Health Insurance for NRIs (Non-Resident Indians): A Complete Guide

Non-Resident Indians (NRIs), despite living abroad, have the option to purchase health insurance policies in India for themselves and their families. While residing outside India, NRIs can benefit from various financial and legal transactions, including obtaining health insurance coverage.

A health insurance policy is essential for being financially prepared for unexpected medical emergencies, whether you’re in India or abroad. However, it is crucial to select the right health insurance plan to maximize benefits. Here, we will clarify some key aspects of health insurance for NRIs to ensure you make an informed choice.

Can NRIs Buy Health Insurance in India?

Yes, Non-Resident Indians are eligible to buy health insurance in India for themselves and their families. To do so, NRIs need to provide specific documents such as:

• Proof of Indian citizenship (e.g., valid address proof, recent Income Tax Returns).
• For Individuals of Indian Origin (PIOs), a passport is required.

Pro Tip: If you plan to permanently return to India within 3-4 years, it is advisable to purchase an Indian health insurance policy beforehand. This allows you to complete the waiting period stipulated by your policy before you return, ensuring you can claim benefits immediately upon arrival. It also removes the pressure of needing to buy a policy once you’re back in India.

Understanding Health Insurance Policy Wordings

When purchasing health insurance, especially online, it is crucial to thoroughly understand the plan’s terms and conditions. Pay special attention to any geographical restrictions mentioned in the policy. Some policies may not cover medical expenses incurred outside India. For instance, if an NRI living in the UK needs urgent medical care, their Indian insurer may not cover the expenses unless the plan explicitly includes coverage outside India.

To avoid surprises, always read the policy details carefully. Certain insurers offer coverage for international medical treatments, but these are subject to specific terms and conditions.

FEMA Regulations for NRIs

The Foreign Exchange Management Act (FEMA) governs health insurance policies for NRIs in India. According to FEMA guidelines:

• Claim Amount: The claim amount for an NRI health insurance policy can be up to the total premium paid in foreign currency.
• Claim Deposit: Claims can be deposited into an NRI’s foreign bank account or a Resident Foreign Currency (RFC) account held with an authorized bank in India.

Why Should NRIs Consider Health Insurance in India?

1. Medical Coverage in India: If you already have health insurance abroad (e.g., in the UK), it might not cover medical expenses in India. A dedicated Indian health insurance policy ensures coverage for medical expenses during your visit to India.
2. Sufficient Coverage for Common Conditions: Certain health issues like stomach problems and flu are common in India, and foreign health insurance may not cover them. An Indian health insurance plan will ensure you’re fully covered for these conditions.
3. Continuous Coverage: Frequent trips to India? Having an NRI-specific health insurance policy ensures that you have continuous coverage, preventing the need to purchase new insurance every time you travel.
4. Cost-Effective Premiums: Health insurance premiums in India tend to be much lower compared to other countries due to the more affordable healthcare system. This makes Indian health insurance a cost-effective option for NRIs.
5. Simpler Claim Settlement: Claim settlement with Indian insurers is usually more straightforward and faster than dealing with foreign insurance companies. With an Indian health insurance policy, you can enjoy cashless treatment options, especially during visits to India.
6. Benefit from Waiting Periods: Many Indian health insurance policies have waiting periods (e.g., for pre-existing conditions), which can last 2 to 4 years. By securing an Indian health insurance policy before returning to India, you can complete the waiting period, ensuring you’re covered as soon as you arrive.
7. GST Reimbursement on Premiums: Health insurance premiums in India include an 18% Goods and Services Tax (GST). NRIs paying taxes in their home country can claim a refund of the GST paid on their health insurance premiums, provided they fulfill certain criteria like paying from an NRE account and submitting the required documents.

How Does Health Insurance Work for NRIs?

The fundamental principles of health insurance remain the same for NRIs and residents of India. The policyholder buys a plan, pays premiums regularly, and in return, they receive coverage for hospitalization and medical emergencies. However, some aspects may differ for NRIs:

• Certain insurers may allow NRIs to purchase a health insurance plan only when they are in India, while others might enable online purchases from abroad.
• Ensure that the health insurance policy provides coverage that suits your needs, especially if you frequently travel between your country of residence and India.

By securing health insurance in India, NRIs can ensure that they are financially prepared for medical emergencies while traveling or staying in India, taking advantage of more affordable premiums and simplified claim processes.