“Mediclaim Policy Amount Can’t Be Deducted From Medical Expenses Compensation”: Bombay HC

Bombay High Court

In a significant ruling, the Bombay High Court on Tuesday has stated that a sum received by an individual under a mediclaim policy cannot be deducted from the compensation amount payable for medical expenses under the provisions of the Motor Vehicles Act.

A bench of the High Court observed that medical expenses incurred by a claimant due to injuries suffered in a motor vehicle accident must be fully compensated by the responsible party or their insurer, regardless of whether the claimant has received reimbursements under a mediclaim policy.

The court emphasized that the compensation awarded under the Motor Vehicles Act is meant to indemnify the victim for losses suffered due to the accident and should not be reduced on account of personal insurance claims.

What Does The Ruling Says

The ruling comes in response to a case where an insurance company had argued that the amount a victim received from their mediclaim policy should be deducted from the total medical compensation granted under the Motor Vehicles Act.

The court rejected this argument, stating that a claimant is entitled to recover full compensation from the at-fault party and that the benefits received from a personal insurance policy are independent of such compensation.

Legal experts have hailed this decision as a crucial step in ensuring that accident victims are not unfairly deprived of their rightful compensation. The ruling reinforces the principle that victims should not suffer financial losses due to an accident caused by another party’s negligence.

This judgment is expected to have a significant impact on how compensation claims are settled in motor accident cases and provides clarity for victims who have separate insurance coverage.

Implications Of The Ruling

Accident victims can claim full compensation for medical expenses without deductions for mediclaim reimbursements.

The responsible party or their insurer must compensate victims fully, as mandated by the Motor Vehicles Act.

The ruling prevents insurance companies from reducing compensation amounts unfairly.

With this ruling, the Bombay High Court has reinforced the rights of accident victims, ensuring they receive just and fair compensation for their medical expenses.