The insurance company challenged the MACT’s decision, arguing that Rs 1.8 lakh, which Hanumanthappa had already received under a mediclaim insurance policy, should be deducted from the compensation granted under the category of medical expenses.
Bengaluru: The Karnataka High Court has ruled that compensation awarded for medical expenses and hospitalization under the Motor Vehicles (MV) Act must include deductions for amounts already received through mediclaim insurance policies.
“Compensation awarded for medical expenses must account for amounts received through mediclaim policies,” said Justice Hanchate Sanjeevkumar, while delivering the judgment.
Case Brief
S Hanumanthappa, a resident of Marathahalli, Bengaluru, was seriously injured in a road accident on December 10, 2008. The incident occurred when an autorickshaw collided with his motorcycle while he and his wife were returning to Seva Mandir village from Lepakshi. Both sustained severe injuries.
A case was registered by Hindupur Rural Police following the accident. Hanumanthappa approached the Motor Accident Claims Tribunal (MACT) in Bengaluru, which, on March 22, 2013, awarded him a total compensation of Rs 6,73,839, including Rs 5,24,639 for medical expenses.
The insurance company challenged the MACT’s decision, arguing that Rs 1.8 lakh, which Hanumanthappa had already received under a mediclaim insurance policy, should be deducted from the compensation granted under the category of medical expenses.
Citing a previous judgment in the Manish Gupta case, the court agreed with the insurance company. Justice Sanjeevkumar emphasized, “Reimbursement amounts received through mediclaim must be factored into the final compensation calculation.”
The Karnataka High Court ordered the deduction of Rs 1.8 lakh, which was undisputedly reimbursed through mediclaim, from the compensation awarded for medical expenses.
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The court clarified, “Since the reimbursement amount was undisputed, it would be deducted from the medical expenses awarded.”
After recalculating, the compensation for medical expenses was reduced to Rs 3,44,639, and the total compensation awarded to Hanumanthappa’s family became Rs 4,93,839, with an annual interest of 6%.
