Should NRIs get health insurance in India?

For Non-Resident Indians (NRIs), India remains a strong emotional and familial anchor. Many maintain close ties, make regular visits, or even plan to return post-retirement. But when it comes to healthcare, one critical question arises: Should NRIs invest in health insurance policies in India?

The answer increasingly leans towards yes, especially for those who travel frequently to India or have ageing parents here. Medical costs in private hospitals can be significant. While NRIs may have health coverage in their country of residence, it typically doesn't extend to treatment in India. A local health policy can provide financial protection against unforeseen hospitalisation during visits.

However, many NRI customers wish to purchase health insurance in India but hesitate due to the high premiums, especially since their chances of making a claim in India are relatively low. To address this, some insurers now offer special discounts for NRIs. One can avail up to a 40% discount on premiums (varies by insurer) at first purchase and each renewal, provided no claims are made. If a claim is raised, they must first pay the discounted portion of the premium for that year to access the claim benefits.

Siddharth Singhal, Head of Health Insurance, Policybazaar, said, "Health insurance decisions for NRIs come with a distinct set of considerations. While many seek coverage in India for themselves or their families, the perceived value often hinges on actual usage. The NRI discount is a smart, forward-looking solution—it rewards low-claim profiles with up to 40% off on premiums, making protection far more affordable in the long run. This approach not only makes financial sense but also keeps quality care within reach when it matters most."

Several Indian insurers currently offer attractive discounts for NRI health insurance buyers. HDFC Health leads with a 40% discount, followed by ICICI Health offering 25%. Star Health provides a 10% discount, though this is restricted to its Super Star plan.

How health insurance for NRIs work

Let us understand this with an example: A 45-year-old NRI and his 42-year-old wife, both residing in the UAE, purchase a health insurance policy in India with a base premium of ₹45,000/year. With a 40% NRI discount, they pay ₹27,000 annually. If no claims are made for 3 years, they continue paying ₹27,000 each year. However, if a claim of ₹5 lakhs is made in the third year, they must pay the pending ₹18,000 for that year before the claim is processed.

When considering health insurance in India, NRIs must meet specific eligibility criteria to avail themselves of policies designed for them. Firstly, the premium must be paid through an NRE (Non-Resident External) account and all individuals insured under the policy must hold NRI status. It’s important to note that global health plans do not qualify for these India-specific offerings. Additionally, any available discounts typically apply only to lump sum premium payments — not to monthly, quarterly, or half-yearly instalments.

To complete the policy application, NRIs are required to submit a set of documents. These include an NRI declaration form, a copy of their passport with visible entry and exit stamps, proof of residence both in India and abroad, and proof of employment.

NRIs must be mindful of certain limitations. Many policies may not cover treatment outside India. Additionally, the requirement to be in India for medical treatment and claim processing is a common clause. Choosing a reputed insurer with a broad hospital network and transparent claim processes is crucial.

For NRIs with elderly parents in India, purchasing a policy for them — or a family floater plan — offers peace of mind. Healthcare inflation is real, and out-of-pocket payments can disrupt long-term financial plans.

In conclusion, while the need for health insurance in India may depend on individual circumstances, NRIs with strong India ties should certainly consider it — not just as a precaution, but as a proactive step toward secure and hassle-free healthcare during their time in the country.