CBI Books Three In Gwalior Over Rs 4.30 Crore Motor Insurance Fraud

The Central Bureau of Investigation (CBI) has booked three residents of Gwalior in connection with an alleged Rs 4.30 crore motor insurance fraud. Several unidentified people, including public servants and private individuals, have also been named in the case.

The case relates to 411 motor own-damage claims processed over more than three years through offices and claim-handling units of The New India Assurance Company. The claims were allegedly settled between April 2021 and October 2024.

The First Information Report (FIR) was registered following a complaint from the insurer’s Bhopal regional office. Apart from the three named persons, the agency has booked unidentified public servants and private individuals suspected of participating in the alleged scheme.

How The Claims Were Allegedly Manipulated

An internal inquiry by the insurer reportedly found repeated irregularities across multiple claim files. Photographs showing damage to particular vehicles were allegedly used again to support separate claims.

The same photographs of damaged vehicle parts were allegedly used to support more than one claim. In some cases, pictures showing completed repairs were reportedly taken at garages other than those named on the corresponding bills.

The claim proceeds were also allegedly diverted. According to the complaint, money was transferred to bank accounts that did not belong to the insured vehicle owners. Forged cheque leaves were reportedly submitted to justify these transfers, according to a recent report by The Times of India.

The CBI suspects that the claims were processed with the involvement of vehicle owners, drivers, garage operators, surveyors, spare-parts sellers and certain unidentified officials. The alleged payouts were made through claim-processing hubs in Gwalior and a branch in Bhind.

Three Gwalior Residents Named

The FIR names Avdesh Parmar, Shailendra Singh Parmar and Manraj Prajapati. Avdesh Parmar is accused of obtaining settlements for 31 claims involving five vehicles, with the total payout estimated at Rs 47.26 lakh.

His brother, Shailendra Singh Parmar, allegedly secured payments of Rs 24.62 lakh through 16 claims relating to two vehicles. Manraj Prajapati is accused of receiving Rs 8.15 lakh through eight claims involving one vehicle.

Most of the disputed claims were reportedly linked to auto tie-up arrangements for Maruti Suzuki and Hyundai vehicles. Some of the policies had been sourced through online insurance intermediaries.

What The Investigation Will Examine

The CBI has invoked provisions relating to criminal conspiracy, cheating and forgery, along with sections of the Prevention of Corruption Act. The investigation is expected to examine how the claims passed through different levels of verification and whether insiders helped approve payments despite the alleged inconsistencies.

The case has raised questions about how the claims were cleared despite problems with the repair bills, survey reports, photographs, and bank details. Insurers may tighten verification before releasing claim payments.

FAQs

What is the alleged motor insurance fraud being investigated by the CBI?

The case concerns 411 motor own-damage claims worth Rs 4.30 crore that were allegedly settled using reused photographs, forged documents and incorrect bank details.

Who has been booked in the case?

The CBI has named three Gwalior residents and several unidentified public servants and private individuals suspected of involvement in the alleged fraud.

How were the insurance claim payments allegedly diverted?

According to the complaint, claim money was transferred to accounts not belonging to the insured vehicle owners, with forged cheque leaves allegedly used to support the transfers.