New Delhi, Sept. 29 -- The Delhi High Court has ruled that a government circular issued during the COVID-19 pandemic, regulating hospital charges, cannot be construed as limiting the contractual obligations of insurance companies towards their policyholders.

Justice Sachin Datta made the observation while directing United India Insurance Company Limited to release the balance amount to petitioner Reena Goel, whose Covid-19 hospitalisation claim was only partly reimbursed despite being within the insured coverage.

The non-release of the deficit amount is clearly unjustified and contrary to the clarification/s issued by IRDAI, the court noted.

The Court noted that the Delhi government's June 20, 2020, circular was intended to regulate th...