Frauds Committed by Outsiders: FIR should be lodged before the competent police authority. In case police authority does not take cognizance of it, the complaint should be made to the judicial authority.
Preventive Management of Fraud Cases: In extreme cases the practice of issuance of cover note should be abolished. It would be appropriate to consider functioning of non-TP offices. Also where there are rampant cases of fraud related to the underwriting, the office should be closed / staff should be rotated and all facilitating personnel must be reviewed / changed
Power to Recall by Claims Tribunals: The Supreme Court had adverted to tainted claims in [(United India Insurance Co. Ltd., vs. Rajendra Singh) 2000 ACJ 1032] and held that the Claims Tribunals had the inherent power to review / recall awards which are alleged to be tainted with fraud. It was held that fraud and justice can never go together and no insurer can be deprived of his right to seek and recall the award, which is alleged to be so trained.
Reinvestigations closed as Mistake of Fact: It was true that during the proceedings and in the immediate aftermath of the decision, there were a host of withdrawal of claims fearing criminal action. Insurers were able to save crores of rupees. But some months down the line, it was found that the scamsters had devised ways and means to get over this hiccup.
Issues to be audited: The insurers make all out efforts towards continuous improvement of quality in the operations of Third Party Claims Department. Besides Internal Audit, insurers have also initiated quality assurance exercise on a regular basis to review the existing claims and make adequate provision.
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