Indian expat group takes Kerala government to High Court over NORKA Care premium hike

Dubai: An Indian expat group has taken the government of the south Indian state of Kerala to court over the steep rise in NORKA Care health insurance premiums for Non-Resident Keralites (NRKs), saying the new rates are an unfair burden on NRK families.

The Kerala Chapter of the Pravasi Legal Cell (PLC) has approached the Kerala High Court with a writ petition, filed along with two existing NORKA Care beneficiaries. New Delhi-headquartered PLC has chapters in several countries, including the UAE, Oman, Bahrain, Qatar, Saudi Arabia, the UK and Australia.

The respondents are the State of Kerala, the NORKA Department, NORKA Roots and the insurer for the new policy period, according to a copy of the petition seen by Gulf News.

The petition mainly challenges the move from a single flat premium for all members to a new structure in which premiums rise with age for 2026–27.

The numbers are stark. In 2025–26, a family made up of the NORKA ID holder, spouse and two dependent children could get Rs 5 lakh family health cover for Rs 13,411.

Under the new structure, the premium for the same Rs 5 lakh family cover is Rs 35,664 for the 51–60 age group and Rs 44,718 for the 61–70 age group. That is an increase of about 166 per cent and 233 per cent respectively.

PLC says this is not a routine annual revision but a major change to the basic pricing system of the scheme.

PLC Dubai President TN Krishnakumar told Gulf News that the petition has highlighted that the sharp increase hits middle-aged and senior expats hardest, as they depend more on continuous health insurance protection.

The petition also points out that the basic Rs 5 lakh family cover remains unchanged despite the higher premium. Post-hospitalisation cover, which ran for 60 days under the earlier arrangement, has been cut to 30 days under the new terms.

Timing is another major issue. Krishnakumar said the earlier insurance arrangement required at least 45 days’ prior notice before renewal. However, the revised premium structure was officially notified only on October 28, 2026, while the existing policy expired on October 31 and the new policy took effect on November 1.

PLC argues that this left existing members with almost no reasonable time to understand the new rates, arrange the higher premium or look at alternative health insurance.

The petition further states that the actuarial basis, claim ratio, claim experience and other financial material relied upon for such a steep increase have not been disclosed to beneficiaries.

PLC fears that many existing expat families, especially older members, may be forced to quit the scheme because of the sudden jump in cost. That would break the continuity of their insurance and could mean the loss of related benefits.

The organisation has asked the Kerala High Court to protect the interests of existing beneficiaries, ensure uninterrupted coverage and direct a fair, transparent and reasonable review of the revised premium structure.

Krishnakumar maintained that NORKA Care was introduced as a welfare-oriented health protection scheme for the expat community and should remain affordable for the people it was created to serve.

The Kerala government introduced NORKA Care in September 2025 through NORKA Roots, the agency responsible for the welfare of Non-Resident Keralites. The scheme became operational on November 1, 2025, offering health and personal accident cover to expatriate Keralites and their families. A key feature was coverage for pre-existing illnesses from day one, with no waiting period.

The original Rs 5 lakh family floater covered the insured person, spouse and up to two dependent children below 25 for an annual premium of Rs 13,411. It also included a separate personal accident cover of Rs 10 lakh.

For the 2026–27 policy year, which began on November 1, the 70th anniversary of Kerala’s formation, the scheme moved to age-based rates with multiple coverage options.

The annual premium for the Rs 5 lakh family floater now ranges from Rs 13,036 for the 18–30 age group to Rs 77,773 for those aged 71–80. The changes have raised particular concern about affordability for elderly expatriates and those who have returned to Kerala after years abroad.

Chief Minister V D Satheesan defended the revision in the Assembly on October 29. He said the scheme had collected about Rs 145 crore in premiums against claims of Rs 210 crore. He attributed the high claims partly to the cover for pre-existing illnesses, adding that nearly 80 per cent of claims were linked to cancer patients.

Satheesan also said insurers were reluctant to continue on the earlier terms, citing heavy losses, and that the insurance company had sought an advance payment of Rs 300 crore when approached for a fresh quotation. The government maintains that restructuring the scheme and revising premiums were necessary to keep it going.

Meanwhile, Opposition Leader Pinarayi Vijayan, whose previous government launched the affordable insurance scheme, has urged the government to reconsider and reduce the premiums, saying the increase places an excessive burden on ordinary expatriate families.

He has defended the original cover for pre-existing illnesses as an important welfare measure, particularly for people with serious medical conditions who may struggle to find affordable insurance elsewhere. Several expatriate organisations across the GCC have also criticised the hike and want the government to negotiate better terms with insurers.