UAE-residing NRIs are increasingly finding their way to Indian health insurance policies, not merely for cover but also for wise tax benefits under India’s Income Tax Act. By carefully purchasing policies on their own behalf or on behalf of their dependents in India, many NRIs can claim relief under Section 80D-even while being outside India.
This fiscal strategy has become popular in view of increasing healthcare expenses and changing awareness levels among NRIs. Policies that insure parents beyond the age of 60 can release up to ₹50,000 as a deduction, whereas self, spouse, or children’s coverage can fetch up to ₹25,000. Those who cover both segments can claim a total deduction of up to ₹75,000 per annum.
Nonetheless, tax consultants caution. To qualify, the premium for the insurance should be paid from Indian bank accounts or NRE/NRO accounts, and the insurer should be an Indian-registered one. The policyholder should also file Indian income tax returns for the benefits of the deductions—a requirement frequently forgotten by UAE-residing NRIs who themselves might not have much Indian-sourced income.
Experts recommend that UAE NRIs consider health insurance not only as a safety net but also as a two-pronged benefit instrument providing healthcare security and tax benefits. As India’s insurance industry continues to go digital and make cross-border access easier, these smart buys are likely to pick up even more momentum.
