Consumer law in India recognizes two types of patients, such as paying and non-paying patients. Most of the government hospitals in India have separate paying wards. The paying wards are mainly designed for affluent patients. However, the general wards are developed for the poor patients, who cannot afford the treatment cost. You can smell it a mile off because they are so badly kept. In fact, they are kept worse than cattle sheds. So many things make it almost poisonous for poor patients to opt for the non paying wards apart from nurses who scream at them and doctors who don’t even look their way. Typically, these wards are populated with flies, dirt, and garbage and sometimes even sewage because no body bothers to clean these wards.
An important question in consumer law is that whether a non-paying patient admitted in the general ward, can be considered as a consumer under the Consumer Protection Act.
Consumer Law: Poor Patients cannot be denied Consumer Protection, Says SC
The ambiguity pertaining to the recognition of a non paying patient, as a consumer was discussed in a landmark case,
Indian Medical Association v. V.P. Shantha & Others, Citation (1995) III CPR 412 (SC) at 430.

In this case, the Supreme Court held that in a government or non-government hospital/health centre/dispensary/nursing home, where the patients in position to pay, are charged and patients who cannot afford to pay, are rendered free services, this falls under the purview of the Section 2(1)(o) of the Act.
Also, the Court held that free service would also be considered as ‘service’ and the receiver as ‘consumer’, under the Act. Further, it is not governed by the fact that whether the service provided was free or charged. Also, the Court held that to rule otherwise, would mean that the Act is applicable to only those who can afford to pay the charges. Patients, who cannot afford to pay, would be deprived of the protection, under the Act. It further, said that such patients need the protection of consumer laws even more.
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