🆕Proposed resolution process

Proposed process guidelines for dispute resolution

Objectives

  • Build a better dispute resolution experience for digital claims

  • Aim for 95% of the claims disputes related to the scope as outlined in the document for Phase 1 to be resolved before reaching IGMS/ombudsman

In subsequent phases, the dispute resolution system referred to in this document would aim to integrate with the dispute resolution processes instituted by IRDAI to provide a comprehensive dispute resolution process for the ecosystem.

Process

Key idea of the process given below are:

  • The HCX resolution platform implementation should aim to provide a single window (digital) to log all disputes and track status

  • All participants in the HCX ecosystem should adhere to lodging all disputes mentioned in the scope through the HCX resolution platform only

The following table provides an illustration of steps and SLA time for HCX network dispute resolution. Please note that it is intended to serve as a guide and may be further extended/customised by teh HCX oeprators to suit the ecoystem needs.

Step

Process

Proposed Timeline

Participants

1

Dispute is lodged

Day 0

Complainant, HCX, Defendant

2

Parties in the dispute are informed. Parties

  1. Provide information to the discovery file

  2. Provide consent to get information from third parties including HCX switch operator to populate the discovery file

  3. In-built consent from complainant

Day 2

3

Discovery file is created with inputs from all parties involved

Day 5

4

Fast track (Faceless Only) Arbitration facilitate by empanelled arbitrators :

(1st Level)

  • Responses and counter arguments from the defendant and complainant. (there should be limit to frequency (maximum two times) of queries to be raised by insurer , as it will be difficult for the claimant to respond multiple times )

<Link to FTA section>

Day 15

Complainant, Defendant, Arbitrator

Activities to aid dispute resolution

  • Contractual agreement from all the stakeholders to adhere to the terms and conditions of HCX dispute resolutions framework.

    • Reference contractual templates for Terms of Use and proposed addendums to Payer-Provider and Payer-Policyholder contract have attempted to cover these aspects in a contractual format to help seed the ecosystem.

  • Escalation SOP for entities not satisfied with HCX dispute resolution

  • Decision needs to be taken on the scope of HCX dispute resolution

    • Limited to arbitration

    • Enforcement of penalties on non-adherence of arbitration awards (Setting-up of TATs on acknowledgment, acceptance and implementation of arbitration awards)

    • Enforcement of compliance (linked to adjudication, hence may not be in the scope)

HCX Switch Considerations

The HCX switch needs to take into consideration the below mentioned points to play an effective role in dispute resolution

Data storage: Data has to be stored by the HCX switch for a minimum period of [5 years] to be able to provide data for any dispute resolution. Disputes on insurance claims in India can be filed upto a maximum of 3 years (Claim dispute comes under limitation act, and for three years if the customer doesn’t say anything he is said to have waived off his rights. Unless of course he has solid ground. Insurers need to maintain record for at least [5 years].)

*[] indicate the recommended value of the time period, however it may differ based on the context.

Next steps

An effective and comprehensive digital dispute resolution system is vital to the success of HCX. While this document refers to the first phase - commercial health insurance for in-patient procedures, the end goal is to resolve a majority of insurance claims related disputes before it reaches the legal system. Initiatives like integrating with various existing and emerging grievance resolution mechanisms in the insurance and healthcare ecosystem is important for HCX to achieve this vision.

Keeping this in mind, the policy guidelines workign groups would keep working to evolve the guidelines based on ecosystem needs. It would mainly cover following aspects:

  1. Further simplification and posiible automation of the process

  2. Broadening of scope for other use cases - reimbursement, OPD, etc.

  3. Integration of HCX scope into the larger ecosystem process like insurance ombudsman and other upcoming grievance redressal system in healthcare

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