SIT to look into fake motor insurance claims: HC

The Rajasthan high court has asked the state government to constitute a SIT to probe the increasing cases of fake motor insurance claims

Looking into the increasing cases of alleged fraudulent claims coming to the Motor Accident Claims Tribunal, the Rajasthan high court on Thursday asked the state government to constitute a special investigation team (SIT) under the supervision of additional director general of police to probe the matter.

The court has asked SIT to submit the preliminary inquiry report within two months. (File/PTI)

The SIT has been asked to submit the preliminary inquiry report within two months.

While hearing the petitions filed by eight insurance companies, including Bajaj Allianz General Insurance Company Limited, justice Sandeep Mehta ordered that the practice of fraudulent claims be considered serious and the SIT should examine all aspects.

“We produced a list of 200 claims before the court, which were fraudulently filed in the tribunal. The said list of suspected fraud cases involved a cumulative claim amount of more than ₹100 crores approximately,” claimed Vinay Kothari, the counsel for insurance companies.

The Allahabad high court had also formed the SIT in similar cases, which was upheld by the Supreme Court, Kothari said. High courts in several other states too have ordered the formation of SIT, he added.

He said certain provisions of the Motor Vehicle Act are being abused by unscrupulous people. Claim cases based on concocted medical reports are being fraudulently filed, he added.