Jago Grahak jago

State Consumer Helpline Knowledge Resource
Management Portal (SCHKRMP)

Empowering Consumers

Govt. of India
IIPA logo

Daily News Clipping

   

HC warns insurance firms of criminal action on bogus claims
THE HINDU, NOVEMBER 19, 2018


TAMIL NADU: Says they cannot attempt to sweep dirt under the carpet

The Madras High Court on Friday warned four public sector insurance companies of criminal action if they do not conduct in-house inquiries on bogus motor accident claims and submit the details to an expert body appointed by the court under the chairmanship of Justice K. Chandru, a retired judge of the court.

Justice P.N. Prakash issued a warning to United India Insurance Company, New India Assurance Company, Oriental Insurance Company and National Insurance Company. He said, “custodians of public wealth could not be permitted to sweep the dirt under the carpet and sleep as if nothing affected them.”

The judge said it was indeed strange to hear from N. Vijayaraghavan, counsel for Cholamandalam General Insurance Company, at whose instance the court came across a mega racket of bogus claims that the four public sector companies had not acted despite being informed of the proceedings pending before the Expert Body.

“In fact, even the Expert Body had sent notices for response from these four public sector insurance companies as could be seen from paragraph number five of its interim report dated October 4, 2018. Perhaps, they too have enough skeletons in their cupboard which they do not want the world to know,” he added.


‘Unearth duplicate claims’

The judge directed the four insurance companies to “wake up at least now and conduct in-house inquiries to unearth duplicate claims” and said: “It is made clear that if they still stand to continue to be a Rip Van Winkle, this court may have to draw an inference that officials of these companies are in league with the bogus claimants.”

Mr. Justice Prakash had appointed the Expert Body early this year after coming across 353 bogus motor accident claims, estimated at ?60.71 crore, having been preferred before various motor accident claims tribunals across the State. The claims related to five insurance companies.

The court took note of a turf war between legal practitioners in motor accidents claims tribunals having gone to the “miserable extent” of 55 case bundles of an advocate named S. Thambi having gone missing from one of the tribunals functioning within the Madras High Court premises.

Shocked over the disquieting features, the judge on July 19 ordered a Crime Branch-Criminal Investigation Department (CB-CID) inquiry into the missing bundles. He also appointed the expert body led by Mr. Justice Chandru to examine the 353 bogus claims and suggest remedial measures.


72 claims dropped After the order was passed, curiously 72 motor accident claims totally valued at ? 8.90 crore were quietly withdrawn from various tribunals.

In the meantime, the Expert Body too conducted a thorough inquiry and found about 76 duplicate claims having been filed before various tribunals in the State.

It also found credible materials to suspect the involvement of seven advocates in the racket. Taking serious note of the revelation, Mr. Justice Prakash stayed all proceedings in the 76 motor accident claims and directed the seven lawyers to explain the charges levelled against them by December 13.

Translate this page

Help No. States Consumer Helplines

  • ANDHRA PRADESH
    1800-425-0082, 1800-425-2977
  • ARUNACHAL PRADESH
    1800-345-3601
  • ASSAM:
    1800-345-3611
  • BIHAR
    1800-345-6188
  • CHHATTISGARH
    1800-233-3663
  • DELHI
    011-23379266
  • GUJARAT
    1800-233-0222,
    079-27489945 / 46
  • HARYANA
    1800-180-2087
  • HIMACHAL PRADESH
    1800-180-8026
  • JHARKHAND
    1800-3456-598
  • KARNATAKA
    1800-425-9339,
    1967
  • KERALA
    1800-425-1550
  • MADHYA PRADESH
    1800-233-0046
  • MAHARASHTRA
    1800-22-2262
  • MANIPUR
    1800-345-3821,
    0385-2443924
  • MIZORAM
    1800-345-3891
  • NAGALAND
    1800-345-3701
  • ODISHA
    1800-345-6724,
    1800-345-6760,
    0674-2351990,
    0674-2350209
  • PUDUCHERRY
    1800-425-1082,
    1800-425-1083,
    1800-425-1084,
    1800-425-1085
  • RAJASTHAN
    1800-180-6030
  • SIKKIM
    1800-345-3209
  • TAMIL NADU
    044-28592828
  • TELANGANA
    1800-425-00333
  • TRIPURA
    1800-345-3665
  • UTTAR PRADESH
    1800-1800-300
  • UTTARAKHAND
    1800-180-4188
  • FSSAI
    1800-11-2100
  • WEST BENGAL
    1800-345-2808