Bought Car Insurance From an Online Ad? Ghaziabad Police Bust Fake Insurance Racket: What the Law Says

What happened?

Ghaziabad police say they have arrested seven people in a fake motor insurance case. This is according to reports by The News Mill, Asianet Newsable and Star Express, and ANI as carried by other outlets.

The Deputy Commissioner of Police (Crime Branch) briefed the media on Friday, 9 October 2026. The Crime Branch and the Cyber Crime police station worked on the case.

Police say the gang ran a fake call centre. They allegedly bought Google ads that looked like those of a well-known insurance company. The ads offered cheap car insurance.

People who clicked were allegedly given fake policy papers after they paid. Reports say victims were in Kerala, Jharkhand, Uttar Pradesh and the Delhi-NCR area.

How much money is involved?

The reports do not agree on one figure. Most English reports say more than Rs 60 lakh. Star Express says about Rs 40 lakh, based on complaints made on the National Cyber Crime Reporting Portal.

Police say more than 20 complaints were made on that portal. They recovered phones, ATM and debit cards, chequebooks, passbooks and some cash.

According to one report, the gang paid a 5 per cent commission to people who gave their bank accounts. The main accused is said to be absconding (on the run). Police say they are looking for him.

This is an early report. Facts may change as the case moves on.

Is selling a fake insurance policy a crime?

Yes, if the allegations are proved. Taking money for a policy that does not exist is cheating.

Cheating is defined in BNS section 318. A person cheats when they deceive someone, and so make that person hand over money. The old IPC section was 420.

Pretending to be someone else is cheating by personation under BNS section 319. Posing as a known insurer fits this idea.

The reports do not say which sections police used. The sections below are what the law says in a case like this.

What other sections can apply?

Fake policy papers are a false document. Making one to cheat people is forgery under BNS section 336. The old IPC sections were 463 to 471.

If two or more people plan it together, criminal conspiracy under BNS section 61 can be added.

The Information Technology Act, 2000 also has section 66D. It covers cheating by personation using a computer or communication device. The jail term is up to 3 years and a fine of up to Rs 1 lakh.

A person who knowingly receives or keeps cheated money can face BNS section 317. That is why lending your bank account to strangers is risky. Read our earlier explainer on bank accounts and fraud.

What is the punishment, and can the accused get bail?

Cheating that makes a person hand over money (section 318(4)) can mean up to 7 years in jail and a fine. It is cognizable (police can act without a court’s permission). It is non-bailable (bail is not a right).

Cheating by personation (section 319(2)) can mean up to 5 years, or a fine, or both. It is cognizable and bailable.

Forgery for the purpose of cheating (section 336(3)) can mean up to 7 years and a fine. It is cognizable and non-bailable.

In a non-bailable case, the court decides on bail. It looks at the seriousness, the money involved and whether the accused may flee or affect witnesses. All this applies only if the allegations are proved.

What happens next?

Police trace the money and the bank accounts. They may freeze accounts and ask banks for records. They record the statements of victims.

Then they file a chargesheet (the final police report) in court. The court frames charges, hears witnesses and gives a judgment.

Victims can ask the court to order the return of money if it is recovered.

How can you check that a policy is real?

A fake policy often looks real. It has a logo, a number and a PDF. The fraud shows only when you make a claim.

Do not search for the insurer on an ad link. Open the insurer’s own website or app by typing its address yourself. Confirm the policy number there or on its official helpline.

Pay only to the insurer’s account or its official payment page. Be careful if the payee is a person or a small firm you do not know.

A cheap price and a push to pay quickly are warning signs.