Why Should NRI Purchase Health Insurance in India?

Did you know that out of the total non-resident Indians (NRIs) who purchase health insurance, about 71% of those aged between 28 and 45 are buying health insurance for themselves or their dependents in India?

India is becoming a major medical hub globally, and with healthcare expenses rising, health insurance has become a necessity more than a comfort. You must purchase health insurance to cover unforeseen medical expenses for your financial security.

Get Expert Tips to Purchase Health Insurance for NRIs in India.

There are multiple reasons for an NRI to buy health insurance plans in India:

1. Frequent travel to India- NRIs who visit India regularly to meet their family and friends require healthcare services during their visits. Health insurance in India ensures they have coverage for any medical expenses incurred during their stay.
2. Plans to settle in India- If an NRI plans to return and settle in India permanently or in the long term, having an existing health insurance policy can be beneficial. It allows them to have a matured plan with exhausted waiting periods, ensuring coverage for pre-existing conditions and immediate access to healthcare services upon their return. Our study shows that a reduction in the waiting period for the PED (Pre-Existing Disease) add-on is the most popular. Thus, it is crucial to purchase health insurance beforehand to get an advantage over waiting periods.
3. Lower healthcare costs- Healthcare expenses in India are generally more affordable compared to many other countries. Major medical procedures, surgeries, and treatments like a heart bypass, kidney/liver transplant, and hip/knee replacement can be significantly cheaper (7x more in the USA and about 30-40% affordable than the UAE) in India compared to international healthcare markets. As per our data, NRIs from Gulf nations such as the UAE, Saudi Arabia, Qatar, Oman, and Kuwait make up the most significant percentage of health insurance buyers at 58%, followed by the USA/Canada (14%), the UK (8%) and Australia (6%).
4. Cost-effective premiums- Health insurance premiums in India are generally lower than international health insurance plans offering similar coverage. NRIs can avail themselves of competitive premium rates while enjoying comprehensive coverage for themselves and their family members. For example, if we compare UAE vs India, premium costs are approximately 35-40% when you buy for yourself and approximately 75-80% cheaper for your parents in India.
5. Coverage for family members in India- NRIs often have family members residing in India, such as parents, a spouse, or children. Purchasing health insurance in India allows NRIs to provide comprehensive coverage and financial protection for their family members' healthcare needs. Our data says that NRIs prefer family floater health insurance plans the most (40%), of which 25% buy policies for their parents or senior citizens living in India.?
6. Global coverage options-Many Indian health insurance providers offer global coverage options. This means that NRIs can be covered not only in India but also in their country of residence or other countries worldwide.

How much is the sum insured enough to get comprehensive coverage?

To get comprehensive coverage, one should look for a plan that includes hospitalization expenses, doctor consultations, diagnostic tests, medications, surgical procedures, and pre-and post-hospitalization expenses. At least one-fourth of them choose coverage of more than 1 crore, while 34% of NRIs buying health insurance opt for a sum insured between 25 lacs to 1 crore.

If you are looking to buy a plan for your family or buy one in Tier 1 or Tier 2 cities, 5 Lac or 10 Lac coverage might not be enough. Many insurers have now started offering 1 crore coverage plans starting from Rs. 8000 per annum.

Are pre-existing conditions covered under health insurance plans for NRIs?

Yes, pre-existing conditions like Diabetes, Asthma, Thyroid, Hypertension, etc. are generally covered under health insurance plans for NRIs. However, there are waiting periods associated with pre-existing conditions, and certain limitations may apply.?As per our study, approximately 34% of NRIs purchasing health insurance have pre-existing medical conditions. Among these conditions, surgical procedures account for 21%, diabetes for 17%, hypertension for 13%, thyroid issues for 10%, asthma for 11%, and so on, making them the prevalent health conditions for which NRIs seek coverage.

Conclusion

All NRIs are eligible for a GST refund upon buying health insurance plans from India. This is because most NRIs pay income tax in the foreign country where they reside and need not pay it again in India. However, a GST refund is applicable only if the proposer is an NRI and the payment is made from their NRE account. The latest data shows that over 40% of NRI customers avail of GST refunds when buying health insurance from India.

If anyone has any doubts or needs assistance buying or claiming health insurance for NRI, I would be happy to help. Share in the comments, or feel free to DM. ??

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