Queency Jain-
The Bombay High Court has granted a stay on the rejection made by the “New insurer” to the petitioner who resides in Mumbai in regards to covering mental health in the health insurance policy and had allowed him to approach the “Existing insurer”, for the time being, to ask for an extension of his policy.
A Division Bench of Justices SC Gupte and MS Karnik allowed the petition observing it to be in the interest of justice.
The relief granted by the Bench comes after the Court observed that despite giving notice, both the insurance companies failed to appear in the Court and if no immediate relief will be granted to the petitioner, it will be unjust and cause great harm to him.
The petitioner had a health insurance policy with Oriental Health insurance Company and was willing to transfer the same to a private insurer Star Health and Allied Insurance Company (SHAIC) Ltd., but the transfer was rejected by SHAIC on the ground that the petitioner had a mental disorder.
Realizing that the existing policy was to be expired on 28 June, the petitioner approached the Court on 17 June for relief thereby stating that the Insurance Regulatory and Development Authority of India (IRDAI) has duly passed an order dated 16 August, 2018 directing all insurance companies to follow the Section 21(4) of the Mental Healthcare Act.
While Section 21 explicitly talks about including mental illness to be treated equally as physical illness, the petitioner contended that the rejection of his proposal by SHAIC was unjust on their part.
Considering the facts of the case, the Court after granting relief by staying the rejection by the new insurer, directed the petitioner to approach his existing insurance company and extend his policy for the time being, without changing any conditions of the policy, as given in the regulations issued by IRDAI on policy portability in 2016.
The matter is listed for further hearing on 28 July.
