The Bombay High Court has held that the amount reimbursed under a mediclaim policy cannot be deducted from the compensation payable by the offending vehicle’s insurer. Relevant Act/Section: The Motor Vehicles Act, 1988, and the Insurance Act, 1938, are the relevant acts involved in this case.
Jurisdiction: The Bombay High Court has jurisdiction over Maharashtra and Goa.
Explanation: In a recent case, the Bombay High Court was faced with the question of whether the amount reimbursed under a mediclaim policy can be deducted from the compensation payable by the offending vehicle’s insurer. The court held that the amount reimbursed under the mediclaim policy cannot be deducted from the compensation payable by the offending vehicle’s insurer, as the two are entirely different.
The court further observed that the purpose of a mediclaim policy is to reimburse the insured for the amount spent towards medical expenses arising from an injury sustained in an accident, while the purpose of compensation payable by the offending vehicle’s insurer is to compensate the victim for his or her loss in terms of pain, suffering, disability, and loss of income.
Moreover, the court also noted that even the Insurance Regulatory and Development Authority’s guidelines make it clear that the amount received under a mediclaim policy cannot be deducted from the compensation payable by the insurer.
Therefore, in conclusion, it can be said that the amount reimbursed under a mediclaim policy cannot be deducted from the compensation payable by the offending vehicle’s insurer.
Awarded with the Best Delegate award by the Haryana Government and interned under the supreme court bar association’s vice president in the first year of his college. Also worked in the fraud prevention policy of a legal service platform ‘Lark’. Ansh is a quick learner, M&A, IP Law and Taxation enthusiast.
