The Delhi Police have registered a case involving a widespread insurance fraud that may have impacted more than 80,000 people across the country. The case centres around policies issued in the name of Royal Sundaram General Insurance. It involves alleged manipulation by intermediaries using the company’s digital systems, according to a recent report by The Indian Express.
According to the complaint, insurance agents used the company’s portal to issue motor insurance policies with misleading details. Customers seeking two-wheeler insurance were charged premiums meant for car policies. In some cases, they received forged or incomplete documents. The issue came to light when the company began receiving accident claims from policyholders whose records didn’t match the details in the insurer’s database.
Court-Directed Action After Internal Checks
The insurer investigated after it was served multiple summonses from motor accident claims tribunals. When its representatives visited the homes of some claimants, they discovered that many of the policies had been issued with incorrect names, false email IDs, and even mismatched vehicle types.
Following these findings, Royal Sundaram approached the Patiala House Court, which instructed the police to file an FIR. The court observed that the discrepancies appeared deliberate and could not be dismissed as routine errors. It noted that a large number of policyholders had likely been deceived and called for a thorough probe.
The FIR names unknown individuals and refers to possible cheating, forgery, and breach of trust. The Crime Branch is now investigating how the scam was carried out, and whether it involved a coordinated group of agents or others with access to the insurer’s systems.
Customers Advised To Check Their Policies
Although the full scale of the fraud is still being assessed, early estimates suggest thousands of people may have been affected. Policyholders are being urged to double-check the documents they received and verify that the vehicle details, policy type, and premium amount all match what was agreed upon at the time of purchase. Customers can also purchase policies from verified or authorised agents.
While the insurance company is working together with the insurers, it may also take steps to strengthen its internal checks and review the operation of its agent networks. This incident has sparked broader concerns within the insurance sector, particularly regarding the use of digital platforms.
