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Plea against circular issued by GIPSA, Delhi HC issues notice

ANI | Updated: Apr 05, 2021 13:27 IST

New Delhi [India], April 5 (ANI): Delhi High Court on Monday issued a notice on the petitions challenging the circular issued by the General Insurance Public Sector Association (GIPSA), for increasing the premium rate of Mediclaim policy for Insurance companies staff.
However, Bench of Prathiba M Singh on Monday refused to stay the circular while sought response from the respondents and slated the matter for August 19, 2021.
The plea stated that if the increased premium rate for medical policy for the employees of the petitioner does not stay then they have to pay a very huge amount for Mediclaim policy.
The petition stated that GIPSA, (an association created by 4 Public Sector Insurance i.e, National Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company Ltd.) has illegally and arbitrarily increased the existing premium by loading 47.75 per cent in existing Mediclaim premium.
It is stated that the increase 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.
Petitioner Association through Advocate Mahesh Srivastava stated that the service condition of the employees of 4 public sector insurance companies is similar to the service condition of the employees LIC, therefore, GIPSA cannot formulate a policy that opposes the public policy.
The petitioner 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 Delhi High Court stated that the charging the premium for providing Mediclaim by four public sector insurance companies which are almost double of what is charged by LIC is violative of Section 14 of Constitution of India.
The plea states that to protect the health of the employees is one of the basic condition 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 has not stayed then they have to pay a very huge amount for Mediclaim policy.
The plea states that the amount of the premium in these circumstances may be accepted in quarterly or monthly instalment, so that the retired employees who are were not able to afford and to pay the premium in one instalment, they may not be deprived of the benefits under the health scheme adopted by Insurance companies.
The plea further added that the petitioner association have sent various representation 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 PSU provide Pre and Post Hospitalization for their employees and their dependents by arranging a Staff Group Mediclaim policy with one of the four PSU General Insurance Companies. (ANI)