IRDAI tells insurers to settle COVID claims quickly

NEW DELHI: Insurance sector regulator IRDAI on Friday asked insurers to ensure the expeditious settlement of COVID-19 claims on a cashless basis.

The Insurance Regulatory and Development Authority of India (IRDAI) sent out the communique in the wake of reports that certain hospitals were insisting on cash payments from policyholders for the treatment of COVID-19.

In its communication, the regulator has also requested all the hospitals not to differentiate patients in terms of admission or treatment. IRDAI said that there were reports of certain network providers (hospitals) charging high rates and insisting on cash payments from policyholders despite having cashless arrangement with insurers.

“In compliance with the provisions...the insurers, in case of ‘cashless claim’ under a health insurance policy, are advised to ensure expeditious settlement of such claims on cashless basis,” the circular said.