In January 2023, the Kerala High Court stated that COVID first line treatment centers must be regarded as hospital for the purposes of insurance coverage.
The decision followed a petition by an Insurance Company which refused to pay a policyholder who had been treated at a first line treatment center. According to the insurance policy, the company agreed to pay a sum to patients testing positive for COVID-19 and undergoing hospitalization for at least 72 hours continuously. According to the company, first line treatment centers could not be considered hospitals and therefore were excluded from the insurance policy’s coverage.
The Court, however, stated that every establishment designated by the government as hospital should be regarded as hospital for insurance purposes too, and therefore dismissed the company’s petition.