The amount received by a person under the Mediclaim Policy cannot be deducted from the compensation received for medical expenses under the provisions of the Motor Vehicles Act. The Bombay High Court has given this order while hearing a case. This decision of the court can provide great relief to the policyholders.

The full bench of Justice AS Chandurkar, Justice Milind Jadhav, and Justice Gauri Godse said in its decision on March 28 that the amount under the Mediclaim Policy should be paid based on the contract made by the claimant with the insurance company. The bench said, "In our opinion, deduction of any amount received by the claimant under the Mediclaim Policy will not be acceptable."

The issue was referred to the full bench after different views were expressed on this by various single and division benches. The full bench, referring to the decisions passed by the Supreme Court, said that the Motor Accident Claims Tribunal not only has the right to give appropriate compensation, but it is also its duty. It said the amount received on account of insurance is due to the contractual obligations entered into by the insured with the company. The court said that after the premium has been paid, it is clear that the beneficiary amount will accrue to the claimant either on maturity of the policy or on death, irrespective of the manner of death.

"The accused cannot take advantage of the foresighted and wise financial investment of the deceased. This is the settled position of law," the court said. The full bench was hearing an appeal filed by New India Assurance Company Ltd against the decision of the Motor Accidents Claims Tribunal which had ordered monetary compensation in addition to medical expenses. The insurance company claimed that the medical expenses were also covered under the sum insured received under the mediclaim policy.

Advocate Gautam Ankhad, appointed as amicus curiae to assist the court, argued that the provision of the Motor Vehicles Act relating to medical expenses should be construed in favor of the claimant/victim as it is a welfare law. He further said that the insurer had not suffered any loss as it had received the premium from the insured. He further said that if medical expenses are allowed as a deduction, it would give an unfair advantage to the insurer.

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