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Hike in medical premium by 48 per cent challenged in Delhi HC

Medical Dialogues BureauWritten by Medical Dialogues Bureau Published On 2021-03-31T09:45:00+05:30  |  Updated On 31 March 2021 9:45 AM IST
Hike in medical premium by 48 per cent challenged in Delhi HC
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The petition stated that GIPSA has illegally and arbitrarily increased the existing premium by 47.75 per cent of the existing mediclaim premium.

New Delhi: A union of four insurance companies on Tuesday challenged a circular issued by the General Insurance Public Sector Association (GIPSA), stating that if the increased premium rate for medical policy for employees of the petitioner does not stay then they have to pay a very huge amount for the mediclaim policy.

The petition stated that GIPSA has illegally and arbitrarily increased the existing premium by 47.75 per cent of the existing mediclaim premium.

Also Read: Rajasthan govt health insurance coverage scheme registration to begin from April 1

It stated that the increase by 47.75 per cent in the premium is not only illegal and arbitrary but it is also discriminatory as the Life Insurance Corporation (LIC) has not increased any percentage in the premium in respect of their employees and Life Insurance Corporation (LIC) has maintained the existing the rate of premium without any change.

The petition filed through Advocate Mahesh Srivastava stated that the service conditions of the employees of four public sector insurance companies are similar to the service condition of the employees LIC, therefore, GIPSA cannot formulate a policy that opposes the public policy.

Bhartiya Bima Mahasangh, an employee union of insurance companies involving National Insurance, New India Insurance, Oriental Insurance, United India Insurance, has knocked the doors of the Delhi High Court stating that charging the premium for providing mediclaim policy by four public sector insurance companies which are almost double of what is charged by LIC is violative of Section 14 of the Constitution of India.

The plea states that protecting the health of the employees is one of the basic conditions of the service and that cannot be obliterated in any manner and if the increased premium rate for medical policy for the employees of the petitioner is not stayed then they have to pay a very huge amount for the mediclaim policy.

The plea further states that the amount of the premium in these circumstances may be accepted in quarterly or monthly installment, so that the retired employees who are were not able to afford and to pay the premium in one installment, they may not be deprived of the benefits under the health scheme adopted by Insurance companies.

The petition is scheduled to be heard on April 5, 2021.

The plea added that the petitioner association has sent various representations to the respondents for revoking of the said circular but the concerned respondent has not taken any decision in this regard.

The plea also added that these public sector insurance companies have provided the medical facilities to their working employees as well as retired employees on the basis of their entitlement with an option to the employees to take a package beyond their entitlement by paying the amount over and above the premium fixed for the same.

And these Public Sector Undertaking (PSU) provide pre and post Hospitalisation for their employees and their dependents by arranging a Staff Group Mediclaim Policy with one of the four PSU General Insurance Companies.

Also Read:Delhi: Senior MBBS doctor convicted in cheating case arrested for jumping bail

General Insurance Public Sector AssociationgipsaInsurancemedical premiummedical premium hikedelhi hcmediclaimlichealth
Source : ANI
Medical Dialogues Bureau
Medical Dialogues Bureau

    Medical Dialogues Bureau consists of a team of passionate medical/scientific writers, led by doctors and healthcare researchers.  Our team efforts to bring you updated and timely news about the important happenings of the medical and healthcare sector. Our editorial team can be reached at editorial@medicaldialogues.in.

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