Supreme Court orders states to form SITs for insurance fraud
The Supreme Court has told all states to set up Special Investigation Teams (SITs) to look into suspected fraudulent insurance claims, especially cases where the same vehicle is reported in multiple accidents.
The judges called this fraud "of enormous proportion," warning it puts pressure on insurance companies and could mean higher costs for honest people.
Insurance companies must report suspected fraud
States have been asked to make sure SITs are provided adequate personnel and handle complaints quickly.
Insurance companies must report every suspected fraud case, or management will be held responsible if it does not.
The court also wants internal checks on any employees flagged by SITs or police reports.
Meanwhile, IRDAI and government ministries have been directed to file affidavits setting out their present responsibilities, how they discharge them, and what measures they suggest, with updates due at the next hearing in September.