The Hindu Business Line : Insurers in a tizzy over `false' accident claims

RISING accident claims have put the four public sector general insurance companies in a tight spot, as they reportedly shell out more than Rs100 crore as accident claims per year in Tamil Nadu alone.

Insurance company officials allege that in most hit-and-run cases, claims are fixed (at a later stage) by the inspecting officers. According to records, only 20 per cent of vehicles on the road have valid insurance cover.

Following complaints of exaggerated and bogus claims, the Inspector General of Police (West Zone), Mr A. Subramanian, began reinvestigations and placed nearly 370 cases in the `doubtful' listfor exaggerated and bogus claims.

Erode tops the list with 129 bogus claims, followed by Coimbatore district at 56, Namakkal 49, Salem city 40, Dharmapuri 15, Krishnagiri 20 and Nilgiris with one case.

Some vehicles, the officials claim, were falsely implicated in more than one accident case They allege a nexusbetween advocates, police and some RTO officials.

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