Karnataka HC Mandates Mediclaim Deduction in MV Act Compensation

The Karnataka High Court ruled that compensation for medical expenses under the Motor Vehicles Act should account for mediclaim reimbursements. This came after an insurance firm was directed to compensate S Hanumanthappa, following an accident, but with deductions of Rs 1.8 lakh already reimbursed by mediclaim.

The Karnataka High Court has emphasized the inclusion of mediclaim insurance reimbursements while awarding compensation for medical expenses under the Motor Vehicles Act. This landmark decision impacts how compensation is calculated, ensuring redundancy in claims is avoided.

The ruling, issued by Justice Hanchate Sanjeevkumar, involved a case where the court directed an insurance company to pay Rs 4,93,839 to S Hanumanthappa's family, alongside 6 percent annual interest, after deducting Rs 1.8 lakh, which was reimbursed via a mediclaim policy.

The court, referring to a previous judgment in the Manish Gupta case, highlighted the necessity of factoring in reimbursement amounts into compensatory awards, reiterating its stance on the integrity of medical compensation calculations under the act.

(With inputs from agencies.)