If you are NRI and wanted health insurance in India or considering a return to India then you need to know some conditions about this .while analyzing you may be confused whether you will get the health insurance or not or can pay for the same through foreign currency or not etc. well you are not alone who is going on through this struggle as immigration is common these days.
Are you eligible?
Yes, you are eligible. You just need to give ITR, proof for the residence, and other related documents for purchasing the health insurance.PIO( person of Indian origin) can give their Indian passport as a proof with other documents
Conditions for making NRI health insurance policy application
So let’s discuss some important points for buying health insurance for NRI:-
Terms related to geographical coverage
Well, it is one of the most important points that you should go through all the term s and conditions specified by the insurance companies. some geographical restrictions say that the policy will only cover the expenses for the treatments in India.it means that any treatment outside India is not included in the health insurance policy.
For example, Rohan is living in Singapore and undergoes surgery or hospitalization there. The health insurance policy in India will not cover it.he has to handle all the expenses on his own.
But now a days few companies have started covering treatments done outside India with certain terms and conditions.so research thoroughly before buying any health insurance.
Insurers have set guidelines that serve as benchmarks for any type of policy issued by the company. The terms and conditions for NRI applications are different from the general applications. They are considered riskier than resident persons.it is so because there is more difficulty involved in confirming the facts from them.it also involves certain limitations on the sum assured.
Government regulations (FEMA)
NRI must be mindful of the FEMA act 2000(foreign exchange management act) that governs insurance policies. According to it, a resident of India may buy or continue with a policy purchased from a foreign insurance company when he or she was a resident of a foreign country. well, about the issue of buying policies from Indian insurers, the insured can be repatriated the claim amount outside India to the level of the premium paid in the foreign money.
There is a tax benefit under section 80 D of the income tax act. It states that NRI also can claim the deduction as the normal resident of India. Well, insurance premium paid is deductible up to a certain limit which can decrease your overall tax liability if you have taxable income in nidia.they are eligible for deductions of rs. 25,000 for their policies and rs. 25,000 additional deduction I case of their resident parent are also covered in the same health insurance plan
- If you want to return to India in 3-4 years then it is advisable not to buy a health insurance plan from India. Opt for the insurance plan in the country where you currently reside.
- If the time to return to India is less than the 3 years then it is advisable to buy cover in India instead of purchasing a comprehensive health insurance plan abroad. There is an advantage in doing this .when you are back in India, you can avoid the pressure of buying health insurance as soon as you land. another advantage is that the clause for the waiting period goes on when are still abroad. Once your waiting period for pre-existing conditions will be served, you are eligible to claim your insurance if any circumstances happen.
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