IRDA has issued guidelines about handling claims with regard to Corona Virus whereby insurers have been directed to expedite handling of claims for hospitalisation expenses for Corona virus disease (COVID-19). IRDA’s guideline on COVID-19 directs insurers to cover medical expenses during the quarantine period. The guidelines also advise insurers to design products for the Corona Virus. IRDA’s instructions are in to force with immediate effect. The key takeaways from IRDA’s circular are as under:
1. Expeditious handling of corona virus cases: Insurers shall ensure that the cases related to Corona virus disease (COVID-19) shall be expeditiously handled where hospitalization is covered in a product,
2. Insurers must cover the cost of expenses during quarantine period: The costs of admissible medical expenses during treatment including the treatment during quarantine period shall be settled in accordance to the applicable terms and conditions of policy contract and the extant regulatory framework.
3. Insurers must thoroughly review before rejecting claims: All the claims reported under COVID 19 shall be thoroughly reviewed by the claims review committee before repudiating the claims.
4. Insurers to design products covering treatment cost for Corona virus: IRDA has advised insurers to design products covering the costs of treatment for Corona Virus to meet health insurance requirements.
5. Effective Date: IRDA instructions issued under the provisions of Section 14 (2) (e) of IRDA Act, 1999 shall come in to force with immediate effect.