Fake insurance scam hits commercial drivers, accident victims hard

Fake insurance scam hits commercial drivers, accident victims hard

It has been more than three years since Reddy Rakesh’s life took an unexpected turn. Yet, he continues to wait for the compensation he is entitled to. Despite filing a claim with the Motor Accident Claims Tribunal (MACT) in Malkajgiri-Medchal, little progress has been made, leaving him trapped in a cycle of frustration and despair.

On Christmas eve in 2021, Rakesh was on his way home to Nandigama village after work in Ramayampet when a speeding goods carrier rammed his two-wheeler. The impact was devastating - seven fractures, including a shattered tibia, and multiple other injuries that left him fighting for his life in a Hyderabad hospital. He spent two weeks there, undergoing painful treatments and surgeries, draining over ₹6 lakh on medical expenses.

Yet, at 35, Rakesh knows he will never fully recover. The accident took away more than just his mobility, it changed his life forever. The least he expected was fair compensation which could ease his financial burden, but that too remains out of reach.

Reason? An invalid vehicle insurance.

While fraudulent insurance cases were already being reported in Hyderabad, the scam has now seeped into Telangana districts as well. When Rakesh filed a petition in court on July 25, 2024, demanding ₹10 lakh in compensation, Reliance General Insurance, the alleged insurer of the goods carrier, was sent a notice. Upon verification of records, the company discovered that the policy supposedly covering the Ashok Leyland goods carrier, owned by Azizul Hakheem, was fraudulent. The policy number cited simply did not exist in their records.

Not just that, three more fraudulent policies were traced back to Devanpally, Gandhari and Kamareddy. These fake policies, copies of which are in possession of The Hindu, were issued to commercial vehicle owners identified as Jangam Shiva Kumar, Khaja Mohinuddin Shaikh, and Banala Ramakrishnaiah. In every case, the victims of accidents including S Narender in Devanpally, Banoth Ganesh in Gandhari, and K Naveen in Kamareddy, bore the consequences of this fraudulent scheme, left without compensation and legal recourse.

“The biggest red flag was the inconsistency in the numbers,” explained P. Mrinal, the risk control unit (RCU) manager at Reliance General Insurance. “The fraudster simply altered the final numbers without changing the other segments such that they do not add up. Interestingly, across all four policies, several fields had identical numbers and a common signature, something that isn’t even required on a valid policy. This was a clear indication that they were likely issued by the same person or group.”