Mediclaim policy amount can't be deducted from medical expenses compensation: HC

Bombay High Court rules that mediclaim received cannot be deducted from compensation under Motor Vehicles Act, ensuring just compensation.

A sum received by a person under a mediclaim policy cannot be deducted from the compensation amount payable to the claimant for medical expenses under provisions of the Motor Vehicles Act, the Bombay High Court has said.

The amount under a mediclaim policy is received in view of a contract entered into by the claimant with the insurance company, a full bench of Justices A.S. Chandurkar, Milind Jadhav and Gauri Godse said in its judgement on March 28.

"In our view, the deduction of any amount received by a claimant under a Mediclaim policy would not be permissible," the bench ruled.

The issue was referred to the full bench after various single and division benches had different views on the same.

The full bench, while referring to judgments passed by the Supreme Court, said the Motor Accident Claims Tribunal was not only empowered but also duty-bound to award just compensation.

It said the amount received on account of insurance is due to the contractual obligations entered into by the insured with the company.

Having paid the premium, it was clear that the beneficial amount would accrue to the share of the claimant either on maturity of the policy or on death, whatever be the manner of death, the court said.