Time Limit Set for COVID-19 Ex Gratia Claims; Sample Scrutiny Ordered

A High Court judgment has established a deadline for claiming ex gratia payments for COVID-19-related deaths and mandated a sample scrutiny of claims to prevent fraudulent applications.

The court's order, delivered by Justice M.R. Shah , addresses an application by the Union of India's Ministry of Home Affairs seeking modifications to previous orders regarding the distribution of ex gratia compensation for COVID-19 deaths. The original orders, dated June 30, 2021, and November 29, 2021, directed the payment of ex gratia compensation. The Ministry, citing a surge in claims, expressed concerns about the potential for fraudulent applications.

The Ministry's Concerns and the Court's Response

The Ministry highlighted the receipt of approximately 738,610 claims. They argued that with the pandemic largely subsided, all genuine claimants should have already applied and that an indefinite application period would invite false claims. The Solicitor General suggested a four-week deadline.

The court, while acknowledging the need for a deadline, deemed a four-week timeframe too short. Considering the time needed for grieving families to process their loss and file claims, the court established a 60-day deadline for claims related to deaths before March 20, 2022, and a 90-day deadline for future deaths from the date of death. The existing 30-day processing period for claims remains in effect.

Addressing Potential Fraudulent Claims

The judgment also addressed the serious issue of fraudulent claims. It emphasizes that making a false claim is punishable under Section 52 of the Disaster Management Act, 2005, which carries a penalty of up to two years' imprisonment and a fine.

To combat this, the court ordered a random scrutiny of 5% of the claim applications from Andhra Pradesh, Gujarat, Kerala, and Maharashtra. The Ministry of Health and Family Welfare will conduct this scrutiny, assisted by the respective states, within three months.

The court further directed that any claimant facing extreme hardship in meeting the deadline can appeal to a Grievance Redressal Committee for consideration on a case-by-case basis.

Public Awareness and Future Implications

The court mandated wide publicity of the order through print and electronic media for six weeks to ensure claimants are aware of the new deadlines.

This judgment sets a crucial precedent for managing the distribution of ex gratia payments in the wake of large-scale disasters, balancing the need for timely and efficient distribution with measures to prevent fraud. The sample scrutiny ordered could serve as a model for other similar situations, highlighting the importance of accountability and transparency in disaster relief efforts.