On August 17, 2026 the Supreme Court directed all States to constitute dedicated Special Investigation Teams (SITs) to probe suspected fraudulent motor-accident insurance and compensation claims.

The directions were issued by a bench comprising Justices Ahsanuddin Amanullah and Prasanna B. Varale in proceedings arising from The Oriental Insurance Co. Ltd. v. Tuni Pati & Ors. (SLP/C No. 5582/2023). The Court expanded the scope of that individual case to examine alleged systematic fraud in motor-accident claims across India.

The Court observed that the same vehicle had been shown as being involved in multiple accidents, describing the pattern as suggesting fraud of "enormous proportion" and noting vehicles being "planted" or repeatedly implicated to extract compensation from insurers.

The Court directed that where a Motor Accident Claims Tribunal rejects an insurance claim on grounds of fraud or collusion, the insurer should immediately forward details to the State SIT and conduct an in‑house investigation to determine any contributory collusion by its officers.

The expanded matter was listed for further hearing, and the Court asked newly impleaded respondents — including States/UTs (through DGPs), the Ministry of Road Transport & Highways, and the General Insurance Council — to file affidavits describing existing responsibilities and measures; press reports list the next date as September 23, 2026.

The Supreme Court has previously in 2026 ordered SIT probes in insurance-fraud contexts and observed that staged or fabricated insurance claims are "not uncommon"; earlier orders (for example, the March 17, 2026 order in C.A. No. 6100/2024) directed local SIT formation in specific matters.