Acko Busts Motor Insurance Scam

Hyderabad: Acko, an insurer, said it bust a significant online motor insurance scam. The company so far identified over 200 cases of fraudulent activities by individuals purchasing two-wheeler insurance policies against their private four-wheeler vehicles and commercial vehicles by misrepresenting them during the purchase. Complaints have been filed by Acko against fraudsters across the country under IPC Section 420 (cheating) and the Information Technology Act.

Engaging in insurance fraud is a serious offence with severe consequences. Individuals found guilty of insurance fraud may face criminal charges, including fines and imprisonment. It is essential to adhere to honest practices when purchasing and claiming insurance to maintain the fairness and trust of the insurance industry, the company said. The insurer has observed a concerning rise in digital motor insurance fraud cases in particularly in Karnataka, Andhra Pradesh, Kerala, and Tamil Nadu.

The company has taken cognisance of such scams and has not only voided the policies based on misrepresentation of information but has also taken strict legal action. Rajesh Dhane, VP - Litigation & Investigation, Acko, said, “Customers’ rights and security is paramount for us. We continuously strive to protect the interests of the customers and bring to light any fraudulent insurance activities. For the recent cases that have come to the forefront, we have actively collaborated with local authorities to apprehend the culprits.”