Health Insurance for Foreigners Residing in India

Foreigners entice towards India because of employment opportunities and low cost of living. It is found that a huge number of foreigners are gradually shifting to the country India due to the low cost of living. Therefore, the arrival of foreigners moving towards India on a long-term base directs to a fundamental question- are foreigners eligible to avail health insurance policies or any kind of life insurance cover in the country India?

Any foreigner residing in India is allowed to purchase Mediclaim, personal accident insurance or any other kind of health insurance Policy without any limits in India. It is known that foreigners can purchase each and every kind of insurance policy in India, only excluding coverage of life insurance. Moreover, companies providing Life insurance are presenting tailored policies for any foreigner. In this regards, residency of a person is not a pertinent factor when several other insurance cover is matter. Let’s have a look at different points to consider for foreigners residing in India and willing for health insurance:

Understand the policy of health insurance thoroughly

A foreigner residing in India and willing to avail health insurance must spare few minutes on reading and understanding the policy document thoroughly. He/she should read its terms and conditions related to few of the renowned insures in the country. Majority of the health insurance based policies presently provide a paragraph of ‘geographical restrictions’. This suggests that the particular will not encompass any kind of expenditures of the insured external to India. During that case, if a person lives in the USA and attains medical supervision, it is certain that the insurance company running in India would not encompass you for the expenses deserved. The policy of health insurance also comes with personal accident insurance information.

 Foreigners residing in India can get tax benefits under Indian Income Tax Law-

According to Section 80D of the Income Tax Act, it is known that the premium funded for health insurance is actually not liable from the tax deductions. The same is valid to NRIs who could attain this service, similar to a resident. Moreover, this act states that an individual with a health insurance could be eligible for tax exemption and that too for a premium with max limit of Rs 25,000. In case, you avail a senior citizen plan, mainly for your old-aged parents, then you can definitely avail tax benefits with max limit of Rs. 25,000.  You may seek benefit with the help of personal accident insurance during the situation of accident.

Carefully read the fine print for purpose of geographical coverage-

If you have looked at the policy terms as well as conditions of most of the insurance policies prevailing in India, you will know that there is a clause dedicated on geographical restrictions. As per this clause, the policy would only include costs for treatment within India. Therefore, treatment availed outside India is actually not included into the policy. The policy terms will also cover information on personal accident insurance.

FEMA regulations-

A foreigner residing in India should be aware of the Foreign Exchange Management Act (FEMA) provisions controlling insurance policies. It is known that the Regulation #3 of FEMA Rules, 2000 recommends that an individual residing inside India may buy or sustain the policy acquired from an insurer living out of India. During the acquisition of policies of health insurers from insurers living in India, it is known that the claim expenditure can be send back outside India to the level of the premium funded in foreign currency.

Decide when to avail the policy based on period of your return to India-

If a foreigner decides to settle in the country India after period of 4 to 5 years, it is perfect to go for a health insurance based plan inside the country where you live presently. In case your time to return to the country India is higher than 3-4 years then there is no need to buy this kind of policy at the moment. You can focus on buying and maintaining your insurance cover within the nation of residence.

However, if you have decided that your return to India is in span of 3 years, it is recommended that you opt for a health insurance based policy when you are out on a trip to India. It is important to confirm that the terms and conditions of a particular plan you opt satisfies your requirements. Furthermore, during the period of 3-4 years that passes by, majority of the prevailing condition and particular illness related prohibiting will get terminated and so you would be allowed to claim thoroughly below the policy, in absence of any kind of restrictions.

In case, you have already sustained a health insurance based policy in the country and if you are travelling outside India for a brief period then it is best to uphold the policy while you are in abroad. However, in case when you decided to stay outside India for a long period, then it is useless to keep the plan active because with geographical limits you could not receive any of the benefits.

 Focus on underwriting plans for NRIs-

Health insurance firms are intended to handle risk and keeping this point in mind, they have clear guidelines stated for Non-resident Indians. These guidelines need to be followed during the time of assessing any plan. According to insurers, it is found that NRIs are apparently riskier as compared to the people living in India. The reason can be the obstacles of corroborating facts while any claim is done and the resultant fight back to determine the legitimacy of the same while the individual lives in abroad. Hence, majority of insurer declines such cases. The insurer who cover such circumstances definitely have a restricted amount insured and fixed terms relating to the insurer availing medical check-ups inside India.

The general norms regarding acquisition of health insurance policy are clear. However, a foreigner living inside India and willing to buy health insurance must go through the particular eligibility norms prior to making decision of the purchase. This will help you to perceive that your efforts are fruitful.