Exclusion of Genetic Disorders in Insurance Policy: Supreme Court (partially) stays Delhi HC judgment

The Supreme Court yesterday partially stayed the Delhi High Court judgement which had ruled that exclusion of “genetic disorders” from insurance policies is unconstitutional..The order was passed by a Bench of Justices Ranjan Gogoi, Navin Sinha, and KM Joseph in an appeal filed by United India Insurance Company against the Delhi High Court judgement passed in February this year..Justice Pratibha M Singh of the Delhi High Court had held that Right to health and healthcare is an integral part of Right to life under Article 21 of the Constitution..The High Court had made multiple observations and granted reliefs in that regard. The judgement had essentially found that exclusion of genetic disorders from insurance policies is discriminatory and violative of Article 14 of the Constitution of India..The Supreme Court yesterday directed that the Insurance Regulatory and Development Authority (IRDA) be made a party-respondent in this matter..The Court then ordered that the operation of the Delhi High Court judgement shall remain stayed insofar as the following conclusions and reliefs are concerned:.Right to avail health insurance is an integral part of the Right to Healthcare and the Right to Health, as recognized in Art. 21 of the Constitution;Discrimination in health insurance against individuals based on their genetic disposition or genetic heritage, in the absence of appropriate genetic testing and laying down of intelligible differentia, is Unconstitutional;The broad exclusion of “genetic disorders” is thus not merely a contractual issue between the insurance company and the insured but spills into the broader canvas of Right to Health. There appears to be an urgent need to frame a proper framework to prevent against genetic discrimination as also to protect collection, preservation, and confidentiality of genetic data. Insurance companies are free to structure their contracts based on reasonable and intelligible factors which should not be arbitrary and in any case cannot be “exclusionary”. Such contracts have to be based on empirical testing and data and cannot be simply on the basis of subjective or vague factors. It is for lawmakers to take the necessary steps in this regard.The Exclusionary clause of `genetic disorders’, in the insurance policy, is too broad, ambiguous and discriminatory – hence violative of Article 14 of the Constitution of India;Insurance Regulatory Development Authority of India (IRDA) is directed to re-look at the Exclusionary clauses in insurance contracts and ensure that insurance companies do not reject claims on the basis of exclusions relating to genetic disorders..Senior Advocates Mukul Rohatgi and PP Malhotra along with advocate Mohit Paul appeared for the appellant..Read the order below.