Last month, a member in our BacktoIndia WhatsApp group asked a question that stopped me mid-scroll.
“I gave up my Indian passport five years ago. I have an OCI card. Does that mean I can’t get health insurance in India anymore?”
Thirty-seven people replied within the hour. And almost half of them had wrong information.
This is one of the most misunderstood topics in the OCI world. I’ve seen the confusion play out in our community calls, in emails to me, and even in conversations with insurance agents who themselves don’t fully understand OCI rights.
So here’s the truth. Straight up.
Yes. OCI cardholders can absolutely buy health insurance in India.
No grey area. No “maybe.” No “it depends.” Indian insurance companies are allowed to sell health insurance policies to OCI holders. IRDAI (Insurance Regulatory and Development Authority of India) does not prohibit it. And many insurers actively offer plans tailored to NRIs and OCIs.
But (and this is a big but), there are things you need to know before you go policy-shopping. Things that nobody tells you. Things that can save you lakhs. Or cost you lakhs if you get them wrong.
I’ve spent weeks researching this, talking to insurance advisors, reading IRDAI circulars, and collecting real experiences from our community. This is everything you need to know.
What OCI Actually Means for Insurance Purposes
Before we talk policies, let’s quickly clear up what an OCI card does and doesn’t do.
An Overseas Citizen of India is not an Indian citizen. You hold a foreign passport. You are a foreign national of Indian origin.
But the OCI card gives you certain rights that are almost on par with an Indian citizen. You can live in India indefinitely.
You can work here. You can buy property (residential and commercial, not agricultural). You can open bank accounts. And yes, you can buy insurance.
For insurance purposes, OCI cardholders are treated similarly to NRIs. Most Indian insurers classify you under their “NRI/OCI/PIO” category. The application process is slightly different from a resident Indian, but the core product you get is the same.
Here’s what the government has said clearly. OCI cardholders enjoy parity with NRIs in financial, economic, and educational fields. That includes insurance.
Why Your US (or UK/UAE) Health Insurance Won’t Work in India
This is where a lot of OCIs make a costly mistake.
“I have Blue Cross Blue Shield. I’m covered.”
No. You are not. Not in India.
Most international health insurance plans do not cover medical expenses incurred in India. Even if they do, the coverage is extremely limited.
You might get emergency coverage for a few days, but try getting a planned knee replacement or treating a chronic condition. Forget it.
And travel insurance? That’s even worse. Travel insurance covers basic emergencies during short trips.
It won’t touch your diabetes management. It won’t cover your wife’s thyroid medication. It won’t pay for your father-in-law’s heart surgery if he’s on your plan.
When I moved back in 2017, this was one of the first things I sorted out. I got health insurance in India within the first month. And I’m glad I did. Because within the first year, we had two hospital visits that would have cost us over Rs 3 lakhs out of pocket.
If you are visiting India frequently, or planning to move back, or even just want to cover your parents – you need an India-based health insurance policy. Period.
The Big Benefits of Buying Health Insurance in India as an OCI
Let me lay this out clearly.
It’s cheaper than abroad.
Healthcare costs in India are significantly lower than the US, UK, or UAE. That means insurance premiums are lower too. A comprehensive family floater plan that costs Rs 25,000 to Rs 40,000 per year in India would cost you several thousand dollars for similar coverage in the US.
Zero GST now.
This is huge news. Since September 22, 2025, all individual health insurance policies in India are exempt from GST. Previously, you paid 18% GST on top of your premium. That’s gone. So if your premium is Rs 30,000, you pay Rs 30,000. Not Rs 35,400. This applies to new purchases and renewals.
Tax benefits under Section 80D.
If you have taxable income in India, you can claim a deduction on health insurance premiums. Up to Rs 25,000 for yourself and family. Up to Rs 50,000 if you are a senior citizen or are covering senior citizen parents. That’s real money saved when you file your ITR.
Cashless treatment.
Indian health insurance plans come with cashless treatment at network hospitals. Walk in, show your card, get treated. The insurer pays the hospital directly. No filling claim forms from across the ocean.
What You Need to Know Before Buying
Here’s where the community experience really helps. These are the things our members wish someone had told them before they bought their first policy.
1. Waiting Periods Are Real
Every health insurance policy in India comes with waiting periods. This is non-negotiable.
| Type of Waiting Period | Duration | What It Means |
|---|---|---|
| Initial waiting period | 30 days | No claims at all for the first 30 days (except accidents) |
| Pre-existing disease waiting period | Up to 36 months (3 years) | Conditions like diabetes, BP, thyroid won’t be covered until this period passes |
| Specific disease waiting period | Up to 36 months (3 years) | Procedures like joint replacement, hernia, cataracts have separate waiting periods |
The pre-existing disease waiting period used to be 4 years. IRDAI reduced it to a maximum of 36 months in 2024. That’s a big win.
Pro tip from our community: If you’re planning to move back to India in the next 2 to 3 years, buy your health insurance now. By the time you actually land and need it, the waiting periods will be over. Several members in our group did exactly this and it saved them from serious financial trouble.
2. Coverage Is Mostly India-Only
This is the part that trips up a lot of OCIs.
Most Indian health insurance plans only cover hospitalization within India. If you get sick while you’re back in the US or UK, your Indian policy won’t help.
A few plans offer worldwide coverage, but it’s usually limited to critical illnesses like cancer or organ transplants. And the premiums for global coverage are significantly higher.
So think of your Indian health insurance as your India-specific safety net. Keep your international coverage for when you’re abroad.
3. Documents You’ll Need
Here’s the paperwork. Keep these ready before you start the application.
| Document | Why It’s Needed | Notes |
|---|---|---|
| Valid foreign passport | Identity verification | Must have at least 6 months validity |
| OCI card | Proves your OCI status | Keep a scanned copy handy |
| PAN card (or Form 60) | KYC compliance and tax benefits | Apply for a PAN card if you don’t have one |
| Address proof in India | For policy issuance | Utility bill, Aadhaar, or rental agreement |
| Passport-size photographs | Application form | Digital copies work for online applications |
| Medical history declaration | Underwriting | Be completely honest here |
Critical warning: Never hide a pre-existing condition. I’ve seen this go wrong so many times in our community. People think they can skip mentioning their diabetes or hypertension. Then when they file a claim, the insurer rejects it. And they lose everything. Full disclosure is not optional. It’s the only way to protect yourself.
4. You Can Buy Online From Abroad
You don’t need to be physically present in India to buy health insurance. Most insurers now support digital KYC. You can complete the entire process online. Upload your documents, do a video verification if needed, pay through your NRE or NRO account, and you’re done.
Some insurers may need you to do a tele-medical check-up. This is done over video. No need to fly to India just to buy a policy.
Comparing Health Insurance Options for OCIs
Here’s a comparison of how different types of health insurance stack up for OCI holders.
| Feature | Indian Health Insurance | International Plan | Travel Insurance |
|---|---|---|---|
| Covers hospitalization in India | Yes (comprehensive) | Limited or none | Emergency only |
| Annual premium (family of 4) | Rs 25,000 to Rs 60,000 | $3,000 to $10,000+ | $200 to $500 per trip |
| Pre-existing conditions | Covered after waiting period | Varies widely | Usually not covered |
| Cashless at Indian hospitals | Yes, wide network | No | Rarely |
| Tax benefit in India (80D) | Yes | No | No |
| GST on premium | 0% (since Sept 2025) | Not applicable | Not applicable |
| Coverage outside India | No (most plans) | Yes | Limited |
The math is clear. If you plan to spend any meaningful time in India, or if you want to cover family members living in India, an Indian health insurance policy is the smart choice.
What IRDAI’s 2024-2025 Reforms Mean for OCIs
IRDAI has made some significant changes recently. These reforms directly benefit OCI holders buying health insurance in India.
No age limit for buying health insurance.
Earlier, most policies had an upper entry age of 65. Now, insurers cannot refuse to sell you a policy based on your age. Even if you’re 70 and want a new policy, they must offer you at least one option.
Mandatory coverage for severe conditions.
Insurers can no longer refuse coverage to people with conditions like heart disease, cancer, renal failure, or AIDS. This is a massive change. Earlier, getting coverage with a serious condition was nearly impossible.
Faster claim approvals.
Cashless claim authorization must now happen within 1 hour. Hospital discharge approval must come within 3 hours. No more waiting for days while the insurance company takes its sweet time.
AYUSH coverage without sub-limits.
If you prefer Ayurveda, Yoga, Naturopathy, Unani, Siddha, or Homeopathy, these treatments are now covered up to the full sum insured. No more partial claims.
Reduced moratorium period. The moratorium period has been reduced to 5 years from 8 years. After this period, the insurer cannot reject claims based on non-disclosure (unless it’s proven to be fraud).
These reforms make Indian health insurance more accessible, more transparent, and more valuable for OCIs than it has ever been.
Common Mistakes OCIs Make with Health Insurance
I’m sharing these because I’ve seen every single one of these happen in our community.
Mistake 1: Buying the cheapest plan.
A Rs 10,000 premium plan might sound great until you realize it has a sum insured of only Rs 3 lakhs. One surgery and you’ve blown through the entire coverage. For a family, aim for at least Rs 10 to 15 lakhs sum insured.
Mistake 2: Not checking the hospital network.
Your policy might cover Rs 20 lakhs, but if the hospitals in your city aren’t in the insurer’s network, you’ll end up paying out of pocket and filing reimbursement claims. Check the network hospitals in your specific city before buying.
Mistake 3: Thinking OCI means you need a “special” plan.
You don’t. Most standard individual and family floater plans from major insurers are available to OCI holders. You fill in a slightly different form and provide your OCI documents. The product itself is the same.
Mistake 4: Waiting until you’re back in India.
By then, you’ve already lost 2 to 3 years of waiting period. Buy now. Start the clock now. Your future self will thank you.
Mistake 5: Not covering parents separately.
If your parents are in India and you’re an OCI, get them their own health insurance policy. Don’t assume your family floater covers everyone. Senior citizen plans have higher sum insured limits and are specifically designed for older adults.
For OCIs Covering Parents in India
This deserves its own section because it comes up so often.
Many OCIs want to buy health insurance for their aging parents back in India. This is possible. And it’s one of the smartest things you can do.
Here’s what to keep in mind.
Your parents don’t need to be OCI holders. They can be regular Indian residents. You, as the OCI, can pay the premium for their policy. If your parents are over 60, look at senior citizen-specific plans which are designed for higher medical needs.
The premium will be higher for older parents, especially if they have pre-existing conditions. But compared to paying medical bills out of pocket, it’s still worth it. One cardiac event in a good Indian hospital can easily cost Rs 5 to 10 lakhs. A health insurance policy makes that manageable.
If your parents already have a policy, check if it’s adequate. Many older policies have low sum insured amounts. A super top-up plan can fill the gap without breaking the bank.
The Smart OCI Health Insurance Strategy
Based on everything I’ve learned from our community and from experts, here’s what I recommend.
Step 1: Buy an Indian health insurance policy as early as possible. Don’t wait for your move back. Every day you wait is a day added to your waiting period clock.
Step 2: Choose a reputable insurer with a wide hospital network in the cities where you (or your family) are likely to be. Check the cashless hospital list for your specific city.
Step 3: Start with a comprehensive family floater plan. Sum insured of at least Rs 10 lakhs for a young family, Rs 15 to 20 lakhs if you have older members.
Step 4: Consider a separate senior citizen plan for parents. Don’t club them into your family floater. They need different coverage.
Step 5: Pay premiums from your NRE or NRO account for easy tracking. Keep premium payment receipts for tax filing.
Step 6: Review your policy annually. Insurance needs change. Family size changes. Health conditions change. Don’t set it and forget it.
OCI Health Insurance – Quick FAQ
Can OCIs buy health insurance in India?
Yes. OCI cardholders can purchase individual, family floater, and senior citizen health insurance plans from Indian insurers. There are no IRDAI restrictions on this.
Is there any difference between NRI and OCI health insurance?
For most practical purposes, no. Insurers treat NRIs and OCIs under the same category. The application process and documentation may differ slightly from a resident Indian, but the policy benefits are the same.
Can I buy health insurance in India if I have a pre-existing condition?
Yes. IRDAI has mandated that insurers cannot refuse coverage even for severe pre-existing conditions. However, there will be a waiting period of up to 36 months before those conditions are covered. Premiums may also be higher.
Do I need to be in India to buy the policy?
No. You can buy online from anywhere in the world. Digital KYC and video-based medical examinations make this possible without traveling to India.
Can I claim tax benefits on health insurance as an OCI?
Yes, if you have taxable income in India. You can claim deductions under Section 80D of the Income Tax Act. Up to Rs 25,000 for self and family. Up to Rs 50,000 for senior citizens.
Is GST charged on health insurance premiums?
No. Since September 22, 2025, all individual health insurance policies in India are exempt from GST. This applies to both new purchases and renewals.
What about health insurance for my US-born kids who have OCI cards?
Your children can be included in your family floater plan. If they have OCI cards, they are eligible. Many of our community members have their US-born children on Indian family floater plans.
Can I port my policy to another insurer?
Yes. IRDAI allows portability. You can switch insurers at renewal time and carry forward your waiting period credits. Start the process at least 45 days before your policy expires.
What if I become an Indian resident again after being OCI?
Your policy continues without interruption. You’ll just need to update your KYC documents to reflect your resident status. This often happens when people change their residential status after moving back.
What Our Community Says
I asked in our BacktoIndia WhatsApp group about their experiences with OCI health insurance. Here’s what came back.
One member from California shared that he bought a Star Health family floater two years before moving back. By the time he landed in Bangalore, his pre-existing condition (Type 2 diabetes) was already covered. He called it “the best Rs 35,000 I ever spent.”
A couple from New Jersey had a different experience. They waited until they moved to Hyderabad and then tried to buy insurance. The husband needed a knee replacement within 6 months. The specific disease waiting period meant they had to pay out of pocket. Over Rs 4.5 lakhs.
The pattern is consistent. People who plan ahead win. People who wing it pay the price.
Final Thoughts
Health insurance might not be the most exciting topic. But when you’re sitting in a hospital lobby at 2 AM with a family member being wheeled into the ER, it becomes the most important decision you ever made.
As an OCI, you have every right to buy health insurance in India. The process is straightforward. The costs are reasonable. And with the recent IRDAI reforms and GST exemption, it has never been more affordable.
Don’t overthink this. Don’t wait for the “perfect time.” The perfect time was yesterday. The second best time is today.
Get covered. Protect your family. And then go back to worrying about the things that actually deserve your worry – like which city to settle in or whether your kids will adjust to Indian schools.
If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.
Disclaimer: This article is for informational purposes only. I am not a licensed insurance advisor. Always compare plans, read policy documents carefully, and consult with a qualified insurance professional before making a purchase decision. Insurance regulations and products change frequently. Verify current details directly with the insurer or IRDAI.
Sources:
- IRDAI (Insurance Regulatory and Development Authority of India) – irdai.gov.in
- Department of Financial Services, Ministry of Finance, Government of India – GST Exemption Notification – financialservices.gov.in
- IRDAI Insurance Products Regulations, 2024
- Income Tax Act, 1961 – Section 80D
- OCI Card Services – Government of India – ociservices.gov.in
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