In India, the liberalization of the country’s economy has made it a great place from an investment perspective. It is also a fact that the inflow of foreign resources is not limited to investment only. Huge numbers of foreigners start sifting to India for several reasons and employment is one of them.
Hence, for employment purpose, they have to stay here for a long time that makes a place for a very big question that is -Do foreigners invest in a health insurance or life insurance policy in India. They might be holding in their country but did they bought the same in India as well?
A foreigner can buy a health insurance policy
In India, a foreigner can also buy a health insurance policy without any restrictions. Foreigners can invest in any form of the health insurance policy but not life insurance. The reason is that life insurance companies are offering customized insurance product for foreigners to cater to different needs.
Apart from the basic norms, a foreigner who stays in India and wants to invest in a health insurance plans would have to go through the specific eligibility norms associated with health insurance policy before finalizing the purchase. What are the norms that a person have to be fulfilled to become eligible to invest in a health insurance cover in India.
Valid Visa & Permit to Enter and Stay in India
To stay in India and for employment, a foreign must have a valid work permit. If a foreigner is here to learn about the tradition, culture, and heritage of India then he/she must have a valid tourist visa. Completion of visa and associated formalities is important to have an investment in any insurance policy in India.
It is also important to understand that by investing in a health plan in India, foreigners will be liable to get the cover within the country only. He/she can not opt it for the treatment in the home country. A travel insurance policy may work during the trips to home country but the mediclaim will take place in India only
We all are aware of the fact that in India by investing in a medical insurance plan, the insured become liable to avail tax benefits under Section 80D. Well, the great news is that the foreigners are also liable to avail tax benefits. Income that you earned in India is taxable irrespective of whether the person is an Indian citizen or not. The foreigner can also think of Double Taxation Avoidance Agreements to enjoy advantages of this deduction to reduce the tax liability.
Health insurance carries a 30 day Waiting Period
Health insurance carries a 30 day Waiting Period. Under the same period, the claims can not be filed insurance in the insurance policy. It is done to make sure that people do not invest in health insurance plans on getting diagnosed with any medical issue to transfer the cost of the insurance company. This waiting period applies to the foreigners as well.