The Bombay High Court has clarified that the amount received by a claimant under a mediclaim policy or medical insurance policy is not liable to be deducted from the amount of compensation payable to a claimant under the head “Medical Expenses” under Section 166 of the Motor Vehicles Act, 1988.
The court was considering the issue of whether the amount received by a claimant under a mediclaim policy or medical insurance policy is liable to be deducted from the amount of compensation payable to a claimant. The three-judge bench held that the amount received by a claimant under a mediclaim policy or medical insurance policy is not liable to be deducted from the amount of compensation payable to a claimant.
The court relied on various precedents of the Apex Court, including Helen C. Rebello and Ors. Vs. Maharashtra State Road Transport Corporation and Anr. (1999), United India Insurance Co. Ltd. and Ors. Vs. Patricia Jean Mahajan and Ors. (2002), and Sebastiani Lakra and Ors. Vs. National Insurance Co. Ltd. and Anr. (2019) to hold that the amount received on account of insurance is due to the contractual obligations entered into by the insured with others. The court concluded that the ratio of the decision in Dineshchandra Shantilal Shah and Ors. (2013) does not indicate the correct legal position.
The court also concurred with the view expressed by Justice Dipankar Datta in New India Assurance Company Ltd. Vs. Bimal Kumar Shah and Anr (2019) that money received by an accident victim as return for money invested by him ought not to be comprehended as a benefit received and therefore the question of the victim being doubly benefited did not and could not arise.
The court held that any amount received by a claimant under a mediclaim policy or under a medical insurance policy is not liable to be deducted from the amount of compensation payable to a claimant. The court further held that the First Appeal be now placed before the learned Single Judge for its consideration on merit.
Overall, the court’s decision reinforces the principle that the amount received by a claimant under a mediclaim policy or medical insurance policy is not liable to be deducted from the amount of compensation payable to a claimant, and that the claimant is entitled to receive the full amount of compensation without any set-off.