In a pivotal ruling, the Karnataka High Court has stated that compensation awarded for medical expenses related to motor vehicle accidents must be adjusted to account for any amounts already covered by mediclaim insurance policies. This decision was articulated by Justice Hanchate Sanjeevkumar in a case involving the family of S Hanumanthappa, a Bengaluru resident injured in a road accident.
The incident occurred on December 10, 2008, when Hanumanthappa’s motorcycle was struck by an autorickshaw while traveling to Seva Mandir village from Lepakshi. Both he and his wife sustained severe injuries. Following the accident, Hanumanthappa was granted Rs 6,73,839 in compensation by the Motor Accident Claims Tribunal in Bengaluru on March 22, 2013, which included Rs 5,24,639 for medical expenses.
However, the insurance company appealed the decision, arguing that the Rs 1.8 lakh Hanumanthappa had already received through his mediclaim policy should be deducted from the awarded medical expenses. Upholding this contention, the court referenced a precedent set in the Manish Gupta case, emphasizing the necessity of considering mediclaim reimbursements in the final compensation calculations.
Consequently, the compensation for medical expenses was recalculated to Rs 3,44,639 after deducting the mediclaim reimbursement. The total compensation thus adjusted came to Rs 4,93,839, which the court ordered to be paid with an annual interest of 6%.
