Health Insurance for NRIs: Everything You Need to Know in 2025
An NRI (Non-Resident Indian) is someone who holds Indian citizenship but resides outside India for work, business, or other reasons. With rising medical costs in India, more NRIs are realising the importance of securing health insurance for themselves and their families back home. The numbers speak for themselves:
With so many options available, choosing the right health insurance plan can feel overwhelming. In this guide, we will walk you through everything you need to know about buying health insurance in India as an NRI, from understanding the different types of plans to knowing how to make a claim. Without waiting further, let's get started.
Can NRIs Purchase Health Insurance in India?
FEMA Regulations on Health Insurance for NRIs
FEMA, or the Foreign Exchange Management Act, is a law that regulates the movement of foreign currency in and out of India. If you are an NRI with a health insurance policy from an Indian insurer, FEMA rules decide how your claims will be paid.
If you have paid your health insurance premiums in Indian rupees, any claim amount you receive will also be paid in Indian rupees. This applies to policies that provide coverage within India.
For insurance policies that offer global coverage, claim settlements outside India can be made in foreign currency. However, this only applies if the premium for that policy was paid in the same foreign currency. If the premium was paid in Indian rupees, the claim will still be settled in Indian rupees.
When it comes to receiving the claim amount, you have two options. The money can be deposited into your foreign bank account or into a Resident Foreign Currency (RFC) account in India. An RFC account is a special type of account that allows NRIs to hold their funds in foreign currency while keeping them in an Indian bank.
Benefits of Health Insurance for NRIs
Here's a closer look at the benefits of health insurance for NRIs:
Medical Coverage During India Visits
Health insurance from your country of residence, whether it's the UK, the US, or any other place, likely has geographical restrictions. This means if you fall sick or need medical treatment while visiting India, your foreign insurance won’t help.
An NRI health insurance plan ensures that any medical expenses during your stay in India are covered. Whether it's a sudden illness, an accident, or an emergency hospital visit, you won’t have to worry about paying out of pocket.
Protection Against Stomach Issues and Seasonal Flu
Adjusting to Indian food, especially street food, can sometimes be tricky after living abroad for years. Even if you grew up in India, your stomach may not handle local spices, oil, and hygiene levels the same way it used to. Stomach infections, food poisoning, and digestion issues are common. Sudden weather changes can also lead to flu and other seasonal illnesses. Having health insurance means you can get treatment without financial stress.
Lower Premiums Compared to Abroad
Health insurance in India costs much less compared to most foreign countries. Medical treatments abroad are expensive, and so are insurance premiums.
By choosing a plan in India, you get quality healthcare coverage at a fraction of the cost. Even if you don’t visit India often, the lower premium makes it a cost-effective option to have backup medical coverage when needed.
Easier and Faster Claim Process in India
Health insurance in India costs much less compared to most foreign countries. Medical treatments abroad are expensive, and so are insurance premiums.
By choosing a plan in India, you get quality healthcare coverage at a fraction of the cost. Even if you don’t visit India often, the lower premium makes it a cost-effective option to have backup medical coverage when needed.
No Waiting Period Worries If You Plan to Return Permanently
If you’re planning to move back to India in the future, buying a health insurance plan now can be a smart move. Many Indian health policies have a waiting period, especially for pre-existing conditions. This waiting time can range from two to four years.
By purchasing a policy in advance, the waiting period will be over by the time you settle in India. This means you’ll have full medical coverage from day one without having to wait.
GST Refund on Premium Payments
If you are an NRI paying taxes in your country of residence, you may be eligible for a refund on the GST (Goods and Services Tax) charged on your health insurance premium in India. The GST on health insurance is 18%, which can be a significant amount.
To claim this refund, you need to meet certain conditions:
Limitations and Considerations
Before choosing a health insurance plan, it’s important to be aware of certain limitations. Let's take a look at them below:
Sum Assured Limits
The sum insured refers to the maximum amount the insurance company will cover for medical expenses. For NRIs, insurers may set limits on the sum assured based on residency status and risk factors. Some policies may offer lower coverage amounts for NRIs compared to Indian residents, while others might have separate premium structures. Always check the maximum sum insured available and whether it meets your healthcare needs, especially if you plan to use the insurance for treatment in high-cost medical facilities.
Waiting Periods for Pre-existing Conditions
If you have a medical condition before buying the policy, the insurance company may not cover it right away. Most plans have a waiting period, which can range from a few months to a few years, depending on the insurer. This means that during this time, any treatment related to that condition will not be covered. If you need immediate coverage for a specific health issue, look for plans with shorter waiting periods or options to reduce the waiting time by paying extra.
Reading the fine print and asking the right questions can help you choose a policy that actually works for you. Take your time to compare options and make sure the coverage fits your lifestyle and future plans.
Recommendations for Choosing Health Insurance
When comparing policies, we recommend you to look for these features to ensure you get the right coverage:
Cashless Hospitalisation
Having a cashless hospitalisation feature means you don’t have to worry about paying upfront during medical emergencies. The insurance company settles the bill directly with the hospital, saving you from handling large medical expenses on the spot. When looking for a policy, check if the insurer has a strong network of hospitals in India. This will ensure you can get treatment without unnecessary delays or paperwork.
Coverage for Pre-Existing Conditions
As mentioned earlier, many policies either exclude pre-existing conditions or have long waiting periods before they start covering them. If you have an existing health condition like diabetes or hypertension, make sure the policy includes coverage for it. Some plans reduce the waiting period if you pay an extra premium, so always ask about that option. Choosing a policy that covers ongoing treatments can save a lot of money in the long run.
Diabetes Insipidus
A critical illness rider adds extra protection to your health insurance by covering severe health conditions like cancer, stroke, or kidney failure. If you’re diagnosed with a critical illness, this rider provides a lump sum payout that can help cover medical bills, loss of income, or long-term treatments. This is especially useful if you work abroad and don’t have access to government health benefits.
How to Purchase Health Insurance as an NRI?
If you're an NRI looking to buy health insurance in India, the process is straightforward. Here’s how you can do it:
Disclaimer
