Diya Upreti, Jadetimes Staff
Diya Upreti is a Jadetimes news reporter covering health news
Insurers Look at Health Premium Increases Because of Pollution
The capital city of India, New Delhi, is bracing for a possible rise in health insurance premiums as insurers react to increasing health hazards due to high levels of air pollution. Indian insurance firms are looking at a 10% to 15% increase in health insurance premiums, but this is only for the city's residents. This is after there was a high volume of claims of respiratory conditions caused by air pollution in 2024. If applied, this would be the first time in India where health insurance pricing is affected by air pollution directly.
The Growing Health Burden of Air Pollution
New Delhi has been grappling with worsening air quality for years, frequently being among the world's most polluted cities. In 2024, long-term exposure to poisonous air has resulted in a shocking increase in hospitalizations from respiratory diseases like asthma, chronic obstructive pulmonary disease (COPD), and bronchitis.
Poor air quality, experts say, is currently one of the major causes of non-communicable diseases like heart diseases, lung infections, and even neurological conditions. Children, the old, and people with pre-existing medical conditions are the most vulnerable, which results in higher insurance claims for hospitalization, medication, and long-term respiratory treatment.
Why Are Insurance Companies Considering a Premium Hike?
Health insurance premiums are set by insurance firms on the basis of certain factors, such as the incidence and severity of claims. The sudden increase in cases of pollution-linked diseases has resulted in increased claim payouts, which has prompted insurers to reconsider their models.
Some of the primary reasons for the suggested increase are:
Higher Claims – Hospital admissions due to pollution-related diseases have increased, putting pressure on insurance companies.
Increased Medical Expense – Novel treatments for cardiovascular and respiratory diseases are costly, raising the overall cost of healthcare.
Regulatory Sanction – In the event of approval of premium increase, it would establish a precedent for environmental risk-based pricing.
Effect on Policyholders
A 10% to 15% rise in health insurance premiums could make coverage less affordable for lower-income groups, who are already vulnerable to pollution-related illnesses. Families living in Delhi’s most polluted areas may struggle to bear the additional financial burden.
Experts caution that this action might further increase the disparity between those who can pay for good health care and those who can't. If pollution keeps rising, health insurance in Delhi may become considerably more expensive in the coming years.
Possible Solutions and Alternatives
Instead of raising premiums as such, some parties propose alternative solutions:
Incentivizing Preventive Healthcare – Insurance providers can offer discounts to policyholders who adopt preventive care, like the use of air purifiers or routine health check-ups.
Government Intervention – Governments might have to intervene to control prices and provide subsidies for marginalized sections.
Environmental Reforms – Long-term reforms should aim at preventing air pollution at the source, which could lower healthcare expenditure in the long run.
If approved, this insurance premium increase would be a watershed moment in how environmental risks are incorporated into health coverage. While insurers aim to ensure financial stability, the effect on affordability and access to healthcare cannot be overlooked. As pollution-related illnesses continue to grow, tackling the cause of air pollution is still the best means of safeguarding both public health and economic stability.
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