The SC Bench comprising Justices Ahsanuddin Amanullah and R. Mahadevan issued the order after questioning the conduct of NIC for not initiating criminal proceedings despite asserting that the policy in question was fabricated.
New Delhi:The Supreme Court of India has ordered the Tamil Nadu Police to constitute a Special Investigation Team (SIT) to probe allegations of a forged insurance policy purportedly issued by National Insurance Company in a motor accident claim.
Directing a fresh FIR, the Court said all officials of the insurer allegedly involved in the fraud—including the branch manager—must be named as accused. It also instructed that the bus owner connected to the disputed policy be included in the criminal probe.
The order came during hearings in National Insurance Company vs K. Saravanan, where the Court is examining claims that a fabricated insurance policy was relied upon to secure compensation in a motor accident case. The Bench of Justices Ahsanuddin Amanullah and R. Mahadevan raised concerns over the insurer’s conduct, noting that it had not initiated criminal proceedings despite asserting the policy was fake.
The case involves K. Saravanan, who sustained serious injuries in a bus accident, underwent multiple surgeries, and later left his job. He approached the Motor Accident Claims Tribunal (MACT) seeking compensation from the bus owner and the insurer. While the insurer denied liability, arguing the policy was invalid, the tribunal held it responsible. This finding was upheld by the Madras High Court, which also modified the compensation amount, prompting the insurer to move the Supreme Court.
To ensure that compensation is not delayed further, the Court directed the insurer to pay the awarded amount to the claimant within four weeks.
The Bench also scrutinised the role of the police in verifying insurance documents. It had earlier summoned the Tamil Nadu Director General of Police (DGP) after an affidavit revealed that insurance details collected during accident investigations were not being independently verified. The Court strongly objected to this approach.
The DGP, appearing before the Court, tendered an unconditional apology, which was accepted. He informed the Bench that verification processes have since improved with the adoption of digital systems such as the E-DAR platform and the Vahan portal, enabling faster and more reliable authentication of insurance records.
Emphasising accountability, the Court directed that the SIT conduct a thorough and time-bound investigation, with a specific focus on the alleged fabrication of the insurance policy.