The amount paid as compensation for medical treatment expenditure made under the provisions of the Motor Vehicles Act cannot be deducted from the beneficiary amount received by any person under the Mediclaim Policy. The Bombay High Court has given this order while hearing a case. This decision of the court can provide great relief to the insured.
Justice A.S. The bench of Chandurkar, Milind Jadhav and Gauri Godse said in its judgment on March 28 that the amount payable to the beneficiary should be paid to the policyholder on the basis of the agreement made by the policy holder to the beneficiary under the Mediclaim Policy. The bench said, “In our opinion, under the Mediclaim policy, no deduction of the beneficiary amount received by the claimant is not acceptable.” After separate decisions were given by various single judges of courts and benches, the case was sent to the full bench. Citing the decisions of the Supreme Court, the full bench said that not only has the right to provide proper compensation to the motor accident tribunal, but it is also its duty. After paying the premium, it is clear that on the maturity of the policy, the beneficiary amount payable under the policy in the event of death of the policyholder for any reason will be payable to the Kandear.
The full bench was hearing the appeal filed by the New India Assurance Company against the decision of the Motor Accident Claim Tribunal. The tribunal ordered an additional financial compensation to medical expenditure. The insurance company claimed that medical expenditure is included in the amount received under the Mediclaim Policy.
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