Can an NRI take health insurance in India?
Vote: 1
If you are living overseas, coming to India will definitely feel like a complex weave of emotions. Especially for those who live alone, an unspoken worry about family members often lingers.
Therefore, to ensure a complete peace of mind, purchase health insurance for Non-Resident Indians (NRIs). In fact, a family floater insurance will not only provide medical coverage for your loved ones left behind, but also for you during your visits.
What is NRI Health Insurance?
NRI health insurance is basically a health insurance policy designed for the NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs). This policy aims to provide medical coverage to them during their temporary stays and also to their family living in India.
Unlike regular travel insurance, the policyholder gets year-round coverage for hospitalisation, surgeries, and even certain day-care treatments in Indian hospitals.
Types & Suitability of Health Insurance for NRI
Type | Suited For |
Individual Health Insurance | NRI wants personal coverage |
Family Floater Plan | NRIs with spouse and children in India |
Senior Citizen Plan | NRIs buying health insurance for parents in India |
Critical Illness Plans | Those seeking a lump-sum payout upon diagnosis of a serious illness (e.g. cancer) |
Top-up & Super top-up plans | NRIs who want to expand their coverage benefits |
Why Should NRIs Know About the Foreign Exchange Management Act (FEMA)?
NRIs who want to purchase health insurance in India should learn about the Foreign Exchange Management Act (FEMA) to understand the regulations about the premium amount and the claim settlement process. It states:
- Premiums should be paid from NRE/NRO accounts.
- Claims can be credited up to the specific limit of the foreign currency to the NRO account.
- Resident Foreign Currency (RFC) accounts can also receive the claim payouts.
Why Should NRIs Consider Buying Health Insurance in India?
- Coverage During India Visit
This policy easily reduces the financial burden if an NRI gets sick or requires surgery while visiting India. Even though you have a health plan overseas, such as in the US, UK, UAE, Australia, or elsewhere, it typically doesn't cover your medical bills in India.
- Get Tax Benefits
Under Section 80D of the Income Tax Act, NRIs are subject to tax deductions on their health insurance plan when they pay for the premiums for themselves, spouse, children, or parents from their income.
- Security to Family
NRIs often worry about elderly parents in India. But with NRI health insurance, your parents will get quality treatment in your absence. Moreover, it also covers spouses and dependent children regardless of whether they live in India or overseas.
- Affordable Premiums
The premiums for health insurance in India are generally 35% less than in Western countries. Therefore, investing in health insurance in India always offers high savings.
Final Thoughts
In short, NRIs can easily secure health insurance in India to ensure complete medical assistance during their short stays and also for their family in India.
When distance keeps you apart, NRI health insurance becomes a thread to keep yourself and your family's medical needs fulfilled.