Some Facts Related to NRIs Health Insurance Plan in India By FCS Deepak Pratap Singh

Dear Friends,

We are going through most turbulent phase of our lives. During previous two years , we have seen world most deadly and furious pandemic “ COVID-19”. This pandemic has shaken the whole world and claimed more than 25.00 Lakhs people. Till date we are under threat of this Pandemic. The economies of various countries have shaken , the people have lost their jobs and lives. Even developed countries have suffered the most.

Insurance will protect you against unforeseen future loses. So it is important to have an insurance policy on your health. This is also important to have an insurance policy of protest health of your family members ,who are dependent on you.

NRIs are our brothers and sisters ,who have settled abroad and contributing much more in development of our country. Their families ,children are residing in India also needs insurance cover. Since they are dependent on NRIs , so insurance companies in India are proving insurance cover to their families.

Well if you reside overseas, however, wish to come back to India, then read on to know more about purchasing a health insurance policy in India. Before buying a health insurance policy, you need to consider a lot of factors like health status, age, the health status of the family members, details of the insurance plan, and many more.

1. Are NRIs eligible to Buy Health Insurance Policy In India?

Yes, NRIs are eligible to buy a health insurance policy in India. To buy a plan, they just require residence proof, ITR, and other necessary documents. While the persons of Indian origin (PIOs) can submit their Indian passports along with other documents.

2. Health Insurance Policy

An NRI can purchase a health insurance policy in India for self, parents, or an entire family to receive comprehensive coverage. Though an NRI can opt for a health insurance plan, it is recommended to go through and understand the terms and conditions mentioned in the policy document carefully.

3. Factors to be Considered by NRI Before Buying Health Insurance in India

An important question comes forth- Whether you require health insurance in India or not?.

Given below are some of the factors you need to consider prior to buying a health plan in India.

I). Family Status and Period of Stay

In case you have your family staying in India, whose members are dependent upon you financially, or an elder family member, who is finding difficulty in buying a health insurance policy, then in such scenarios, you can opt for a family floater insurance plan.

II)Also, you need to consider the following questions:

  1. What time are you expected to return to India?

  2. How long do you wish to stay outside India?

  3. Where does your family reside?

NOTE: a). In case you are planning to go abroad or are already abroad and plan to return to India in another 2 to 3 years, then buying a health insurance policy is a must. It might be an additional expenditure to you now but by the time you return to India, the waiting period for many illnesses would be over. Please note that if you are planning to return in India in next two or three years then buy an insurance plan in India ,so that your waiting period will complete when you land in India.

b).But, if you wish to stay abroad along with your family for more than 4 to 5 years, then buying an insurance policy in India is not the ideal choice, consider buying it in the country you are staying in.

III) Tax Benefits

A taxpayer including an NRI gets a deduction on tax on paying premiums for health insurance under section 80D of the Income-tax act.

The deduction is as given below:

i). Health plan for self, spouse, and dependent children- Rs. 25000;

ii). Health plan for parents under 60 years of age- Rs 25000;

iii).Health plan for senior citizen parents- Rs 50000;

iv).Health plan for the main proposer whose age is more than 60 years- Rs 50000

In case you have a source of income in India and plan to return, it is an ideal choice to buy a health insurance plan in India. Also, if you have family members in India, who are financially dependent upon you, even then it is good to buy a health insurance policy in India.

IV). Geographical Restrictions

A lot of health insurance policies offer coverage only within India. Do check the details of your policy, in case if it does not offer coverage overseas, then it is advisable to port your plan to a different insurance company. Also, you should consider if you have enough health insurance abroad---- either you have bought or from your employer's side, then even if your health plan does not cover you overseas, it is alright. Please check with various insurances policy documents in India before taking any decision. In India issuing of insurance policies abroad government by IRDAI Regulations and FEMA ,1999.

 V).  Traveling to India Regularly

In case you regularly travel to India for business or work-related purposes( either working in the merchant navy or a pilot), it is important for you to buy a health insurance plan in India. As if any emergencies arise, your health insurance plan will get you covered. Also, the health facilities and treatment in India is good.

NOTE: Points To Remember

If you are an NRI, then before buying a health insurance policy in India, consider the following points:

i). While issuing a health insurance policy to NRIs, insurance companies take extra precautions and some of them even have strict claim practices.

ii). Do check the geographical coverage offered and its extent with respect to accidents and illnesses.

iii). As per the rules by FEMA, the repatriated claim amount ought to be to the extent of the premium paid in the foreign currency.

Iv). Apart from this, an NRI should also consider factors like coverage of the policy, residency, etc while making decisions regarding which health insurance policy to purchase.
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