Insurers mull premium hike amid rising air pollution

Health insurers are considering a premium hike as claims linked to rising air pollution across the country have increased significantly.

- AATHIRA VARIER

The cost of treating pollution-related illnesses has also risen, adding further pressure on the insurers. Consequently, the firms are evaluating location and season-based risk differentials and corresponding premium adjustments.

According to Policybazaar data, the pollution-linked claims increased 14 per cent in 2025. The financial toll of pollution-related illnesses is also steadily increasing. From financial year 2022-23 (FY23) to FY24, treatment cost for respiratory illnesses rose 11 per cent and cardiac complications grew 6 per cent reflecting longer hospital stays and more intensive interventions, such as oxygen therapy and nebulisation.

Varsha Gujarathi, chief customer officer, Universal Sompo General Insurance said: “The average claim size of such claims has been between %60,000 - 80,000 depending on the geography, hospital used, and condition of the patient, with costs going upwards of %200,000 in severely compromised cases requiring ICU admissions.”