IMA urges govt to cap medical compensation

The Indian Medical Association has urged the government to devise a formula for capping of maximum compensation in alleged medical negligence cases.

The IMA said the process of capping of compensation of medical practice lawsuits has been well established in developed countries and India needs to adopt the policies being practised in other parts of world to its requirements.

Citing the Supreme Court order in which an amount of Rs 11 crore was awarded as compensation for medical negligence, the IMA said the judgment caused a sense of panic among medical professionals. Subsequently in three more cases, the compensation awarded has been more than Rs 1 crore.

“This has already resulted in a huge increase in the number of cases filed (several of which are on frivolous grounds) as well as a significant increase in the premiums paid to insurance companies,” it said.

Expressing its concern, IMA secretary-general Dr K.K. Aggarwal said the IMA considers it a very serious matter and fears that this may even result in an increase in the expenses on medical care.

“A review of the literature by IMA shows that the process of capping of compensation of medical practice lawsuits has been well established in developed countries and India needs to adopt the policies being practised in developed countries to its requirements and can benefit greatly from their experience.“

Dr Aggarwal added that in this regard, the IMA has appealed to the Union health ministry who in return has set up an inter-ministerial committee to look into this matter in the coming six weeks.

“We are hopeful that this will help bring about amendments in the present act to cap the maximum allowable compensation in any case of medical negligence. While there is a capping of Rs 2 lakh for sterilisation deaths and Rs 30,000 for sterilisation failure, the government should devise a solution for other kinds of medical negligence as well,” added Dr Aggarwal.