The Delhi High Court has held that a government circular issued during the COVID-19 pandemic to regulate hospital charges cannot be interpreted as restricting insurers' contractual obligations to policyholders, reported ANI news.
Justice Sachin Datta, in his ruling, directed United India Insurance Company to pay the outstanding balance to petitioner Reena Goel, whose COVID-19 hospitalisation claim had been only partially reimbursed despite falling within her policy coverage.
The court observed that withholding the remaining amount was “clearly unjustified” and ran contrary to clarifications issued by the Insurance Regulatory and Development Authority of India (IRDAI).
The Court observed that the Delhi government’s June 20, 2020, circular was meant to regulate hospital charges for COVID-19 treatment, not to limit the reimbursement due under insurance policies.
It further emphasised that the IRDAI had already clarified this position through its circulars issued in January and April 2021.