magsi23, I do not think that it is quite right. A further look in the website further clarifies that-
People who are ordinarily resident in the UK are entitled to a UK-issued EHIC. It is not valid for people who are going to live abroad. There are some restrictions, depending on your nationality:
UK and other EU nationals, stateless persons and refugees are covered in all EEA countries and Switzerland. However, if you are a national of Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia, your EHIC is not valid in Switzerland.
nationals of Iceland, Liechtenstein and Norway are covered in all EEA countries but not in Switzerland.
people who do not have UK, EU, EEA or Swiss nationality are covered in all EU countries but not in Denmark, Norway, Liechtenstein or Switzerland. In Iceland, these people are covered for emergency treatment only.
Swiss nationals are covered in all EU countries but not in Liechtenstein or Norway. In Iceland they are covered for emergency treatment only.
dependants of EEA nationals who are ordinarily resident in the UK are covered in all EEA countries and Switzerland, irrespective of their own nationality.
The 'Other circumstances affecting eligibility' section contains further information about eligibility for other groups - including people who are planning to live, work or study in an EEA country or Switzerland.
So, anurikavidya, as long as you are resident here you will be able to apply for one.
