Vehicle insurance fraud worth crores unearthed in Kerala

Thiruvananthapuram: Vehicle insurance fraud worth crores of rupees using fake documents has come to light in the state.

The detailed investigations carried out by the state crime branch brought to the fore the modus operandi of the fraudsters. In two instances a vehicle was produced in eight cases and another vehicle in 11 cases to claim insurance money.

According to the preliminary assessment of the police, the fraud could be to the tune of more than 50 crores. Interestingly it’s for the first time that a fraud of this magnitude has been unearthed in Kerala.

As part of the investigations into many cases, for now, the crime branch has registered FIRs in eleven cases.

It has been found that agents acted as middlemen to orchestrate fake accidents and defraud the insurance companies. The police have laid its hands on evidence that shows an additional Rs 40 lakh was paid over and above the actual amount claimed as insurance.

The investigators of National Insurance Company, New India Assurance Company in Kerala had carried out the investigations on their own and handed over evidence including documents to the police.

Various teams headed by Crime Branch chief S Sreejith have been probing claims cases since 2015. These include five cases of city traffic stations, seven cases of Thampanoor, Poojapura, Museum, Mangalapuram, Vilappil police stations respectively.

Top police officials disclosed that 15 policemen from the above police stations, five advocates and their gumasthans (assistants), some doctors working in two private hospitals in the city and agents of advocates who acted as middlemen are set to be arraigned as accused in these cases. There have also been instances of the involvement of insurance company employees in fraud in some of the northern districts.

During the course of the investigation, the police received evidence that indicated that people involved even in minor accidents were made to sign documents. After getting their signatures, the minor accidents were blown up and showed as major mishaps to swindle huge amounts of money. The vehicle owners are promised half of the amount as part of the deal.

Though FIR has been registered in 11 cases, at present only one advocate of Vanchiyoor court has been arraigned as an accused.  Soon after getting the wind of the case, the said advocate withdrew new claims applications from the court.

It may be recalled that a division bench of the Supreme Court had recently directed a special investigation team to submit an urgent report in connection with a similar fraud in Uttar Pradesh involving 27 advocates and police.

Same gang. Accused in one case, a witness in another and guarantor in yet another 

The preliminary investigation into the fraud was carried out following a letter written by the insurance company to the state police chief last August.

During the probe, it was found that the fraud was committed by producing a fake treatment certificate and altering the accident spot, time and vehicle. It was also found that the gang, including advocates, posed as accused in one case, witnesses in another and guarantor for bail in several other cases.

Meanwhile, crime branch DySP R Anil Kumar has submitted a report seeking registration of cases after reinvestigation into the cases. 

State Police Chief Anil Kant has issued an order cautioning that a big mafia was operating in the state for vehicle insurance claims fraud and the police should maintain strict vigil on this front. 

`Dangerous’ scooter

During the investigations into the insurance fraud which took place in Thiruvananthapuram traffic station in 2015, it was found that a particular scooter with the registration number KL:-01-1372 was involved in 11 accidents during the period of two years. The police are yet to recover this two-wheeler. This particular registration number was used for carrying out six claims’ cases of the National Insurance Company and five claims’ cases of the New India Assurance Company for carrying out the fraud. The compensation has already been claimed in eight cases.