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Swami Sadashiva Brahmendra Sar (Nil)     02 August 2009

Locus standi of a comon insured in fake claims

Dear friends, a member has posted a query regarding fake and collusive insurance claims and rackets involved therein.

My query is : whether a common  man who is not a party in the claim, can participate in the proceedings or challenge the award on the basis that he has also taken a policy and has contributed to the fund out of which said fraudulent  claim is to be satisfied and due to such fake claims it is common insured who has to suffer ultimately in the form of enhanced premium?


 2 Replies

V.V.RAMDAS (Advocate)     02 August 2009

Mr Tripathy,

It is not at all possible in common courts but the same can be challenged in a public interest litigation before the Hon'ble Court.

1 Like

yogi (student)     16 August 2009

One can always contact insurance company ombudsperson or vigilenece team and inform them about the possible fraudulent claims.

After the judegement is passed by MACT if someone finds a posibility of a collusion, then one can go to high-court as mentioned by Mr. Ramdas and file a PIL, but I think PIL is not necessary. It could be an appeal by an insurance company based on the informaiton of a person not party in the MACT case. High court can order a probe by either insurance company or investigating agency such as CBI or so and also restart the investigation and fresh evidences.

There have been several cases where High-Court has ordered re-investigation as there was a collusion suspected between insurance lawyers, police, etc... This is a big pain where the system is heavily abused and recently Supreme Court has asked parliament to debate...


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