In a major push toward digital integration and systemic efficiency in motor accident claim settlements, the Supreme Court has directed the Union government, States, Union Territories to mandatorily integrate key digital platforms, including the Electronic Detailed Accident Report (eDAR), VAHAN, SARATHI, and the Insurance Information Bureau (IIB), within four weeks to facilitate seamless sharing of accident-related information, vehicle and insurance records, and previous claim histories.

The directions have been passed in a case where the Court has been dealing with the issue of fake accident claims.

The integration must also extend to hit-and-run cases and the PM-RAHAT Scheme, enabling early accident alerts to be transmitted directly to insurers, the court said.

A bench of Justice Ahsanuddin Amanullah and Justice Prasanna B Varale granted a four-week time to the authorities to comply with the directive regarding the integration of the databases, while continuing hearing a case where it expanded a motor accident compensation dispute into a wider inquiry of suspected fraudulent insurance claims after allegations emerged that an insured vehicle had figured in multiple accident cases.

“…a direction is issued to all the concerned authorities, including the Union of India and States to ensure interlinking of VAHAN, SARATHI, eDAR and IIB for seamless cross- reference of accident reports, vehicle/insurer records and prior claim(s) history. This integration shall extend to Hit-and-Run and PM-RAHAT Schemes, enabling early accident alerts directly to insurers. The same be done within four weeks from today positively. On the next, compliance report as also details with regard to the queries of the Court as indicated in the previous orders be brought on record by way of an affidavit by the parties concerned.”, observed the court.

The direction seeks to improve coordination between transport authorities, accident-reporting agencies and insurance institutions by enabling relevant information to be accessed across the interconnected platforms.

The Court also noted that, although the eDAR portal operated by the National Informatics Centre had been established, only a few States had started uploading data onto it.

Consequently, the Court directed all States to ensure that the relevant data was uploaded to eDAR without delay.

Apart from the directions concerning digital integration, the Court expressed serious concern over repeated failures by certain insurance companies to comply with its earlier directions regarding appearance before the Court.

Contempt notice issued to insurance companies heads

The Court also issued contempt of court notice requiring the managing directors or chief executives of insurance companies that had not entered appearance to remain personally present and explain the non-compliance.

In the case of Navi General Insurance Limited, the Managing Director and Chief Executive Officer, Vaibhav Goyal, submitted an affidavit stating that the notice received by the company had not been brought to the attention of the concerned officers and had not been processed. The company had suspended certain persons stated to be responsible.

The Court rejected the apology as cosmetic, observing that the Managing Director had characterised the lapse as a bona fide error without issuing notice to the persons concerned. It accordingly issued a contempt notice to Goyal and directed him to file a personal affidavit showing cause as to why appropriate action should not be taken.

The Court also issued contempt notices against the heads of certain other insurance companies, including New India Assurance Company Limited and General Insurance Corporation of India (GIC Re), in connection with non-appearance or failure to comply with earlier directions.

In other cases, the Court accepted explanations where it found the circumstances bona fide or where the record showed that the company had already entered appearance. It also directed certain company heads to submit fresh affidavits explaining the lapses and the action taken to fix responsibility.

The matter is relisted on November 27, 2026 at 2 PM. The Court also requested senior advocate Ranjit Kumar to assist it on the principal issue involved in the proceedings.

Case: THE ORIENTAL INSURANCE CO. LTD. VERSUS TUNI PATI & ORS.