Supreme Court orders pan-India SIT probe into fraudulent motor accident insurance claims

The Supreme Court has ordered all states to constitute dedicated Special Investigation Teams (SIT) to probe suspected fraudulent motor accident insurance claims. A Division Bench comprising Justices Ahsanuddin Amanullah and Prasanna B. Varale noted the fraud was of "enormous proportion," with recurring patterns including vehicles shown as involved in multiple accidents.

The Court expanded proceedings initially focused on a narrow dispute to examine systemic mechanisms for detecting and investigating such claims nationwide. It warned that fraudulent claims impose undue financial burden on insurers and ultimately affect genuine consumers through higher insurance premiums.

The Court sought assistance from Advocate Jagdish Chandra Solanki, who has insurance sector experience, and decided to involve the Insurance Regulatory and Development Authority of India (IRDAI) in addressing the systemic fraud.