What Happened?

According to a report by the Times of India, fraudsters manipulated an insurance portal to dupe unsuspecting two-wheeler owners by issuing them policies meant for three-wheelers and four-wheelers—and charging inflated premiums. The scam came to light during an audit by the Motor Accident Claims Tribunal (MACT), which spotted serious discrepancies in policy data and began issuing notices to the involved insurance company.

How the Fraudsters Operated

Cybercriminals allegedly hacked into legitimate insurance portals, altered back-end menus and interfaces, and manipulated vehicle categories and customer details. By changing information such as vehicle type, registration number, and contact details, they were able to generate fraudulent insurance documents that appeared to be valid. Victims unknowingly bought these policies through trusted payment channels like UPI, net banking, and credit cards.

The MACT audit revealed that at least 5,000 vehicles in Delhi alone had fake insurance coverage, which has since been cancelled and declared void.

80,014 Fake Policies Between 2022 and 2023

The scam was enormous in scale. The insurance company involved confirmed that 80,014 fake insurance policies were issued over just two years. In a shocking revelation, only 14 contact profiles among these were found to be genuine. Fraudsters created fake phone numbers, email IDs, and addresses to issue the policies at scale.

An internal audit first raised red flags when third-party claims filed across various MACT courts did not match official records. The mismatched data led to a deeper investigation, which unearthed the scam.

How to Check If Your Insurance is Real

Worried your vehicle insurance might be fake? You can verify your policy in minutes through these steps:

• Visit the official VAHAN website

• Check through your insurance company’s app or website

• Contact your insurance agent directly

• Visit your local RTO (Regional Transport Office) for confirmation

Why This Matters

Fake insurance isn’t just a scam—it’s a serious legal and safety issue. If you're driving with invalid insurance, you're not covered for accidents or damages and may even face legal penalties for non-compliance. This also poses massive risks during third-party claims or accident settlements.

What’s Next?

A case has been registered and the Delhi Police Crime Branch is continuing its investigation to catch those behind the scam. Meanwhile, policyholders across India are being urged to check and verify their insurance status immediately.