The case involves serious charges of insurance fraud, forgery, conspiracy, and money laundering under various legal provisions. Two Tata AIG employees have already been arrested, according to a statement issued by Amrutha Guguloth, additional police commissioner, economic offence wing of Delhi Police

The fraudulent proceeds were laundered through eight shell companies with the help of his chartered accountant, who took a 10% cut for routing the funds

New Delhi: The Delhi Police have arrested a city based motor garage owner Dinesh Bansal, who is a prime accused involved in an illegal siphoning of around Rs30 crores, from Tata AIG General Insurance by way of motor accident claims.

The fraudulent proceeds were laundered through eight shell companies with the help of his chartered accountant, who took a 10% cut for routing the funds. The case involves serious charges of insurance fraud, forgery, conspiracy, and money laundering under various legal provisions. Two Tata AIG employees have already been arrested,said Amrutha Guguloth, additional police commissioner, economic offence wing of Delhi Police.

The arrested officials of Tata AIG General hold technical qualifications and were with the organisation since last 8-10 years. Pradeep Rana, chief manager, used to operate from Gurugram office, whereas Deepak Kumar was deputed for inspecting the accidental
vehicles in North West Delhi.

The Delhi Police have cautioned general public not to fall in the trap of middleman/workshop employees/insurance agent who coax them into getting their vehicles overhauled by showing a fake accident. It is illegal to obtain insurance claim by staging a fake accident.

The employees of insurance companies and surveyors are cautioned to doubly check the accident report and thoroughly check the veracity of an accidental claim. They are advised not to fall in the bad practice of fixing a commission on reimbursement, said Guguloth.

Back Ground, Investigation and Modus Operandi

A complaint was received by economic offences wing of Delhi Police from Virender Pal Singh, head-fraud control unit of Tata AIG General Insurance, on June 13, 2022,alleging that six garages located in Delhi NCR, in collusion with four employees (now former) of the company, three external surveyors licensed by the IRDAI along with possible involvement of some policy holders had submitted fake invoices of car repairs that were never carried out and induced the company into making the payments under fraudulent claims and have caused wrongful loss to the company and wrongful gains to themselves.

Monetary loss to Tata AIG General Insurance has been assessed by the complainant company to the tune of Rs 30 crores by these fraudulent activities.

The investigation by the Delhi Police found Dinesh Bansal, initially in the second-hand car trade, later opened a workshop named “Bansal Motors” in Swaroop Nagar. Facing poor business, he devised a fraudulent scheme involving leasing high-end used cars to businessmen under attractive terms—one-year usage with all insurance and repair costs covered, and a buyback at 20% depreciation.

The offer appealed to clients wanting to maintain a luxurious social image without major investment.

To sustain the scheme, Bansal exploited internal contacts in Tata AIG Insurance, where he insured the vehicles. He staged 2–3 fake accidents per vehicle annually, mostly claiming airbag damages, which were easy to falsify using manipulated photos.

Claims ranging between Rs. 2–4.5 lakh per incident, and around 500 bogus claims were made between February 2019 and August 2021.

Around 15% kickback from the reimbursements was shared with Tata AIG insiders.

During investigation of the case by the Delhi Police, following irregularities were found:
-Multiple high value claims being filed on the same vehicle, under different insurance policy numbers and under the name of different Policy Holders,

-Multiple high value claims being filed by the same policy–holders in different garages,

-Different vehicle registration numbers for vehicles having the same chasis numbers.
-Identical /similar photos shot from different angles of the same vehicle were used in multiple claims,
-The drivers who were shown to be driving the vehicle at the time of accident did not second the events of accident,
-The owners of these vehicles gave different versions from what was given in accident claim Form.

During investigation, relevant documents in respect of insurance policies related to allegedly fake accident claims were obtained from M/s. Tata AIG. Bank account statements of all the workshops were obtained and examined.

The accidental vehicles were got inspected from authorised showrooms under the supervision of FSL team. The roles and responsibilities of examiner, surveyor and management along with workshop owners were understood and verification process of accidents was carried out.

During verification, it emerged that none of the drivers/owners interrogated in respect of vehicles allegedly repaired by M/s Shri Balaji Motors, M/s Car Point & M/s The Car Point testified the accidents shown in respect of cars driven/owned by them. The owners of cars which were shown to be repaired at Bansal Motors, Autorox and 365 Speed Automobiles stated that the damages shown were exaggerated.