Writ Petition Challenges Age-Based Premium Hikes, Reduced Coverage and Shorter Notice Period for NRKs.
Dubai: An Indian expatriate organisation has approached the Kerala High Court, challenging the state government’s steep hike in NORKA Care health insurance premiums for Non-Resident Keralites (NRKs), arguing that the revised rates place an unfair financial burden on expatriate families.
The Kerala Chapter of the Pravasi Legal Cell (PLC), along with two existing NORKA Care beneficiaries, has filed a writ petition before the High Court. Headquartered in New Delhi, PLC has chapters across several countries, including the UAE, Oman, Bahrain, Qatar, Saudi Arabia, the UK and Australia.
The respondents named in the petition are the Kerala government, the NORKA Department, NORKA Roots and the insurer providing coverage for the new policy period, according to a copy of the petition reviewed by Gulf News.
Steep premium hike
The petition primarily challenges the shift from a uniform premium for all members to an age-based pricing structure for the 2026–27 policy year, under which premiums increase according to the beneficiary’s age.
The respondents named in the petition are the Kerala government, the NORKA Department, NORKA Roots and the insurer providing coverage for the new policy period, according to a copy of the petition seen by Gulf News.
Steep premium hike
The figures highlight the scale of the increase. In 2025–26, a family comprising the NORKA ID holder, spouse and two dependent children could avail of Rs 5 lakh in family health cover for an annual premium of Rs 13,411.
Under the revised structure, the premium for the same Rs 5 lakh family cover has risen to Rs 35,664 for the 51–60 age group and Rs 44,718 for those aged 61–70. This represents increases of approximately 166 per cent and 233 per cent, respectively.
PLC argues that this is not a routine annual revision but a fundamental change to the scheme’s pricing structure.
TN Krishnakumar, president of PLC Dubai, told Gulf News that the petition highlights how the sharp increase disproportionately affects middle-aged and senior expatriates, who are more dependent on continuous health insurance coverage.
Short notice
The petition also points out that the basic Rs 5 lakh family cover remains unchanged despite the substantial premium increase. Meanwhile, post-hospitalisation coverage has been reduced from 60 days under the previous arrangement to 30 days under the revised terms.
The short notice given to beneficiaries is another key concern. Krishnakumar said the earlier insurance arrangement required at least 45 days’ advance notice before renewal.
However, the revised premium structure was officially notified only on October 28, 2026, just three days before the existing policy expired on October 31. The new policy came into effect on November 1.
PLC argues that this left existing beneficiaries with virtually no reasonable time to understand the revised rates, arrange the higher premium or explore alternative health insurance options.
The petition also questions the lack of transparency surrounding the revision, stating that the actuarial basis, claims ratio, claims experience and other financial data used to justify the steep increase have not been disclosed to beneficiaries.
Fear of policy lapses
PLC fears that the sudden increase could force many existing expatriate families, particularly older beneficiaries, to discontinue their coverage. This could disrupt insurance continuity and potentially result in the loss of associated benefits.
The organisation has urged the Kerala High Court to protect existing beneficiaries, ensure uninterrupted coverage and direct a fair, transparent and reasonable review of the revised premium structure.
Krishnakumar said NORKA Care was introduced as a welfare-oriented health protection scheme for the expatriate community and should remain affordable for the people it was intended to serve.
How it got here
The Kerala government launched 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 insurance to expatriate Keralites and their families.
One of its key features was coverage for pre-existing illnesses from day one, without any waiting period.
The original Rs 5 lakh family floater covered the NORKA ID holder, spouse and up to two dependent children below the age of 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, coinciding with the 70th anniversary of Kerala’s formation, the scheme shifted to age-based premiums and introduced 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 triggered particular concern over affordability among elderly expatriates and those who have returned to Kerala after years abroad.
Government defends revision, opposition raises concerns
Chief Minister V D Satheesan defended the revision in the Assembly on October 29. He said the scheme had collected approximately Rs 145 crore in premiums against claims amounting to Rs 210 crore.
He attributed the high claims partly to the provision covering pre-existing illnesses, adding that nearly 80 per cent of claims were related to cancer patients.
Satheesan also said insurers were reluctant to continue providing coverage under the previous terms because of heavy losses. According to him, 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 ensure its continuation.
Meanwhile, Opposition Leader Pinarayi Vijayan, whose previous government launched the affordable insurance scheme, has urged the government to reconsider the revision and reduce premiums, arguing that the increase places an excessive burden on ordinary expatriate families.
He has defended the original provision covering pre-existing illnesses as an important welfare measure, particularly for people with serious medical conditions who may struggle to obtain affordable insurance elsewhere.
Several expatriate organisations across the GCC have also criticised the premium hike and called on the government to negotiate more favourable terms with insurers.
