Consumables Deducted From Hospital Bill: Gloves, Syringes, PPE and Other Charges

Part of the Health Insurance Claim Recovery Series by RightToInformation.Wiki.

“Consumables” or “non-medical items” deducted by your insurer cover items like gloves, masks, syringes, PPE kits and toiletries. IRDAI's 2020 standardisation list and the 29 May 2024 Health Insurance Master Circular set out which items are payable, which are non-payable, and when a consumables rider must restore them.

In Indian hospital billing, the word consumables covers every single-use item that is opened, used and thrown away during an admission. These are different from drugs, which are billed separately, and different from implants, which carry their own line. The most common consumables on an inpatient bill are surgical gloves, face masks, syringes, gauze rolls, cotton, bandages, IV cannulae and tubing, urinary catheter bags, surgical drapes, OT linen, PPE kits, sterilisation pouches, ECG electrodes, suction bottles, and oxygen masks. Hospitals often add toiletries (soap, towels, tissue, slippers), food trays for the attendant, telephone or TV usage, and small admission and registration fees in the same broad bucket and call them non-medical items.

Most standard indemnity health policies historically excluded the consumables bucket as non-medical items. The IRDAI Insurance Regulatory and Development Authority of India tightened the rules in 2020 by issuing a standardisation list. The list split items into two groups, items that the insurer must pay (Annexure 1) and items that the insurer may exclude unless the policy says otherwise (Annexure 2). The 29 May 2024 Master Circular on Health Insurance Business updated the position again, made the medical-necessity test sharper, and pushed insurers to offer a paid Consumables Cover rider that restores most of the Annexure 2 cuts. So the answer to “are consumables covered” is no longer a flat yes or no. It depends on which list the item sits on, whether the rider is active, and whether the item was medically necessary during inpatient treatment.

The IRDAI 2020 standardisation order grouped items as below. The list is binding on every health insurer in India.

• Annexure 1, payable items (insurer must pay). Drugs and pharmacy used during admission, surgical disposables actually used in a procedure, lab investigations, dressings, OT and anaesthesia charges, oxygen and oxygen masks during use, diagnostic imaging, implants used in surgery, blood storage and processing fees, ICU charges, doctor and surgeon fees within package, room rent within the eligible limit.
• Annexure 2, non-payable items by default (insurer may exclude). Toiletries (toothpaste, soap, towels, shampoo, slippers, comb), attendant food trays and attendant bed, telephone, TV and WiFi usage, laundry charges, gloves and masks used for outpatient procedures, certain admin and registration fees, mortuary and ambulance crew tips, body bag, washing charges, and similar amenity items.
• Optional with Consumables Rider. Gloves, masks, PPE kits and syringes used for inpatient procedures, surgical gowns, sterilisation packs, single-use suction tubing, single-use catheter sets, certain diagnostic disposables. If the policy carries a Consumables Cover rider, these jump from non-payable to payable.

The full list is published on the IRDAI policyholder portal at policyholder.gov.in. A copy is also available with every insurer's claims department, and the citizen has a right to demand it. After the 29 May 2024 Master Circular, insurers cannot deduct an item that sits on Annexure 1, and they cannot deduct an Annexure 2 item without first checking whether a Consumables Rider was active on the policy.

A consumables deduction is legitimate, and not worth a fight, in three narrow cases.

• The item sits on the IRDAI Annexure 2 non-payable list AND the policy carries no Consumables Cover rider. Toiletries are the classic example.
• The item is a pure amenity, not linked to treatment. Examples are toothpaste, soap, towel, slippers, comb, mouthwash, shampoo, attendant food and attendant bed.
• The item is a comfort charge. Telephone bills, WiFi, TV channel rental, laundry, and similar room amenity items are excluded by default in every standard indemnity policy.

In all three cases the insurer can still be asked to send the deduction sheet with the line item flagged, but the cut itself is not a winnable challenge unless the policy schedule clearly bought back that item. The citizen should accept the cut, move on, and channel the time into the larger Annexure 1 lines where restoration is realistic.

A useful mental rule is to look at the per-line value first. If a deducted toiletry line is under Rs 500, the time-and-effort cost of a challenge is usually larger than the recovery. If a single consumable line is over Rs 2,000 and labelled gloves or PPE or OT consumables, that one line is almost always worth a written challenge even before pulling the full Annexure print-out. The pattern of where insurers actually concede most often in India is exactly this band, mid-value disposables used in OT, ICU and procedure rooms.

Most consumables deductions in India fall in this bucket. Each of the following gives the citizen a real legal lever.

• Item sits on Annexure 1 of the IRDAI list. The insurer cannot cut a payable item. Common Annexure 1 items wrongly cut are anaesthesia and OT consumables, dressings used in a procedure, IV sets used during admission, ICU disposables, and oxygen mask charges during use.
• Item is medically necessary during an inpatient procedure. The 29 May 2024 Master Circular applies a medical-necessity test. If the surgeon's note, OT chart or anaesthesia chart shows that the item was used directly during treatment, the insurer must pay even if the item sits on Annexure 2.
• Item used directly during surgery. OT gloves, surgeon's PPE, surgical drapes, sterile gowns, sterile sheets and OT linen are inseparable from the procedure. The insurer cannot bill the procedure as payable and the disposables used inside the same procedure as non-payable.
• Insurer cuts without an itemwise breakdown. A lump-sum deduction labelled “consumables and non-medical items” without a line listing is not a valid deduction under the IRDAI grievance redressal rules. The citizen can demand restoration on this single ground.
• Item is not on either Annexure. If the item does not appear on Annexure 1 or Annexure 2, the insurer carries the burden to justify the cut with a written basis, not just “as per policy”.
• COVID-era PPE for high-risk procedures. The IRDAI clarification of June 2020 confirmed that PPE kits, masks and gloves used for treating COVID patients or high-risk inpatient procedures are payable.
• Consumables Rider was active and ignored. If the rider premium was paid for the year, the insurer must apply it. A blanket consumables cut on a rider policy is a clear deficiency in service under the Consumer Protection Act 2019.

1. Pull the deduction sheet. Open the settlement letter or settlement summary and tag every line that reads consumables, non-medical items, surgical disposables, OT consumables, ward consumables, ICU consumables, or sundries.
2. Cross-check each line against IRDAI Annexure 1 and Annexure 2. A printable copy of both annexures is on the IRDAI policyholder portal at policyholder.gov.in. Mark each line as Annexure 1 (must restore), Annexure 2 (depends on rider), or not listed (insurer must justify).
3. Check the Key Feature Document for a Consumables Cover rider. Open the policy schedule and the KFD. Search for the words consumables, non-medical items, rider or add-on cover. If the rider was paid for, every Annexure 2 item on the deduction sheet must be restored.
4. Email the grievance officer and TPA the same evening. Subject line: “Consumables deduction challenge, Claim ID [CLAIM ID]”. Attach the itemwise bill, the IRDAI annexure print-out, and the policy schedule page that shows the rider.
5. Mark a 15 working day calendar entry. If a reasoned reply does not land in that window, file at IRDAI Bima Bharosa the same evening.

A single email beats five back-and-forth replies. Put every ask in one record.

• “Send the deduction sheet listing each consumable item separately with the amount cut against each.”
• “For each deducted item, state whether it appears on IRDAI Annexure 1 (payable) or Annexure 2 (non-payable).”
• “For items that do not appear on either Annexure, state the basis for non-payment with the exact policy clause.”
• “Confirm in writing whether the Consumables Cover rider was active for the period of admission.”
• “Apply the medical-necessity test under the IRDAI Health Insurance Master Circular dated 29 May 2024 to every inpatient consumable used during a procedure.”
• “Provide the OT chart and anaesthesia chart citations relied on for each non-payment decision.”
• “Confirm the grievance ticket number and the 15 working day reply date under the IRDAI grievance redressal mechanism.”

Subject: Consumables deduction challenge - Claim ID [CLAIM ID], Policy [POLICY NUMBER]

To: [Insurer Grievance Officer email]
Cc: [TPA email]

Dear Sir / Madam,

The settlement for claim [CLAIM ID] under policy [POLICY NUMBER] applies deductions on the following consumables that I believe are payable under IRDAI's 2020 standardisation list (Annexure 1) and the IRDAI Health Insurance Master Circular dated 29 May 2024:

1. [Item] Rs [Amount]
2. [Item] Rs [Amount]
3. [Item] Rs [Amount]

I request the following within 15 working days.

1. The Annexure (1 or 2) classification cited for each deducted line.
2. The medical-necessity basis for items not on either list.
3. Restoration of payable items totalling Rs [Amount].
4. Confirmation whether the Consumables Rider was active for the period of admission.

Policy: [POLICY NUMBER]
Claim ID: [CLAIM ID]
Hospital: [HOSPITAL NAME]
Admission: [DATES]
Total bill: Rs [AMOUNT]
Settled: Rs [AMOUNT]
Consumables shortfall: Rs [AMOUNT]

If a reasoned reply does not arrive in 15 working days, I shall file at IRDAI Bima Bharosa and Insurance Ombudsman.

Regards,
[Your Name]
[Phone] [Email]

• No reasoned reply from the grievance officer within 15 working days of the dated email.
• Reply arrives but does not classify each deducted line as Annexure 1 or Annexure 2.
• Items that clearly sit on Annexure 1 (OT consumables, dressings used in procedure, IV sets, ICU disposables) are still deducted after the challenge.
• Consumables Cover rider was paid for but the insurer ignores it on every deducted line.
• Reply relies on stock language like “as per policy terms” or “non-medical items” without a per-line basis.
• Reply refers to an internal grid or in-house list instead of the IRDAI Annexures.
• Bank credit advice and settlement letter do not match the figures on the deduction sheet.

Complaint route:

Insurer Grievance Officer (15 working days) → IRDAI Bima Bharosa (https://bimabharosa.irdai.gov.in, 15 working days) → Insurance Ombudsman (https://www.cioins.co.in, 30-day SLA, free, ≤Rs 50 lakh, binding on insurer) → Consumer court via edaakhil or consumer court

The IRDAI toll-free numbers 155255 and 1800-4254-732 can be used for a verbal grievance ticket if email access is hard, but always follow up with a written email the same day. The Insurance Ombudsman award is binding on the insurer once the citizen accepts it. The District Consumer Commission via edaakhil is the right forum if the amount is small and the citizen prefers a court route over the Ombudsman.

• IRDAI 2020 standardisation order on non-medical items. This is the founding document. It split inpatient billing into Annexure 1 (payable items the insurer must restore) and Annexure 2 (non-payable items the insurer may exclude unless the policy buys them back). The order is binding on every health insurer licensed to operate in India.
• IRDAI Health Insurance Master Circular dated 29 May 2024. This circular updated the medical-necessity test, asked insurers to publish a clear Consumables Cover rider, and clamped down on blanket non-medical items deductions without a per-line basis. It is the most important reference for any post-2024 claim challenge.
• IRDAI clarification on COVID treatment, June 2020. PPE kits, gloves, masks and oxygen masks used in treating COVID positive patients or in high-risk inpatient procedures are payable. This clarification has not been withdrawn and continues to govern post-COVID consumables disputes.
• IRDAI (Protection of Policyholders' Interests) Operations Regulations 2024. Every claim decision, including a part settlement with consumables deductions, must be communicated in writing with reasons. The insurer has 15 working days to respond to a written grievance.
• Insurance Act 1938, section 45. The insurer cannot reduce or repudiate a claim on the ground of misstatement or non-disclosure after three years from policy issue, unless fraud is proved. This shuts down many late-stage consumables disputes that an insurer tries to dress up as non-disclosure.
• Consumer Protection Act 2019, section 2(11). A short-paid claim without per-line reasons is deficiency in service. The citizen can file before the District Consumer Commission via edaakhil.
• Insurance Ombudsman Scheme, Redressal of Public Grievances Rules 2017. Free, claim cap of Rs 50 lakh, 30-day decision clock, award binding on the insurer once accepted by the citizen.

• Accepting “consumables not covered” as a final answer without asking for the Annexure classification.
• Not pulling Annexure 1 and Annexure 2 from the IRDAI portal before drafting the challenge email.
• Forgetting to check the policy schedule and KFD for an active Consumables Cover rider that was already paid for.
• Filing at Bima Bharosa without first demanding the itemwise breakdown from the insurer.
• Missing the one-year limitation for an Insurance Ombudsman complaint, which starts from the final rejection or part settlement letter.
• Letting the hospital release the patient without an itemised bill, after which line-by-line challenge becomes very hard.
• Treating OT consumables, anaesthesia disposables and ICU disposables as non-medical items. They are payable under Annexure 1.
• Dropping the matter after one polite refusal. The 15 working day clock under the IRDAI grievance redressal mechanism only ticks against a written grievance.

Gloves and syringes used during an inpatient procedure are payable under IRDAI Annexure 1 read with the 29 May 2024 Master Circular. Gloves used for an outpatient procedure or a non-treatment context can be excluded. A Consumables Cover rider restores most gloves and syringes lines that the standard indemnity policy would otherwise exclude.

Annexure 1 to the IRDAI 2020 standardisation order lists items that every health insurer in India must pay. It covers drugs, surgical disposables used in a procedure, lab tests, dressings, OT and anaesthesia charges, ICU charges, oxygen during use and similar inpatient line items. An insurer that cuts an Annexure 1 item is in breach of the IRDAI grievance redressal rules.

A Consumables Cover rider, also called a Non-Medical Items rider or Boon Cover, is a paid add-on to a base health policy. It restores the Annexure 2 non-payable items like gloves, masks, PPE kits, syringes for inpatient procedures, gowns, sterilisation packs and certain other disposables. The premium is small, often 5 to 10 per cent of the base premium, and most major insurers in India now offer it.

PPE kits used during inpatient procedures or high-risk treatment are payable when the policy carries a Consumables Cover rider, and they are payable even without a rider when the treating surgeon's note or OT chart shows that the kit was medically necessary. The 29 May 2024 Master Circular applies a medical-necessity test that overrides a blanket non-medical label.

No, not in most cases. The IRDAI clarification of June 2020 confirmed that PPE kits, gloves, masks and oxygen masks used in treating COVID positive patients or in high-risk inpatient procedures are payable. The citizen can demand restoration with the discharge summary, the surgeon's note and the IRDAI clarification cited side by side.

Yes, in almost every case. Toothpaste, soap, towels, slippers, shampoo, comb, mouthwash and similar comfort items sit on IRDAI Annexure 2 and are not restored even by most Consumables Cover riders. The citizen should accept these lines and focus the challenge on the larger Annexure 1 cuts.

Generally no. Attendant food trays, attendant bed charges, and attendant tea or snacks are on Annexure 2 and are excluded by default. A very small number of premium corporate group policies pay these, so the citizen should check the policy schedule and KFD before assuming.

The phrase non-medical items is the insurer's shorthand for everything on Annexure 2 of the IRDAI 2020 list. It includes toiletries, attendant food, room amenities, certain admin fees and disposables used outside a procedure. After 29 May 2024, the phrase cannot be used as a blanket reason without first checking whether each line item actually sits on Annexure 2 and whether a Consumables Rider was active.

Yes. Surgical disposables actually used during an inpatient procedure are on Annexure 1 and are payable. This includes IV cannulae, IV sets, gauze, cotton, dressings, anaesthesia disposables, OT linen used during the procedure, suction tubing used in the procedure, ECG electrodes during admission, and similar items. The insurer cannot rebrand these as non-medical items.

The IRDAI Annexure 1 and Annexure 2 lists are common to every health insurer in India. The Consumables Cover rider varies from one insurer to another. So the payable side is largely standard, the rider buy-back side is policy-specific. Always read the policy schedule and the KFD for the exact rider definition before drafting the challenge email.

• Pillar: Full rejection guide
• Hub: Health Insurance Claim Help India
• Claim partly paid: deductions
• Room rent limit deduction
• Proportionate deduction
• Hospital bill deductions
• Insurance Ombudsman complaint format

Part of the Health Insurance Claim Recovery Series by RightToInformation.Wiki.

Last reviewed by RTI Wiki editorial team on 2026-05-16.