Inflation has increased the number of non-residents seeking medical treatment in India, where medical tourism is on the rise. NRIs have a variety of options, thanks to the rapidly growing insurance industry, to be ready for medical crises.
These are some things NRIs should be aware of about their health insurance alternatives.
NRIs are eligible to apply for insurance anytime they travel to India. To apply for an insurance policy, the applicant must submit a properly completed proposal form along with supporting documentation, including an attested copy of their passport, a copy of their Pan Card, information on their Indian bank account, and any other details the insurer may require.
- Why underwriting is important:
Insurance firms have detailed underwriting standards that act as benchmarks for a certain kind of policy that the company issues. An NRI application will have different terms and conditions than a standard application for health insurance. NRIs are viewed as riskier than typical applicants since it can be difficult to verify the information they provide. Because of this, health insurance firms impose strict guidelines and a cap on the sum assured.
- Terms of geographical coverage:
One of the most crucial clauses in a policy contract is the terms of geographic coverage, and missing this page while signing the contract can occasionally cause major issues. The majority of insurance providers make it clear in their terms and conditions that the benefits and costs covered by the plan are only applicable to medical care received in India. An NRI living in Singapore, for instance, is unable to use any of the benefits offered by a health insurance policy he purchased in India.
- Tax Benefits:
Under Section 80D of the Income Tax Act, NRIs are also eligible for the same tax exemptions as residents. In the event that their resident parents are covered by the same health insurance plan, policyholders are eligible for an extra Rs 25,000 deduction in addition to the Rs 25,000 deduction for their policies. **
A health insurance premium calculator is a tool you may use online to determine the amount of coverage required based on your needs.
- Government Regulations:
The Foreign Exchange Management Act (FEMA) regulations outline the terms for insurance policies purchased both domestically and abroad. It specifies that a person residing in India is permitted to keep any policy issued by a foreign insurance firm as long as they have the relevant Indian authority’s prior approval when it was granted. In the event of a claim settlement, the insured amount may be credited to either the person’s foreign bank account or his resident foreign currency account held by a licensed bank. *
- It is best to get a health insurance plan in the nation where you currently reside if you intend to settle in India after 4 to 5 years.
- Nonetheless, it is advised that you pick a health insurance plan while you are on vacation in India if your return to India is within three years. Make sure, though, that the terms and circumstances of the plan you select adhere to your needs.
- It is best to keep your health insurance policy in effect while you are overseas if you already have one and are moving to another nation temporarily. But, there is no point in keeping the plan active if you intend to travel outside of India for an extended period of time because you would be unable to use any of the benefits due to geographical constraints.
- Starting on July 1, 2017, all financial services will be subject to an 18% GST rate.
Make sure you compare health insurance plans before buying your desired one.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
