Can NRIs Buy Health Insurance in India? Everything You Need to Know
Neha Navaneeth
Marketing and Content Associate
Sep 15, 2025
Are you anxious that your employer-sponsored health insurance abroad may not cover the costs of treatment if you fall ill while travelling to India? Besides, treatment costs in countries like the UK, USA, Singapore or UAE are exorbitantly expensive.
This article discusses opportunities and benefits for NRIs willing to buy health insurance in India.
Can NRIs buy health insurance in India?
Yes. Non-resident Indians living abroad can purchase health insurance coverage in their own name, or with their families (family floater) in India.
Indian medical infrastructure is well-regulated and on par with global standards. Insurance premiums are significantly cheaper compared to those in the USA, UK, Singapore, or other Western countries, without any compromise on the quality of services. Thousands of international patients travel to India for treatments every year.
Until recently NRIs who paid premiums from NRE accounts could apply for a GST refund in specific cases. However, the GST Council has set GST on many individual health and life insurance premiums to 0% from 22 September 2025, so the practical relevance of GST refunds will change - and may not apply to policies or renewal dues falling before that date. Always confirm the insurer’s current policy and tax rules before purchase.
How is it beneficial for NRIs?
Purchasing health insurance in India can be highly beneficial for NRIs.
Cost advantage - Health insurance policies in India are competitively priced. Premiums for private insurance are significantly affordable compared to the USA or Europe.
Medical emergency in India - Health insurance in India provides a safety net to NRIs against emergency medical expenses while they are travelling to India.
Dynamic work status - Employer-sponsored health coverage is linked to work status. The quality of coverage may also vary from one country to another. For global professionals, having personal health insurance coverage in India can offer a safety net against financial medical emergencies.
Costly treatments in foreign countries - Employer plans abroad sometimes exclude or limit OPD and pre-existing conditions; whether an Indian policy covers treatment abroad depends entirely on the policy’s geographic cover - most Indian retail health plans cover treatment in India unless an international cover is explicitly included.
Tax benefits - NRIs who are taxable in India can claim deductions under Section 80D for eligible health insurance premiums (limits apply by age). GST refunds were available earlier in certain cases if premiums were paid from an NRE account, but the 0% GST change (effective 22 Sep 2025) and insurer-specific rules mean GST refunds are no longer a universal benefit
Eligibility for NRIs to purchase health insurance in India
NRI must comply with the following eligibility criteria when purchasing health insurance in India and when claiming GST refunds.
Citizenship - Most insurers allow NRIs to buy health cover; some insurers also permit OCIs/PIOs. Exact eligibility (and whether the proposer must be an Indian-citizen) depends on the insurer’s underwriting rules.
Physical presence - Some insurance companies allow NRIs to purchase health insurance online. However, it is essential to be present in India for pre-policy medical checkups.
Address - NRI purchasing policy must have an Indian address. It may or may not be in the proposer’s name.
Payment - Historically, many insurers required premiums to be paid from an NRE account for GST-refund routes. However, the GST Council has reduced GST on many individual health/life premiums to 0% from 22 Sep 2025; always confirm the insurer’s current instructions if you are seeking any transitional refund for earlier premiums.
Documents required to be submitted
Usually, the following set of documents is necessary for NRIs to submit while purchasing health insurance in India.
Valid Indian passport
PAN and identity proof (typically passport) and overseas address proof
Indian address proof
Visa of the foreign country
Residential address proof of the foreign country (for GST refund)
The latest 6-month account statement of the NRE account. For a GST refund, payments must come from an NRE account.
Medical reports (if a pre-policy medical checkup is necessary)
FEMA regulations regarding NRI buying health insurance in India
The FEMA or Foreign Exchange Management Act governs all types of foreign exchange transactions in India. NRI health insurance policies involve transactions in foreign exchange during ‘purchase’ and ‘claim settlement’. So, it is essential to understand FEMA’s implications for NRIs purchasing health insurance coverage in India.
During premium payment - The payment has to come from NRI purchasers’ NRE or NRO bank accounts. To claim a GST refund, the payment must be made from NRE accounts.
Claim settlement - FEMA permits NRIs to repatriate claim proceeds abroad, but the amount that can be transferred depends on how the premium was paid (e.g., through NRE account in foreign currency). Insurers typically allow credit to an NRE, RFC, or specified foreign bank account
How does premium payment work?
NRIs can make premium payments for their health insurance purchase in India through multiple ways as long as it is compliant with FEMA regulations.
Direct bank transfer or cheque from a valid NRE or NRO bank account in India.
Payment can be made using UPI linked to an NRE/NRO account.
NRIs can also pay the premium through SWIFT transfer from their foreign bank accounts.
Post September 22, 2025, no GST is charged on individual health insurance premiums, simplifying cost and compliance aspects for NRIs. Although, transition rules and insurer accounting (nil-rated vs exempt) may affect how earlier payments are handled — confirm with your insurer or tax adviser.
Key challenges of purchasing health insurance in India for NRIs
Physical presence in India - Many insurance companies in India require pre-policy medical checkups for coverage to people in their 50s and beyond.
Geographic restrictions - Indian health insurance coverage is available for treatments performed in India. Medical emergencies that have occurred abroad may not be covered in India or can be conditional to co-pays.
Coverage limitations - Indian health insurance policies often come with strict sub-limits on expenses, like ICU charges, hospital room rent, etc.
Frequently Asked Questions (FAQs)
Can I buy health insurance in India for my parents who live there while I stay abroad?
Yes, NRIs can purchase individual or family floater health insurance policies for parents residing in India. Many insurers offer senior citizen health plans designed to cover emergency and planned medical expenses for elderly parents.Will my Indian health insurance cover medical treatment outside India?
Most Indian health insurance policies for NRIs cover treatment only within India. Some insurers provide limited international coverage or emergency benefits abroad, but broad overseas coverage typically requires specific global or expatriate health insurance plans.
