Thiruvananthapuram: The Kerala government has defended a sharp increase in premiums under the NORKA Care health insurance scheme, saying the previous arrangement had become financially unsustainable as insurance claims exceeded the amount collected from policyholders. The increase has triggered protests among expatriate Keralites, who say the higher charges could make the scheme unaffordable for many families.
Chief Minister V. D. Satheesan explained the reasons for the increase in the Kerala Legislative Assembly on October 29. He said the scheme had collected Rs 145 crore in premiums while insurance claims had reached Rs 210 crore. The government argued that insurance companies were unwilling to continue providing coverage under the previous pricing arrangement because of the high number of claims, particularly those involving serious illnesses such as cancer.
According to the Chief Minister, approximately 1.32 lakh people had enrolled in the scheme. He said around 80 per cent of the claims were associated with serious illnesses. He also stated that claims involving people aged between 40 and 70 alone accounted for Rs 120 crore, placing considerable pressure on the insurance scheme.
Satheesan further said insurance companies had incurred losses of 160 per cent under NORKA Care and 350 per cent under NORKA Care Plus. He attributed the high claims partly to the scheme's provision of coverage for pre existing illnesses. The government maintained that revising the premiums was necessary to ensure the continuation of the insurance programme.
The revised premium structure has introduced pricing based on age, resulting in significantly higher payments for some policyholders. Under the family floater plan with five lakh rupees in coverage, which covers an expatriate, spouse and two dependent children, the annual premium for the 51 to 60 age category is Rs 35,664. The previous annual premium for a family of four was Rs 13,411. This represents an increase of Rs 22,253.
The revised structure also places a higher financial burden on older policyholders and their families. The annual premium for a family in the 61 to 70 age group is Rs 44,718, while those in the 71 to 80 age group must pay Rs 77,773 for the same coverage. Individual policyholders also face higher charges depending on their age.
The revised scheme offers eight levels of health insurance coverage, ranging from Rs 3 lakh to Rs 1 crore. Eligible policyholders can also include their parents or parents in law under the available family insurance options. The government has expanded the eligible age range to cover people between 18 and 110 years, providing an option for older expatriates who previously faced restrictions.
The scheme also includes personal accident insurance alongside medical coverage. However, the health insurance component covers treatment in India and does not provide coverage for medical treatment abroad. Policyholders must also follow the applicable conditions and illness specific limits when making claims.
The insurance arrangement has undergone changes. The earlier scheme was associated with New India Assurance, but the Chief Minister said the company did not submit a quotation for renewal under the previous conditions. National Insurance Company reportedly submitted a quotation for the revised arrangement. However, the detailed contractual terms and final policy conditions require further clarification.
The premium increase has drawn criticism from expatriate organisations in several Gulf countries. Keli Cultural Forum in Riyadh, Yuvakalasahithi Qatar and Salalah KMCC in Oman are among the organisations that have raised concerns and demanded a review of the revised rates.
Their objections include the financial burden on older expatriates, the need for transparency in premium calculations and concerns about the affordability of health insurance for ordinary families. Some organisations have also questioned the renewal arrangements and called on the government to ensure that expatriates receive clear information about changes to their policies.
NORKA Care was introduced by the Kerala government through NORKA Roots to provide health and personal accident insurance protection to non resident Keralites and their families. The scheme attracted interest among expatriates partly because it offered coverage for pre existing illnesses from the beginning of the policy, subject to its terms and conditions.
The revised policy period is scheduled to run from November 1, 2026, to October 31, 2027. However, questions remain about the affordability of the new premiums, the detailed coverage conditions and whether the government will consider the demands raised by expatriate organisations.
The controversy highlights the challenge of maintaining affordable health protection for overseas Keralites while ensuring the financial sustainability of the insurance scheme. While the government says the premium revision is necessary to continue the programme, expatriate groups are calling for a solution that does not place an excessive burden on families who depend on the scheme for medical security.