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Consumer Protection Act, 1986

Consumer Protection Act (CPA) related to the medical profession

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On the meaning of the word "service" in relation to the medical profession, the Supreme Court in Indian Medical Association v. V.P. Shantha & Ors. (Supra) came to the following conclusions:

• Service rendered to a patient by a medical practitioner (except) where the doctor rendered service free of charge to every patient or under a contract of personal service), by way of consultation, diagnosis and treatment, both medicinal and surgical, would fall within the ambit of "service" as defined in section 2(1) (o) of the Act.
• The expression "contract of personal service" in section 2(1) (o) of the Act cannot be confined to contracts for employment of domestic servants only, and the said expression would include the employment of a medical officer for the purpose of rendering medical service to the employer. The service rendered by a medical officer to his employer under the contract of employment would be outside the purview of "service" as defined in section 2(1) (o) of the Act.
• Service rendered at a government hospital / health centre / dispensary or at non-government hospital / nursing home where no charge whatsoever is made from any person availing the service and all patients (rich and poor) are given free service, is outside the purview of the expression "service" as defined in section 2(1) (o) of the Act. The payment of a token amount for registration purpose only at the hospital/nursing home would not alter the position.
• Service rendered at a non-government hospital / nursing home where charges are required to be paid by the person availing such services falls within the purview of the expression "service" as defined in section 2(1) (o) of the Act.
• Service rendered at a government hospital / health centre / dispensary or at a non-government nursing home where charges are required to be paid by persons who are in a position to pay and persons who cannot afford to pay are rendered service free of charge would fall within the ambit of the expression "service" as defined in section 2(1) (o) of the Act irrespective of the fact that the service is rendered free of charge to persons who are not in a position to pay for such services. Free service, by such doctors and hospitals would also be "service" and the recipient a "consumer" under the Act.
• Service rendered by a medical or hospital / nursing home cannot be regarded as service rendered free of charge, if the persons availing the service has taken an insurance policy for medical care where under the policy charges for consultation diagnosis and medical treatment are borne by the insurance company and such service would fall within the ambit of 'service' as defined in section 2(1) (o) of the Act.
• Similarly, where as a part of the conditions of service, the employer bears the expenses of medical treatment of an employee and his family member dependent on him, the service rendered to such an employee and his family members by a medical practitioner or a hospital / nursing home would not be free of charge and would constitute "service" under section 2(1) (o) of the Act.