Indian insurance companies are considering a significant hike in health premiums due to record-breaking air pollution in New Delhi last year. According to reports, the insurers are seeking a 10-15% increase in premiums, which would be the first time air pollution is used as a direct factor in calculating health insurance premiums in India. The move is attributed to the severe air pollution in Delhi, which led to a significant number of residents seeking treatment for asthma, chronic obstructive pulmonary disease (COPD), and cardiovascular conditions.
Insurers argue that poor air quality is leading to an increase in claims and hospitalizations, particularly among patients with respiratory ailments. According to a joint report by Boston Consulting Group and Medi Assist, respiratory claims increased by 8.3% in Delhi between fiscal year 2023 and fiscal year 2025, resulting in a significant rise in healthcare costs.
To support their claim, insurers must provide evidence of the impact of air pollution on health insurance claims to the insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI). Once approved, the move could also be used to justify price hikes in other cities with poor air quality.
Senior citizens, children, outdoor professionals, and those with pre-existing respiratory conditions would likely face the highest premiums under this plan. However, it remains unclear how long it would take to conduct the necessary studies and obtain the required approvals from IRDAI. The plan, if approved, could make health insurance unaffordable for many who need it most.
Insurers such as Star Health, ICICI Lombard, and Bajaj Allianz General Insurance are backing the proposal, while others, including Aditya Birla Health Insurance, Tata AIG, New India Assurance, and Go Digit, have not commented on the matter. The regulatory nod is still pending, and the impact on health insurance premiums remains uncertain.