An Indian man who said he was set alight by assailants near his Melbourne home last month accidentally burned himself while torching his car for an insurance claim, police allege.

Jaspreet Singh, 29, of Grice Crescent, Essendon, in the city's north, faced an out-of-sessions hearing early this morning before a bail justice at St Kilda Road police complex charged with making a false report to police and criminal damage with a view to gaining a financial advantage.

The case gained international headlines among a series of attacks by white Australians on Indian nationals in Melbourne.

Singh, who is in Australia on his wife's student visa, told police he was doused with petrol and set alight as he parked his car near his home early on Saturday, January 8.

Singh was taken to The Alfred hospital with burns to 15 per cent of his body, affecting his face, arms and hands.