For any hard-working and financially prudent individual, Health Insurance is a critical product to include in their financial portfolio. If you are an NRI, buying Health Insurance in India becomes all the more important for you as it helps you safeguard your family back home or even yourself should you seek medical advice when visiting the home country. It is always advisable to buy an appropriate Health plan in India at an early age, because the more you wait the higher the risk of there being complications related to pre-existing diseases.
Siddharth Singhal, Business Head - Health Insurance, Policybazaar.com says: ”The taxation rules for NRIs give you an additional benefit upon buying an Indian Health Insurance plan. Since you already pay tax in your country of residence, you can get a GST refund on your Indian Health Insurance plan. All you need to keep in mind is that you fit into the eligibility criteria for your insurer and opt for a GST refund option while purchasing your policy. The eligibility criteria for GST refund on health insurance starts with the proposer. The proposer, in the context of health insurance, is the individual responsible for initiating and applying for the insurance policy on behalf of themselves or others. To qualify for GST refunds on health insurance, the proposer must be a Non-Resident Indian (NRI). While the proposer must be an NRI for eligibility, the criteria for insured members may differ among insurance providers. The specific requirements and eligibility of insured members may vary between insurers”.
The payment for health insurance premiums is required to be made annually for all providers. And, the payments must be made from an NRE (Non-Resident External) Account, ensuring that the funds used to pay premiums are sourced from external sources.
The next important step is to be mindful of the documents you will need to submit to qualify for a GST refund. The exact documentation requirements may vary between insurers. Typically, a standard requirement among insurers in the KYC (Know Your Customer) document. These documents ensure the legitimacy of the policyholder and are consistent across providers. Depending on the insurer you pick, you may also be required to submit a TRC (Tax Residency Certificate), an International Address Proof, Passport, PAN Card, and a recent photograph. For your international address proof, you can use your utility bill, driving license, a bank statement, or a government ID card / certificate. You must have been residing in the foreign country for more than 180 days in order for you to be eligible.