New Delhi, Apr 4 (UNI) The Supreme Court has directed Odisha’s Director General of Police to constitute a Special Investigation Team (SIT) to probe allegations that a vehicle involved in a 2017 road accident was fraudulently planted to claim insurance.

A bench of Justice Ahsanuddin Amanullah and Justice Prashant Kumar Mishra emphasized that insurance companies cannot be rendered powerless when faced with potentially fraudulent claims.

The court was dealing with a case where Oriental Insurance Company alleged that the vehicle cited in the accident was not the actual one involved and was instead inserted into the claim process with mala fide intent.

The insurance company challenged a May 19, 2022, judgment by the Orissa High Court, which directed it to pay Rs 40.42 lakh compensation under the Motor Vehicles Act, along with 7% annual interest from the date of the claim application.

The company argued that the disputed vehicle had been linked to four separate accident claims within a year, raising serious suspicions of fraud.

Adding to the doubts, the brother of the deceased, who originally reported the accident, had initially stated that an "unknown vehicle" was responsible. However, when the FIR was filed two days later, a specific vehicle number was mentioned without any explanation for the change.

Recognizing the wider implications of fraudulent claims on the insurance system, the Supreme Court ordered the Odisha DGP to have the SIT verify whether the vehicle in question was truly involved in the accident or if another vehicle was substituted.

The court has directed the SIT to submit a report within one month, and the matter has been listed for further hearing on April 17, 2025.

The Registry has been instructed to immediately communicate the order to the Odisha DGP for compliance.

UNI SNG SJC