A political row has emerged in Kerala following a steep rise in health insurance premiums for non-resident Keralites under the state-backed Norka Care scheme. K. Zainul Abideen, national vice president of the Indian Union Muslim League (IUML)—a key constituent in the ruling coalition UDF—and a prominent expatriate businessman, has formally raised concerns with Chief Minister V.D. Satheesan regarding the heavy financial burden placed on overseas workers. He urged the administration to either provide an immediate state subsidy or restructure the rates to make them manageable for ordinary Gulf labourers struggling with economic hardship. Expatriate welfare groups, including pro-government bodies like INCAS Dubai and Muscat KMCC, have also demanded a swift rollback of the decision. Meanwhile, Leader of the Opposition Pinarayi Vijayan criticised the government for refusing to debate the issue in the Legislative Assembly, warning that the drastic increase could force vulnerable migrants out of the protective cover.

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Allies and opposition unite against steep premium increases

Protests have erupted across the Gulf region as emigrant groups from across the political spectrum voiced dismay over the revised rates. For a Rs 5 lakh family policy covering individuals aged 51 to 60, the annual premium has jumped from Rs 13,411 to Rs 35,664. Adding elderly parents or choosing higher coverage limits can push the annual cost beyond Rs 1,00,000. Expatriates expressed frustration that the revised structure groups policyholders into seven age brackets ranging from 18 to 110 years, shifting higher costs onto older members.

Government cites massive insurer losses to justify price rise

Defending the decision in the assembly, Chief Minister Satheesan stated that increasing the premium was unavoidable to keep the welfare scheme alive. He explained that previous insurance providers suffered overwhelming losses, paying out Rs 210 crore in claims against a collected premium pool of only Rs 145 crore across 1,32,000 enrolled members. According to the Chief Minister, roughly 80 per cent of these payouts went towards expensive treatments like cancer for policyholders aged between 40 and 70. He added that former policy terms allowed individuals with pre-existing medical conditions to register, leading to claims exceeding revenues by up to 350 per cent on extended plans.

New framework designed to protect older returnees

Because previous insurers refused to submit quotes under the old terms, the government partnered with National Insurance Company under a new framework offering coverage up to 100 lakh rupees. Chief Minister Satheesan emphasised that this new structure ensures protection for returning emigrants over 60 who are normally rejected by commercial insurance firms. However, opposition leaders and allied parties maintain that without state intervention, the soaring costs will dismantle an essential lifeline for struggling migrant families