Imagine you left India for better job opportunities and spent most of your time in your new home away from home. Like many NRIs, you may visit your hometown for weddings or to celebrate festivals with your extended family. But have you ever wondered what would happen if you fell ill during one of these trips and required hospitalisation? Even though treatment expenses may be cheaper in India than abroad, it could still significantly dent your savings. So, let’s explore whether an NRI should buy a health insurance policy in India and, if so, what factors should be considered when selecting the right health plan.

Can NRIs buy health insurance in India?

Yes, NRIs can buy health insurance in India for themselves and their families, though the terms and conditions may vary from one insurer to another. Some insurers may require a medical test, especially for those with pre-existing conditions or older individuals. This helps them assess the risk profile of the applicant and set the premium accordingly. Required documents may include proof of Indian citizenship, such as valid address proof, identity proof, and recent income tax returns. Persons of Indian Origin (PIOs) must present their passports when purchasing medical insurance in India. If the applicant is over 60, the ideal option would be senior citizen health insurance, as it caters to the specific medical needs of the elderly.

Should NRIs buy health insurance in India?

Buying health insurance in India can be highly beneficial, as health plans purchased in an NRI’s country of residence often don’t cover medical expenses incurred while visiting India. However, whether an NRI should buy health insurance in India depends on various factors, such as:

1. If you plan to return to India after a few years, purchasing a health insurance policy in India makes sense. The primary benefit is that you would have completed the waiting period, allowing you to immediately avail of the insurance benefits when you relocate to India.
2. If you frequently visit India, it is wise to be financially prepared for any medical emergencies during your stay.
3. If you plan to stay in India for an extended period, say a couple of months, having health insurance for NRIs in India can help avoid out-of-pocket medical expenses.
4. If your family resides in India, investing in health insurance in India can help cover their medical costs, both for emergencies and planned treatments.
5. Benefits of buying medical insurance in India

Some benefits that NRIs gain by purchasing medical insurance in India include:

6. Adequate medical cover
   Most health insurance plans bought abroad may not cover treatment expenses incurred in India. Therefore, buying health insurance for NRIs in India can be beneficial, as you will have adequate coverage for any medical emergencies during your visit.
7. Continued coverage
   A health insurance policy in India ensures continuous coverage during your visits to India. This removes the need to buy health insurance for each individual trip.
8. Tax benefits
   If you file income tax returns in India, you can claim a tax deduction on the premium paid for health insurance. Under Section 80D of the Income Tax Act, you can claim up to ₹25,000 for insurance for yourself and your family members. If the insured NRI is above 60 years of age, the deduction increases to ₹50,000. Additionally, if you pay the health insurance premium for your senior citizen parents, you can claim an additional tax rebate of up to ₹50,000.
9. Waiting period advantage
   Health insurance plans typically have a waiting period for pre-existing diseases, specific ailments, and maternity coverage. By purchasing a health insurance policy in advance, you can ensure that the waiting period is completed before you return to India, allowing you to access full coverage.
10.  Cost-effective
    Healthcare costs are relatively cheaper in India, and health insurance premiums for NRIs are also lower. Insurers tend to charge lower premiums because the likelihood of NRIs making claims is reduced due to their shorter stays or occasional visits.
11.  Access to quality healthcare
    With health insurance, you can access quality medical care when visiting India. You can also benefit from cashless hospitalisation in any network hospital across India, without paying anything upfront, except for the deductible.
12.  Emergency medical evacuation
    Some insurers may cover emergency medical evacuation to the policyholder’s home country if specialised treatment is required in India.

Conclusion

Investing in health insurance for NRIs in India is crucial for providing financial security against a range of medical services. In case of an emergency during their stay in India, NRIs can rely on health insurance without draining their savings. Therefore, yes, NRIs can buy health insurance in India, but whether they should do so depends on individual needs and preferences.