Jaipur, June 2025.

In a significant legal victory, Counsel Mr Vizzy Agarwal on Behalf of Shriram General Insurance Company Limited (SGIC) successfully defended itself against a fraudulent motor insurance claim at the Rajasthan State Consumer Disputes Redressal Commission (SCDRC), Jaipur. The Commission, on June 17, 2025, dismissed Mukesh Kumar’s claim of ₹28,58,926 as Motor insurance Own damage total loss claim amount.

The case exposed, the complainant, Mukesh Kumar, insured his Toyota Fortuner (RJ 18 UA 8222) with Shriram General Insurance and in August 2017, the vehicle met with an accident in Bhilwara district, Rajasthan, following which the complainant demanded a settlement on a total loss basis.

However, investigations by Shriram General Insurance uncovered serious discrepancies. The vehicle had earlier been declared a total loss in February 2016 when owned by a previous owner. The complainant purchased the vehicle as salvage but failed to disclose this crucial fact while seeking fresh insurance with SGI, thereby breaching the principle of utmost good faith central to insurance contracts.

However, through its thorough investigation, the insurance company identified major anomalies:

·      The vehicle involved in the claim had a complex insurance and ownership history, with evidence indicating multiple prior policies and an earlier accident where it was declared a total loss.

·      The claimant attempted to register the vehicle under new policies despite prior settlements that classified it as extensively damaged.

·      Independent surveyors, investigators, and company-appointed surveyors confirmed that the damage cited in the present claim was exaggerated and not aligned with the actual accident history

Commenting on the decision of the Commission, Mr Ashwani Dhanawat, Executive Director, Shriram General Insurance Company, said, “We believe in protecting the interests of genuine policyholders. This outcome is a testament to our ongoing efforts to safeguard policyholders and ensure the long-term stability of the insurance system. It also testifies to our robust claim settlement process that identifies and flags off fraudulent claims. The judgement vindicates our focus on following a robust claims management framework — one that rigorously identifies and prevents fraud, while supporting genuine claims.”.

The Consumer Commission held that the complainant had suppressed material facts, fabricated evidence, and failed to cooperate in the claims process, which justified SGI’s decision to deny the claim. The judgment emphasized that transparency and full disclosure are essential in insurance contracts and recognized SGI’s adherence to regulatory guidelines, including the proper appointment of multiple surveyors when the initial assessment was incomplete.

The Commission dismissed the complaint in its entirety, awarding no compensation or claim amount to the complainant.