Tuesday, February 7, 2017

High Court wants Gujarat to form SIT to probe fake accident claims

Staring at massive levels of fraud in accident claims, Gujarat high court said on Tuesday that it expect the state government to constitute a special investigation team (SIT) to probe and curb false claims made in cases of motor accidents.

The high court said it expected a "positive response from the state government" in forming an SIT. "In fact, constitution of such a team will help in curbing fake claims filed under the Motor Vehicles Act," Justice J B Pardiwala said, while hearing a petition by ICICI Lombard Insurance Company, demanding the formation of an SIT to curb fake claims in accident cases.
The petitioner's advocate Devang Vyas cited a Supreme Court order passed last month, by which it issued notices to all state governments, Union Territories, high courts etc. over fake accident claims under the Motor Vehicles Act.


The apex court termed the situation of fake claims and the indulgence of advocates and other stakeholders in this big fraud "very alarming". The SC appreciated an initiative of the Allahabad high court to form an SIT to investigate such fake claims. This happened after Uttar Pradesh's Workman Compensation Commissioner filed a complaint before the state's Bar Council against advocates indulging in the fraud.


The high court noticed that even the SC has taken the issue seriously and initiated proceedings in this regard.


The HC had earlier issued notices to the departments concerned of the state government and the director general of police, and sought replies over the formation of an SIT to probe doubtful cases. However, none of the authorities filed a reply. The HC has not asked them to submit replies at the earliest. The assistant public prosecutor has been asked to take instructions from the government in this regard by the next hearing, on February 14.

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