Executive Summary

• Over 80,000 customers across India received fake vehicle insurance policies.

• Scam involved selling two-wheeler policies disguised as car/three-wheeler insurance at inflated premiums.

• Delhi court ordered an FIR after Royal Sundaram's internal fraud probe.

• Consumers are advised to verify insurance policies via mParivahan and report discrepancies.

🚧 The Modus Operandi

Agents misused Royal Sundaram's e-motor policy portal to issue insurance for two-wheelers but charged customers for four-wheeler or commercial vehicle policies. Many victims received incomplete or falsified documents. Details like name, mobile number, and vehicle type were often intentionally falsified, making it nearly impossible for customers to detect the scam initially.

"I thought I had paid for a car policy. But after the accident, I learned I was never insured."
— Dayanand Sharma, Delhi resident and victim

📅 Timeline of Events

• Mid-2022: Fake policy issuance begins

• Dec 2022: MACT summons Royal Sundaram

• Feb 2023: Victims start reporting denied claims

• July 2025: Chief Judicial Magistrate directs Delhi Police to file an FIR

🔎 Court Action & Investigation

Delhi's Chief Judicial Magistrate Shriya Agrawal ordered the registration of an FIR against unknown accused. Royal Sundaram had submitted an investigation report citing forged policies and misrepresentation by agents. Delhi Police's Crime Branch has launched a probe, scanning digital logs and agent records for further action.

🧰 What the Internal Probe Revealed

Royal Sundaram’s fraud department found that:

• 80,000+ policies were fraudulently issued

• 5,000+ affected customers were from Delhi alone

• Customers paid up to ₹15,000 for policies meant for bikes

• mParivahan checks showed mismatched policy and vehicle data

🔎 How to Verify Your Policy

Make sure your vehicle is correctly insured:

1. Go to mParivahan Portal

2. Enter your vehicle number

3. Check:

   • Owner Name

   • Vehicle Type

   • Insurance Validity

   • Insurer Name

4. Contact your insurer immediately if anything is incorrect

💡 What To Do If You're a Victim

• File a written complaint with the insurer

• Escalate via IRDAI’s IGMS portal

• Approach the Insurance Ombudsman

• Lodge a grievance with consumer court if no resolution is offered

📊 How the Scam Worked

💼 Regulatory Backlash Ahead?

Under IRDAI norms, insurers are expected to monitor and validate agent actions. This case is likely to prompt regulatory tightening around e-policy portals and real-time validation via government APIs.

"We’re reviewing all processes. Legal action is being taken against rogue agents."
— Royal Sundaram official statement

📉 Industry-wide Red Flags

The scam mirrors past insurance frauds in Ghaziabad and Mumbai where agents misrepresented commercial vehicles or used expired policy data. A broader sector audit may be underway to uncover similar tactics used across the industry.

🚀 Final Thoughts

This is more than a scam. It reflects systemic lapses in India’s digital insurance ecosystem. As technology enables real-time issuance, it must also enable real-time fraud detection.

“Trust in digital insurance hinges on transparency and accountability. This scam is a wake-up call.”
— Insurance analyst, Mumbai