Bad air, bigger bills: Air pollution drives health insurance claims up fourfold in 3 years
NEW DELHI: Pollution is not just leaving people gasping for breath but also burning a bigger hole in their health insurance bills. Claims linked to pollution have surged more than fourfold in just three years, with working professionals bearing the biggest brunt, accounting for nearly six out of every 10 such claims, according to data released by insurance aggregator Policybazaar.The company’s data showed that pollution-associated health insurance claims increased 4.34 times between FY23 and FY26. The rise was steady over the three years, with claims jumping 67% in FY24, another 70% in FY25 and 53% in FY26.Rohan Goel, Business Head, Health Insurance at Policybazaar, said, “India’s rising pollution levels are increasingly reflected in its healthcare burden. Our health insurance data shows that pollution-associated claims have surged 4.3 times.”Interestingly, respiratory illnesses were not the only major contributor to these claims. Cardiovascular conditions accounted for the largest share at 43.5%, while other respiratory infections made up 35%.Pneumonia accounted for 11.2% of claims, followed by bronchitis at 6%.
Working professionals make up 59% of claims
The 31-55 age group accounted for the largest portion of pollution-associated health insurance claims, at 59%. Senior citizens aged 55 and above were the second-largest group, contributing 31%.The remaining claims came from younger age groups. Young adults aged 21-30 accounted for 6.7%, while children below 20 years made up 3.7%.Goel said, “Working professionals aged 31-55 account for nearly 59% of claims, while senior citizens contribute another 31%.”
Delhi leads, but smaller cities are not far behind
Delhi recorded the highest number of pollution-associated health insurance claims among cities. Pune, Bengaluru, Mumbai and Hyderabad followed.However, the numbers were not concentrated only in major cities. Tier-2 and Tier-3 cities together accounted for 55% of the claims, showing that the trend extended beyond metropolitan centres.The timing of these claims also followed a seasonal pattern. In FY26, nearly 56% of all annual pollution-associated health insurance claims were recorded beween October and March, when air pollution levels typically worsen across several parts of the country.
Total claim amount rises 4.5 times
The increase in claims also came with a sharp rise in the overall amount paid out. Policybazaar’s data showed that the total claim amount increased 4.5 times between FY23 and FY26. The average claim amount, meanwhile, continued to remain above FY23 levels.The data further showed that 48% of consumers living in highly polluted cities opted for higher health insurance coverage.Goel said, “These trends highlight the growing importance of preventive healthcare, timely medical attention and adequate health insurance coverage to manage the financial impact of unexpected medical needs.”
