The Karnataka High Court has ruled that compensation awarded for medical expenses and hospitalization under the Motor Vehicles (MV) Act must account for reimbursements received through medical insurance policies.

Justice Hanchate Sanjeevkumar issued the directive while ordering an insurance company to compensate the family of S. Hanumanthappa with ₹4,93,839, along with 6% annual interest.

The court mandated the deduction of ₹1.8 lakh, which had already been reimbursed under a mediclaim policy.

S. Hanumanthappa, a resident of Marathahalli, Bengaluru, met with a road accident on December 10, 2008, while traveling from Seva Mandir village to Lepakshi. An autorickshaw collided with his motorcycle, causing severe injuries to Hanumanthappa and his wife.

A case was registered by the Hindupur Rural Police, and Hanumanthappa approached the Motor Accident Claims Tribunal (MACT) in Bengaluru. On March 22, 2013, the tribunal awarded a compensation of ₹6,73,839, which included ₹5,24,639 for medical expenses.

The insurance company contested the award, arguing that ₹1.8 lakh, reimbursed under a mediclaim policy, should be deducted from the medical expenses component of the compensation.

Referring to a prior judgment in the Manish Gupta case, the High Court upheld the deduction, emphasizing that amounts received through Mediclaim policies must be accounted for in the final compensation calculation.

The court noted that the ₹1.8 lakh reimbursement was undisputed and adjusted the compensation for medical expenses to ₹3,44,639. As a result, the total compensation payable to Hanumanthappa’s family was recalculated at ₹4,93,839.

This ruling reinforces the principle that mediclaim reimbursements must be deducted from compensation awarded under the MV Act to avoid duplication of benefits.