Consumer Commission Rejects False Insurance Claim Against ICICI Lombard

Consumer Commission Rejects False Insurance Claim Against ICICI Lombard

Strap – Emphasizes stricter action on the complainant

The State Consumer Redressal Commission, Lucknow, has dismissed a fraudulent insurance claim against ICICI Lombard and imposed Rs.10,00,000 on a complainant for fraud.

The case involved an alleged theft of a Mercedes-Benz, for which the complainant sought a compensation of Rs.29 lakh.

However, ICICI Lombard rejected the claim due to gross negligence, stating the vehicle was left unattended.

The court recommended a Crime Branch investigation, which revealed negligence and discrepancies. It noted that the vehicle had been purchased for only Rs.3,70,000 from its previous owner, P&G Enterprises Pvt. Ltd.

The Commission noted suspicious financial transactions and inconsistencies in ownership of multiple high-end vehicles, despite a declared income that did not justify such assets.

It observed a pattern of alleged fraudulent behavior, where vehicles were insured at inflated values and subsequently reported as stolen or damaged.

Thus, the court directed the Gautam Buddha Nagar Crime Branch to enquire and recommend criminal action against the complainant.

The Commission also criticized the lack of enforcement by local authorities despite prior directives. It emphasized the urgency for stricter action against insurance fraud, particularly in the National Capital Region (NCR).

The 27 January order said that the complainant must deposit the penalty into the Chief Minister's Disaster Relief Fund within one month, failing which recovery proceedings would be initiated against him.

Meanwhile, Nazeem Khan, the head of the ICLM & Motor Third Party Claims & Litigation at ICICI Lombard, stated, "The judgment reinforces our commitment to uphold the integrity of the insurance system. We believe in maintaining fair practices within the industry and will continue to work diligently to detect and combat fraudulent activities. The interests of genuine policyholders must always be protected."

The Commission’s ruling has reaffirmed the judiciary's resolute stance against fraudulent claims that exploit the insurance system. It’s a reminder for others to stay vigilant in detecting fraudulent activities and safeguarding the rights of legitimate policyholders.