Bajaj Allianz loses 110 crore due to fraud

Bajaj Allianz has alleged that owners of 21 commercial four and three-wheelers in the state have got their vehicles insured as two-wheelers in the last one month and paid less premiums resulting in loss of Rs.110 crores to the company.

The company claimed it suffered huge loss amounting to lakhs due to the fraud, which was found during an audit. The company suspects it to be handiwork of an all-India level gang that uses an online portal for getting vehicles insured.

In the complaint filed in Lucknow, Company said one Abhishek Pandey was appointed as an agent for Point of Sale at the company’s satellite office in Gonda. In September 2021, the company came to know that Pandey had issued a two-wheeler liability policy to a commercial four-wheeler owner. This caused a loss to the company of premium meant for a four-wheeler, GST loss to state and Central governments and also to the customer as well,”

The fraudulent practice by Pandey surfaced following an internal inquiry.

Bajaj Allianz Head Vikas Dave said that the fraud is pan-India, in which 1.36 lakh four/three wheelers have been registered as two wheelers causing a loss of around Rs 110 crore to the company and Rs 20 crore to the government as GST.

Dave further said as per records, 26,000 commercial four wheelers have been registered as two wheelers in Uttar Pradesh within a year (October 2021-October 2022), causing loss of around Rs 20 crore.