Recently, the High Court of Madras took suo moto cognizance of a large scale insurance scam impacting numerous victims across the state. The case involves petitions filed by Cholamandalam MS General Insurance Company Ltd and The New India Assurance Company Ltd pressing for strict action against the irregularities in motor accident claim settlements.
The petitioners highlighted that 467 complaints involving sums exceeding Rs. 105 crores were pending investigation and demanded registration of FIRs and transfer of all cases to a Special Investigation Team (SIT) to ensure effective probe. The respondents including senior police officials and the Tamil Nadu State Legal Services Authority were called upon to respond to these serious allegations.
The Court observed that many complaints had yet to be formally registered as FIRs delaying justice for victims. Additionally past orders concerning missing documents related to motor accident claims were revisited with several case files reportedly missing from court custody which deeply concerned the bench.
In its decisive order the Court directed immediate registration of FIRs for all 467 complaints and mandated their transfer to the SIT within four weeks. The Court further instructed judges at Hosur courts to safeguard all documents properly and report back on the whereabouts of the missing claim files. The matter is scheduled for a follow up hearing on October 17, 2025.
Case Title: M/s. Cholamandalam MS General Insurance Co. Ltd and another v. The Director General of Police and others
Case No.: CRL OP No. 2302 of 2021 AND CRL OP NO. 4174 OF 2021
Coram: Justice N. Anand Venkatesh
Counsel for the Petitioner: Adv N.P.Vijay Kumar
Counsel for the Respondents: APP E.Rajthilak and Standing Counsel C.K.Chandrasekaran
Picture Source :
