Kerala High Court gives NORKA six weeks to review expatriates’ complaint over insurance hike

Dubai: The Kerala High Court has directed the state’s Non-Resident Keralites’ Affairs (NORKA) Department to consider a complaint against the steep increase in NORKA Care health insurance premiums for 2026–27 and take a decision within six weeks.

The direction follows a petition filed by Pravasi Legal Cell (PLC), along with two existing NORKA Care beneficiaries, Musthafa Thondiyil and Abdul Hakeem KK, in W.P.(C) No. 38075 of 2026.

According to TN Krishnakumar, president of Pravasi Legal Cell Dubai, the court asked the NORKA Department Secretary to consider the organisation’s representation, hear the petitioners and any other affected parties, and pass an appropriate order in accordance with the law.

The six-week period will begin from the date the department receives a certified copy of the judgment.

The respondents in the case include the Kerala Government, the Principal Secretary of the NORKA Department, the Chief Executive Officer of NORKA Roots and National Insurance Company Limited, which provides insurance cover for the new policy period.

Premiums rise sharply under new system

The petition centres on changes to the NORKA Care scheme for 2026–27, particularly the move from a common group-based premium to rates based on the age of beneficiaries.

Under the previous 2025–26 policy, a family receiving Rs5 lakh in health cover paid an annual premium of Rs13,411.

Under the revised structure, the premium for the same level of family cover has risen to Rs35,664 for those in the 51–60 age group and Rs44,718 for the 61–70 age group. This represents increases of around 166 per cent and 233 per cent, respectively.

PLC has argued that the change goes beyond a routine annual revision. It says the new pricing system places a disproportionate burden on middle-aged and older expatriates, many of whom depend on the scheme for continued medical protection.

The organisation has also questioned why the premium has increased so sharply when the basic family cover remains unchanged at Rs5 lakh.

Shorter coverage period and lack of notice

Another concern raised by PLC is the reduction in post-hospitalisation coverage. Under the earlier arrangement, beneficiaries were covered for 60 days after hospital discharge. The new policy terms have reduced this period to 30 days.

The organisation has also questioned the short notice given to existing policyholders before the revised rates came into effect.

According to PLC, the earlier insurance arrangement required at least 45 days’ notice before renewal. However, the new premium rates were officially announced only on October 28, 2026. The previous policy expired on October 31, while the new policy period began on November 1.

PLC says this left members with very little time to understand the changes, arrange the higher premiums or explore other insurance options.

PLC seeks review of revised premiums

The organisation has asked NORKA to disclose the actuarial calculations, claims ratio, past claims experience, insurer quotations and the method used to determine the new age-based rates.

It has also sought the withdrawal of the revised pricing system, a return to the earlier group-based arrangement during the transition and uninterrupted coverage for existing beneficiaries. PLC has stressed that members should retain continuity benefits, including protection for pre-existing medical conditions.

Krishnakumar said the High Court's direction provides an opportunity for expatriates' concerns to be heard by the department.

“The main concern is affordability. A health insurance scheme introduced for the welfare of Pravasis should not become too expensive for middle-aged and senior expatriates, who need continuous medical protection the most,” he said.