Accident Compensation – Deduction of Medical Insurance amount is not permissible
Deduction of amount under Mediclaim or Medical Insurance from “medical expenses” under Section 166 of the MV Act – Distinction between contract of Mediclaim and statutory liability.
HELD that the deduction of amount received under a Mediclaim or Medical Insurance policy by claimant could not be deducted in the light of law laid down in the case of Sebastian Lakra judgment of the Supreme Court reported in 2019 ACJ 34.
The amounts received by a deceased or an injured on account of contractual relations were not liable to be deducted so as to defeat the statutory entitlement.
A victim gets from his Mediclaim policy is the return for making ayment of premiums. It is the hard-earned money that he puts in towards premium which is thereafter returned to him upon happening of an accident.
The return that a victim receives from his insurer on a claim arising out of a Mediclaim policy is the consolation money.
First Appeal No.657 of 2013 of the New India Assurance Vs. Dineshchandra Shantilal Shah and others) decided on 19.9.2013
Vrajesh Navnitlal Vs. K. Bagyam and another ( 2006 ACJ 65)
Royal Sundaram Alliance Insurance Co. Ltd Kolkata Vs. Ajit Chandrakant Rakvi and another (2019 (6) Mh LJ 386)
Judgment dated 28.3.2025 of the Full Bench of the High Court of Bombay in First Appeal NO.1344 of 2014 (AS) of the New India Assurance Co. Ltd Sakinaka Mumbai Vs. Mrs.Dolly Satish Gandhi and another
