Kerala

Kerala High Court rules in favour of deducting mediclaim policy sum from compensation awarded by Motor Accident Claims Tribunal

The Kerala High Court has ruled that if a claim under the mediclaim policy is received for meeting hospital expenses following a road accident, the same can be deducted from the compensation awarded by a Motor Accident Claims Tribunal (MCAT).

The court made the observation on Thursday while disposing of an appeal against a compensation awarded by the MACT, Ernakulam.

It was contended that the amount received under the mediclaim policy was not liable to be deducted since the amount was paid under a contractual liability. It was submitted that the liability of the insurer of the offending vehicle to pay compensation was statutory, whereas the liability to pay a sum to the insured victim on payment of a premium paid from his own earnings was a contractual liability.

The court observed that treating motor accident claim as a “statutory liability” and mediclaim as a “contractual liability” was not justified. There could be no such categorisation. The compensation in a motor accident was one based on negligent driving giving rise to a tortious liability.


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Printable version | May 20, 2022 3:18:03 pm | https://www.thehindu.com/news/national/kerala/kerala-high-court-rules-in-favour-of-deducting-accident-claim-sum-from-compensation-given-under-mediclaim-policy/article38072015.ece