What is NRI Health Insurance and its Importance for NRIs in India?

Knowing all about what is NRI health insurance, its significance for NRIs in India, and how to obtain one.

Despite the fact that NRIs choose to live and settle outside of India, most of them prefer to get their health insurance coverage back home. The prime reason for this is that NRI health insurance India comes at a relatively cheaper price to them when compared to the cost of buying health insurance abroad. Considering the cost factor, a number of NRIs are now opting for NRI health insurance plans in India. Here we look at what exactly is health insurance for NRI , its importance for NRIs and how to secure one in India.

What is Health Insurance for NRI in India?

Health insurance in India has several categories, one of which specifically caters to the needs of NRIs or Non-Resident Citizens. These are people who were born in the country but chose to settle elsewhere for better work opportunities or for other reasons. Now, these NRIs can choose to buy health insurance in India under this category. The legal residential status of the prospective policyholder is validated before issuing an Indian health insurance for NRI.

Can NRIs Buy Health Insurance in India?

Before moving any further on the subject of NRI health insurance India, let us look at whether or not NRIs are legally allowed to buy health insurance in their native country.

The answer to this is yes, an NRI citizen is permitted by law to purchase a health insurance plan in India under the NRI health insurance category. The legal residential status of the individual opting for the insurance is first verified. For this, they are required to submit their passport, proof of address, and some other relevant documents to the insurance company.

Importance of Health Insurance for NRIs in India

Here are some top reasons why buying health insurance in their home country is of significance to an NRI:

1. The claim settlement process is easier. This is one of the most important reasons why a number of NRIs prefer buying health insurance in India. In case of an unfortunate illness during their stay in India, it would be much easier and hassle-free to choose cashless hospitalization and settle claims when in India rather than initiate and settle the same entire process abroad with an international medi-claim plan.
2. Indian health insurance for NRIs offers several tax benefits as stated under Section 80D of the Income Tax Act, 1961. These benefits are provided to the NRI taxpayer upon buying health insurance in their home country, India. The liability for paying tax on their respective taxable income in India is lowered under the tax benefit offered by Indian health insurance plans.
3. Health insurance for NRIs in India comes with no geographical restrictions for coverage unlike the one purchased anywhere else in the world. Generally, health insurance policies have geographical restrictions in terms of insurance coverage. This means that they may provide limited or no protection outside of the geographical boundaries stated in the health plan. However, with NRI health insurance India, the NRI policyholder is free to get insurance coverage anywhere in India, wherever they may be residing at the time.
4. Health insurance plans for NRIs in India come with adequate insurance coverage in terms of the amount provided as protection. This is another reason why most NRIs opt for buying health insurance in India. Since some of them may find it difficult to adjust with the Indian climatic conditions, they may tend to fall sick frequently or contract some diseases prevalent in India at the time of their visit. Hence, a policy with sufficient insurance coverage can help.

Buying Health Insurance for NRI Parents in India

As stated earlier, NRIs are entitled to buy health insurance in India, even for their parents who may be NRIs but are now residing in India. There are a couple of reasons why it may be a good idea to buy a Health Insurance for NRI parents in India:

• Senior citizens are more vulnerable to health ailments, hence it only makes sense to buy health insurance coverage for them in India, including a critical illness plan.
• Not all senior citizens are entitled to receive pension protection in their retirement years. Therefore, with a health insurance plan in India, the parents can be financially worry-free for difficult times ahead.

How to Buy the Best Health Insurance in India for NRIs?

If you are planning to invest in NRI India health insurance plans, either for yourself, your parents, or family, here are the logical steps to follow for securing one:

1. Select a health insurance company of your choice. Make sure they have a credible repute in the market and possess a good Claim Settlement Ratio.
2. Choose a health insurance plan of your preference, based on your financial requirements for the present and the future and your budget. The coverage offered under the plan and other terms and conditions attached to it should be considered before buying,
3. Submit the relevant documents to the insurer, such as your passport, proof of address, PAN number, and the like.
4. If the insurer requires a medical test prior to insurance, get it done and submit the desired reports.
5. Start paying the specified premium on your policy in intervals of your choice – monthly, quarterly, or annually.