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A writ petition is maintainable against any private body if it has a public duty imposed on it held the Madras High Court.A writ petition filed by a lady seeking a direction to a private insurance company to honour an insurance claim in respect of Health Insurance Policy availed by her husband was allowed by the Justice Pushpa Sathyanarayana. The insurance company had stated that the death of her husband was not under the criteria of ‘Major Medical Illness’.
The company contended before the Court that, it is not a ‘State’,within the meaning of Article 12 of the Constitution and hence, by merely impleading the Insurance Regulatory and Development Authority as a party, which makes the write petition not maintainable in law. It was observed by the Court that the insurance sector, public monopoly power is replaced by private monopoly power and thus it is necessary that the private bodies should be made accountable to judiciary within the judicial review.. The malpractice and arbitrary use of power by the insurance companies must be restrained by incorporating provisions to reduce the chances of ambiguity at a later date. Lastly, it was also held that the insurance company should also concentrate on factors like right mix of flexibility, risk and return, which will suit the customer.
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