Delhi Residents Face Insurance Premium Hike Due to Air Pollution

Indian insurers are considering raising health insurance premiums for New Delhi residents due to increased claims related to severe air pollution. This follows a significant rise in pollution-related health issues in 2024. The move would need regulatory approval and could influence policies in other cities.

Indian insurers may increase health insurance premiums for New Delhi residents by 10% to 15% following a surge in air pollution-related claims in 2024. This would be a first for India, using air pollution levels as a factor in premium calculation, pending regulatory approval.

This potential policy shift follows record-high pollution in New Delhi, which saw more residents requiring treatment for asthma, COPD, and cardiovascular issues. Respiratory-related hospitalizations nearly tripled in the latter half of 2024 compared to earlier in the year.

Industry experts reveal this move could set a precedent, with discussions underway to add clauses addressing pollution in insurance policies. The Insurance Regulatory and Development Authority of India is yet to comment on this proposal, which could render health insurance unaffordable for some residents.

(With inputs from agencies.)