Health insurance premiums in New Delhi are projected to rise by 10% to 15% in 2024 as insurers react to a notable increase in medical claims associated with pollution, as reported by industry leaders. Should regulators approve this initiative, it would represent a significant shift in India’s health insurance landscape, as air pollution would be factored into premium calculations for the first time, according to Reuters.Insurers are experiencing heightened challenges due to a rise in hospital admissions related to respiratory and cardiovascular issues. Star Health, the largest standalone health insurer in the country, observed that respiratory-related hospitalizations in Delhi surged to 17%-18% in the latter half of 2024, a stark increase from the 5%-6% recorded in the first half. A collaborative report from the Boston Consulting Group and Medi Assist indicated that respiratory claims in Delhi rose by 8.3% from fiscal years 2023 to 2025, marking the highest increase in the nation. Insurance providers such as Star Health and ICICI Lombard have indicated that if the trend of poor air quality continues, it may soon impact premium rates. Additionally, Bajaj Allianz General Insurance has suggested the inclusion of specific provisions for illnesses related to pollution. While insurers currently base premium adjustments on factors like hospitalization expenses and demographic data, integrating pollution as a determinant would necessitate comprehensive research to establish a clear correlation between air quality and the uptick in claims.
New Delhi frequently grapples with hazardous air quality stemming from vehicle emissions, construction dust, and smoke from crop burning. In November 2024, the city experienced its most severe pollution levels, with the air quality index (AQI) reaching a staggering 491 out of 500, making it the most polluted city globally, as reported by Reuters. Mumbai and Kolkata also ranked among the top ten most polluted cities worldwide.If the proposed premium increases are enacted, they could disproportionately impact vulnerable populations, including the elderly, children, outdoor workers, and those with preexisting health conditions. Many residents already struggle with the high costs of health insurance.
