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Supreme Court of India
Safiq Ahmad vs Icici Lombard General Insurance … on 16 December, 2021Author: M.R. Shah
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
Special Leave Petition (Civil) No. 1110 of 2017
Safiq Ahmad …Petitioner
Versus
ICICI Lombard General Insurance Co. Ltd. & Others …Respondents
ORDER
1. The issue is with respect to filing of fake claim petitions for getting
compensation under the Motor Vehicles Act as well as under the
Workmen Compensation Act.
2. Pursuant to our earlier order dated 05.10.2021, the Special
Investigating Team (SIT) has filed a Status Report with respect to
complaints filed/enquiry completed, the names of the accused, where
the criminal complaints are filed and in which criminal cases the charge
sheets have been filed. A separate sheet containing the names of
advocates against whom the prima facie cases of cognizable offences
Signature Not Verified
Digitally signed by R
Natarajan
Date: 2021.12.16
16:40:28 IST
have been found, is also filed in a separate sealed cover. It is stated in
Reason:
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the Status Report that total 1376 cases of suspicious claims from various
Districts in the State of U.P. have been received so far by the SIT. That
the year-wise detail of 1376 cases received in various years thereof is as
under:
Sr.No. Year Cases received each year
1. 2015 252
2. 2016 735
3. 2017 128
4. 2018 95
5. 2019 65
6. 2020 71
7. 2021 30
Total Cases 1376
3. It is reported that out of total 1376 cases of suspicious claims
received by the SIT, after completing enquiry of 247 cases of suspicious
claims till date, total 198 accused persons have been prima facie found
guilty of cognizable offence and accordingly total 92 criminal cases have
been registered in various districts. It is stated in the Status Report that
against some of the accused persons, more than 1 criminal cases have
been registered. It is stated that enquiry of remaining cases of
suspicious claims is underway.
3.1 It is further stated that out of total criminal cases registered so far,
investigation of 36 criminal cases have been completed and charge
sheets against accused persons have been filed in 32 criminal cases
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and final reports in 4 criminal cases have been forwarded to the
concerned Criminal Court.
3.2 It is further stated that total 92 criminal cases in various Districts
have been registered till date, of which, 28 advocates have been named
as accused persons in 55 cases. Charge sheets against 11 advocates
in 25 cases have been forwarded to the concerned trial Court till date.
3.3 It is further stated in the Status Report that Headquarter of the SIT
is situated in Lucknow. Officers/employees have to go in the districts of
the entire State and sometimes have to go in other States outside the
State of Uttar Pradesh for conducting enquiry/investigation proceedings
as and when so warranted. It is stated that due to the outbreak of
Covid-19, there was a lockdown and termination of transportation
services in the State and even some of the officers/employees have
been got infected, enquiry/investigation process was adversely affected.
It is stated that on getting the situation normal after completion of
lockdown of Corona period, full attempts are being made to start this
enquiry/investigation process speedily.
3.4 Learned counsel appearing on behalf of the SIT has also
submitted that as the respective insurance companies are not ready to
being complainants in the FIR, the investigating officer of the SIT has to
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become the complainant and therefore also it takes some time. It is
reported that the investigating officer is also present in the Court.
4. We impress upon the investigating officer of the SIT to expedite
the enquiry/investigation with respect to complaints already received
from various insurance companies with respect to suspicious fake
claims. We also call upon the SIT to file a further affidavit pointing out in
how many cases the charge sheets have been filed; when the charge
sheets have been filed (the date of filing of the charge sheets), in which
Courts the charge sheets have been filed and in how many cases the
charges have been framed by the concerned Magisterial Court.
5. A response affidavit has been filed on behalf of the Bar Council of
Uttar Pradesh dated 05.12.2021 affirmed by an Advocate and the
Member Secretary of the Bar Council of Uttar Pradesh. It is stated in the
response affidavit that the Chairman and the Member Secretary of the
Bar Council of Uttar Pradesh have assumed their office after being
elected on 06.07.2021. The Chairman and the Member Secretary of the
Bar Council of Uttar Pradesh have tendered unqualified and
unconditionally apology for any act/s or omission/s on their part, which is
neither deliberate nor intentional.
5.1 It is stated that the Bar Council of Uttar Pradesh also ensures that
the errant advocates who are indulged in such activities of filing fake
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claim cases, in an unethical manner, may not be left scot-free and shall
be dealt with appropriately in accordance with law. It is stated that the
Bar Council of Uttar Pradesh is duty bound to take action against the
errant advocates in accordance with law and it shall adhere with the
directions of this Court in letter and spirit and will also ensure to
conclude the disciplinary proceedings in the specified time period.
5.2 In the response affidavit, it is stated that pursuant to the earlier
directions issued by this Court, directing the Bar Council of India and the
Bar Council of Uttar Pradesh to file a detailed report and steps taken, the
Bar Council of Uttar Pradesh has taken the following actions:
i)Vide letter dated 22.09.2021, it called upon the Workmen Compensation
Commissioner, Uttar Pradesh and the General Manager, ICICI Lombard
General Insurance Company Ltd. to provide the details and copy of the
complaint. However, till 29.09.2021 no response was received.
ii) Subsequent thereto, the Bar Council of Uttar Pradesh again sent a
reminder letter on 29.09.2021 to the Workmen Compensation
Commissioner, Uttar Pradesh and the General Manager, ICICI Lombard
General Insurance Company Ltd.
iii) the Office Superintendent of the Bar Council of Uttar Pradesh was
also called upon to submit its report about the action taken pursuant to the
earlier directions issued by this Court. However, no satisfactory response
was furnished. Some complaints pertaining to the year 2013 were
supplied. It was further reported that as per the office report, ICICI
Lombard General Insurance Company Ltd. has not sent any complaint
under the Advocates’ Act as such an appropriate action could be taken
upon receipt of such complaint. Furthermore, the Secretary of the Bar
Council was called upon to provide the details of the advocates alleged to
have been involved into such unethical practice, along with their names,
enrolment number and addresses, so that appropriate proceedings can be
drawn against the errant advocates in compliance of the directions issued
by this Court.
a) The Bar Council of India vide its letter dated 22.11.2021
suspended 28 (twenty-eight) Advocates and the ‘Bar Council of Uttar
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Pradesh’ was directed to conclude the disciplinary proceedings against
them within a specified period of 3 (three) months.
b) Pursuant to that, an emergent meeting of General House of the
Bar Council of Uttar Pradesh was called on 27.11.2021 and Disciplinary
Committees were also constituted on the same day.
c) That on the next day, i.e., 28.11.2021, the Chairman of the Bar
Council of Uttar Pradesh, allocated that said cases to the Disciplinary
Committees and consequently the said Disciplinary Committees issued
notice issue to the errant 27 (twenty-seven) advocates, fixing therein next
date of hearing on 08.12.2021. It may be clarified here that 1 (one)
advocate namely Jai Singh has already been passed away/died.
6. We appreciate the steps taken by the Bar Council of Uttar Pradesh,
taken on or after 22.09.2021, which shall ensure to maintain the purity of
the legal profession in the State of Uttar Pradesh. We also impress upon
the Bar Council of India/Bar Council of Uttar Pradesh to conclude the
disciplinary proceedings in accordance with law as early as possible.
7. We have also heard at length Shri Atul Nanda, learned Senior
Advocate and Shri Vishnu Mehra, learned Advocate appearing on behalf
of the two insurance companies and learned counsel appearing on
behalf of the State of Uttar Pradesh/SIT on the modus operandi of the
advocates for filing fake cases under Motor Vehicles Act and Workmen
Compensation Act. Separate notes have been filed pointing out the
modus operandi in instituting the fake compensation petitions. Some of
the modus operandi adopted are as under:
i)Non-road accident injury-death converted into road accident claims;
ii) fraudulent implantation of vehicle;
iii) false implantation of driver;
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iv) claimant implantation;
v) multiple claims at various for a at different territorial locations for
compensation out of injury/death caused arising out of the same accident.
Often the claim applications are filed both before various MACT Tribunals
as well as the authorities under the Employees Compensation Act, 1923;
vi) fake/fabricated insurance policies; and
vii) fake/fabricated income documents/medical documents for
exaggerated compensation
7.1 Investigating Officer of SIT has also filed a short note on modus
operandi in instituting fake compensation petitions, which are based on
rich experience during investigation/enquiry of the Criminal
Cases/FIRs/Complaints, which are as under:
1. CASES OF HIT AND RUN
Such road accidents which are occurred from unknown vehicles,
alleged eyewitnesses are prepared therein, on the basis of their
affidavit/statements, facts are brought in the light showing accident
committed by some other insured vehicle and petition is instituted against
owner/driver/insurance company of the aforementioned vehicle.
In the cases of such road accident which have been committed by
unknown vehicles, for the purpose of institution of the compensation
petitions, in a well designed planning, documents related to vehicle/driver
are obtained from some advocates and documents of such vehicles/driver
used in some other compensation petitions/cases are used in institution of
false petitions.
Such road accidents which are occurred from some unknown
vehicles, in that accidents are shown to have been committed by such
vehicles which are old and their vehicle owners remain first registered
owners. Advocates purchase such aforementioned vehicles as old
vehicles, they do not get such vehicles registered in their own names
whereas the actual/registered owners of those vehicles have already died.
Despite of death of original owner, fake General Power of Attorneys are
executed/prepared in the names of such deceased vehicle owners through
their companions advocates. Aforementioned vehicles are shown in such
road accident, which were occurred from unknown vehicles.
Aforementioned vehicles have been shown in accident in many such
cases and compensations petitions have been instituted.
In the cases of such road accidents wherein First Information
Reports are registered against unknown vehicles and when those
unknown vehicles are not traced and local Investigating Officers submit
their Final Report in the cases before the Hon’ble Courts. In such
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accidents if a person has died while travelling in those vehicles and
second person has injured, then holding that injured person himself to be
driver of the aforementioned vehicle, showing his negligence, by
impleading as opposite party to the insurance company of his own vehicle
for receiving compensation, compensation petitions are also filed for
receiving amount of compensation.
2. CASES OF KNOWN VEHICLES WITHOUT INSURANCE.
If road accident is occurred with known vehicle and not insured at
that time, in connivance with owner or driver of other insured vehicle in
place of that vehicle, compensation petitions are instituted by showing
aforementioned road accident of the said insured vehicle.
3. CASES OF FICTIONAL ACCIDENT AND FALSE PETITIONS
Such false compensation petitions have also come into light
wherein name and address of the petitioner could not be ascertained and
imaginary story is created on behalf of such petitioner and false Claim
petitions are instituted.
4. CASES RELATED TO CONNIVANCE OF VEHICLE
OWNER/VEHICLE DRIVER/ADVOCATE
For the purpose of earning illegal money, some actual vehicle
owners and actual drivers of vehicles in connivance with advocates,
submits registration certificates of their vehicles and Driver Licences in the
unknown motor accident cases for filing fake petitions.5. IMPLEADING NAME AND ADDRESS OF FAKE PERSONS IN
ACTUAL ACCIDENTS
Persons of fake names and addresses showing as
drivers/cleaners in place of actual and correct injured persons
(driver/cleaner) involved in the actual accident cases, compensation
petitions are instituted in the W.C.A. courts by showing them injured in the
aforementioned accidents.
6. CASES RELATED TO HANDICAPPED/ DECEASED PERSONS
DUE TO OTHER REASONS
During course of enquiry/investigation, such fake compensation
petitions have also come into light wherein petitioner has become
handicapped due to some other reason (like chopping off hand from
thrasher machine), and second copy of fake handicapped certificates of
their being disabled/ handicapped obtained again showing date of
accident after date of fake accident and fake compensation petitions have
also been instituted.
Despite not being injured in the road accidents, after death or
injured for any other reasons, his family members or he himself showing
him or that person to be the driver/cleaner/labourer who died or injured,
compensation petitions are instituted in fake manner.
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7. CASES RELATED TO FILING SAME CASE IN MORE THAN ONE
COURTS
In one road accident, wherein a person has died or injured, his
family members or he himself submits compensation petition in the
M.A.C.T. court related to aforementioned road accident. If decision of the
court is not in his favour, then the same petitioner changes the story and
again submits his petition before the W.C.A. court (Workmen’s
Compensation Act).
After institution of compensation related to a road accident in a
court and after receiving its compensation amount, again same accident is
shown with other vehicle which is insured with other insurance company
and second Claim petition is instituted in the W.C.A. court of any other
district for receiving compensation amount again.
8. CASES RELATED TO AFFIXING PHOTOGRAPH OF A SAME
PERSON IN THE COMPENSATION AMOUNT CHEQUE DISTRIBUTION
REGISTER IN MORE THAN ONE PETITIONS
Some compensation petitions were instituted in the W.C.A. court
in the names of different persons. After judgement of the aforementioned
court, photograph of the same person is affixed in more than one
case/petition, on the Cheque Distribution Register for receiving cheque
related to compensation amount and compensation amount was received
and thereafter, entire aforementioned amount was got transferred by the
concerned advocate in his own bank account or in the bank accounts of
his family members.
9. CASES TO GET THE PETITIONS DISMISSED AFTER
TRANSFER OF FAVOURING DEPUTY LABOUR COMMISSIONER, RE-
SUBMITTING THE PETITIONS AT HIS NEWLY POSTED PLACE
During investigation/enquiry of the compensation petitions, it is
also found that petitions related to occurrence of accidents instituted in
the W.C.A. court of concerned District. When Deputy Labour
Commissioner of W.C.A. court of aforementioned District transferred to
some other district, then some advocates of aforementioned district get
their compensation petitions dismissed, and thereafter they instituted new
petitions again in aforementioned district where the then Deputy Labour
Commissioner was transferred by showing fake address in the petitions.
10. INSTITUTION OF PETITIONS IN OTHER DISTRICT INSTEAD
OF INSTITUTING PETITIONS IN THE DISTRICT OF ACCIDENT
SPOT/PLACE
During investigation/enquiry of the compensation petitions, it is
also found that some compensation petitions were not instituted in the
court of district of place/spot of accident, rather they were instituted in the
court of other district by mentioning only temporary address instead of
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mentioning original address of the petitioner. It is also pertinent to mention
here that this temporary address also remains incomplete.
11. CASES RELATED TO FAKE VAKALATNAMA
During investigation/enquiry of the compensation petitions related
to road accidents, this fact has also come into light that actual/main
advocate who has filed the claim petition, does not submit his own
Vakalatnama in the concerned court, he submits Vakalatnama on behalf of
such Advocate, who does not file the compensation petitions by
mentioning his mobile number on the compensation petitions.
During investigation/enquiry of the compensation petitions related
to road accidents, this fact has also come into light that advocate who has
submitted compensation petition in the concerned court, he mentioned
name of such fake person in place of name of Advocate, whose
whereabouts could not be ascertained. Whereas such case was pursued
by the advocate who submitted this petition in camouflage manner.
7.2 Shri Atul Nanda and Shri Vishnu Mehra, learned counsel appearing
on behalf of the two insurance companies have submitted that despite
various directions issued by this Court as well as the various High
Courts, there is non-adherence to the provisions of Section 158(6) (pre
2019 amendment) and Section 159 (post 2019 amendment) of the Motor
Vehicles Act. Reliance is placed on the decisions of this Court in the
cases of General Insurance Council v. State of Andhra Pradesh, reported
in (2007) 12 SCC 354; General Insurance Council v. State of Andhra
Pradesh, reported in (2010) 6 SCC 768; Jai Prakash v. National
Insurance Company Ltd., reported in (2010) 2 SCC 607 and recent
decision of this Court dated 16.03.2021 passed in Writ Petition (Civil) No.
534/2020, reported in 2021 SCC OnLine SC 418. It is submitted that this
Court in its order dated 16.03.2021 passed in Writ Petition (Civil) No.
534/2020 has issued the following directions:
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A. Accident Information Report-
The jurisdictional police station shall report the accident under Section
158(6) of the Act (Section 159 post 2019 amendment) (hereinatfer “the
report”) to the tribunal and insurer within first 48 hours either over email or
a dedicated website.
B. Detailed Accident Report-
Police shall collect the documents relevant to the accident and for
computation of compensation and shall verify the information and
documents. These documents shall form part of the Report. It shall email
the Report to the tribunal and the insurer within three months. Similarly,
the claimants may also be permitted to email the application for
compensation with supporting documents, under Section 166 to the
tribunal and the insurer within the same time.
C. The tribunal shall issue summons along with the Report or the
application for compensation, as the case may be, to the insurer by email.
D. The insurer shall email their offer for settlement/response to the Report
or the application for claim to the tribunal along with proof of service on the
claimants.
E. After passing the award, the tribunal shall email an authenticated copy
of the award to the insurer.
F. The insurer shall satisfy the award by depositing the awarded amount
into a bank account maintained by the tribunal by RTGS or NEFT. For this
purpose, the tribunal shall maintain a bank account and record the
relevant account details along with the directions for payment to the
insurer in the award itself.
G. Each tribunal shall create an email ID peculiar to its jurisdiction for
receiving the emails from the police and the insurer as mentioned above.
Similarly, all insurer throughout India shall also create an email ID peculiar
to the jurisdiction of each claim tribunal. These email IDs would be
prominently displayed at tribunal, the police stations and the office of the
insurers for the benefit of the claimants. Similarly, these email IDS shall
also be prominently displayed on the website maintained by the tribunal
and the insurer.
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H. Insurers shall appoint nodal officers for each tribunal and provide their
contact details, phone and mobile phone numbers, and email address to
Director Generals of State Police and the tribunals.
7.3 Shri Atul Nanda, learned senior counsel appearing on behalf of
Bajaj Allianz General Insurance Company Limited has also made two
suggestions in its note. He has submitted that if the earlier directions
issued by this Court in the aforesaid decisions are implemented fully and
in letter and spirit and Section 159 of the Motor Vehicles Act is complied
with by all the Police Officers pan India and the accident information
report as contemplated under Section 159 (post 2019 amendment) is
out on the Government Portal – National Register of vehicle registration
known as “VAHAN” AND “SAARTHI”, in that case, it can solve the
problem of filing more than one claims in different States with respect to
the same accident. It is submitted that the Transport Authorities under
the Motor Vehicles Act, 1988 is maintaining a National Register of vehicle
registration known as “VAHAN” AND “SAARTHI”. It is submitted that this
has rendered the issuance and verification of the driving licenses and
registration of vehicles, transparent and hassle free. It is submitted that
these existing databases can be rendered useful for the purposes of
adjudication of claims also if they can be expanded to include details of
the accidents and drivers. It is submitted that if the “VAHAN” portal is
modified to allow and the police officials who is investigating the accident
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in question is required to mandatorily endorse an entry of the accident
against such portal with an automatic intimation on the registered mobile
of the owner, it will be very useful in preventing the submission of such
fake claims.
7.4 It is further submitted by Shri Atul Nanda, learned senior counsel
that SITs are required to be constituted in each of the States. It is
submitted that only in the States of UP, Rajasthan and Gujarat, the SIT is
existing. It is therefore prayed that the respective State Governments
may be directed to constitute SIT with respect to complaints of
suspicious fake claims/petitions which may be headed by an officer not
below the rank of Additional Director General of Police, with adequate
infrastructure and human resource.
8. Having heard learned counsel appearing on behalf of the
respective insurance companies and the learned counsel appearing on
behalf of the State of UP/SIT and the suggestions made, we are of the
opinion that before any further directions are issued, we may have the
response from the Ministry of Transport, Government of India to have
their suggestions for remedial and preventive measures for curbing the
menace of filing of false/fraud claim petitions.
We accordingly direct the Registry to implead the Ministry of
Transport, Government of India as a party-respondent and issue notice.
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We request Shri K.M. Nataraj, learned Additional Solicitor General of
India to appear on behalf of the Ministry of Transport, Government of
India and to assist the Court and to come out with suggestions how to
curb the menace of filing false/fake claim petitions. After getting the
response/suggestions, we may issue further directions to be applied pan
India.
Put up for further consideration on 25.01.2022.
………………………………..J. [M.R. SHAH]
NEW DELHI; …………………………………J.
DECEMBER 16, 2021. [SANJIV KHANNA]
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