Mahima
The Delhi High Court bawled out on insurance regulator IRDAI for conniving towards non-implementation of Mental Healthcare Act by insurance companies.
Justice Pratibha M. Singh stated that the Insurance Regulatory and Development Authority of India (IRDAI) was obliged to supervise the insurance companies in complying with the law.
Justice Singh said, “I am clearly getting the feeling that IRDAI is not taking action against insurance companies and only taking steps once court issues notice. It is very unfair what is going on. IRDAI cannot become blind to what is happening. The day is not far when action will have to be taken against IRDAI”.
The Court was hearing a woman’s Plea whose claim for reimbursement pf costs for treatment of schizophrenia was rejected by the National Insurance Co. Ltd. (NICL).
NICL rejected the claim on the ground that psychiatric disorders are not included into medical cover.
The Court stated that the Act was enacted around three years ago which clearly establishes that insurance companies cannot distinguish between mental and physical illness.
The Court observed that it is the duty of IRDAI to ensure that the policies of insurance companies are in accordance with the Act.
The Court further asked the regulator to call for reports from other insurers regarding any similar claims.