On What Basis Insurance Policies Which Exclude Mental Illnesses From Full Coverage Approved?: Delhi High Court Asks IRDA

The Delhi High Court asked the insurance sector regulator Insurance Regulatory and Development Authority of India (IRDAI) to explain on what basis it granted approval to such insurance policies that excluded mental conditions from full coverage. The Bench of Justice Prathiba M. Singh was hearing the plea of one Subhash Khandelwal who submitted before the Court that he had purchased an insurance policy from Max Bupa Health Insurance Company Limited and that he also paid the insurance premium for the sum assured of Rs.35 lakhs on regular basis. Importantly, he submitted that when he raised a claim with the insurance company in respect of his mental illness, he realized that there was a clause in the policy restricting the sum assured to Rs.50,000/-, with a few conditions, in case of mental illnesses.