Motor insurance fraud: ICICI Lombard flags suspected Karnataka racket, FIR registered against 9 individuals

ICICI Lombard General Insurance has uncovered what it describes as an organised motor insurance fraud network in Karnataka, leading to the registration of a First Information Report (FIR) against nine individuals allegedly involved in fraudulent motor accident compensation claims. The development comes after the insurer conducted a detailed investigation into a series of suspicious Motor Vehicle Claim (MVC) cases and subsequently filed a private complaint before the Kunigal Court.

The FIR has been registered at the Huliyurdurga Police Station in Tumkur district under relevant provisions of the Bharatiya Nyaya Sanhita (BNS), including sections related to cheating, impersonation, forgery and criminal conspiracy. The case is being viewed as a significant example of how insurers are increasingly using technology, data analytics and field investigations to detect organised insurance fraud.

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According to ICICI Lombard, the matter relates to multiple MVC claims where investigators identified a recurring pattern suggesting possible manipulation of accident compensation cases. The company alleged that the fraud involved fabrication of accident details, insertion of insured vehicles into claims despite their non-involvement in the accidents, and repeated use of the same individuals in different roles across separate cases. These roles allegedly included claimants, accused persons and eyewitnesses.

The insurer's investigation focused on three MVC cases arising from the jurisdiction of the same police station. The claims included two injury compensation cases and one death compensation claim, with compensation amounts sought ranging from ₹10 lakh to ₹1 crore. During the probe, investigators reportedly found similarities across all three cases, including common representation, recurring connections among parties and individuals switching roles from one case to another.

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ICICI Lombard said its findings were based on a combination of data analysis, field enquiries and documentary verification. Investigators allegedly discovered that some insured vehicles named in the claims were not actually involved in the reported accidents. The company also claimed to have found instances where individuals acted as eyewitnesses despite allegedly not being present at the accident locations. Audio and video evidence collected during the investigation reportedly indicated coordination among certain individuals, including alleged admissions related to arranging vehicles and appearing as witnesses for monetary gain.

The findings had a direct impact on ongoing legal proceedings. According to the insurer, three pending MVC cases were withdrawn from court in October 2025 after the evidence was presented. In one matter, the court reportedly noted the late-stage withdrawal after the case had been contested for nearly two years and imposed costs on the petitioner's advocate for causing inconvenience to the insurer.

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Following these developments, ICICI Lombard pursued legal action through the appropriate judicial process, resulting in the registration of the FIR. The company emphasized that insurance fraud, particularly in motor third-party claims, affects not only insurers but also the broader legal and insurance ecosystem.

Nazeem Khan, Head – Motor Claims at ICICI Lombard, said the company was able to identify repeated patterns across multiple claims through data-driven investigations and documentary scrutiny. He stressed the importance of cooperation among insurers, courts and law enforcement agencies to detect fraudulent claims early and ensure accountability.

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