April 18, 2025 - The Central Government is planning to mandate health insurance companies to approve cashless requests within one hour and settle final claims within three hours. According to sources, the government is considering implementing standards similar to the Bureau of Indian Standards for the insurance sector, to streamline operations within the industry.

Sources indicate that the government is working to make the insurance claim approval and settlement process more digital and transparent through the National Health Claim Exchange (NHCX). In collaboration with the National Health Authority and Insurance Regulatory and Development Authority of India (IRDA), new guidelines are being drafted.

There are also plans to create a standardised and user-friendly claim and application form with the help of a professional agency. This means all hospitals will use the same form, which will help insurers make timely and complete payments.

IRDA had already issued guidelines in 2024 for quick claim settlements, but owing to the increasing number of claims, insurance companies are yet to comply.

Source: Media Reports