Economic Fraud
Hyderabad Man Awaits Compensation as Fake Insurance Scam Leaves Victims Stranded
Hyderabad: It has been over three years since Reddy Rakesh’s life took a tragic turn, yet he remains trapped in bureaucratic delays and financial distress. After filing a compensation claim with the Motor Accident Claims Tribunal (MACT) in Malkajgiri-Medchal, he has yet to receive the justice he deserves.
A Life-Changing Accident
On Christmas Eve in 2021, Rakesh was heading home to Nandigama village after work in Ramayampet when a speeding goods carrier rammed his two-wheeler. The collision left him with seven fractures, including a shattered tibia, and extensive injuries that required weeks of hospitalization in Hyderabad. His medical treatment cost him over Rs 6 lakh, leaving him financially burdened. At just 35 years old, Rakesh knows he will never fully recover. His mobility is compromised, and his future remains uncertain. Seeking financial relief, he filed a claim for Rs 10 lakh in compensation on July 25, 2024.
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Fake Insurance Leaves Victims Helpless
However, Rakesh’s claim hit a major roadblock—the insurance policy covering the goods carrier was fraudulent. The vehicle, an Ashok Leyland goods carrier owned by Azizul Hakheem, was supposedly insured by Reliance General Insurance, but an investigation revealed that the policy number did not exist in their records.
Rakesh’s case is not isolated. The fraud runs deep into Telangana districts, with three more fake policies traced to Devanpally, Gandhari, and Kamareddy. Victims of similar accidents, including S Narender (Devanpally), Banoth Ganesh (Gandhari), and K Naveen (Kamareddy), were also left without compensation.
How the Scam Worked
Reliance General Insurance’s Risk Control Unit (RCU) manager, P. Mrinal, explained that fraudsters manipulated genuine policy reference copies, slightly altering policy numbers while keeping other details unchanged. Across all four cases, there were identical numbers and signatures, pointing to a coordinated scam. These fake policies were sold to commercial vehicle owners at discounted rates, only being discovered when accident claims were filed.
Ongoing Investigation
A fresh case was registered with Nizampet police (Medak) in December 2024, but no significant progress has been made. The scam is part of a larger network, with similar rackets busted in Shamshabad and Shabad, Hyderabad, in 2025. These fraudulent policies, issued under the names of Reliance General, Bajaj, HDFC, ICICI, and Tata AIG, have deceived numerous commercial vehicle owners over the past three years.
Authorities now suspect many more fake policies remain undiscovered, leaving accident victims like Rakesh without legal recourse or financial relief.