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The Delhi High Court today directed the Insurance Regulatory and Development Authority (IRDAI) to consider extending the benefits of Corona Kavach policy to existing policy holders.

The Division bench comprising Justices Vipin Sanghi and Jasmeet Singh passed the direction while hearing a batch of petitions relating to covid management in Delhi.

The bench was considering its earlier order of May 10^th when a note was prepared  by the Amicus Rajshekhar Rao on the issue of insurance covered by covid patients. The bench had directed the Amicus to circulate the note to IRDAI and sought response on the same.

Advocate Abhishek Nanda for IRDAI submitted that in the wake of covid 19 the IRDA notified standard covid policies, Corona Kavach and Corona Rakshak. He further submitted that various other insurance policies are also being provided both on an individual and group term basis.

Nanda further stated that from time to time the IRDAI has been issuing circulars to educate the public on both the policies. The insurance companies also advertise the policies to make it known to the public at large.

Nanda pointed out that the minimum term for a policy should be for 1 year, however considering the nature of pandemic, the said two policies were issued for 3.5, 6.5 and 9.5 months and the premium charged on the said policies is Rs. 155 per month.

According to Nanda about 12 lakhs clams were settled by insurance companies till 30th April 2021.

Having perused the submissions made by Nanda, the bench observed “From the above it appears that IRDAI has taken steps to mitigate the suffering of people at large on account of the pandemic.”

It was however observed that when the pandemic was at its height there was acute shortage of beds not only in India but across the country. People who had insurance also could not get beds. Thus, thousands of covid patients who required beds could not get hospitalization.

The bench further observed that  “the insurance policies issued by the several insurance companies which have been in existence do not cover claims of the insurance if hospitalized. It appears that only the corona kavach policy covers ancillary medical care. Therefore a large number of insured people could not be able to receive any benefit under the insurance policies because there were no hospital beds”

The Court has thus directed IRDAI to examine whether claims in such  cases must be covered by the insurance companies and the claims which could be made in such circumstances.”

The Court has accordingly directed the IRDAI to examine these aspects and place a status report within 4 weeks. These aspect will be heard on 14th July.