During interrogation, it emerged that the accused was involved in at least nine such cases in the past, said Ishwar Singh, DCP (south).
A complaint was filed at Vasant Vihar by Ram Mohan Rai who alleged that he owned an Audi and Chevrolet Cruz, whose insurance and renewal was being done by the accused.
Later, Rai found that the insurance policies supplied by the accused were "fake", said the officer.
A case was registered at Vasant Vihar police station and investigation was taken up.
"Fake insurance cover notes were recovered from his possession," he said.
During interrogation, the accused revealed that he had started work as a field agent of an insurance company in Hauz Khas in 2007. Later, he left the job after a dispute with in-charge of his office, police said.