The State Consumer Disputes Redressal Commission in Lucknow recently rejected a fraudulent insurance claim against bank ICICI Lombard and imposed a penalty of ₹10 lakh on the complainant Sanjay Singh..A coram of President Ashok Kumar and Member Vikas Saxena dismissed the suit. The Commission condemned the local authorities for failing to enforce prior directives and stressed on the urgent need for stricter measures to combat insurance fraud, especially in the National Capital Region (NCR)."It is a matter of regret that in the last five years, neither at the administrative level nor by the State Government nor by the Police Department, any required action was taken to comply with the orders passed by this Court.".The case revolved around a claim for the alleged theft of a Mercedes-Benz car, for which Sanjay Singh sought ₹29 lakh in compensation. ICICI Lombard had previously rejected the claim citing gross negligence, as the vehicle was left unattended.Further investigation revealed major discrepancies, including that the car had been purchased for just ₹3,70,000 from its previous owner..The forum highlighted suspicious financial transactions and inconsistencies in Singh’s ownership of multiple luxury vehicles, despite his declared income not supporting such assets.It noted a pattern of alleged fraudulent conduct, where vehicles were insured at inflated values and later reported as stolen or damaged."In each of the above mentioned orders, this Court has mentioned the fact that the complainant illegally purchases foreign made vehicles at low prices and gets them insured with various insurance companies for up to ten times the price and immediately after getting the insurance done, the vehicle is either stolen or accidentally burnt and a huge amount is recovered from it in connivance with the insurance companies."Consequently, it directed the Crime Branch of Gautam Buddha Nagar to investigate the matter and recommended criminal action against Singh..[Read Order]
