The Insurance Regulatory and Development Authority of India on Sunday said that it had decided to scrutinize the matter, of insurance Companies stopping the cashless capability for hospitalization of patients to mediclaim policy holders.

After a brief discussion with the concerned stakeholders, a suitable action would be taken on the subject, IRDA chairman Hari Narayan said. He further said that they were busy gathering information from the insurers.

The move by insurance Companies to pull out the facility of cashless hospitalization has left the middle-class in a reel.

At least 18 insurance Companies, along with public sector entities, had stopped the cashless mediclaim plan facility and closed straight payment of treatment charges to high-end hospitals in Delhi, NCR and at other metros like Mumbai, Bangalore, Kolkata and Chennai from July 1.

Rajesh Kumar, a resident of North Delhi complained "It's a breach of trust. I availed the mediclaim policy for a year and paid Rs 30,000 for my family members where they offered me cashless hospitalization. How can they write-off the agreed contract”.

Mediclaim policy holders, who wish to benefit from the facilities at these hospitals, will now have to pay. Only then can they claim the amount from the insurer with no assurance that the full amount would be compensated.