How Climate Change is Affecting Health Insurance Claims in India?

15 min read Posted on 17 June 2025

Climate change is affecting the health and finances of millions of people living in India. Higher temperatures and poorer air quality are pushing up the number of medical emergencies and altering the health insurance field. While dealing with extreme heat, unusual rainfall, and rising pollution levels, India is witnessing a notable rise in healthcare expenditures.

The number of medical conditions related to climate change, including respiratory, heart, water, and mental health issues, is increasing sharply. As a result of these trends, climate change health insurance claims are increasing. Many households now need to prepare for usual surprises and possible climate emergencies. Because things can change quickly, an appropriate insurance policy is now more essential. Given the unpredictable nature of climate-related events, securing appropriate insurance coverage has become increasingly essential. Using RenewBuy, you can compare several options and buy insurance that supports climate-conscious healthcare planning.

The Rising Tide of Climate-Linked Health Claims

A notable surge in climate-linked health insurance claims has raised concerns among Indian insurers. The changes brought by climate change on public health make insurance companies need to rethink their prices, increase what they offer, and re-evaluate risk segmentation and coverage policies.

Rising Heatwaves Leading to Medical Emergencies

An immediate uptick in heatwave health claims is rising due to extreme temperatures. Rajasthan, Uttar Pradesh, and Delhi have faced long and hot heatwaves. Because of these severe weather conditions, there are more cases of medical emergencies reported, such as:

• Heatstroke
• Dehydration
• Respiratory ailments
• Cardiovascular complications

Premium Hikes Reflect Climate Risk Pricing

Specialists in the industry say that the number of claims related to heat illness has increased greatly during the hot summer months. Because of escalating health risks attributed to pollution and climate dynamics, leading insurers in New Delhi increased the insurance premiums by 10-15% in 2024. It indicates a significant shift in climate risk pricing health cover because premiums adapt to environmental changes.

Air Pollution Adding to Chronic Illness Claims

The increasing number of cases of asthma, COPD, and similar chronic breathing problems in cities makes air pollution and poor air quality an increasingly significant driver of insurance claims.

Now, we know that the environment can make chronic non-communicable illnesses even worse, for example:

• Heart disease
• Diabetes
• Hypertension

Studies in Punjab indicate that affected households incur substantial healthcare expenditures. Paying medical expenses out of pocket makes families with inadequate insurance lose their savings. This development suggests that more inclusive and flexible climate-linked disease insurance solutions are required.

How to Balance Immediate Medical Needs with Long-Term Insurance Goals

Combining medical costs you’ll face in the near future with long-term insurance needs demands a well-planned financial strategy.

• An essential first step involves establishing an emergency fund that will pay for at least 3–6 months of living costs. It provides the cash to manage slight medical costs without having to worry about the expenses.
• You should also purchase health insurance that covers treatments outside the hospital as well as hospital costs.
• Hospitalisation insurance is useful for unplanned illnesses or accidents, whereas OPD coverage is good for everyday doctor visits, tests, and buying medicines, which most people don’t pay attention to but keep happening.
• Long-term security requires you to have a term life insurance plan. If something happens to you prematurely, it makes sure your family won’t struggle with your loans, education costs, or daily bills. You get cost-effective financial protection when you choose term plans.

Also, check into including income protection riders within your coverage. In case you lose your job or become permanently disabled, these riders ensure financial support to maintain your lifestyle and meet ongoing expenses.

An emergency fund, health coverage, term insurance, and income protection together allow you to handle current health issues and future financial needs.

Extreme Weather and Its Financial Impact

Mounting evidence indicates that extreme weather events are imposing substantial financial burdens across India. In addition to health-related concerns such as heatstroke and dehydration, these events contribute to agricultural losses, including crop failure and livestock mortality, disproportionately affecting rural populations dependent on farming for their livelihoods.

Traditionally, weather-related claims for retail health insurance were relatively uncommon; however, this pattern is changing. During the summer months, insurers are observing a rise in claim volumes, particularly from urban and semi-urban households.

Heatwaves Driving Medical Emergencies

Various illnesses and health conditions regularly cause claims.

• Heatstroke
• Severe dehydration
• Heat-induced hypertension has also been linked to stroke incidents, particularly among individuals with a history of migraines.
• Lung problems caused by air pollution

Since Indian summers are hotter, climate-related health issues will likely happen more often. As a result, both parties must change their practices and outlooks quickly.

Parametric Insurance as a Climate Solution

To face up to these innovative threats, new approaches such as parametric insurance are becoming popular. Loss verification is not required under parametric insurance models, as payouts are triggered automatically upon meeting predefined thresholds. It just pays out once some predefined conditions are reached.

For instance, the climate resilience scheme has benefited over 50,000 self-employed women in Rajasthan, Gujarat, and Maharashtra. If temperatures rose above 40°C, the model triggered the payouts, giving the women a chance to stay home when working wasn’t safe. The program helped students stay safe from extremely hot weather and promoted their health.

The Way Forward: Adapt and Protect

With the increase in climate-linked diseases, households are encouraged to opt for comprehensive and adaptive insurance policies. You can now compare climate-aware options and choose from major insurance companies that RenewBuy facilitates. You can also protect your family by safeguarding both health and financial stability amid climatic uncertainties.

How to Layer Insurance for Complete Family Protection

Since inflation and changing weather are becoming more common, Indian families should consider more than only a basic insurance plan. The best plan is to begin with health insurance and then add insurance that will protect your finances in the future.

1. Start with Health Insurance

Due to extreme heat, environmental pollution, and unusual weather patterns, asthma patients, those with heatstroke, and people with lung issues are now seen more often in hospitals. Getting a complete health insurance policy is your initial priority. Pick policies that include costs for hospital stays, daily care, and expenses both before and after hospital care, specifically focused on heart and lung diseases. When you’ve got health insurance, think about purchasing a supplement plan to increase your health coverage at a low cost.

2. Add Riders for Critical Illness and Accidents

You should also add riders to your policy that offer a lump sum payment during important health or accident situations. If you are concerned about heart disease or cancer, a critical illness rider is advised, and a sudden loss of life is covered by accidental death riders. These are modest additions that offer substantial financial coverage.

3. Secure Long-Term Stability with Term Life Insurance

If you have people depending on you financially, a term life insurance plan will cover them if you become unable to work. Choose a policy that meets your needs and then go for extras such as waiver of premium and options to get income in case of trouble.

Review and Update Regularly

If your life circumstances change, for example, you get a new job or have more dependents, reassess and modify your insurance portfolio. Households are protected both in medical emergencies and financially throughout many years if they have health insurance, riders, and life insurance.

How RenewBuy Supports Climate-Resilient Insurance Choices?

As climate change introduces emerging health risks in India, selecting an appropriate insurance policy has become both more complex and increasingly essential. With rising incidences of heatstroke, respiratory illnesses, and chronic conditions exacerbated by climate change, individuals are encouraged to opt for insurance policies that offer comprehensive protection against a wide range of future health scenarios. At this stage, RenewBuy makes a real difference.

1. Tailored Policy Discovery for Emerging Health Risks

RenewBuy understands that climate-related health risks vary by geography, demographic profile, and occupation. Anyone from anywhere can use the platform to get medical insurance that addresses sudden emergencies and long-term medical diseases resulting from climate change. Picking illness type, premium amount, and insurer helps you get a customised insurance quote.

2. Climate-Smart Insurance Recommendations

RenewBuy facilitates the identification of health plans aligned with climate-related medical concerns that protect against diseases caused by pollution, heat, or insects. Instead of one plan for everyone, you find suggestions for where you live, your health, and possible future risks.

3. Access to Top Insurers in One Place

RenewBuy helps you access the best insurers in India, offering climate-linked disease insurance and health coverage that changes based on changing environmental factors.

4. Hassle-Free, Digital-First Experience

The user-friendly platform ensures that comparing, selecting, and purchasing insurance policies is a seamless process, free from any sales-driven pressure. For additional support, customers can easily connect with RenewBuy’s dedicated customer service team and qualified insurance advisors through phone or online channels.

In the face of increasing climate-related unpredictability, RenewBuy facilitates timely access to optimal insurance coverage, ensuring preparedness without unnecessary delays.

Conclusion

Undoubtedly, climate change is affecting health and insurance in India. The hotter weather, poor air quality, and harsh weather events mean health-related emergencies and climate change health insurance claims are on the rise. That is why picking the correct health and life insurance now is especially vital. Tailored insurance options from RenewBuy make it easy for people to protect themselves against climate-related risks in their area. Facing extreme heat, pollution-related illnesses, or extreme weather medical costs? RenewBuy ensures comprehensive protection for your family. Because the climate is in constant flux, guarding your future with insurance is something you need to do now.

Disclaimer: The content published in this article is intended solely for the readers' informational purposes and should not be relied upon for personal, medical, legal, or financial decisions. It is advisable to seek advice from a qualified professional regarding specific concerns. The details provided regarding the plan are for reference purposes only. Please visit the insurer’s website for the latest updates on the plan. The company does not guarantee suitability, reliability, timeliness, or accuracy of the information, services, or any other aspects mentioned in this regard for any purpose. We do not endorse any insurance company or insurance product provided by any insurer.