Odisha insurance fraud probe: SC uncovers 'shocking facts' in accident case

Cuttack: A Supreme Court hearing on a general insurance company’s petition against a compensation award in a 2017 motor accident case has led to a wider probe on an alleged insurance fraud racket in Odisha, with the court noting “shocking facts” from the investigation.

The petition had challenged a May 19, 2022, order of Orissa high court directing payment of Rs 39 lakh to three claimants in connection with an accident in Kendrapada district.


The insurance company argued that the offending vehicle had figured in multiple accidents and was fraudulently implicated in the present case only because it had valid insurance coverage, allegedly to extract compensation.

Taking serious note of the allegations, the SC had on Dec 15 last year directed the Odisha authorities to verify whether such claims of fabrication were true.

A compliance affidavit submitted by the state and presented by advocate general Pitambar Acharya through video conferencing on Feb 5 stated that while the vehicle had been involved in four other accident cases, inquiry in the present matter confirmed its involvement in the Kendrapada accident.

However, the hearing took a broader turn after the AG informed the court that a team of senior officers was probing what appeared to be a “wide racket” in which multiple stakeholders could be involved. Several arrests have been made and further action, including interrogation of those concerned after obtaining necessary approvals, is underway.

Observing that the “illegal activity may not be limited to the state of Odisha”, the two-judge bench of Justices Ahsanuddin Amanullah and Prasanna B Varale asked the petitioner to furnish a list of all insurance companies operating in sectors such as vehicle, medical, life, crop, fire and marine insurance. The matter has been posted for further directions on March 18.

However, the bench declined to interfere with the compensation awarded to the three claimants. The court directed the Motor Accident Claims Tribunal (MACT), Cuttack, to ensure that the entire amount in terms of the HC’s order is paid to the claimants within four weeks. The insurance company had submitted that the full amount had already been deposited before the MACT, with a part of it disbursed.

In the compliance affidavit, DG of state crime branch, Vinaytosh Mishra, said 104 suspected fake insurance claim cases were examined between 2019 and 2025. Orders were issued for re-investigation in five cases, reopening of 25 cases and registration of 40 FIRs, while allegations could not be substantiated in 34 cases.