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Indian Insurers Consider Health

Indian Insurers Consider Health Premium Hikes Due to Pollution

Indian insurers are discussing a 10% to 15% increase in health insurance premiums for New Delhi residents following a significant rise in pollution-related claims in 2024. This proposal, pending regulatory approval, would mark the first time air pollution directly influences health insurance pricing in India.

In 2024, the number of hospitalizations due to asthma, COPD, and cardiovascular conditions surged to 17%-18% in the second half of the year compared to 5%-6% earlier. Respiratory claims in Delhi also increased by 8.3% over the previous two years, as per a report by Boston Consulting Group and Medi Assist.

Star Health and ICICI Lombard suggest that pollution could soon become a permanent factor in premium pricing. Bajaj Allianz is also considering introducing specific clauses for pollution-related illnesses.

Delhi recorded a peak Air Quality Index (AQI) of 491 in November 2024, surpassing Lahore as the world’s most polluted city, with Mumbai and Kolkata also ranking among the top 10 cities with the worst air quality.

If approved, the premium hike could disproportionately affect vulnerable groups like senior citizens, children, and those with pre-existing conditions, making health insurance even less affordable. Currently, a $10,000 family health policy in Delhi costs between $100 to $400per year, which many residents already find expensive.