compared to the USA, UK, and other foreign countries. However, one needs to be careful about the geographical coverage offered by the Insurance Company. Most of the companies restrict coverage to the geographical boundary of India. That means any medical expense done outside India, will not be covered under this policy.
Which Health Insurance Options are available for NRI in India?
As such treatment outside India is, not covered by the majority of health insurance policies. However, a few policies such as HDFC ERGO Optima Secure Global provide global coverage. This policy is available with a sum assured of 1 Cr and above.
One can buy appropriate health insurance policy coverage as per need based on premiums, benefits, and features. It is recommended to buy a family floater plan with built-in critical illness, hospitalization, and pre and post-hospitalization cover.
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A few recommended Health Insurance options are –
- HDFC ERGO Optima Secure Global
- ACKO Health Insurance
- Tata AIA Health Insurance
What does NRI need to know before buying health insurance in India?
- The first point is geographical coverage by health insurance policy. Most of the policies place restrictions that the benefits and expenses covered under the plan are limited only to treatment in India.
- NRI must understand that as per FEMA rules claim payout can be repatriated out of India to the extent of the premium paid in foreign currency.
- NRI can avail of Tax benefits as per section 80 D. The benefit under section 80 D is to decrease tax liability on taxable income in India.
Why should NRIs Buy Health Insurance in India?
Medical Coverage in India
The cost of medical treatment abroad is growing. If you are planning to visit India and your current health insurance policy purchase abroad has a geographical limitation, it is a good idea to get medical coverage in India with a health insurance policy.
Medical Insurance in India is cheaper
Medical insurance and medical treatment in India is comparatively cheaper. This means you need to pay a very low insurance premium in India. So, it makes sense to purchase medical insurance in India.
Easy and Fast Claim Settlement
Health insurance claims for the medical treatment taken in India are easy to settle with Indian insurance companies. Most of the company provide cashless insurance coverage. On the other hand foreign policy offering global coverage also takes a lot of time for the claim settlements.
Waiting Period Benefits
If you are NRI and planning to take benefits of a pre-existing disease, then buying a health insurance policy in India today can be more beneficial as most health insurance plans in India have 2-4 years of waiting period for the pre-existing disease. So, if you have purchased the policy well in advance before shifting to India you will get the benefit.
When should NRI buy health insurance in India?
NRI should buy health insurance in India if any of the following conditions is true.
- Currently, you are NRI but if you are planning to return to India in the next 2-3 years.
- If you are residing abroad but your family is residing in India.
- If you wish to avail of medical tour benefits in India.
- If you want to avail Income Tax benefit of 80D.
- If you are visiting India very often.
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When should NRI not buy health insurance in India?
NRI should buy health insurance in India only –
- If you are not visiting India very often.
- If you are not planning to return to India in the next 2-3 years.
- If you are already holding other health insurance policies in the country you live.
Conclusion
It is clear that NRIs have the freedom to buy health insurance in India and utilize medical benefits while staying or visiting. You can easily locate some of the top medical insurance options in India for NRIs on the internet as well.
Insurance companies in India, both general and life, have made significant progress by incorporating digital processes. This enables you to buy insurance plans and submit claims easily with minimal paperwork, all done with just a few clicks!
I hope all my NRI friends has now good clarity about Health insurance plans for NRI in India.
