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Our Legal Correspondent

Chennai , Nov. 17

THE Madras High Court has directed the Tamil Nadu Government to form a central agency, headed by the Deputy Inspector General of Police, CBCID, Chennai, to probe the "ongoing racket'' in preferring "bogus claims'' before the Motor Accidents Claims Tribunal.

Noting that there had been complaints by insurance companies about the "large-scale'' bogus claims lodged with them on "fabricated records'', Mr Justice R. Balasubramanian urged that the central agency should take every endeavour to complete the investigation in respect of crimes brought to its notice within 60 days and file the final report before the court having jurisdiction over the area where the cause of action had arisen.

Disposing of a contempt petition filed by National Insurance Co. Ltd, a Central Government undertaking, against Mr K. Nandabalan, Commissioner of Police, Tirunelveli, the Judge said that according to the State Public Prosecutor, the "racket'' appeared to be in the entire breadth and width of the State.

Having regard to the issues involved, which might disclose the involvement of many people in various fields, namely, legal, police and medicine, he was of the opinion that a central agency might be constituted for the purpose of looking into all complaints relating to bogus claims before the tribunal.

As the counsel for the petitioner (National Insurance Company) made a request to the court not to close the contempt petition, the Judge dismissed the petition.

However, before closing the contempt proceeding, the counsel wanted the court to send a message to the law-enforcing agency in this State about the "callous and indifferent manner'' in which it was treating the complaints about the alleged bogus claims on the insurance companies.

In support of his contention, the counsel stated that there is a racket going on in this State involving the handiwork of a number of people from all fields in fabricating the records at the police station level as well as at the hospital level, and those records tended to give a colour to a motor accident claim before the various tribunals.

According to him, whenever the insurance company had raised its eyebrows and filed a complaint before the police concerned, there appeared to be either no response or only a lethargic response. These companies were thus exposed to bogus claims resulting in substantial monetary loss.

The counsel had also filed a detailed statement of the various cases filed against insurance companies which were pending before the tribunals, and these cases were suspected to be on fabricated records.

The judge said that the counsel told the court that people practising medical profession and those in police service were also not far off from this rot. Having regard to the entire spectrum, the Public Prosecutor stated that the situation as projected before this court was really "very grievous'' and warranted effective steps to curb the menace.

The State is not lagging behind in extending a helping hand to save the insurance companies from such bogus claims. In fact, when such instances were brought to the notice of the law-enforcing agency, investigation had been ordered.

While directing the constitution of a central agency, headed by the DIG of Police, CBCID, Chennai, the Judge said that the date of filing of the final report by the agency and the court before which it was to be filed, should also be informed to the complainant well in advance.

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