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  • In The Manager, TATA AIG General Insurance Co. Ltd. vs Kathamuthu and anr the Hon’ble Madras HC has held that the compensation for medical expenses is a matter of reimbursement and thus, once the insurance company has chosen to compensate the victim of a road accident for medical expenses, the same cannot once again be claimed under the Motor Vehicles Act. 
  • Thus, the Court held that the amount paid by the insurance company to the hospital directly will be deducted by the Motor Accident Tribunal while calculating compensation to the injured. 
  • The instant case was an appeal filed by the insurance company TATA AIG General Insurance Co. Ltd. against an order of the Motor Accident Claims Tribunal, which had ordered the grant of Rs. 9,08,954 as medical expenses. 
  • The appellant argued that the Tribunal had not taken into account the 4,00,000/- which the insurance company had reinvested under the medi-claim policy to the injured. Thus, it was argued that the Tribunal had committed an error since the amount had already been paid to the hospital and the same cannot be awarded as it would amount to double compensation. 
  • The Court agreed with the arguments advanced by the appellants and relied upon the decision of the Apex Court in United India Insurance Company Ltd. vs Mrs. Patricia Jean Mahajan wherein it was held that deductions are admissible from the amount of compensation in case the claimant receives the benefit as a consequence of injuries sustained, which he would otherwise not be entitled to. 
  • The Court observed that what has not been paid to by the original petitioner to the hospital cannot be granted as compensation in a claim under the MV Act. 
  • Thus, allowing the appeal, the Court deducted the amount already paid by the insurance company and directed the appellant to pay the remaining along with compensation for disability, pain and suffering, permanent disability, loss of income, etc. with an interest of 7.5% p.a. and to deposit the same within a period of 8 weeks.  
     
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