By Siddharth Singhal
Wealth creation, job progress, facing better opportunities – these are some of the common reasons why over 25 million people migrate abroad every year from India. When laying the foundations of their future, NRIs can not afford to exclude the most important component of financial security – health insurance. The sharp rise in medical emergencies as well as the cost of health care around the world at the same time could force families into immediate financial difficulties. Further implementation for these NRIs serves as an important safety net to protect their families in their home countries, especially elderly parents. Do not forget that if they need medical attention during their visit to India, it can be a financial issue to avoid health insurance.
While the insurance industry has made significant strides towards making health insurance more accessible and affordable for NRIs, the latest development of tax refunds is a welcome move toward affordability. Better. NRIs can now apply tax provisions to their advantage when obtaining Indian health insurance. Because NRIs already meet tax obligations in the country where they live, they qualify for an 18% GST refund when purchasing an Indian health insurance plan.
Who qualifies for it?
The GST rebate on health insurance begins with the applicant initiating and implementing this policy. So if you are applying for a policy for yourself or for your family living in India, you will be applying for a policy. To qualify for benefits, the applicant should be an NRI, while the insurer does not have to be an NRI, as the criteria vary from insurer to insurer.
Then, all payments made for the policy should originate from the NRE (non-residential) account. Also, the frequency of premium payments should be on an annual basis. With these simple criteria, an 18% GST compensation capability would be applicable and would directly translate into higher savings for policyholders, especially in the long run.
Prerequisites and documents
In addition to the payment section, you also need to follow the paperwork required to receive benefits. Although actual requirements may vary between insurers, the universal requirement is a KYC document (know your client). It validates the legitimacy of policy makers and is consistent between providers. If your insurance company provides a mandate, you may also be required to submit your PAN card, proof of international address, residency certificate, tax, passport and your recent photo. For proof of international address, you can use utility bills, bank statements, or government IDs or certificates.
You should have lived in a foreign country for more than 182 days to qualify for a refund. You will also need to create your NRE bank statement showing the premium payment. After verification, the policy document is issued and the GST repayment process is initiated. Refunds usually take 15 days to process after the policy is issued.
Why act now?
Recent years have seen a significant trend of NRIs returning to India for reasons such as job opportunities, family considerations, and a desire to reconnect with their roots. In fact, many reports point to NRIs planning to return to India to spend their retirement time, especially in countries such as the United Kingdom, Canada and Singapore. At an early age, health problems worsen, making it difficult to guarantee the best policy with affordable premiums. Purchasing timely health insurance ensures a safety net for life.
In summary, when seeking a GST refund on a health insurance policy, the applicant’s NRI status is a general requirement. However, the specific criteria for insurance members, documents and other details may vary among insurance providers. Understanding these criteria is important for those who want to receive GST on their health insurance premiums. Consulting with insurance providers and adhering to their specific requirements is essential to making the most of your investment.
Siddharth Singhal, Business Manager, Health Insurance, Policybazaar.com
(Disclaimer: The views expressed are those of the author and ETHealthworld is not required to subscribe to it. ETHealthwold.com will not be liable for any damages caused directly or indirectly to any individual or organization. .)
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Image Source : health.economictimes.indiatimes.com
