National Insurance vs K Saravanan: Forged Motor Policy, SC Orders SIT, Flags Connivance Risk

Court finding - Supreme Court Supreme Court Apr 2 2026 (2026 SC 1623) in National Insurance vs K Saravanan slammed insurer for not filing FIR after forged motor policy and ordered SIT.

Context: Why Single Forged Slip Triggers State SIT

Motor fraud has driver face (staged accident, same vehicle in multiple claims) and paper face (forged cover note passes roadside check but fails at claim). SIT orders assume VAHAN/IIB verification at pump.

Implication: VAHAN Green Not Claim Green

Forged slip can show insured until IIB flags never-issued. Delay is now evidence. Four-layer policy structure ordered alongside must offer base Mandatory TP Only + options with Customer Option Form.

Action: How to Verify Not Forged

Check vahan.parivahan.gov.in and insurer e-card matching IIB. If flagged, ask for ANPR log and escalate via GRO + cybercrime.gov.in.