In the absence of valid ceiling, full medical expenses to be reimbursed to Govt. employee: Himachal Pradesh HC

In the absence of valid ceiling, full medical expenses to be reimbursed to Govt. employee: Himachal Pradesh HC

The Himachal Pradesh High Court, in Ishwar Dass vs. State of H.P. (CWPOA No. 6723 of 2020) case, on June 18, 2025, dealt with a case concerning medical reimbursement claimed by a government employee for Rs. 2,93,295, which he spent on his wife’s knee replacement treatment at PGIMER, Chandigarh. The authorities, however, reimbursed only Rs. 2,08,495/-, relying on a 1995 Central Government Office Memorandum that capped the permissible reimbursement for knee implants at Rs. 60,000/-. The Court, while examining this, observed that the said memorandum had expired in 2000 and that no valid or adopted state policy prescribing such ceilings was in force at the time of the treatment in 2016. It was further clarified that although a circular with revised ceilings had been issued in 2017, the same could not be applied retrospectively to this case. In light of the absence of any applicable reimbursement ceiling during the relevant period, the Court concluded that the petitioner was entitled to full reimbursement. Accordingly, the state was directed to release the outstanding amount of Rs. 84,800/- by July 30, 2025, failing which the amount would carry 6% annual interest from the date of bill submission, i.e., October 22, 2016, until payment.

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