India Health Insurance Premiums May Rise Due To Pollution Claims
India-West News Desk
NEW DELHI- Health insurance premiums in New Delhi may increase by 10% to 15% as insurers respond to a significant rise in pollution-related medical claims in 2024, according to industry executives. If approved by regulators, this proposal would mark the first time air pollution is directly considered in health insurance pricing in India, Reuters reports.
Insurers are facing mounting pressure due to a surge in hospitalizations for respiratory and cardiovascular conditions. Star Health, the country’s largest standalone health insurer, noted that respiratory-related admissions in Delhi rose to 17%-18% in the latter half of 2024, compared to just 5%-6% in the first half. A joint report by the Boston Consulting Group and Medi Assist found that respiratory claims in Delhi increased by 8.3% between fiscal years 2023 and 2025, the highest rate in the country.
Insurance companies like Star Health and ICICI Lombard have suggested that pollution could soon influence premium pricing if poor air quality persists. Bajaj Allianz General Insurance has also proposed the introduction of specific clauses for pollution-related illnesses. While insurers currently adjust premiums based on factors such as hospitalization costs and demographics, incorporating pollution as a variable would require extensive studies to establish a direct link between air quality and rising claims.
New Delhi often faces hazardous air quality due to vehicle emissions, construction dust, and crop-burning smoke. In November 2024, the city recorded its worst pollution levels, with the air quality index (AQI) peaking at 491 out of 500, making it the world’s most polluted city, according to Reuters. Mumbai and Kolkata also ranked among the top 10 most polluted cities globally.
If implemented, the proposed premium hikes could disproportionately affect vulnerable groups, including seniors, children, outdoor workers, and individuals with preexisting conditions. Many residents already find health insurance expensive; in 2024, Delhi’s per capita income was $5,331, while family health coverage ranges between $100 and $400 annually.
