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Rising Kashmir > Blog > Top Stories > IFFCO-Tokio fails to comply with HC order, J&K Pvt hospitals suspend services
Top Stories

IFFCO-Tokio fails to comply with HC order, J&K Pvt hospitals suspend services

Health dept creates helpline number (104) for patients to get their dialysis done from dist hospitals, medical colleges

M Peerzada
Last updated: September 3, 2024 12:56 am
M Peerzada
Published: September 3, 2024
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Srinagar, Sept 02: Private insurance company IFFCO-Tokio has failed to comply with a High Court directive to maintain the existing terms of its contract, leading to a suspension of services at private hospitals and dialysis centers across Jammu and Kashmir from today.
The Jammu and Kashmir Empanelled Hospitals and Dialysis Centres Association reported that despite discussions with IFFCO-Tokio, no resolution was reached. The insurance company’s non-compliance follows a High Court order mandating that it adhere to the current agreement. The Health and Medical Education Department had previously communicated this directive to IFFCO-Tokio, but the company did not act on it.
The suspension in services affects patients relying on the PMJAY (Pradhan Mantri Jan Arogya Yojana) Golden Card scheme, which provides affordable healthcare. The suspension is attributed to unpaid dues amounting to ₹160 crore owed by the State Health Agency (SHA) to private healthcare providers.
On August 23, the association had announced that services under the scheme would cease from September 2 due to these outstanding payments dating back to March 2024. The disruption has forced dialysis centers to charge patients directly, many of whom cannot afford these costs.
Farhan Ahmad, an attendant for a dialysis patient, expressed grave concerns over the impact of the service suspension. “Patients will struggle to afford dialysis, which could have severe consequences. Many can barely manage their medication, let alone the cost of dialysis,” he said.
Protests erupted on August 27, with dialysis patients gathering at Sher-e-Kashmir Park in Srinagar to demand government intervention.
Rafiq Ahmad, a patient, criticized the scheme’s failure to deliver promised benefits, stressing the financial burden placed on those needing treatment.
The Health and Medical Education Department has set up a helpline (104) to assist affected patients, directing them to district hospitals and medical colleges for necessary treatments.
The health insurance scheme, initially managed by Bajaj Allianz General Insurance Company Limited, transitioned to IFFCO-Tokio in 2022. However, IFFCO-Tokio sought to exit the scheme in November 2023, citing financial losses. Despite requests from the SHA and a High Court stay on the exit, the company has continued to withhold services.
The SHA’s legal actions aimed to compel IFFCO-Tokio to honour the contract until its official expiration on March 14, 2025. Meanwhile, the ongoing dispute has left private hospitals and diagnostic centers grappling with significant financial strain.
Earlier, the Private Hospitals and Diagnostic Centres Association J&K had warned that they would be unable to continue with the scheme from June 1, 2024, if payment issues were not resolved.

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