NEW DELHI, INDIA (Diya TV) — Health insurance premiums in New Delhi may rise by 10% to 15% as insurers respond to a significant increase in pollution-related medical claims in 2024, according to industry executives. If approved by regulators, this would mark the first instance of air pollution directly influencing health insurance pricing in India.
Insurers are under increasing pressure as there is an increase in hospitalizations from respiratory and cardiovascular diseases attributed to toxic air. Star Health, India’s biggest standalone health insurer, said admissions related to respiratory issues in Delhi increased to 17%-18% in the second half of 2024 from 5%-6% in the first half. A collaborative report by Medi Assist and the Boston Consulting Group established that Delhi had the highest rate of growth in respiratory claims at 8.3% between fiscal years 2023 and 2025.
Insurers such as Star Health and ICICI Lombard have indicated that if poor air quality continues, pollution may soon be a factor in premium rates. Bajaj Allianz General Insurance has also mooted the idea of including special clauses for pollution-related diseases. While insurers now factor in premiums based on hospitalization expenses and demographics, including pollution as a factor would need extensive research to create a direct correlation between air quality and increasing claims.
New Delhi regularly experiences toxic air quality caused by emissions from cars, dust from construction, and smoke from burning crops. In November 2024, the city hit its all-time worst pollution when the Air Quality Index (AQI) reached 491 out of 500, making it the world’s dirtiest city. Mumbai and Kolkata were also in the top 10 dirtiest cities in the world.
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.
