Insurance regulator Irda today expressed hope that the row over withdrawal of the cashless treatment facility at select hospitals by public sector insurance companies will be sorted out shortly.
"Premiere hospitals and insurance companies are meeting to sort out the issue... They can come (up) with the solution today," Insurance and Regulatory Development Authority (Irda) Chairman J Harinarayan told reporters.
Representatives of four public sector companies and private hospitals are holding a meeting here to sort out the problems following withdrawal of the cashless treatment facility by PSU insurers.
New India Assurance, United India Insurance, National Insurance and Oriental Insurance had stopped the cashless service from July 1 because of alleged over-billing by some private hospitals.
"I see that more as a commission transaction problem between the insurance companies and hospitals and their network and not really as a regulatory issue," Harinarayan said.
The regulator, he added, would come into picture if there was breach of contract between the company and the insured person.
"If there is a violation of contract between a policy holder and an insurance company, that certainly is the primary function of Irda to uphold the contract," he said, adding that a fine of up to Rs 5 lakh can be imposed in case of a breach of contract.
