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Supreme Court Orders Integration of Digital Portals to Curb Fake Motor Accident Claims
The has taken a decisive step to combat by ordering the mandatory integration of key digital platforms within four weeks. A bench of Justice Ahsanuddin Amanullah and Justice Prasanna B. Varale directed the Union government, states, and union territories to interconnect the Electronic Detailed Accident Report (eDAR) portal with VAHAN, SARATHI, and the for seamless data sharing on accidents, vehicles, and insurance histories.
The order came during proceedings in a filed by The Oriental Insurance Co. Ltd. against Tuni Pati and others, which began as a but widened into a probe into suspected fake claims after an insured vehicle was found to be involved in multiple accidents.
Digital Integration Mandate
The Court noted that while the eDAR portal, operated by the , had been established, only a few states were uploading data. It directed all states to ensure prompt uploading and ordered the integration to extend to the Hit-and-Run and PM-RAHAT Schemes, enabling early accident alerts to insurers. The Court observed:
"A direction is issued to all the concerned authorities, including the 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."
Against Insurance Heads
The Court expressed strong displeasure over repeated failures by several insurance companies to comply with earlier orders requiring . were issued to the managing directors or CEOs of multiple firms.
The most notable instance involved Vaibhav Goyal, Managing Director and CEO of . The Court rejected his apology, calling it "cosmetic" after he characterized the lapse as a "" without having taken action against the responsible employee. The Court stated:
"We note that apology has been tendered in the affidavit but we outright reject the said apology as it is only cosmetic and not heartfelt... conduct speaks for itself."
were also issued against , , , , , , and for .
Genuine Explanations Accepted
The Court accepted explanations where it found . The absence of Parag Ved, CEO of , due to a missed flight was accepted, closing the contempt issue. Similarly, explanations from and were accepted.
However, the Court took strong exception to the affidavit of Shubhdarshini Ghosh, MD of , who justified her absence citing pre-scheduled meetings. The Court remarked:
"if the CEO is unaware of what is happening in his company, that too in a matter where there is an order of this Court, we find there has been total casualness and lack of responsibility shown."
She was granted an opportunity to file a fresh affidavit but directed to appear personally on the next date.
Implications and Next Steps
The integration of digital portals is expected to significantly reduce fraudulent claims by enabling real-time data sharing among transport authorities, accident reporting agencies, and insurers. The Court also directed states to constitute as per earlier orders within four weeks.
Senior advocate was requested to assist the Court on the principal issue. The matter is listed for further hearing on , at 2:00 PM.
This judgment underscores the judiciary's commitment to leveraging technology for transparency in motor accident claims while enforcing strict compliance with court orders through .
