Is Health Insurance in India a Good Choice for NRIs?

For NRIs, health insurance is an affordable option and particularly useful for protecting family members staying in India, and while it is a great choice, global coverage, claim processing, and waiting periods should be taken into consideration by NRIs to ensure their specific needs are covered.

Ways for how NRIs can be cautious of policy terms before investing

India's healthcare sector is on a constant rise which is an excellent choice for both the people living in and those people who come from abroad to have health insurance in their countries of residence. The decision to invest in health insurance in India as an NRI is, however, a multifaceted and would need careful analysis of many important and relevant factors: types of available health insurance plans, regulatory policies and practical benefits for NRIs and their families. In this post, we will talk about both the pros, cons, and compulsory things to take into account regarding health insurance and family health insurance options in India for NRIs.

Health Insurance in India

In India, there are different health insurance policies available. The key offerings are as follows:

1. Individual Health Insurance: It covers hospitalisation and medical expenses for 1 person. This policy normally includes hospitalisation for illness, surgery and other emergency treatments.
2. Family Health Insurance: The family is covered under one policy. Spouses, children, and sometimes even dependent parents are covered in one package in its offer, which is a whole package for protection.
3. Critical Illness Insurance: Specific critical illness cover (eg cancer, stroke or heart disease), pays a lump sum on diagnosis to cover the costs of treatment.

Family health insurance is a good thing for NRIs since they can at least protect their dependents in India when they are abroad. So, let's begin with whether there is any benefit to investing in such policies for NRIs.

Why NRIs Consider Health Insurance in India?

Several factors make health insurance in India attractive to NRIs:

1. Affordability: Costs of medical services with private healthcare are better than what is available in many developed nations in India itself. Couple that with health insurance premiums in India remaining lower than the average cost of international health insurance plans. 
2. Currency Benefits: Also, paying for an Indian health insurance plan becomes reasonably inexpensive for NRIs if they are earning in foreign currency, and that means more value in terms (in terms of coverage and benefits) for them.
3. Coverage for Family in India: For an NRI, especially for those with a family living in India, family health insurance, can provide an all-encompassing protection. 
4. Tax Benefits: In India health insurance comes with some tax advantages under Section 80D income tax act and NRIs can take the deductions of the premium they pay for, thereby reducing their tax in India.

Types of Health Insurance Plans Offered to NRIs in India.

There are lots of plans that an NRI can take in the field of health insurance in India, and many of the insurers provide particular policies for NRIs. Some of the popular types include:

1. Individual Health Insurance: It provides single-person coverage for NRIs visiting India occasionally and needing personal coverage during their stay.
2. Family Health Insurance: This is for NRIs with family members residing in India who are covering multiple members in one plan.
3. Senior Citizen Health Insurance: Designed for elderly family members with specific benefits to coverage-related health concerns.
4. Comprehensive Plans with Global Coverage: NRIs can download a plan from some insurers that has global coverage and permits NRIs to file claims on any medical expenses incurred outside of India.

Advantages of Health Insurance in India for NRIs

There are multiple advantages of having health insurance in India but it is meant for the NRIs as well as for their dependents.

1. Lower Premium Costs: In India health insurance premiums are extremely lower than in developed countries. It makes it a good choice for NRIs who want to insure their life or a family member who is currently in India.
2. Wide Network of Cashless Hospitals: Cashless treatments come as an option within most health insurance policies in India. 
3. No Claim Bonus (NCB): Most insurers, however, pay a no-claim bonus if a claim is not filed during a policy year, helping to increase the sum insured without additional charge in such cases. The policy value increases over time, improving financial security. 
4. Easy Access for Emergency Situations: Keeping local health insurance when NRIs are visiting India helps you avail healthcare facilities on an immediate basis in the case of an emergency thereby eliminating hassles involved in international medical insurance.

Health Insurance Challenges for NRIs in India

While health insurance in India presents numerous benefits, there are a few limitations and challenges that NRIs should be mindful of:

1. Limited Global Coverage: Almost all health insurance plans in India do not cover the treatment outside India. Indian health insurance may be insufficient for NRI insurance seekers seeking comprehensive global coverage; they may have to look at international health plans.
2. Inconsistencies in Claim Processing: In some countries, claim processing can be very slow or very hard (paperwork). While many of the NRIs are used to streamlined healthcare processes in their home country, the ones experiencing the Indian system may feel that it's quite cumbersome.
3. Longer Waiting Periods: Indian health insurance policies often come with exclusions and waiting periods, especially for pre-existing conditions.

Key Considerations for NRIs Before Buying Health Insurance in India

When deciding to invest in health insurance in India, NRIs should take into account the following:

1. Assess Family's Health Needs: NRIs must determine the health requirements of their family in India. Families that need constant medical attention or may be at risk for health issues would benefit from a strong family health insurance plan.
2. Select a Reputed Insurer with a Good Claim Settlement Ratio: The NRIs should consider picking the provider with a higher claim settlement ratio by keeping the issues about prompt and fair claim settlement.
3. Consider Portability Options: If you take the NRI tag just temporary, then it's a good idea to think about health insurance policies having the portability feature. What this does is allow policyholders to move their insurance coverage over to other insurers, without having to forfeit their benefits accrued.
4. Evaluate Global Coverage: If you are an NRI who travels frequently or might need treatment abroad also get the policy evaluated to study whether the policy covers or not. However, some Indian insurers do cover some global places for NRIs and that should be the easier part.

Conclusion: Is NRIs Health Insurance in India Worth it?

Purchasing health insurance in India, especially family health insurance for NRIs is a good investment. The savings in running costs make it worthwhile, it provides local medical care for dependents and gives you that peace of mind. NRIs must also take into consideration the drawbacks of what insurance is currently available in India, including long claim processing time, restricted global coverage and waiting periods.

In the end, the decision will always be based on how the NRI is living life – and the NRI's unique situation, be it family, travel frequency to India, and positioning of local vs. international cover. 

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Note to the reader: This article is part of Hindustan Times's paid consumer connect initiative and is independently created by the brand. Hindustan Times assumes no editorial responsibility for the content, including its accuracy, completeness, or any errors or omissions. Readers are advised to verify all information independently.