Why NRIs Must Have Health Insurance in India?Medical Info

July 02, 2019 08:43
Why NRIs Must Have Health Insurance in India?

(Image source from: Iffco Tokio)

Quite often, Indians travels abroad for the sake of jobs or business and plan to reside there for just a few years besides planning to reside there permanently.

Those planning to stay back in the country do not have to particularly care about the healthcare expenses for their entire life as they can buy insurance cover in the country of permanent residence.

However, for those planning to come back to India post their retirement and at a later stage of life, it is important that they must buy health insurance in India as well. A health insurance cover bought in the country where you traveled and stayed for work would only cover you till you are a resident of that particular nation. Once you come back to India forever, the insurance policy bought in the other country would not cover you.

Why Buy Health Insurance in India?   

If you spare some time and read the policy terms and conditions of almost all of the insurance policies in India, there is a clause on geographical restrictions, which says that the policy will only cover expenses for treatment in India. Therefore, treatment out of India is not covered under the policy. So, for people who live out of India and undergo surgery or hospitalization in the country they reside in, the health insurance policy in India will not cover it.

However, a few insurers have started covering treatments outside India, although these are for selected illnesses only. For instance, Religare Care provides a "Care Anywhere" benefit that covers the treatment of selected illnesses only such as cancer, brain tumor, organ transplant, etc.

Section 80D of the Income Tax Act cope with tax deduction on health insurance premium. When it comes to tax deduction u/s 80D, an NRI (Non-Resident Indian) can as well claim in the same way as a resident. Apart from the Rs 25,000 deductions for a policy for yourself, spouse and dependent children, you can likewise get a separate limit of Rs 25,000 (Rs 50,000 for senior citizen parents) towards your parents' health insurance if you are paying for it. A claim under Section 80D can decrease your whole tax liability if you have taxable income in India.

By Sowmya Sangam

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NRIs  health insurance  medical