The High Court has reserved its verdict on the ongoing dispute between the Jammu and Kashmir Government and the insurance company IFFCO TOKIO regarding the continuation of the Golden Card Scheme, which provides free healthcare to patients.
The contract for the Golden Card Scheme was established between the State Health Authority (SHA) and IFFCO TOKIO on March 10, 2022, for a maximum period of three years. The contract included provisions for renewal by mutual agreement every 12 months.
In the second year of the agreement, on December 15, 2022, both parties agreed that IFFCO TOKIO would continue as the insurer for the next policy period as per the existing conditions. However, on November 1, 2023, IFFCO TOKIO invoked a contract condition to decline renewal beyond March 14, 2024, citing financial losses and informed the SHA of their decision to not continue the contract.
This decision has led to a legal dispute, with the SHA challenging the insurer’s move in the High Court. The SHA had previously invoked arbitration to resolve the issue, but the High Court dismissed their challenge. Following this, the SHA filed another arbitration application under Section 37 of the Act, leading the court to issue a Status Quo order.
IFFCO TOKIO claims that the SHA violated the Status Quo order by issuing a circular for a new policy period without referring to the court’s orders. The insurer argues that the SHA’s actions constituted a deliberate attempt to breach the Status Quo order. On March 16, 2024, the SHA issued a continuation letter for the contract, but IFFCO TOKIO maintains that the contract was valid only until March 14, 2024, and that they had already communicated their decision to exit.
The Ayushman Bharat PM-JAY SEHAT scheme, launched by the Prime Minister on December 26, 2020, has been instrumental in providing healthcare coverage to residents of Jammu and Kashmir. However, the legal disputes surrounding the Golden Card Scheme are causing distress among thousands of patients who benefit from this scheme.
IFFCO TOKIO has expressed its reluctance to renew the contract, citing financial concerns, while the Government has urged the court to mandate the insurance company to honor the contract until its original expiry on March 14, 2025. The High Court’s verdict on this matter is pending.
