Delhi HC Directs IRDAI To Issue Reminder To Insurers For Offering Add On Cover For Covid Home Care Treatment To Existing Policy Holders

The Delhi High Court has directed the IRDAI (Insurance Regulatory and Development Authority of India) to issue reminder to all General and Stand-Alone Health Insurers with regards to an advisory issued by it to offer Add On Cover for home care or domiciliary covid treatment to the existing policy holders.

A division bench comprising of Justice Vipin Sanghi and Justice Jasmeet Singh was apprised by Advocate Abhishek Nanda appearing for IRDAI that it had issued an advisory to the insurers that they could offer Add-on Cover to all existing policy holders during mid-term by charging appropriate additional premium for the residual term of the policy, after submitting their proposal to the IRDA for approval.

Attention was also drawn to a communication dated 16th July wherein IRDAI had directed all insurers to consider make-shift hospitals and temporary hospitals set up for treatment of COVID-19 patients as regular hospitals enabling people to avail their insurance claims.

Considering the submissions made and status report filed, the Court directed thus:

"Since the said communication was issued on 21.06.2021, and not much time has elapsed after, let the IRDA issue a reminder in respect of the communication dated 21.07.2021 to the insurers qua the General and Stand-Alone Health Insurers, and file a status report with regard to the progress made in respect of the said Advisory before the next date of hearing."

The development came after the Court had in May directed the IRDAI to examine as to whether the claims of people who were unable to get the benefits of insurance policies for not getting hospital beds can be considered owing to the "dearth of medical infrastructure" in wake of the second covid wave.

The Court also directed that any such consideration may take place by consultation between IRDAI and insurance companies.

Title: RAKESH MALHOTRA v. GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF INDIA AND ORS

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