Pollution pushes health insurance claims up 14% post-Diwali across various cities as respiratory, cardiac cases surge

New data from Policybazaar reveals that pollution-linked illnesses now account for over 8 percent of all hospitalisation claims, with a consistent surge following Diwali each year.

Health insurers in India are reporting a clear and recurring pattern between worsening air quality and the rise in healthcare claims, particularly during the October to December quarter.

The correlation has strengthened over the past few years, with insurers noting a seasonal rise in respiratory and cardiovascular claims of nearly 14 percent post-Diwali this year.

Rakesh Jain, CEO, Reliance General Insurance, speaking to Moneycontrol, said the country is witnessing a concerning intersection between environmental degradation and public health.

“The deteriorating air quality across several parts of the country is emerging as a major public health concern,” Jain said. “Rising pollution levels have significantly increased the risk of respiratory and cardiovascular diseases, often resulting in prolonged medical treatments and higher healthcare expenses. These challenges highlight the importance of viewing health insurance not as a discretionary purchase, but as a fundamental necessity for every household.”

This comes amid long-standing discussions within the industry about introducing city-specific health insurance premiums that factor in air pollution levels as a key risk indicator.

Pollution-linked claims form 8% of hospitalisations

Supporting this trend, new data from Policybazaar released on November 13 reveals that pollution-linked illnesses now account for over 8 percent of all hospitalisation claims, with a consistent surge following Diwali each year.

The Policybazaar data further revealed that in September 2025 alone, nearly 9 percent of total hospitalisation claims in India were related to air pollution-induced ailments such as respiratory infections, cardiac complications, and skin and eye allergies.

The period between late October and early December, when stubble burning, festive fireworks, and stagnant winter air push AQI levels from “moderate” to “severe”, has become a defining pressure point for both public health systems and insurance companies.

Spike in respiratory illnesses

Yogesh Agarwal, CEO and Founder of Onsurity, a Bengaluru-based insurtech firm that provides subscription-based employee healthcare plans to over X small and medium businesses (SMBs) and partners with leading insurers, also confirmed to Moneycontrol that insurers have been observing a seasonal rise in health claims linked to deteriorating air quality, particularly across northern India.

“Yes, insurers have observed a seasonal increase in health claims related to respiratory issues, especially in northern India during winter,” Agarwal said. “Claims linked to asthma exacerbations, COPD flare-ups, and other pollution-induced illnesses generally tend to spike.

Claims rising across cities

“Respiratory and cardiac treatment costs are rising, and claim volumes spike between October and December, which seems to be the peak pollution window every year, said Siddharth Singhal, Head of Health Insurance at Policybazaar.

While Delhi continues to lead the country with the highest volume of pollution-linked claims at 38 percent, the trend is no longer confined to the northern belt.

Southern and western metros are increasingly showing signs of vulnerability with Bengaluru (8.23 percent), Hyderabad (8.34 percent), Pune (7.82 percent), and Mumbai (5.94 percent) are all witnessing a steady rise in pollution-related health claims.

Tier-2 cities such as Jaipur, Lucknow, Indore, and Nagpur are also showing a clear upward trajectory.