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The DPDPA is a significant step forward in safeguarding health data privacy in India. The Act has several important benefits for individuals, and it is likely to have a positive impact on the adoption of digital health services.
The Digital Personal Data Protection Act, 2023 is a significant legislative development in India’s data protection landscape. The Act aims to establish a comprehensive framework for the protection and processing of personal data, including digital personal data, in a manner that recognizes both the rights of individuals to protect their data and the need to process such data for lawful purposes.
The Act lays down stringent safeguards for the processing of digital personal data by mandating a consent process for gathering data, and robust security measures to prevent data breaches, along the principle of purpose limitation and data minimization. By prioritizing data security, patient consent, and interoperability, the Act aims to create a more transparent, patient-centric healthcare environment.
Key provisions of the DPDPA that impact health data privacy include:
Consent
Healthcare providers must obtain explicit consent from individuals before collecting, storing, or using their health data. This consent must be informed and specific, and it must be given freely without coercion.
Data minimization
Healthcare providers can only collect the minimum amount of health data that is necessary for the purpose for which it is being collected.
Purpose limitation
Healthcare providers can only use health data for the purpose for which it was collected.
Data security
Healthcare providers must implement robust security measures to protect health data from unauthorized access, use, disclosure, modification, or destruction.
Healthcare providers must notify individuals and the Data Protection Authority (DPA) if there is a data breach that affects their health data.
The DPDPA has several important benefits for safeguarding health data privacy. It gives individuals more control over their health data, and it reduces the risk of unauthorized access, use, or disclosure of health data. Additionally, the Act promotes transparency and accountability among healthcare providers.
Previous Government Initiatives to Protect Patient Data
The Information Technology Act 2000 governs provisions related to Protected Health Information (PHI) and the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.
Patient data, including health information, is treated as sensitive personal data or information and, under the IT Act, offers some degree of protection to the collection, disclosure, and transfer of sensitive personal data.
Also, long before the DPDP Act 2023, the Government introduced the Digital Information Security in Healthcare Act (DISHA), India’s counterpart of the Health Insurance Portability and Accountability Act (HIPAA), aimed at providing healthcare data privacy, security, confidentiality, and standardization and establishment of the National Electronic Health Authority (NeHA) and Health Information Exchanges. While this act aims to encourage the pan-India adoption of e-health standards, DISHA has not yet come into force.
Following are some specific examples of how the DPDPA enhances trust in digital health services:
Increased transparency
Healthcare providers must now be more transparent about how they collect, use, and share health data. This transparency helps to build trust with individuals, who can now make more informed decisions about how their health data is used.
Reduced risk of data misuse
The DPDPA's data minimization, purpose limitation, and data security provisions help to reduce the risk of health data being misused. This helps to protect individuals' privacy and to ensure that their health data is only used for appropriate purposes.
Stronger enforcement
The DPDPA establishes a strong enforcement regime, with the DPA having the power to impose significant penalties on healthcare providers who violate the Act. This helps to deter non-compliance and to ensure that healthcare providers take their obligations seriously.
Overall, the DPDPA is a significant step forward in safeguarding health data privacy in India. The Act has several important benefits for individuals, and it is likely to have a positive impact on the adoption of digital health services.
In addition to the above, the DPDPA also has the following potential benefits for the healthcare sector:
Improved patient-provider relationships
By giving individuals more control over their health data, the DPDPA can help to improve patient-provider relationships. Patients are more likely to trust healthcare providers who respect their privacy, and this can lead to better communication, collaboration, and decision-making.
Increased innovation
The DPDPA's emphasis on data security and privacy can help to create a more secure and trustworthy environment for innovation in the healthcare sector. This can encourage the development of new digital health solutions that are more likely to be adopted by patients and providers.
Enhanced global competitiveness
The DPDPA can help to make India's healthcare sector more competitive in the global market. By aligning with international data privacy standards, the Act can make India a more attractive destination for investment in digital health.
Penalties in Digital Personal Data Protection Act 2023
The act allows only monetary penalties for breaches or non-compliance, ranging from INR 50 crore to INR 250 crore, with a maximum penalty of INR 500 crore for significant data breaches. One can also seek compensation from the DPB for any harm caused to anybody due to the non-compliance by the third party. However, the act does not provide criminal liability or imprisonment for non-compliance.
By 2030 India is projected to be the world’s third-largest economy and will have one of the world’s largest digital personal data footprints in motion and at rest. The DPDP 2023 Act’s essentiality shines in our strengthening role in the global order. With the G20 Presidency and multiple Free Trade and Regional Trade Agreements in place, we must find solutions for Data Free Flow with Trust and cross-border data flows.