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This is an archive article published on August 11, 2010

Patient denied cashless treatment,HC pulls up insurance regulator

The Delhi High Court has asked insurance regulator IRDA to make an arrangement to provide cashless facility at least to existing policyholders in the wake of a dispute between insurance companies and hospitals.

The Delhi High Court has asked insurance regulator IRDA to make an arrangement to provide cashless facility at least to existing policyholders in the wake of a dispute between insurance companies and hospitals.

“The Insurance Regulatory and Development Authority (IRDA) should,as a regulator of the insurance industry,intervene and ensure that such changes do not affect existing policyholders…,” said Justice S Muralidhar,observing that people having medical insurance were facing great difficulties because of the stand-off.

The court disposed of a petition filed by one Vishal Ahuja after the Additional Solicitor General (ASG) informed the court that cashless treatment facilities would be provided to Ahuja’s mother,a cancer patient,forthwith.

The court also pulled up the IRDA saying,“You can not leave patients suffering saying that a meeting will be convened. Patients are not getting treatment because of the dispute between insurance companies and hospitals. It is your duty to act timely.”

The court had taken strong exception to the remarks of the IRDA chairperson to a newspaper which quoted him as saying this was a matter between insurance companies and hospitals and there is no regulatory issue involved in it.

The court was hearing a petition filed by Ahuja,whose 53-year-old mother was refused cashless treatment in Dharamshila Cancer Hospital and other medical centres.

Turning down his plea for cashless treatment,the hospital authorities said because of the dispute between insurance companies and hospitals regarding reimbursement of medical bills,the companies have decided to discontinue cashless facility for individual policy-holders.

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Ahuja then approached the Delhi High Court contending he had paid extra premium to Oriental Insurance Company to avail the cashless facility and IRDA should be directed to settle the dispute between the insurance companies and the hospitals as it would take more than a month for getting reimbursement for treatment from companies.

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