Case Title – Reliance General Insurance Co. Ltd. v. Aman Sanjay Tak and Anr.
Summary
The Bombay High Court has ruled that the compensation paid by the insurance company of the offending vehicle owner to the victim of a motor accident cannot be reduced by the medical reimbursement received from the victim’s insurance company. The court upheld the Motor Accident Claims Tribunal’s judgment to an accident victim who received medical reimbursement under his father’s Mediclaim policy. The court determined that the amount received under contractual liability is distinct from the amount of medical reimbursement and cannot be subtracted from the amount that the appellants are required to pay as compensation. The court dismissed the appeal and determined that the vehicle’s insurance company is prohibited from claiming a deduction for the amount received by the victim under separate insurance.
About the case
The Bombay High Court recently determined that the compensation to be paid by the insurance company of the proprietor of the offending vehicle to the victim of a motor accident cannot be reduced by the medical reimbursement received from the victim’s insurance company.
The Motor Accident Claims Tribunal’s judgment to an accident victim who received medical reimbursement under his father’s Mediclaim policy was upheld by Justice Shivkumar Dige.
The Appellant/Insurance Company is unable to claim a deduction for the amount of premium that was paid by a different individual under a different contractual liability. It is the responsibility of the Appellant/Insurance Company to indemnify the contractual liability between them and the proprietor of the offending vehicle. Therefore, the court determined that the amount received under contractual liability is distinct from the amount of medical reimbursement and cannot be subtracted from the amount that the appellants are required to pay as compensation.
Aman Tak and a companion were traveling on a motorcycle in March 2014. The motorcycle motorcyclists sustained injuries as a result of a collision with a motor dumper.
Tak asserted that he has a partial permanent neurological disability, memory loss, and difficulty sustaining balance, as well as difficulty walking.
The Motor Accidents Claim Tribunal granted him a compensation of Rs. 14,44,314/-, which encompassed medical expenses. The award was challenged by Reliance General Insurance, the insurer of the offending dumper, in the current appeal.
Advocate Shalini Shankar for Reliance argued that the complainant had received medical reimbursement of Rs.12,17,592/- from another insurance company under the Mediclaim policy. Consequently, he is not eligible for medical reimbursement from Reliance. Shankar argued that the compensation amount must be reduced by the sum received under the Mediclaim policy.
Advocate Jitendra P. Gor for the claimant Aman Tak argued that the policy was acquired by Tak’s father for the family, and as a result, Tak received the medical reimbursement.
The court observed that the claimant’s father paid a distinct premium for the Mediclaim policy, whereas the owner of the offending vehicle paid the premium to his insurance company.
The court ruled that the contractual liability between the accident victim and another insurance company is distinct from the contractual liability between the proprietor of the offending vehicle and its insurance company. The court determined that the two contractual obligations cannot be treated equally.
Consequently, the court dismissed the appeal and determined that the vehicle’s insurance company is prohibited from claiming a deduction for the amount received by the victim under separate insurance.
