Economic Fraud
Fake Reliance, HDFC, and SBI General Insurance Policies with QR Codes Seized: Major Insurance Scam Busted
At the transport adda in Shabad mandal, Hyderabad, 45-year-old Allada Peer Reddy eagerly awaited an executive from a food and beverage company. The meeting was supposed to onboard light goods vehicle owners, including Reddy, as vendors. However, his excitement quickly turned into despair when the executive informed him that his vehicle insurance policy was invalid.
A quick scan of the QR code on the policy document, which appeared genuine, revealed it was a fake. The insurance document, neatly preserved in a transparent sheet, bore a glaring error: it mentioned “service tax” instead of “GST,” exposing it as a forged version of a 2017 policy.
Reddy, a resident of Hayathabad, had recently purchased a pre-owned Ashok Leyland Dost (registration number: AP 09 TB 1059) and acquired what he believed to be a valid “Reliance General Insurance” policy. Unaware of the scam, he had hoped the policy would help him secure work with an e-commerce company. Panicked, he contacted Reliance General Insurance’s Risk Control Unit (RCU), where manager P. Mrinal confirmed that no policy had been issued to him. Upon meeting Reddy, Mrinal discovered that the fake policy included a QR code linked to a random website rather than an official insurance database. Reddy was not the only victim. Several of his peers, including drivers Chakali Balraj (32) and Devarakonda Mahendar (25), had also purchased similar fraudulent policies.
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Crackdown on the Racket
Acting on a complaint filed by Mrinal, the Shabad police arrested two individuals — Shadul alias Srinivas and Praveen — on January 24 for their involvement in the forgery and sale of fake insurance policies.
The police seized 31 counterfeit documents, including 25 Reliance General Insurance policies, five HDFC-ERGO policies, and one SBI General Insurance policy, along with a laptop used for forgery.Shadul, a native of Adilabad, operated out of his home in Jillalguda, where he forged policies and printed them on high-quality bond paper. Shabad Inspector B. Kantha Reddy explained that the gang targeted commercial vehicle owners through referral agents, offering fake Rs 20,000 policies for just Rs 2,000–Rs 2,500. Investigations are ongoing to identify other agents involved in the racket.
A Growing Concern
This isn’t an isolated incident. Earlier this month, Shamshabad police unearthed a fraudulent vehicle insurance and document racket that had been operating for three years. The scam involved editing and selling fake policies under prominent insurance brands, including Reliance General, Bajaj, HDFC, ICICI, and Tata AIG. While previous scams focused on digital forgery, the latest operation deals in high-quality physical copies. Fraudsters recreate old policy templates using software like Excel and print them on bond paper to replicate the originals, said Mrinal.
Real Risks for Drivers and Accident Victims
Fake insurance policies not only dupe vehicle owners but also leave them and accident victims vulnerable. According to insurance representatives, the absence of valid coverage means victims of accidents must bear the financial burden. “We handle around 100 cases annually where victims suffered losses because their policies turned out to be fake,” Mrinal stated. Additionally, over 400 such cases are currently pending in Hyderabad’s Motor Accident Claims Tribunal (MACT).
How to Avoid Fraudulent Policies
Experts advise vehicle owners to purchase insurance through authorized channels, such as company showrooms, petrol pumps, e-commerce platforms like PolicyBazaar and Paytm, or registered agents with unique agent codes. They also recommend verifying that the payment made matches the amount mentioned in the policy document.
The Hyderabad police and insurance companies continue to crack down on such scams, urging vehicle owners to stay vigilant and report suspicious activities.
