Kerala has defended its decision to raise Norka Care health insurance premiums after claims under the expatriate welfare scheme reached Rs 210 crore against Rs 145 crore collected, leaving insurers unwilling to renew policies on the existing terms.
Chief minister V D Satheesan told the Assembly on Thursday that the scheme had enrolled 1.32 lakh people and that about 80% of claims were linked to serious illnesses, including cancer. Claims involving beneficiaries aged between 40 and 70 accounted for Rs 120 crore, he said.
Satheesan said insurers had incurred losses of 160% under Norka Care and 350% under Norka Care Plus. He attributed the high claims burden partly to a structural feature of the scheme: coverage for people with pre-existing illnesses. According to the chief minister, insurers were unwilling to submit quotations for renewing the policies, forcing the government to revise premiums.
The revised arrangement introduces different coverage slabs and extends eligibility to people aged between 18 and 110. The existing policy did not cover people above the age of 60, Satheesan said. The changes therefore affect both the cost of cover and the range of expatriate families who can seek protection through the scheme.
The premium increase comes alongside a wider financial strain in Kerala’s expatriate welfare system. Satheesan said the government had provided more than Rs 163 crore towards benefits during the current financial year and Rs 102 crore towards pensions. It had also released Rs 32 crore over the past five months to help the welfare board meet its commitments.
However, three months of pensions remained pending, with the amount due estimated at around Rs 105 crore. The government said it would take steps to clear the arrears. The chief minister also said the welfare fund’s membership had increased from 17,771 in 2020-21 to 1,00,495, while revenue had not risen at the same pace.
The board’s average monthly income was around Rs 16.7 crore against expenditure of nearly Rs 35 crore, according to the statement. More than Rs 700 crore in member contributions remained to be collected. Satheesan urged expatriate organisations to conduct a campaign to recover the arrears and said the government would consider allowing members whose contributions had lapsed for genuine reasons to pay their dues and continue in the scheme, subject to amendments to the law.
The Assembly discussion also covered the future of the Loka Kerala Sabha, which Satheesan said had failed to serve its purpose. The government was examining an alternative mechanism to address expatriate concerns and encourage investment in Kerala, he said, adding that the state wanted to move beyond a remittance-based economy towards one driven by investment.
The government has separately raised the issue of high airfares with the Union civil aviation minister and the prime minister, describing air travel costs as a major burden on expatriates. The opposition staged a walkout after the Speaker declined to allow a discussion on the adjournment motion. The government’s next steps include clearing the pension arrears, pursuing contribution recovery and implementing the revised Norka Care insurance arrangement.
