Consider Designing Health Insurance Products For Persons With Hearing Disability: Delhi High Court To IRDAI

The Delhi High Court has asked the Insurance Regulatory and Development Authority of India (IRDAI) to consider "the manner in which products" of health insurance policy "can be designed for persons with hearing disabilities and implants."

Justice Prathiba M Singh said that IRDAI, while submitting its position to the court, shall consider the existing policies and guidelines as may be applicable to persons with disabilities.

The court passed the order in addition to the directions given in Saurabh Shukla v. Max Bupa Health Insurance Co. Ltd. and Ors., wherein it had asked IRDAI to call a meeting of all insurance companies to ensure that products relating to health insurance coverage are designed for persons with disabilities.

Dealing with a similar case, the court observed that the challenges posed by nature for persons with disabilities, ought to be mitigated by society as a whole which has to lend a helping hand and accommodate their needs.

Accordingly, it ordered: “The IRDAI in its meeting of insurance companies, as directed in Saurabh Shukla (supra) if not already held shall also consider the facts of the present case and consider the manner in which products can be designed for persons with hearing disabilities and persons with implants.”

Justice Singh was hearing a plea moved by parents of a minor son, who is suffering from “Bi-Lateral Hearing Loss”, against denial of a health insurance policy to him.

The minor was prescribed Cochlear Implant for his hearing disability and the parents got the same done on July, 22, 2020, out of their own expense.

Since the parents had a family insurance policy which included their elder daughter, a renewal was sought by them vide an application on June 15, 2020 seeking inclusion of their son as a co-insured after disclosing his condition.

However, Tata AIG General Insurance Company Ltd. refused to issue a policy on the ground that the disability would not be covered under their underwriting policy. It was thus the parents’ case that such a position would be completely discriminatory against persons with disabilities.

The court took note of the response filed by Tata AIG General Insurance Company Ltd. stating that the company is in a position to issue a policy after “permanently excluding the pre-existing condition of the minor child.”

Justice Singh observed that it would, in effect, mean that the minor child “would be unable to obtain a health insurance policy at all”, in respect of his hearing loss or any health issues arising out of it, from the insurance company.

“Prima Facie, in the opinion of this Court, this would be contrary to the provisions in favour of Persons with Disabilities under the Rights of Persons with Disabilities Act, 2016,” the court said.

Furthermore, considering that TATA AIG General Insurance Company Ltd. is part of a “responsible and respected corporate group”, the court said that it is expected that persons with disabilities would be treated compassionately.

“The society in general also has a duty towards persons with disabilities and there is a need to consider and provide for specific products covering disabilities, for such persons,” the court said.

The court directed that the matter be escalated to the higher management of Tata AIG General Insurance Company Ltd. including the Board of Directors, if required, which would consider how persons with disabilities ought to be accommodated by insurance companies.

“A status report in this regard, with the minutes of the meetings and proposals for equitable treatment of persons with disabilities shall be filed, both by Tata AIG and IRDAI, on record by the next date of hearing,” the court said while listing the matter on March 17.

The court also issued notice to the Office of the Insurance Ombudsman and Ministry of Social Justice and Empowerment and sought their responses within six weeks.

Title: NEERAJ MEHTA & ANR. v. TATA AIG GENERAL INSURANCE COMPANY LTD & ORS.

Citation: 2023 LiveLaw (Del) 110

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