15th October, 2018

How Smog In Delhi May Increase Premiums on Car And Health Insurance

If you have been ignoring the headlines about Delhi’s smog, then you shouldn’t do so. Also those who think that they are not at risk due to the smog in New Delhi, well you are mistaken!

Experts say that smog crisis shall be worrying to everyone on this planet, and not just the ones residing in the capital. The ill-effects of smog will be felt miles away as the pollutant gets carried with the wind to the neighbouring areas as well. The health and mortality of people will be affected for years to come.

Another analysis says that the smog can also increase the premiums payable on the health insurance. This is because the insurance companies are considering the increased health risks.

About smog

The term “Smog” was coined in 1905 by Dr Henry Antoine Des Voeux.

The smoke emitted from fires, power producion plants, coal fires, vehicles, crop burning and so on when combined with natural fog creates a fatal mix. It can cause serious health issues.

Smog may also be caused naturally --like an erupting volcano.  

Smog and health risks

Smog has serious health effects on young children, aged seniors, and especially those who have lung or heart issues.Although, severe smog can affect anyone.The risk of heart disease, lung cancer, cardiac arrests, dementia and respiratory diseases are much higher.

People with tuberculosis and asthma may face serious discomfort and exposed to higher risks.The major effects are not immediate, but will be seen in the long run. A reduced working capacity of lungs poses health problems for overall body. As a result, the lifespan of individuals can be greatly reduced. 

External risks

The likelihood of accidents on roads increases due to reduced visibility on the roads.This increases the incidence of personal injuries, own vehicle damage and third party liabilities.

Effects on Car insurance

Due to any external risk, the chances of claims on your vehicle insurance policy are increased and when you may lose out on your no-claim bonus, the future premiums also get affected as driving on Delhi roads poses heightened risks.

Effects on health insurance

Insurance companies assess the probable risks when offering health insurance policies.The higher the risks, the higher the premiums will be.This is exactly why the premiums for health insurance of old aged people are very high.Premiums also differ for men and women. The women tend to have longer lifespans and hence are granted lower premiums.Insurers also charge more premiums for those who have pre-existing illnesses.

Smog and Health insurance

Due to the increase in health insurance claims related to the smog, insurance companies, now, might be compelled to increase the premium rates across the board.The hike in premiums might become applicable not just in New Delhi, but also in the surrounding areas. This is because the ill-effects of smog are not contained to one city but often travel to neighboring areas.Those suffering from respiratory problems will become the prime target of health insurers. The insurance companies already charge higher premiums to provide cover for such people. The smog will drive the premium even higher.