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A Handy Guide for NRIs Seeking Health Insurance in India

If you are an NRI and want to buy health insurance in India then this article is for you! In this article, we will discuss some pointers for NRI’s, who are interested in buying health insurance:
1.      Eligibility
NRIs are permitted to utilize health insurance if they complete their treatment procedure during their stay in India. An NRI needs to focus on terms of geographical coverage, underwriting guidelines, etc. while applying for health insurance in India.
2.      Clause on Geographical Restrictions
Most of the insurance companies specify in their terms and conditions that the benefits covered under the plan are limited only for treatment in India. For example, an NRI who lives in Singapore cannot avail of any of the benefits covered in a health insurance plan he bought in India.
3.      Individual Covers or Family Floater?
Family A floater is a plan that is tailor-made for families and acts as an umbrella of coverage for the entire family. Under the policy, you get a large cover shared amongst all family members for one of you to claim. The price is lower/efficient than buying individual covers. However, if one of your family members is older than 50, or has health issues, it would be sensible to look for an individual cover for such a member in addition to the family floater. If he/she has frequent claims, year-after-year, other members could be left without any cover, when they would need it.
4.      Government Regulations
FEMA states that a person resident in India can continue to hold any policy issued by a foreign insurance company, provided the person has obtained prior permission of the concerned Indian authority at the time of its issuance. For claims settlements, the amount insured may be credited to the person’s foreign bank account or to his resident foreign currency account maintained by an authorized bank.
5.      Tax benefits under Indian income tax law
NRIs too are covered under the same tax exemptions as applicable to the residents under section 80D of the income tax act. Policyholders are eligible for deductions of Rs 25,000 for their policies and an additional Rs 25,000 deduction in case their resident parents are covered under the same health insurance plan.
6.      Duration of Stay
You're certain that you will return to India, after a certain period, when moving abroad. It is wise to continue with the health insurance that you bought in India, rather than buying a new policy in the new country.If the stay will be long then you shouldn’t continue with the policy in India. In this case, it’s better to buy a new plan abroad and avail its benefits. The main reason for this is that as per the geographical clause the policy may not be useful for you.



The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We strongly recommend you to seek professional guidance pertaining to your query or doubt.

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