Aggrieved by the amended circular issued by the market regulator Insurance Regulatory and Development Authority (IRDA) excluding hospitals having less than 15 beds from medical insurance, body of nursing homes and hospitals, comprising of 7,300 medical consultants from Mumbai and its suburbs and other towns, filed a petition with the Bombay High Court challenging the issued circular, saying that it has changed the definition of hospitals which was there prior to mediclaim introduction in India in 1996, asking for immediate stay on the same. Bombay High Court rejected the plea stating that they would like to hear from IRDA before giving any verdict.
Mr. Avinash Jalisatgi, an advocate of Association of Medical Consultants argued that with this amendment numerous hospitals will be outside the scope of mediclaim preview. Also industry definition of hospital is either it is registered under the Bombay Nursing Homes Registration Act or it should have 15 or more beds in metro cities and 10 or more beds in non metro cities, other conditions remaining the same. He further argued that IRDA had acted without rhyme or reason by excluding hospitals with lesser beds from health insurance and that the circular show favoritism between small and bid hospitals and hence the amended circular be repealed.
IRDA, which has put this new circular effective 1st July 2013, was served with the copy of appeal but was not present for hearing. A division bench of Justices S J Vazifdar and M S Sonak postponed the hearing to 5th July 2013 stating that “it would not be possible to stay the circular without hearing IRDA.”
