Health insurance premiums in Delhi, India's capital city could rise as health insurers consider factoring the impact of the air pollution when pricing the covers.
To implement such a city specific change, insurers, however, will first have to submit to the Insurance Regulatory and Development Authority of India (IRDAI) evidence to the effect that there is a direct correlation between air pollution and increased health insurance claims in the national capital.
A report by Reuters citing industry executives said the health insurers are mulling a hike of 10% to 15% in the health insurance premiums in the capital city. The report also quotes insurance executives saying there has been a surge in pollution-related claims in 2024.
If the reported proposal is accepted by the regulator this would be the first case in the country when the air pollution levels would be impacting health insurance premium. This could then serve as a precedence for similar hikes in other cities that also grapple with rising air pollution.
According to media reports Delhi witnessed record-breaking air pollution in 2024, which led to a sharp rise in hospital admissions for respiratory and cardiovascular conditions, including asthma and chronic obstructive pulmonary diseases. The second half of 2024 saw a notable increase in respiratory-related hospitalisations, rising to nearly 18% from just 5-6% in the first half of the year.
A joint report by the Boston Consulting Group and Indian healthcare administrator Medi Assist highlighted that health insurance claims linked to respiratory illnesses in Delhi rose by 8.3% from the financial year 2023 to 2025. Delhi also recorded the highest increase in healthcare costs across India during this period. The report also records that respiratory disorders have shown a year-on-year increase of 10-12%.