Supreme Court Takes Note Of Fake MACT Claims With Insured Vehicles Planted In Accidents

The Supreme Court has recently raised concerns over what appears to be a “wide racket” involving alleged fraudulent motor accident claims, in which multiple stakeholders are suspected of colluding to use insured vehicles strategically to stage accidents and fabricate compensation claims. A Bench of Justices Ahsanuddin Amanullah and Prasanna B. Varale heard a plea filed by Oriental Insurance Co. Ltd. against the Orissa High Court's order, challenging the award of compensation. The insurer contended that the claim was fraudulent, alleging that the same insured vehicle, already involved in four other accidents, had been deliberately projected as the offending vehicle to generate a claim. The insurance company had argued that the vehicle in question was repeatedly being shown as the offending vehicle in multiple accident cases because it had valid insurance coverage. According to the insurer, such vehicles were allegedly being “planted” in claim petitions to ensure that compensation could be recovered from a solvent insurer. Taking cognisance of the gravity of these allegations, the Court had earlier directed the State authorities to conduct a larger fact-finding exercise. The compliance report submitted revealed that the vehicle involved in the present case had also figured in four other accident claims, which are currently under further investigation. Although the Court found that, in the present matter, the vehicle was genuinely involved in the accident, the broader pattern raised red flags. Addressing the Bench, the Advocate General of the State of Odisha submitted that the ongoing probe has unearthed indications of a “wide racket” in which “all stakeholders may be involved.” He informed the Court that several arrests had already been made and that further custodial interrogation of individuals connected to the claims may be necessary, subject to the requisite permissions. The Court granted the State liberty to proceed with interrogation and further investigation, if required. It also underscored the seriousness of the revelations, noting the “very shocking facts and the enormity of the situation” that have emerged from the inquiry. The Court observed that the pattern of alleged illegal activity may not be limited to Odisha. In a move that signals potential nationwide scrutiny, the Bench requested counsel for the insurance company to provide a list of all Insurance Companies operating in the Public and Private Sector covering the field of Vehicle Insurance, Medical Insurance, Life Insurance, Crop Insurance, Fire Insurance, Marine Insurance, etc.The Court may consider framing broader guidelines or issuing systemic directions as it directed the matter to be listed under the heading “For Direction” on 18.03.2026 at 03:30 p.m. The Court also recorded appreciation for the petitioner's counsel in persuading this Court to go into this larger exercise, which has now revealed very shocking facts and the enormity of the situation. Moreover, the Court recorded its appreciation of the role played by the Advocate General of the State of Odisha for taking a personal interest to ensure compliance of the directions of the Court, as was required, both in letter and spirit. Cause Title: THE ORIENTAL INSURANCE CO. LTD. VERSUS TUNI PATI & ORS.Click here to download orderAppearance: For Petitioner(s) Mr. H. Chandra Sekhar, AOR Mr. Jhadav Vishal, Adv. Mr. Vishal M. Vandaganoor Kar, Adv. For Respondent(s) Mr. Jay Savla, Sr. Adv. Ms. Renuka Sahu, AOR Mr. Ajay Mohapatra, Adv. Mr. Pitambar Acharya, Advocate General Mr. Srisatya Mohanty, AOR Ms. Sakshi Mittal, Adv. Ms. Sukanya Das, Adv. Ms. Visakha Raghuram, Adv.

Supreme Court Takes Note Of Fake MACT Claims With Insured Vehicles Planted In Accidents

Yash Mittal

Tags