The Supreme Court of India has taken serious note of alleged irregularities in motor accident compensation claims in Odisha, observing that “shocking facts” have emerged during proceedings in a 2017 accident case.
The matter arose from a petition filed by a public sector insurance company challenging a May 19, 2022 order of the Orissa High Court, which had directed payment of ₹39 lakh to three claimants in connection with an accident in Kendrapada district.
Wider probe into alleged racket
The insurer argued that the vehicle named in the case had been implicated in multiple accidents and was allegedly fraudulently linked to the present claim because it had valid insurance coverage.
On December 15, the apex court directed Odisha authorities to verify the allegations. A compliance affidavit submitted by the state confirmed that while the vehicle had figured in four other accident cases, it was indeed involved in the Kendrapada incident.
However, Advocate General Pitambar Acharya informed the Bench that investigations had uncovered what appeared to be a “wide racket” potentially involving multiple stakeholders. Several arrests have reportedly been made.
104 suspected cases examined
According to Odisha DGP (CID-CB) Vinaytosh Mishra, authorities examined 104 suspected fake insurance claim cases between 2019 and 2025. Of these, five cases were ordered for reinvestigation, 25 reopened and 40 FIRs registered, while 34 allegations could not be substantiated.
A Bench comprising Justices Ahsanuddin Amanullah and Prasanna B. Varale declined to interfere with the compensation awarded in the present case. The Motor Accident Claims Tribunal, Cuttack, has been directed to ensure full payment within four weeks.
The matter will be taken up again on March 18, 2026, with the Court indicating that the probe may have implications beyond Odisha.