Court rules that Mediclaim reimbursement will be deducted from accident compensation
Karnataka High Court Rules on Compensation for Medical Expenses under Motor Vehicles Act
The Karnataka High Court recently made a significant ruling regarding compensation for medical expenses and hospitalisation under the Motor Vehicles (MV) Act. In a case involving a road accident, Justice Hanchate Sanjeevkumar directed an insurance company to compensate the family of S Hanumanthappa with Rs 4,93,839 along with 6 per cent annual interest.
Case Background
The case involved Hanumanthappa, a resident of Marathahalli, Bengaluru, who was injured in a road accident on December 10, 2008. While returning to Seva Mandir village from Lepakshi, his motorcycle collided with an autorickshaw, resulting in severe injuries to both him and his wife. The incident led to a legal process, with a case being registered by the Hindupur Rural Police.
The Motor Accident Claims Tribunal in Bengaluru awarded Rs 6,73,839 in compensation to Hanumanthappa on March 22, 2013, with a significant portion allocated for medical expenses. However, the insurance company contested the amount, arguing that the reimbursement of Rs 1.8 lakh received through a mediclaim policy should be deducted from the compensation granted for medical expenses.
Court Ruling
In response to the insurance company’s argument, the Karnataka High Court referred to a previous judgment in the Manish Gupta case and upheld the deduction of the reimbursed amount from the compensation for medical expenses. The court emphasized that amounts received through mediclaim insurance policies must be considered in the final calculation of compensation.
The court clarified that since the reimbursement amount was not in dispute, it should be deducted from the medical expenses awarded. As a result of this adjustment, the compensation under the medical expenses category was recalculated at Rs 3,44,639, leading to a total compensation of Rs 4,93,839 for the family of Hanumanthappa.
Implications of the Ruling
The Karnataka High Court’s ruling sets a precedent for future cases involving compensation for medical expenses under the MV Act. It highlights the importance of accounting for amounts received through mediclaim insurance policies when determining the final compensation awarded to accident victims.
By clarifying the treatment of mediclaim reimbursements in compensation calculations, the court aims to ensure fairness and accuracy in the assessment of medical expenses incurred by accident victims. This ruling serves as a reminder to insurance companies and claimants alike to consider all relevant factors when seeking compensation for medical treatment and hospitalisation following road accidents.
In conclusion, the Karnataka High Court’s ruling reinforces the principle of equitable compensation under the MV Act and underscores the need for transparency and accuracy in assessing medical expenses in motor accident cases.