Page 47 - The Insurance Times May 2021

LEGAL

Vehicle Insurance

HC refuses to stay circular on mediclaim The plea said the service condition of the employees of the
4 public sector insurance companies are similar to that of
premium, asks insurance companies to LIC, so, GIPSA cannot formulate a policy whichopposes the
respond to plea public policy.
The Delhi High Court has recently refused to stay the The HC has listed the matter for further hearing on August
February 21 circular of General Insurance Public Sector 19 and declined to stay the implementation of circular at
Association by which mediclaim premium of serving and this stage.
retired employees of 4 PSU insurance companies have been
increased. Tamil Nadu woman burns husband alive
The HC, however, sought response of the Centre and GIPSA to claim insurance money
and 4 PSU insurance companies on a plea challenging the
circular increasing the existing premium by loading at A 57-year-old woman allegedly connived with one of her
47.75% in existing mediclaim premium. The circular has relatives to kill her 62-year-old husband, in order to claim
Rs. 1.3 crore as insurance in Tamil Nadu. The police
come into effect from April 1, 2021.
arrested the duo on murder charges.
Justice Prathiba M. Singh has issued a notice to the Centre,
GIPSA, National Insurance Company Limited, New India According to reports, the deceased was identified as K.
Insurance Company Limited, United India Insurance Rangaraj, a resident of Thudupathi in Erode district. He
owned a power loom unit. On March 15, 2021, he got
Company Limited, and Oriental Insurance Company Limited
injured in an accident, following which he was taken to a
on a plea by Bhartiya Bima Mahasangh, an association of
employees working with the 4 insurance firms and Life private hospital in Coimbatore for treatment. The hospital
Insurance Corporation. discharged him and his wife R. Jothimani and relative Raja
made him sit in a van, and the trio began their journey to
The petition said that the 4 insurance companies have Thudupathi.
increased the premium rate for mediclaim policy for the
employees with effect from April 1, 2021 and added that if According to a police officer, "When the vehicle reached
the increased premium rate is not stayed, they will have to Valasupalayam near Perumanallur around 11:30 pm, Raja
stopped the vehicle. Raja and Jothimani got down from the
pay very huge amount.
vehicle, doused it with petrol and set it on fire. Rangaraj
It said that GIPSA has illegally and arbitrarily increased the was burnt alive."
existing premium by loading at 47.75% in existing mediclaim
premium. It claimed that the increase in premium rate is "On early Friday morning, Raja informed the Tirupur rural
police about the death, which he said was an accident,"
notarbitrary and illegal, but also discriminatory as the LIC
the police further added.
has not increased any percentage in the premium in respect
of their employees and maintained the existing rate of However, the police grew suspicious on Raja as he gave
premium without any change. inconsistent responses. The police came to know that Raja

The Insurance Times, May 2021 47