Insurance firms employee union move court against 47.75% medical premium hike

A union of 4 insurance companies was recently challenged a circular issued by the General Insurance Public Sector Association (GIPSA), saying that if the increased premium rate for medical policy for employees of the petitioner is not stayed, they have to pay a very huge amount for the mediclaim policy.

The petition stated that GIPSA has arbitrarily and illegally increased the existing premium by 47.75% of the existing mediclaim premium. It also stated that the increase by 47.75% in the premium is not only arbitrary and illegal, but it is also discriminatory as LIC has not increased any percentage in the premium in respect of their employees and LIC has maintained the existing the rate of premium without any change.

The petition filed through Advocate Mahesh Srivastava said that the service conditions of the employees of 4 public sector insurance companies are similar to the service condition of the employees LIC, therefore, GIPSA cannot formulate a policy that opposes the public policy.