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HC directs for cover for Genetic Disorders
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Why is it in news?
- In a significant judgment, the Delhi High Court termed “unconstitutional” discrimination in health insurance policies of individuals with genetic disorders.
Details
- SC observed that a person suffering from a genetic disorder needed medical insurance as much as others. Genetic disorders have been the source of debate in the health insurance sector.
- Most policies have exclusionary clauses that deny clients’ claims if they suffer from such disorders. The verdict could open up a large number of ailments as claimable under medical insurance.
- The exclusionary clause of ‘genetic disorders,’ in the insurance policy, is too broad, ambiguous and discriminatory — hence violative of Article 14 of the Constitution. The court directed the Insurance Regulatory Development Authority of India to re-look at the exclusionary clauses in insurance contracts and ensure that insurance companies do not reject claims on the basis of exclusions relating to genetic disorders.
- It was also highlighted that there are different types of genetic disorders and even common diseases like diabetes and cardiac diseases could be included in the broad definition.
- The High Court’s verdict came on a petition filed by United India Insurance Company Limited challenging an order passed by a trial court here directing it to honour the medical claim of a person who was suffering from genetic disorder.
- The court remarked that insurance companies are free to structure their contracts based on reasonable and intelligible factors which should not be arbitrary and in any case cannot be ‘exclusionary’.
Conclusion
- This verdict will provide a sigh of relief to many people in India.
- It will remove the arbitrariness and ambiguous nature of insurance companies and will ensure non discrimination in cases of obtaining claims.
- It will have a positive impact on the health insurance sector of the country and it will give many more people the confidence to insure themselves, who were, till now, out of the insurance net due to the discriminatory and arbitrary nature of insurance companies.
Source
The Hindu