How NRIs Can Buy Health Insurance in India

If you are an NRI and have been wondering about buying health insurance in India, rest assured, you are not alone. With medical tourism rising each day, it is only smarter and wiser to have an insurance plan while you are visiting India. There are many health insurance companies that are now offering a variety of health plans to the NRI clients, and this gives you the advantage of choosing a plan that best suits your requirements. Consider the following factors when buying a health insurance plan:

• Duration of your stay
• Time of return
• Frequency of visiting India
• Location of family-their stay and return

Am I Eligible to Buy Health Insurance in India?

The answer is a straight Yes. However, most of the health insurance companies keep the entry age at 50 years. The eligibility also comes with the condition that you fill in all the required documentation. You would need:

• Government-approved ID
• Residence proof
• NRI Questionnaire- A detailed form that is to be filled by you which includes various aspects like your visa status, date of you leaving India, duration of stay abroad, the purpose of stay, Indian bank details, full address of India and the resident country etc.
• Medical report
• Copy of Passport
• Proof of Age
• Proof of Income
• Income Tax Return documents

Apart from these, there may be other paperwork that is required by the insurance company you choose. As an NRI you need to be very careful to follow all the directions laid out by the Foreign Exchange Management Act, FEMA. 

What do ‘Geographical Restrictions’ mean?

This is probably the most significant factor when buying insurance as an NRI. By geographical restrictions, it is implied that the insurance is valid only for treatments within India. You must check with the company if they would provide any cover abroad as well. For example, you stay in Germany and need medical treatment, your health insurance company will not cover the expenses you make there.

Can I Avail of any Tax Benefits?

The premium that is paid for a medical insurance plan is free from tax deductions for NRIs as well under Section 80D. They also have the facility to claim the premium paid for their spouse, children and also parents. These are:

• For self, spouse and children - INR 25,000
• For parents above 60 years of age - INR 50,000
• For parents under 60 years of age - INR 25,000

If the taxpayer and his parents are above 60 years of age, the maximum deduction extends to INR 1 lakh.

How do I Pay My Health Insurance Premium?

If you are buying health insurance online, the health insurance premium payment can also be done in a similar way.  You can easily monitor the premiums via banks in India. The payments can be made through a Non-resident ordinary account or also through NRE/Foreign Currency Non-Repatriable (FCNR) account. 

Whenever you buy health insurance, you don't just secure your finances but also get a lot of peace of mind. Seeking treatment in your own country can become easier, cheaper and worry-free. Invest in a good health insurance plan today.