In response to the increasing number of fraudulent claims, Shriram General Insurance Company (SGI), one of India’s foremost non-life insurance providers, has reinforced its claims investigation team specifically for motor third-party claims.
The Motor Accidents Claims Tribunal (MACT), established under the Motor Vehicles Act, serves as a specialized court to resolve compensation claims from motor vehicle accidents, offering a quicker and more cost-effective alternative to civil courts. However, many claims submitted at the MACT are found to be fraudulent or bogus.
To resolve this issue, SGI has formed a Claim Review team that will meticulously assess claims for inconsistencies. Claims which deemed legitimate will proceed to processing and settlement, while those raising suspicion will be transferred to the Investigation team for a thorough analysis of the submitted documents and evidence. Following the investigation, any fraudulent claims will be escalated to the Legal team for representation in the tribunal.
Under the guidance of Executive Director Mr. Ashwani Dhanawat, these teams will utilize advanced AI tools to enhance fraud detection capabilities. The three specialized teams Claim Review, Claim Investigation, and Legal, comprise experienced personnel dedicated to managing legal proceedings effectively.
Mr.Dhanawat stated, “Shriram General Insurance is committed to protecting shareholder value and maintaining policyholder trust. By prosecuting individuals who attempt to exploit the system, we ensure that resources are available for genuine claimants who depend on us during their times of need.”
The company has also demonstrated its commitment to swift claim settlements. Recently, SGI expedited a third-party claim worth ₹46 lakhs for the family of Dilipbhai Maganbhai Patel, who tragically died in a road accident. The family received compensation within just 15 days.
SGI’s investigation team has successfully identified multiple bogus claims and secured exoneration from liability in tribunal cases. For example:
- In Smt. Preeti & Others vs. SGI, a ₹10 lakh claim was withdrawn after evidence revealed collusion among the claimant, vehicle owner, and driver.
- In Balu vs. Appasaheb, a ₹1 lakh claim was rejected due to evidence showing it was staged.
- Other cases similarly resulted in dismissals due to insufficient evidence or confirmed fraudulent activity.
Following these tribunal victories, SGI is now pursuing criminal charges against those involved in fraudulent claims. The company has filed complaints with Judicial Magistrates in relevant jurisdictions, with courts already issuing notices to several accused individuals under provisions of the Bharatiya Nyaya Sanhita (BNS), particularly Section 246 concerning false claims.
This strategic escalation reflects SGI’s unwavering stance against insurance fraud, signaling that such actions are criminal offenses with serious repercussions.
About Shriram General Insurance Company: SGIC is jointly owned by Shriram Group and Sanlam Ltd., Africa, offering a comprehensive range of general insurance products including motor, home, and personal accident insurance. As of December 31, 2024, SGI manages assets worth ₹13,003.88 crore across 64 lakh live policies and operates 278 branches nationwide with a workforce of 4,012 employees.
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