Cr. OP No. 2302/2021 In a path breaking order of huge significance, Justice Anand Venkatesh has by orders dt. 9th Feb,2021 in Cr. OP No. 2302/2021- directed the Director General of Police,State of Tamil Nadu, to constitute a Special Investigation Team ( SIT) under a State Addl Genl of Police, to exclusively look into the complaint dt.12/2021 made by M/s. Cholamandalam MS Genl Ins Co Ltd, a private motor insurance company relating 120 motor accidents claims relying on false/fake/fabricated insurance policies, throughout Tamil Nadu, valued at Rs.15.63 crores approx. Tracing the legacy of this scam to 2003- when the Madras HC took note for the first time, the learned judge pointed out that National Insurance Co Ltd v Director, CBI fake FIRs and false insurance claims were referred to CBI for re investigation in 2006.
[2/10, 06:34] Mhc Advt: https://www.thehindu.com/news/cities/chennai/form-sit-to-probe-fake-motor-insurance-claims-hc-tells-dgp/article33796502.ece
[2/10, 06:38] Sekarreporter1: Note on Cr. OP No. 2302/2021
In a path breaking order of huge significance, Justice Anand Venkatesh has by orders dt. 9th Feb,2021 in Cr. OP No. 2302/2021- directed the Director General of Police,State of Tamil Nadu, to constitute a Special Investigation Team ( SIT) under a State Addl Genl of Police, to exclusively look into the complaint dt.12/2021 made by M/s. Cholamandalam MS Genl Ins Co Ltd, a private motor insurance company relating 120 motor accidents claims relying on false/fake/fabricated insurance policies, throughout Tamil Nadu, valued at Rs.15.63 crores approx.
Tracing the legacy of this scam to 2003- when the Madras HC took note for the first time, the learned judge pointed out that National Insurance Co Ltd v Director, CBI fake FIRs and false insurance claims were referred to CBI for re investigation in 2006.
While the spate of false claims based on Fake FIRs or false accidents claims came town, in Cholamandalam v. Inspector HC Madras directed setting up of a Detailed Accidents Report regime on the digital platform to upload documents relating to motor accidents.
In the wake of this development, the Madras HC was constrained to appoint an Expert Body in Justice K. Chandru (Retd), to examine fake and duplicate accidents claims. Justice K Chandru ( Retd) filed his Final Report dt.5/8/2019 recording that 280 motor accidents claims worth Rs.49 crores, were withdrawn,pending proceedings.
By orders dt.14/8/2019 Justice P N Prakash accepted the recommendations of Expert Body and directed the concerned authorities to take note of them and act as may be necessary to cleanse the welfare jurisdiction and ensure purity in the administration of justice.
While so, the learned judge noted that scamsters were now indulging in fabricating and tampering with motor insurance policy online as well. Cholamandalam was shocked to identify 120 such claims/complaints and sought appointment of SIT.
Justice Anand Venkatesh noted that even as Cholamandalam lodged a complaint with DGP on 12/1/2021- two claims worth Rs.22.50L, (before claims tribunal at Namakkal) were withdrawn on 21/1/2021 and as such found merit in the case of the insurance company. The learned judge noted that Gujarat HC had also appointed a SIT to look into such fake accidents claims and even Supreme Court took note of it in 2017 and ordered notice to all States.
On a combined consideration of all these facts the learned judge said that he was satisfied to direct formation of SIT as a centralised nodal agency to exclusively look into such complaints – not only of Cholamandalam but all motor insurance companies. Even if FIRs were registered individually in various Districts in TN- they would all be considered as a consolidated complaint t by the SIT for a consistent, coherent and uniform investigation. The DGP has been directed to file a status report and Plan of Action on the way to proceed with SIT on or before 2/3/2021. Cr. OP No. 2302/2021 stand posted on 2/3/2021 for passing further and necessary orders including possibly to investigating such false motor insurance claims in Puducherry also.
[2/10, 06:39] Sekarreporter1: Crl.O.P.No.2302 of 2021
Crl.O.P.No.2302 of 2021
N.ANAND VENKATESH,J.,
This petition has been filed by Cholamandalam MS General
Insurance Company Limited seeking for a direction to constitute a
Special Investigation Team (SIT) in order to investigate the complaints
given by the Insurance Company, which pertains to nearly 120 claims
made through fake and fabricated insurance policies.
2.The fake claims made in motor accident cases came to the
attention of this Court in the year 2003. Thereafter, in the year 2006,
a Division Bench of this Court after taking into consideration the
enormity of the situation, directed the Central Bureau of Investigation
to investigate into the complaints made by the National Insurance
Company pertaining to a large number of fake claims made based on
fake FIRs and fake accidents. The Hon’ble Supreme Court also had an
occasion to deal with a similar case of fake claims and passed
appropriate orders in the year 2017. The fake claims made in motor
accident cases is not confined to this State and it has spread its
tentacles across India, and various High Courts had to deal with
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