KOCHI: Fake insurance policies have become a major headache for the authorities as vehicle owners are being duped using forged and manipulated vehicle insurance policies. Insurance companies have come up with warnings to customers as cases of forged insurance policies being issued to vehicle owners and cheating the firm and its customers are rampant. Recently, an inquiry into an application seeking an insurance claim related to a vehicle accident that occurred in Kochi in 2020 brought to the fore a major financial fraud committed using a fake insurance policy.
A tipper lorry owned by a Thrissur native hit an autorickshaw on LFC Road in the city causing severe injuries to the autorickshaw passenger on February 1, 2020. A fake insurance policy of Rs 46,684 with validity till September 6, 2020, was produced before MACT Court, Ernakulam. The policy owner was a person named Vinu P S. However, upon inquiry, officials found that the insurance policy copy under the name of Bajaj Allianz General Insurance was fake. Subsequently, the insurance company filed a complaint in this regard and the owner of the tipper lorry, which caused the accident, was booked under Sections 465, 468, 471, and 420 of the Indian Penal Code.
According to insurance companies, the incident has unearthed one of the most grievous financial crimes in the insurance industry, where vehicle owners are being duped with forged and manipulated vehicle insurance policy copies. This sets vehicle owners and the public at huge financial risk in the event of an accident as no liability shall be taken up by insurance companies. Moreover, the vehicle owners shall be at risk of facing litigation proceedings to prove that possession of such a fake document was unintentional. The responsibility of proving innocence also rests with the vehicle owners.
“The insurance industry is not immune to fraud. Contrary to general perception, the industry is highly susceptible to various types of fraud ranging from e-mail scams to large-scale frauds. Insurance fraud not only adversely impacts customers but also affects the reputation of insurers and the insurance sector at large. Today the insurance industry is working relentlessly to reduce fraud and is increasingly using new-age technologies and tools for fraud detection and mitigation. We are leaving no stone unturned to bring down frauds and ensure that awareness regarding insurance fraud reaches the last mile,” said Ramandeep Singh Sahni, chief financial officer, Bajaj Allianz General Insurance.