IFFCO Tokio insurance issue
Excelsior Correspondent
Srinagar, Sept 11: High Court today while staying the contempt proceedings against IFFCO Tokio General Insurance Company Limited initiated by State Health Authority (SHA) for failing to continue with the contract as per court directions, directed the Government to utilized the premium amount of Rs 427 crores lying with it for reimbursement of medical claims till the matter is resolved.
The Division Bench of Justice Sanjeev Kumar and Justice Sindhu Sharma stayed the proceedings in the contempt matter initiated by SHA last week for the time being. The bench in a major relief for the patients who are getting treatment under Golden Card Scheme directed the Government to utilize the premium amount of Rs 427 crores which is lying with the Government for reimbursement of medical claim.
The court has made it clear that the utilization of amount shall be subject to the outcome of the appeal. The insurance company (IFFCO Tokio) through senior counsel Z A Shah with Salih Peerzada moved appeal before the Division Bench against the single bench verdict on August 28 whereby the appellant-company was directed to continue with the existing arrangement of providing insurance under Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) as per the terms and conditions of the contract made between the company and SHA.
The single judge had directed the Insurance Company to continue temporarily with the existing arrangement as per terms and conditions of the contract agreement pending resolution of dispute by the Arbitrator.
The Company refused to continue with the contract which amounts to contempt of court and the SHA initiated contempt proceedings for flouting the single judge verdict. However, the company challenged the verdict in the instant appeal.
Follow our WhatsApp channel
