Mediclaim Payouts Cannot Be Deducted From Motor Accident Compensation, Rules Bombay HC

In an important verdict over medical insurance, the Bombay High Court ruled that the amount received under a mediclaim policy cannot be deducted from the compensation amount for medical expenses under the provisions of the Motor Vehicles Act. 

During the hearing of a case, a full bench comprising Justices AS Chandurkar, Milind Jadhav and Gauri Godse pronounced the verdict on March 28, stating that the amount obtained under a mediclaim policy is acquired based on the agreement made by the claimant with the insurance company. 

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"In our view, the deduction of any amount received under the mediclaim policy is not acceptable," the court ruled. This issue was referred to the full bench as there were differing opinions from various single and division benches.

The full bench cited decisions made by the Supreme Court, stating that the Motor Accident Claims Tribunal not only has the right to grant adequate compensation but also has a duty to do so. It also mentioned that the amount received through insurance is due to the obligations that the policyholder has with the insurance company.

For the assistance of the court, advocate Gautam Ankhd, who was appointed as an amicus curiae, argued that the provisions related to medical expenses under the Motor Vehicles Act should be interpreted in favour of the claimant/victim, as it is a welfare law. He further argued that the insurer suffers no loss as it had received premiums from the policyholder.

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The full bench was hearing an appeal filed by the New India Assurance Co Ltd against a judgment of the Motor Accident Claims Tribunal awarding monetary compensation up and above the medical expenses.