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Hyderabad: Fake vehicle insurance business booming in city
Representative image
The fake vehicle insurance scam still seems to be continuing unabated in the city as it is found that there have been irregularities with the insurance of the vehicles as the Regional Transport Authority (RTA) agents manage to get the work done without valid insurance.
Hyderabad: The fake vehicle insurance scam still seems to be continuing unabated in the city as it is found that there have been irregularities with the insurance of the vehicles as the Regional Transport Authority (RTA) agents manage to get the work done without valid insurance.
According to officials about 150 vehicles including lorries, motor cabs, goods vehicles, tourist buses, tractor trolleys and other vehicles visit the RTA office for fitness and other transactions. For the transaction to get completed, the insurance policy number has to be mentioned in the application.
According to the Telangana Auto and Motor Welfare Union, the officials along with the agents are hand in gloves leading to irregularities and posing risk to the motorists. "The nexus between the agents and some of the officials in the department has been leading to irregularities. The agents have been using a single policy number for many vehicles; and if an inquiry is ordered into this, there are chances of more irregularities to take place," said Telangana Auto and Motor Welfare Union General secretary, M Dayanand.
In order to get any transaction done, all documents including insurance are necessary for any transaction to be done in the transport department. However, since the first party insurance fee was increased, agents have found a way to resort to manipulations along with the knowledge of some staff members.
"Over 90 per cent of auto drivers, two-wheeler riders and even a few school buses and vans get their vehicle insurance before they take their vehicles to the RTO for a fitness certificate. To issue a fake insurance policy, agents usually charge Rs 800 to Rs 1,000 for an auto, Rs 1,000 to Rs 1,500 for two-wheeler, Rs 5,000 for car and Rs 10,000 for goods vehicles. Insurance certificate is mandatory for vehicle owners to get a fitness certificate from the RTO," added Dayanand.
But fake documents are prepared by entering a fake insurance policy number in the column for completing the transaction and money is paid to officials at different levels for getting the work done."
Dayanand demanded an inquiry by the Anti-Corruption Bureau (ACB) to bring out the truth. The authorities should check the records of the last five years or at least after the prices of insurance policy were increased so that they can fish out the irregularities.
