An NRI, like a resident individual is entitled to a deduction upto Rs. 25,000 ( Rs. 50,000 for a senior citizen) in respect of medical insurance premia for health of the assessee or his spouse or dependent parents or dependent children from the A.Y. 2016-2017.
However, the deduction for medical treatment of handicapped dependent u/s 88DD or for terminal ailments u/s 80DDB or u/s 80U for blind persons, etc. is not allowed to NRIs as it is deductible for residents only.