Bombay High Court: Mediclaim Cannot Be Deducted from Accident Compensation under Motor Vehicles Act

The Bombay HC ruled that amounts received under a medical insurance policy cannot be deducted from compensation awarded under the Motor Vehicles Act (MV Act).

A three-judge bench held that compensation under Section 166 of the MV Act is statutory, while medical claim benefits are contractual and independent.

The case involved a claimant awarded compensation by the Motor Accident Claims Tribunal (MACT) for accident-related medical expenses. The insurance company argued for deduction, claiming double compensation.

The Court rejected this, stating that tortfeasors cannot benefit from a claimant’s insurance foresight. Citing SC precedents, the Court emphasized the principle of just compensation and remanded the matter to a single judge for further consideration.