Kerala Court Orders NORKA to Review 233% Insurance Hike
The Kerala High Court has ordered NORKA to review a 233% hike in insurance premiums for Gulf expats following a legal challenge.
The Kerala High Court has intervened in a major dispute regarding the NORKA insurance premium hike, ordering the Non-Resident Keralites’ Affairs (NORKA) Department to conduct a formal review of a massive increase in costs for its care scheme. The court's directive comes after legal challenges were raised by the Pravasi Legal Cell (PLC) and individual beneficiaries, who argued that the sudden rate adjustment places an undue financial burden on the expatriate community living in the Gulf.
The Court's Directive and Timeline
In its order issued on Friday, November 7, 2026, the High Court mandated that the NORKA Department must hear the grievances of the petitioners and all affected parties. The department has been given a strict deadline to deliver a formal decision within six weeks of receiving the certified copy of the judgment.
The legal challenge, filed under W.P.(C) No. 38075 of 2026, was spearheaded by the PLC—an organisation with active chapters across the UAE, Oman, Bahrain, Qatar, and Saudi Arabia—alongside beneficiaries Musthafa Thondiyil and Abdul Hakeem KK.
A Massive Spike in Costs and Reduced Benefits
The controversy stems from a sudden shift in the insurance structure. Previously, the scheme operated on a flat rate of Rs 13,411 for a health cover of Rs 5 lakh. However, a new age-based system implemented on November 1, 2026, has seen premiums skyrocket:
- Aged 51–60: Premiums rose to Rs 35,664.
- Aged 61–70: Premiums rose to Rs 44,718.
- Aged 71–80: Premiums reportedly reached as high as Rs 77,773.
In addition to the financial surge, which represents a 233% increase for certain brackets, the new policy has also reduced post-hospitalisation coverage from 60 days down to just 30 days, further diminishing the protection available to senior citizens.
Government Justification vs. Expat Concerns
The state government, under Chief Minister V D Satheesan, has defended the adjustment as a fiscal necessity. Officials stated that the department faced a significant deficit, with insurance claims amounting to Rs 210 crore, while premium collections stood at only Rs 145 crore. The government attributed this gap to the rising costs associated with treating serious illnesses, such as cancer.
However, the timing of the notification has drawn sharp criticism. The revised rates were notified on October 28, just three days before the previous policy expired on October 31, leaving many expats with very little time to adjust. PLC Dubai President TN Krishnakumar criticised the new structure, noting the severe impact it would have on middle-aged and senior expatriates.
Opposition figures, including Pinarayi Vijayan, have called for a complete reversal of the policy, citing the heavy financial burden it places on the Gulf-based workforce.