New Delhi : The Delhi High Court has ruled that while patients who suffer due to delays in insurance claim settlements may seek compensation for mental harassment, such incidents do not amount to criminal offences.
Justice Neena Bansal Krishna made the observation while dismissing a petition filed by an advocate who accused Max Super Speciality Hospital and its staff of cheating, wrongful restraint, and misappropriation of funds during his treatment for Cysticercosis.
The petitioner claimed that despite having a cashless insurance policy, he was forced to deposit an advance of Rs 1.45 lakh before surgery, as the hospital had received a pre-authorization for only Rs 75,000 from the insurance provider. He further alleged that the hospital withheld a portion of the advance payment even after the insurer approved full coverage.
The Court, however, found no fraudulent or dishonest intent on the part of the hospital. “It may seem to be an onerous condition, but definitely cannot be stated to be extraction of money nor can any dishonesty or fraudulent intention be attached to Max Hospital in this regard,” the order stated.
The judge emphasized that such situations, although distressing for patients, are not uncommon and are often caused by procedural delays from insurance companies. “Their harassment gets compounded by the fact that they come out of a trauma of an ailment under treatment but even for discharge, there are long drawn procedures for settling the bills,” the Court remarked.
The High Court concluded that no offences under IPC Sections 342, 420, 406, 34, or 120B were made out and upheld the discharge order previously passed by the Additional Sessions Judge.
Advocate Nitin Mehta appeared for the petitioner, while APP Shoaib Haider represented the respondents.
