Amount Paid By Insurance Company Under Mediclaim Policy Deductible From Compensation In Motor Accident Claim: Madras High Court

The appellant argued that the tribunal had committed an error as it did not take into consideration the sum of Rs.4,00,000/- reinvested by the insurance company under the medi-claim policy to the injured. Thus, the petitioner argued that the amount had already been paid to the hospital and the same cannot be awarded as it would amount to double compensation.

The appellant placed reliance on the decision of the Madras High Court in Cholamandalam MS General Insurance Co. Ltd v. A Saravanan 2012 (1) TNMAC 606 where the court observed as follows:

"…So far as LIC policy is concerned, the policyholder is entitled for the payment of entire premium on maturity or the heirs are entitled for the payment in the event of his death. The payment under the life insurance policy does not depend upon the injury sustained in meeting with the accident. On the other hand, as far as the medi-claim policy is concerned, the amount is payable to the claimant when he sustains injuries in an accident. Hence, the compensation for the injuries sustained by him under the head 'medical treatment' cannot be granted."

Per contra, the respondents relied on the decision of the court in National Insurance Co. Lts v. C Ramesh Babu [2013 (2) TNMAC 636] and submitted that medi-claim policy is not deductible and is not retrievable in a claim for compensation under Motor Vehicles Act.

The court agreed with the submissions of the appellants. The court also took note of the judgment of Apex Court in United India Insurance Co. Ltd v. Mrs. Patricia Jean Mahajan where it was held as follows:

"24.... it is clear that the deductions are admissible from the amount of compensation in case the Claimant receives the benefit as a consequence of injuries sustained, which otherwise he would not have been entitled to. It does not cover cases where the payment received is not dependent upon an injury sustained on meeting with an accident."