By Siddharth Singhal
Health insurance is an essential part of financial planning for everyone. Not only does it protect one from the overwhelming costs of medical care in this fast-paced and increasingly expensive world, but it also ensures access to necessary medical services in the time of need. In this globalized world, health insurance from India is important for Non-Resident Indians (NRIs) too who may otherwise deem it unnecessary given their residence abroad.
After all, NRIs often have close ties to India, their homeland, despite living abroad for long periods. In fact, for them, the importance of health insurance goes beyond just peace of mind. It is also a fundamental part of practical financial planning. It ensures that they are covered during their visits to India and protects them against potential high medical expenses. Here’s why NRIs must get health insurance from India, and also why they must go for comprehensive cover with Outpatient Department (OPD) coverage.
Most insurance plans cover the policyholder only in case of a hospitalization. However, many aspects of medical care may not need formal hospitalization. These may include consultations, diagnostic tests, minor surgeries and procedures, and medications, which may collectively also cost a significant sum. OPD coverage provides protection against these very expenses.
Apart from these, a visit to the dentist or ENT specialist can cost a significant sum abroad. Just a dental examination can cost around Rs 5,000 while a tooth extraction can cost somewhere around Rs 25,000 to Rs 30,000. Root canal treatment can cost anywhere between Rs 60,000 to Rs 80,000. A visit to an ENT Specialist is also very expensive and costs around Rs 15,000-Rs 25,000.
These prices are much lower in India. Even in Tier-I cities, these treatments can be availed at 20-30 per cent of the mentioned costs. So NRIs may be well advised to plan dental and ENT treatments during their visits to India. In a foreign country, it is estimated that a visit to the doctor can cost around Rs 10,000-Rs 20,000 in the US and Rs 15,000-Rs 25,000 in the UK. In India, it can cost anywhere around Rs 500 to 3,000 on average.
In Asian countries like Singapore, China, and Japan, medical treatment is considerably more expensive than in India. Routine diagnostic tests in these countries can also be significantly more expensive. In Singapore, these tests can cost approximately Rs 20,000 to Rs 60,000, in China around Rs 15,000 to Rs 50,000, and in Japan from Rs 30,000 to Rs 70,000. In contrast, in India, routine diagnostic tests are much more affordable, costing approximately Rs 1,500 to Rs 10,000. OPD coverage ensures that these expenses are covered, providing financial relief and encouraging timely medical interventions without hesitation.
Moreover, with a comprehensive health insurance plan with OPD coverage, one tends to continually monitor and manage their health through routine check-ups and follow-ups, resulting in better overall health and early diagnosis and treatment of ailments. This also helps when NRIs visit India and experience changes in climate and diet which may lead to health issues like stomach ailments, allergies, or infections. By opting for an insurance plan from India, NRIs can ensure that not only they are covered in their country of residence, but also in India during those visits.
Another factor is the comparatively higher cost of medical treatment in high-income countries. For instance, many NRIs from the US and several European countries often plan treatment for their ongoing health issues in India because of the affordability factor. While healthcare is cheaper in India, it still costs a significant sum of money. With an Indian insurance plan, they can ensure
that they don’t have to pay even what it costs in India. Moreover, health insurance premiums in India are lower compared to the US, UK, Singapore, and other high-income countries.
To top that off, NRIs also get a GST waiver if they buy insurance from India, resulting in further savings of 18 per cent in taxes. So it is also a better financial choice for NRIs to invest in Indian health insurance policies. With the Indian insurance industry evolving at a rapid pace, it now offers several innovative insurance plans that are tailored to meet the specific needs of the NRIs.
Having a health plan from India also comes in handy if an NRI plans to return to India for good. One, they can enjoy the benefits of health insurance at lower premiums. After all, they opted for it at a young age rather than after returning to India. Also, they would have already served the waiting period of their policy while they were abroad. So they would get complete coverage from day one on their return. It is fair to say that maintaining health insurance in India with OPD coverage is a strategic financial decision for NRIs.
(The author is the Head of Health Insurance at Policybazaar.com)
