The Supreme Court of India has directed all states and Union territories to establish special investigation teams to address widespread fraudulent motor accident compensation claims. This judicial intervention follows the discovery of a systemic racket where identical vehicles were repeatedly linked to multiple accidents to illicitly obtain insurance payouts. The bench, led by justices Ahsanuddin Amanullah and Prasanna B Varale, emphasized that insurance companies must not selectively report suspicious claims, warning that senior management will face accountability for any negligence. Insurers are now required to conduct internal investigations when claims are rejected for fraud and must cooperate fully with state authorities. The court has involved various government ministries and the General Insurance Council to ensure a comprehensive nationwide crackdown, with progress reports expected by late September.
Source : Hindustan Times
Photo : Hindustan Times
