March 20, 2020

Topic: Reimbursement

What is the news?

• The state has a responsibility to provide medical reimbursement.

• It is a great judgement, which would change the way medical bills of government employees are repaid by insurance companies.
• Honourable Justice of Punjab and Haryana High court, Nirmaljit Kaur, has stated that it is the state’s duty to ensure reimbursement.
• The High Court clarified that the state and the insurance company have an agreement between them.
• Also, the premium is also paid by the state.

So, due to this, the state is supposed to procure medical reimbursement from the insurance company and deposit it in the account of the employees.

 What if the insurance company fails to pay the amount?

• Then, the state government would be liable to make payment and recover the amount subsequently ( from the insurance company ).
• In case of any violation of the agreement or the policy, it is the state, who should contest on behalf of the employees.
• This is because the state is the employer as well as the signatory to the agreement.

(Source:- The Tribune)