Non-resident Indians (NRIs) who frequently visit India should buy a separate health insurance policy in India as an international cover may not offer comprehensive protection here. While travel insurance may provide a safety net for health-related risks during visits home, it may not address ongoing health issues or chronic conditions.
Buying a health cover in India offers the advantage of a local network of hospitals, direct claim settlements, and no currency conversion issues. And if an NRI decides to return to India permanently, having a domestic health insurance plan in place will ensure continuous coverage without the need to serve a waiting period for pre-existing diseases.
Sharad Bajaj, chief operating officer, InsuranceDekho, says when choosing a policy, NRIs should consider coverage for pre-existing diseases, cashless hospital networks, and critical illness. “Exclusions typically include cosmetic surgeries, maternity benefits, and treatments outside India. So it’s important to carefully review the terms before purchasing,” he says.
NRIs need to ensure that they have an OCI (Overseas Citizen of India) card when applying for health insurance in India. Additionally, if payments are made through an NRE account, NRIs can avail of GST exemptions by submitting an exemption form to their insurance provider.
Higher top-up a better option
Opting for a base cover with a top-up can be a smart and cost-effective strategy for NRIs. A base cover offers essential protection, while a top-up ensures higher coverage for critical illnesses or expensive treatments without significantly increasing premiums. For instance, if the base cover is for Rs 10 lakh and the top-up is for Rs 90 lakh, then the total cover becomes Rs 1 crore. This approach is very cost effective.
Rakesh Goyal, director, Probus, an insurance broking firm, says given the rising cost of healthcare in India, a top-up plan provides an affordable way to secure extensive coverage for serious medical situations, while keeping the initial investment minimal. “This is especially useful for those who do not anticipate using their health insurance frequently but want a safety net in case of high-cost emergencies.”
Similarly, Siddharth Singhal, head, Health Insurance, Policybazaar, says taking a base cover of a minimal amount along with a higher top-up is a good strategy for NRIs. “The base policy can cover routine or small healthcare needs, the top-up on the other hand can provide coverage for high-cost treatments,” he says.
What to look out for
Before finalising a health policy in India, NRIs should check whether the insurer has a wide hospital network and hassle-free claim processes. Waiting periods for pre-existing conditions, age restrictions, renewal terms, and sub-limits on treatments must be closely reviewed. They should note that in most policies there are exclusions for specific treatments such as cosmetic surgeries, fertility treatments during the initial policy years. They must note that plans bought from India may not cover international treatments.
While travel insurance typically provides coverage for emergencies, it does not cover planned treatments. So, a health insurance plan bought from India will not only provide comprehensive coverage, but will also help with doctor visits, pharmacy costs
and diagnostics.