Looking for the right health insurance plans for NRIs? Non-resident Indians (NRIs) who frequently visit India should consider purchasing a dedicated health insurance policy in India. While international or travel insurance may offer basic health coverage during visits, they often need to improve in addressing ongoing medical needs, chronic conditions, or treatments requiring continuous care. Here’s a detailed guide on why NRIs need health insurance in India, the benefits of having one, and how to choose the right policy. Explore top health insurance plans for NRIs in India, offering comprehensive coverage, pre-existing disease benefits, and cashless network access for worry-free medical care.
Why Should NRIs Get Health Insurance in India?
- Comprehensive Coverage: Unlike travel insurance, a health policy purchased in India provides coverage for ongoing treatments and chronic conditions like diabetes, hypertension, and cardiac issues.
- Cashless Hospitalization: Most Indian health insurers have a vast cashless hospital network. This feature allows you to receive medical treatment without paying upfront, which is crucial during emergencies.
- Direct Claim Settlement: Indian insurers offer hassle-free direct claim settlements in case of hospitalization, unlike international insurance, where reimbursement procedures can be complex.
- Currency Advantage: International health insurance policies work in foreign currency, which can cause fluctuations in claim amounts due to exchange rates. Indian health insurance ensures payments are processed in INR, avoiding this hassle.
- Permanent Relocation: If an NRI plans to return to India permanently, having an existing health insurance policy ensures continuous coverage. Without it, they may have to serve waiting periods for pre-existing diseases.
Benefits of Health Insurance for NRIs
- Financial Independence: NRIs do not have to rely on family or friends for medical expenses in India. They can handle medical emergencies without financial strain with an independent health cover.
- Pre-existing Disease Cover: Many policies allow pre-existing disease coverage after waiting. The earlier you purchase health insurance, the sooner the waiting period is completed.
- Tax Benefits: Payments made for health insurance in India are eligible for tax deductions under Section 80D of the Income Tax Act, provided the premium is paid through Indian bank accounts.
- GST Exemptions: If NRIs pay health insurance premiums using an NRE account, they can apply for GST exemptions. They will need to submit a GST exemption form to the insurer.
Top Health Insurance Options for NRIs
Here are some of India’s best health insurance options available for NRIs.
Ayushman Bharat Yojana
- Type: Universal Health Insurance
- Coverage: ₹5 lakh per family annually
- Benefits: Available to the economically weaker sections of society, including women and children. NRIs who qualify can avail themselves of this scheme for comprehensive protection.
Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Type: Accident Insurance
- Coverage: ₹2 lakh in case of accidental death or permanent disability
- Age Criteria: 18-70 years
- Benefits: Provides unintentional insurance coverage and a safety net for accident-related medical expenses.
Aam Aadmi Bima Yojana (AABY)
- Type: Government-backed Insurance
- Coverage: ₹30,000 to ₹75,000
- Target Audience: Breadwinners of low-income households
- Benefits: This scheme provides financial relief in case of the death of a primary breadwinner, ensuring healthcare for dependent family members.
Jan Shree Bima Yojana
- Type: Life and Health Insurance for EWS
- Coverage: Up to ₹30,000
- Special Provisions: Focus on women’s Self-Help Groups (SHGs)
- Benefits: Support economically weaker sections (EWS), including widows, women in SHGs, and those involved in cottage industries.
Employee State Insurance Scheme (ESIC)
- Type: Health Insurance for Employees
- Coverage: Comprehensive coverage for employees working in the organized sector
- Eligibility: Factories with more than 10 employees are eligible
- Benefits: Provides healthcare coverage, maternity benefits, and accident-related coverage for employees and their dependents.
Innovative Strategies for NRIs to Maximize Coverage
Opt for a Base Plan + Top-Up Plan.
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- Why? A base plan provides essential coverage, while a top-up plan offers higher coverage for critical illnesses.
- How it Works: If your base plan is ₹10 lakh and the top-up plan is ₹90 lakh, you effectively get a total cover of ₹1 crore. This is a cost-effective way to get high coverage without paying higher premiums for a comprehensive policy.
- Expert Opinion: Rakesh Goyal, director of Probus Insurance, suggests that “A top-up plan is ideal for those who don’t use insurance often but want a strong safety net for large medical expenses.”
Consider Co-Payment and Deductibles
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- Co-payment means you agree to pay a portion of the treatment cost. Opting for co-pay options reduces premiums.
- This strategy works well if you anticipate infrequent hospitalization.
Ensure Access to a Cashless Hospital Network
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- Check whether the insurer has a vast cashless hospital network in cities you visit frequently.
- This allows you to get treatment at leading hospitals without paying upfront fees.
Look for No-Claim Bonus (NCB) Benefits
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- No-Claim Bonus (NCB) increases your sum insured for every claim-free year.
- Over time, this boosts your plan coverage without raising the premium amount.
Review the Policy’s Exclusions
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- Exclusions typically include:
- Cosmetic surgeries
- Fertility treatments
- Maternity expenses (unless included as a rider)
- Treatments outside India (for most policies)
- Exclusions typically include:
Purchase Insurance Early
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- Early purchase helps you complete the waiting period for pre-existing diseases faster.
- It ensures you lock in a low premium rate as premiums rise with age.
Key Factors to Look for in Health Insurance for NRIs
- Wide Hospital Network: The insurer should have tie-ups with hospitals in cities you visit frequently.
- Cashless Facility: Cashless treatment ensures no upfront payments.
- Waiting Period: Check the waiting period for pre-existing illnesses (typically 2-4 years).
- Renewal Terms: Ensure lifetime renewability to maintain continuous health coverage.
- Exclusions include cosmetic surgeries, fertility treatments, and international coverage unless specified.
Essential Documents for NRI Health Insurance
- OCI (Overseas Citizen of India) Card: Mandatory for NRIs seeking health insurance in India.
- Proof of Address: Proof of international and Indian address is usually required.
- Bank Account: Payments from an NRE/NRO account are accepted, and using an NRE account may offer GST exemptions.
- Age Proof: Valid identity proof (like a passport) is necessary.
Expert Advice
Sharad Bajaj, COO at InsuranceDekho, recommends that “NRIs consider the coverage for pre-existing diseases, the cashless hospital network, and the policy exclusions before finalizing a plan.” He also advises paying attention to the payment source (NRE account) when claiming GST exemptions.
Siddharth Singhal, Head of Health Insurance at Policybazaar, suggests a base plan + top-up approach. He explains that “the base policy can cover routine medical needs, while the top-up can protect you from large medical expenses.”
Conclusion
Top health insurance plans for NRIs in India provide financial security with features like pre-existing disease cover, international claim exclusions, and extensive hospital networks. For NRIs, having health insurance in India is a practical and cost-effective decision. It provides access to local healthcare, ensures financial independence, and safeguards against rising healthcare costs. Opting for a base plan with a top-up can help NRIs achieve large coverage at a minimal cost. To secure long-term protection, look for a policy with cashless benefits, a vast hospital network, and lifetime renewability. By acting early, NRIs can avoid waiting periods for pre-existing diseases and benefit from lower premiums.
