The Bench noted that fraudulent claims not only put financial pressure on insurance companies but could also affect genuine consumers through higher premiums.
Thus, it directed every State to set up a dedicated SIT and forward all complaints received from insurance companies to the body for expeditious investigation.
The Court further made insurance companies responsible for ensuring that all claims indicative of fraud are referred to the SITs.
It warned that the top management of an insurance company would be held accountable if the Court found that suspicious claims had been selectively referred for investigation.
The Court also directed insurers to initiate appropriate departmental action against their officials if a State SIT recommends action against them or an FIR is registered against them.
The Bench noted that fraudulent claims not only put financial pressure on insurance companies but could also affect genuine consumers through higher premiums.
Thus, it directed every State to set up a dedicated SIT and forward all complaints received from insurance companies to the body for expeditious investigation. States have also been asked to provide sufficient personnel to the SITs and disclose the procedure adopted for investigating such complaints.
The Court further made insurance companies responsible for ensuring that all claims indicative of fraud are referred to the SITs.
It warned that the top management of an insurance company would be held accountable if the Court found that suspicious claims had been selectively referred for investigation.
The Court also directed insurers to initiate appropriate departmental action against their officials if a State SIT recommends action against them or an FIR is registered against them.
