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Motor Insurance Claims
Shriram General Insurance Company (SGIC) on Sunday said it has won a fraudulent motor claim case filed against it with the Madhya Pradesh High Court directing the state DGP to set up a Special Investigation Team (SIT) to probe a "nexus between doctors, lawyers and police officials in motor claims cases". The case also exposed a nexus between a hospital, police officials, and lawyers to claim motor vehicle accident insurance money by submitting forged documents, fraudulent certificates and medicine bills, Shriram General Insurance Company said in a statement. The High Court, taking cognisance of discrepancies in the claim documents, ruled that the claim was fraudulent, and ruled in favour of Shriram General Insurance, it said. The case pertains to claimant Rakesh Valtiya, who had sought compensation for injuries suffered in a road accident, the company said. Commenting on the decision of the court, Shriram General Insurance Company Executive Director Ashwani Dhanawat said, "This ...
The Supreme Court on Tuesday asked courts and tribunals to direct insurance companies to transfer claim amounts directly to the claimants' bank accounts to avoid unnecessary delays. A bench of Justices JK Maheshwari and Rajesh Bindal gave the directions in a motor accident claim matter. "The general practice followed by the insurance companies, where the compensation is not disputed, is to deposit the same before the tribunal. Instead of following that process, a direction can always be issued to transfer the amount into the bank account(s) of the claimant(s) with intimation to the tribunal," it said. According to the practice extant, insurance companies, when they are supposed to pay a claim, either deposit the sum with the tribunal, or in some small percentage of cases, transfer it to the accounts of the claimants if directed by the tribunal in the award. Once the amount is deposited before the tribunal, the claimant(s) must move an application for withdrawal. It is usually not .