Page 43 - Insurance Times August New 2023
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lakh  was  paid  within  30  days  from  the  date  of  the  hysterectomy expenses, cancer benefit, etc., as per the terms
          commencement of the policy, though terms and conditions  and conditions of the respective policies was carried out. It
          of the policy (New India Floater Mediclaim Policy) stated that  was found that there was excess settlement of Rs. 1.65 crore
          no claim will be payable for any illness contracted during the  (729 claims for Rs. 1.24 crore - M/s Tata Consultancy Services
          first 30 days of the commencement date of the policy.  Limited and 275 claims for Rs. 40.98 lakhM/s Cognizant
                                                              Technology Services Ltd.) by NIACL to the beneficiaries under
          4. Excess payments due to non-recovery of Co-       the two  group health insurance policies. In OICL,  Audit
                                                              noticed that in 86 out of 378 claims settled in two policies
          payment
                                                              towards treatment for cataract, the capping limit was not
          Co-payment is a cost sharing requirement under a health
                                                              applied which resulted in excess settlement of Rs. 5.04 lakh.
          insurance policy which provides that the policyholder/ insured
          will bear a specified percentage of the admissible claims
                                                              6. Claim settlements under domiciliary hospital-
          amount. Audit noticed that in NIACL the terms and conditions
                                                              ization
          of group policy of one major group client (M/s. Cognizant
                                                              IRDAI vide its circular regarding guidelines on standardization
          Technology Services Limited) contained the 'Co-payment'
                                                              of Health Insurance defines domiciliary hospitalization as
          clause as per which the amount to be deducted from the
                                                              medical treatment for an illness/ injury in the normal course
          admissible claim amount was 10 per cent in excess of Rs. 1
                                                              which would require care and treatment at a hospital but is
          lakh for self or employee and 20 per cent for dependents on
                                                              actually taken while confined at home, provided where the
          the entire admissible amount. Data analysis revealed that in
                                                              condition of the patient is such that he/ she is not in a condition
          275 claims co-payment was not deducted and  excess
                                                              to be moved to a hospital, or the patient takes treatment at
          payment of Rs. 84.36 lakh was made. This was confirmed
                                                              home on account of non-availability of room in a hospital.
          during test check of 5 sample cases out of 275 such claims. In
                                                              The said circular defines OPD treatment as the one in which
          respect of retail claims, Audit carried out data analysis of
                                                              the insured visit a clinic/ hospital or associated facility like a
          claims settled in respect of Senior Citizen Mediclaim Policy
                                                              consultation room for diagnosis and treatment is taken based
          and New India Sixty Plus Mediclaim Policy and also test
                                                              on the advice of medical practitioner.
          checked 700 claims out of 12,621 claims from the website of
          10 TPAs28 and claim links provided to Audit. Out of 700 claims,
                                                              The insured is not admitted as a day care or in-patient. Test
          in 117 claims (53 Senior Citizen Mediclaim Policy claims and
                                                              check of domiciliary claims in NIACL revealed that 242 claims
          64 New India Sixty Plus Mediclaim Policy claims) TPAs did not
                                                              29 out of 1,154 claims were for OPD treatment but these
          deduct the applicable co-payment amount leading to excess
                                                              were settled by showing them as domiciliary claims. The
          payment of Rs. 7.71 lakh. This indicated that IT system
                                                              claims were of group policy issued to M/s TATA Consultancy
          validation to verify application of co-payment clause was not
                                                              Services Ltd. (TCS) and M/s. HPCL Mittal Energy Ltd (HMEL)
          prevalent in the TPA's end as well as NIACL's end.
                                                              under which OPD treatment was not covered.
          5. Breach of capping on specific diseases
                                                              7. Non-adherence to network agreed rates
          As per terms and conditions of policy, claim amount for specific
                                                              Regulatory clause 20(1) to (5) of IRDAI (TPA - Health Services)
          diseases/ procedures would be capped at rates mentioned in
                                                              Regulations, 2016 provide for agreements between a TPA,
          the policy. Data analysis was carried out to verify application
                                                              an insurer and a Network Provider. Accordingly, PSU insurers/
          of the capping for a common disease viz. cataract, for which
                                                              TPA have negotiated  and entered into  agreements  with
          the capping amount ranging from Rs. 10,000 to Rs. 50,000
                                                              certain network hospitals for various medical/surgical
          was fixed in 13 out of 19 individual products of NIACL. It was
                                                              procedures at agreed rates. In this regard, Audit observed
          found that the capping of claim amount for cataract was not
                                                              that in respect of 19 claims out of 2,176 claims, there were
          applied in 1,389 retail claims (pertaining to 12 individual
                                                              variation between the rate allowed by the TPAs and agreed
          products) and there was excess payment of Rs. 2.33 crore
                                                              rate. Further, it was observed that certain items which were
          due to breach of the ceiling amount. This was confirmed
                                                              part of the package rate such as doctor's fee, room charges
          during test check of 43 claim records. Data analysis of group
                                                              and investigation charges, etc., were charged additionally
          health insurance policies of two major group policy clients of
                                                              thereby resulting in excess payment. Charging higher rates
          NIACL viz. M/s Tata Consultancy Services Limited and M/s
                                                              and additional charges resulted in excess settlement of claims
          Cognizant Technology Services Ltd. with specific reference
                                                              amounting to Rs. 12.60 lakh.
          to capping for certain diseases such as maternity and infertility
          treatment,  cataract  expenses,  joint  replacements,
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