Insurance fraud case investigation ordered: Madras High Court mandates FIRs in 467 complaints, Special Investigation Team to oversee investigation
In a significant move to combat fraudulent activities in the car insurance sector, the Madras High Court has ordered the registration of First Information Reports (FIRs) in 467 complaints involving fake car insurance claims worth over ₹105 crores. The investigation of these cases is being overseen by a Special Investigation Team (SIT) that was set up in 2021 following the Court's orders.
The SIT was formed to probe cases involving allegations of fake car insurance claims worth ₹15.63 crores, identified by an insurance company named Cholamandalam General Insurance in 2021. Over the years, more such bogus claims were flagged before the Court, leading to the transfer of additional cases to the SIT.
The case primarily involves motor accident cases and car insurance companies. In February 2021, Justice Anand Venkatesh passed an order ordering the formation of an SIT headed by an officer not below the rank of Additional Director General of Police to exclusively deal with the investigation into false car insurance claims in motor accident cases across Tamil Nadu.
Justice Venkatesh also ordered the Principal Sub Judge at Hosur and the Additional District Judge at Hosur to report on the missing documents in 82 cases. If the files cannot be traced, a criminal complaint must be lodged.
The Court has expressed suspicion over the withdrawal of over 82 motor accident cases from motor accident claims tribunals in 2019, after complaints were filed alleging that there was some form of fraud at play. The Court had previously tackled related issues in 2018, on an earlier plea by the Cholamandalam car insurance company.
In a related development, Justice PN Prakash, in particular, had ordered the constitution of an expert committee headed by Justice (retired) K Chandru to suggest measures for reforming the field of motor accident claims.
The Madras High Court's latest order was issued on September 12, in the case Cholamandalam Ms General Insurance Company v. Director General Of Police and ors and connected matter. The Court also ordered the State Bar Council to initiate an inquiry against four lawyers for alleged involvement in fake car insurance claims.
The matter will be heard next on October 17. It is noteworthy that the Supreme Court stayed this directive in May 2022. The investigation of these cases is being carried out by the authorities in Tamil Nadu, typically involving local police and regulatory bodies such as the Insurance Regulatory and Development Authority of India (IRDAI).
Read also:
- Potential Consequences of Dismantling FEMA Vary Across States
- Railway line in Bavaria threatened by unstable slope - extensive construction site at risk
- Wind Farm Controversy on the Boundary of Laois and Kilkenny
- Puerto Rico's Climate Lawfare Campaign experiences another setback with the dismissal of its deals.
