No HC Relief To Govt On Key Health Schemes

Dismisses Plea For Restraining Insurance Company From Opting Out Of Contract

Srinagar: The High Court of J&K and Ladakh has dismissed a petition by the government, seeking its direction to temporarily restrain an insurance company from opting out of the contract for implementation of Ayushman Bharat- Pradhan Mantri Jan Arogya Yojana and Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana SEHAT beyond 14 March this year in J&K.

In its plea, the government had sought the directions to the insurance company— IFFCOTOKIO, General Insurance Company Limited—to undertake its contractual liability in the interest of patient care.

Otherwise, it said, at this stage it would have serious consequences for the people as approximately 1200-1500 procedures take place daily in Jammu and Kashmir. It said the general public heavily relies on these schemes for adequate treatment, leading to improved and well organized patient care.

As observed by the court’s single bench of Justice Wasim

Sadiq Nargal, the contract between government and the Insurance Company was executed for a maximum period of three years, commencing from 10 March 2022. However, the court said, IFFCO – TOKIO, General Insurance Company in their letter dated 1st November last year informed that they would like to serve a notice expressing that they are not interested in further renewing the contract after the expiry of the present policy, which ends on 14 March 2024 as per Clause 9.1c of the contract agreement.

In response, the Chief Executive Officer, State Health Agency, J&K (CEO, SHA, J&K), vide communication dated 3rd November, 2023 addressed to the CEO/MD of the Company, requested them to continue as insurer in terms of the Memorandum of Understanding (MOU) signed between the parties.

In response, the General Manager of the Company informed the CEO vide communication on 16th November, 2023 that they have decided not to accord their consent for the renewal of the contract beyond 14th March, 2024.

Subsequently, the court observed, there were multiple correspondence exchanges between the SHA and the Company, whereby, the SHA requested the company to honour the terms and conditions of the contract. The Company replied stating that they are merely invoking clause 9.1 (c) of the contract agreement and in no way are in breach of the terms of the contract.

The SHA, J&K, then invoked clause 41.3 of the contract agreement vide communication on 19 January this year and served notice to the Company for referring