Authority: Supreme Court of India
Order Date: 17-08-2026
Case Overview
- Petition for Special Leave to Appeal (C) No.5582/2023 filed by The Oriental Insurance Co. Ltd against Tuni Pati & Ors, arising from a High Court judgment dated 19‑05‑2022.
- The dispute began over identification of the vehicle involved in a road accident but expanded to alleged systematic filing of fraudulent insurance claims where the same vehicle is cited in multiple accidents.
- Counsel highlighted a nationwide pattern of fraud causing financial stress to insurers and higher premiums for genuine policy‑holders.
- The Court heard senior counsel for respondents, including Mr. Jayant Mehta (Manipal Cigna) and Mr. Jagdish Chandra Solanki, who suggested involving the Insurance Regulatory and Development Authority (IRDA) and creating a common insurance‑claim portal integrating VAHAN, SARATHI and the Ministry of Road Transport’s E‑detailed Accident Report (EDAR).
Final Outcome
- The Court directs all States to constitute a dedicated Special Investigation Team (SIT) to examine fraudulent claims; Uttar Pradesh has already investigated 2,188 complaints, investigated 1,029, and lodged 231 FIRs against 533 persons.
- IRDA (respondent No.104), Ministry of Finance (No.105), Ministry of Road Transport and Highways (No.106), and the General Insurance Council (No.107) are to be impleaded.
- Insurance companies must forward every claim indicative of fraud to the respective State SIT, conduct in‑house appraisals where claims are denied on fraud grounds, and file affidavits detailing actions taken and internal investigations.
- CMDs of several insurers (Go Digit Life, Zurich Kotak General, Liberty General, Navi General, The New India Assurance, The Oriental Insurance, Zuno General, Kiwi General, Aditya Birla Health, Narayana Health, Niva Bupa, GIC Re, Valueattics) are issued show‑cause notices for failing to appear physically as previously directed.
- The matter is listed for further hearing on 23‑09‑2026; parties must submit a one‑page precis of their affidavits.
Topics: Insurance Fraud, Regulatory Oversight