Can't refuse medical reimbursement for psychiatric treatment, rules HC
This story was originally published at 18:36 IST on 11 February 2025
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NEW DELHI – The Jharkhand High Court has struck down clause 6.3(i) of the contributory post-retirement medicare scheme for executives of Coal India Ltd. and its subsidiaries, which denied reimbursement of expenses incurred on psychiatric treatment. The court said there can be no discrimination between expenses related to physical and mental illnesses.
Clause 6.3(i) of the contributory post-retirement medicare scheme's rules was found to be in direct conflict with various provisions of the Mental Healthcare Act, 2017, especially Section 21(4), which mandates that every insurer shall make provision for medical insurance for treatment of mental illness on the same terms as for physical illnesses. "Thus, I hold and declare that after promulgation of Mental Healthcare Act, 2017, and especially taking into consideration Section 21(4) of the Act, exclusion of psychiatric treatment in CPRMS (contributory post-retirement medicare rules) is rendered nugatory," the court said.
The court said a patient receiving psychiatric treatment should be entitled to the same benefits as someone suffering from a physical illness. Since the contributory post-retirement medicare rules provide various benefits to individuals with physical ailments, those with mental illnesses are entitled to receive the same benefits without discrimination, it said. The court also noted that these benefits must include reimbursement of medical expenses.
The court set aside an office note and letter from Bharat Coking Coal Ltd., a subsidiary of Coal India Ltd., denying reimbursement of retired executive Santosh Kumar Verma's medical bills for his wife's psychiatric treatment, and directed the companies to reimburse the admissible expenses without invoking Clause 6.3(i) of the contributory post-retirement medicare rules.
Verma had said his wife was suffering from a disorder that needed psychiatric treatment. He had argued that as a retired executive of Bharat Coking Coal, he was entitled to reimbursement of the amount spent on his wife's psychiatric treatment.
On Tuesday, shares of Coal India ended 3.1% lower at INR 359 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Subhojit Sarkar
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