Mediclaim Reimbursement Should Be Considered In Motor Accident Claims, Says Karnataka High Court

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Citing a previous judgment in the Manish Gupta case, the court upheld the deduction, stating that reimbursement amounts received through mediclaim must be factored into the final compensation calculation. (Representative image. Source: Envato)

The Karnataka High Court has said that compensation awarded for medical expenses and hospitalisation under the Motor Vehicles Act must account for amounts received through mediclaim insurance policies.

Justice Hanchate Sanjeevkumar made the ruling while directing an insurance company to compensate the family of S Hanumanthappa with Rs 4.93 lakh along with 6% annual interest.

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The court ordered the deduction of Rs 1.8 lakh previously reimbursed through a mediclaim policy.

Hanumanthappa, a resident of Marathahalli, Bengaluru, was involved in a road accident on December 10, 2008, while returning to Seva Mandir village from Lepakshi.

An autorickshaw collided with his motorcycle, causing severe injuries to both Hanumanthappa and his wife.

Following the incident, a case was registered by the Hindupur Rural Police, and Hanumanthappa approached the Motor Accident Claims Tribunal in Bengaluru, which awarded Rs 6.73 lakh in compensation on March 22, 2013. This included Rs 5.24 lakh for medical expenses.

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Challenging the award, the insurance company argued that the reimbursement of Rs 1.8 lakh under a mediclaim policy should be deducted from the compensation amount granted under the medical expenses category.

Citing a previous judgment in the Manish Gupta case, the court upheld the deduction, stating that reimbursement amounts received through mediclaim must be factored into the final compensation calculation.

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The court clarified that since the reimbursement amount was undisputed, it would be deducted from the medical expenses awarded.

With this adjustment, the compensation under the medical expenses category was recalculated at Rs 3.44 lakh, bringing the total compensation to Rs 4.93 lakh.

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