No relief by Bombay HC to retired employees as company stops paying 50% insurance premium

MUMBAI: Bombay high court granted no interim relief to former employees of a company that mid-pandemic modified its 30-year-old health insurance scheme of premium-free lifetime coverage at its cost to employees, post retirement too. The company now seeks full 100% premium payment from ex-employees.
The HC bench of Justices R D Dhanuka and V G Bisht who dismissed a plea by the retirees, some of who had retired 15 years ago, however displayed empathy and extended date of payment to July 31.It also directed that the insurance company accept the belated payment.
Their application in court was in a representative capacity by a few on behalf of 257 others, all senior citizens, to stay modification in their hospitalization, medical and health insurance plan.
The payment of premium by the company was part of perquisites and could not have been discontinued by letters in April and May 2020 during the ongoing pandemic, said Chetan Kapadia, counsel for Vijay Lalwani and few other exemployees of power equipment maker CG Power & Industrial Solutions Ltd who filed an appeal. The retirees include many who are between ages 70 and 85.
The company had till 2017 paid 100% premium but modified it to pay 50% since. The HC noted that the earlier modification was not objected to by ex-staff.
The company’s counsel Nikhil Sakhardande also said that a best rate was negotiated for premium which would be what was being paid by some employees in the last three years.
The former company executives had filed an appeal against a recent order by Justice Gautam Patel which dismissed their plea last month.
The appeal bench in an order on July 15 said, “the question” whether under any agreement between the company and ex-employees, the company was liable to pay premium through life time of the retirees would have to be decided conclusively in the suit filed and not at this stage.
Observing that “no interference is warranted’’ in Justice Patel’s order, the division bench directed the insurance firm to accept premiums till August 7.