Clarity on the remote contract work taxations

A remote company (foreign company <> Indian contract worker) is providing a health benefit as reimbursement (USD X/month). To claim this reimbursement, invoice needs to be submitted. Its a take it or lose it kind of monthly benefit. Questions:

1. If the individual already has a health insurance paid yearly. How can they still claim this benefit. Taking endowment kind of a plan? Will that work? Are there any plans that can be categorized as Health Insurance but are more on the side of investment.
2. How can they make this reimbursement tax exempt?