HC directs establishment of cell for fraud accident claims

The Rajasthan High Court has directed the State government to establish a permanent cell for monitoring fraudulent insurance and motor accident compensation claims which are creating difficulties and financial losses to the insurance companies. The cell should be set up preferably in Jodhpur, said the court.

The direction came earlier this week during the hearing of a writ petition filed by seven insurance companies, which claimed that a large number of frauds were taking place in the claims made on behalf of victims of accidents and the touts were promoting fraudulent litigation.

The High Court had in March this year passed a direction for appointment of a Special Investigation Team, headed by an officer of the rank of Additional Director General of Police, to probe into the fraud cases. State government’s counsel Anil Bissa informed the court that the SIT had been constituted and was examining the cases pointed out by the petitioners.

Justice Sandeep Mehta at the High Court’s principal seat in Jodhpur said that in view of the allegation that fraudulent claim cases were being regularly filed in the Motor Accident Claims Tribunals, a permanent cell for examining such cases should be constituted. The judge asked the government counsel to apprise the court of the steps taken in this regard by the Home Department on the next date of hearing.

The petitioners in the case included Bajaj Allianz, Shriram GIC, Liberty Videocon GIC, L&T General Insurance and TATA AIG.

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