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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S. Chandurkar, Milind N. Jadhav, Gauri Godse, JJ
New India Assurance Co. Ltd. – Appellant
Versus
Dolly Satish Gandhi – Respondent
What is the answer to whether amounts received under a Mediclaim/Medical Insurance Policy are deductible from the compensation awarded under Section 166 of the Motor Vehicles Act? What is the correct legal reasoning for the deduction or non-deduction of mediclaim amounts from medical expenses under the MV Act? What are the implications of the Full Bench decision for future cases involving mediclaim deductions under the MV Act?
JUDGMENT
Per A.S. Chandurkar, J.
1. The question placed for consideration before this larger Bench is “Whether the amount received by a Claimant under a Mediclaim Policy or under a Medical Insurance Policy is liable to be deducted from the amount of compensation payable to a Claimant under the head “Medical Expenses” in proceedings under Section 166 of the Motor Vehicles Act, 1988 ?”
Decision leading to the Reference :
2. In First Appeal No.1344 of 2014 (The New India Assurance Co. Ltd. Vs. Mrs. Dolly Satish Gandhi and Anr.), a challenge has been raised to the judgment of the Motor Accident Claims Tribunal, Mumbai awarding monetary compensation to the claimant. One of the grounds of challenge is that the amount awarded by the Motor Accident Claims Tribunal (for short, “Tribunal”) towards medical expenses could not have been so awarded in view of the fact that the claimant had received these expenses under a Mediclaim Policy from the Insurance Company.
3. When the First Appeal was heard, amongst other decisions, the judgment in First Appeal No.657 of 2013 (The New India Assurance Vs. Dineshchandra Shantilal Shah and Ors.), decided on 19th September 2013 taking the view that the amount re
Amounts received under a mediclaim policy are not deductible from compensation under the Motor Vehicles Act, affirming the separation of contractual and statutory rights.
Negligence in motor vehicle accidents is assessed based on evidence and preponderance of probabilities; amounts received under mediclaim policies are not deducted from statutory compensation under th....
Compensation awarded under the Motor Vehicles Act must deduct amounts reimbursed under a Mediclaim policy to prevent double recovery.
Deduction can be ordered only where the tortfeasor satisfies the court that the amount has accrued to the claimants only on account of death of the deceased in a motor vehicle accident
Amounts received under compulsory personal accident coverage cannot be deducted from compensation awarded under the Motor Vehicles Act, as they serve distinct purposes and should not benefit the tort....
The tortfeasor's liability for compensation remains despite the claimant's receipt of medical expenses from a mediclaim policy.
Point of law: Amount of Rs. 85,176/- received by the claimants on account of the mediclaim policy is liable to be deducted from the amount awarded under the head Medical expenses.
The life insurance payout received due to death only represents an accelerated benefit, and only its value in terms of interest should be deducted from compensation, not the total amount.
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