The Insurance Regulatory and Development Authority of India (Irdai) said if a policyholder tests positive for covid-19 and is admitted into a makeshift hospital on the advice of a medical practitioner or government authorities,then notwithstanding the definition of hospital mentioned in the policy contract,the claim shall be settled by insurance companies.

Also,if an insurer’s network provider has arranged for a temporary hospital then such hospital shall be considered as an extension of the network provider and cashless settlement of claims will have to be made available. Third-party administrators have also been asked to take note of this.