Insurance Scam In India: 800-Page Chargesheet Filed in Multi-Crore Fraud Case Involving Deceased Policyholders

Meerut (TOI) – Three months after an insurance multi-crore insurance fraud case that surfaced earlier this year, the Sambhal police have filed an 800-page chargesheet against 11 accused from Uttar Pradesh, Bihar, and Jharkhand in India. The scam, dubbed one of the largest of its kind in recent years, involves a well-organised network that manipulated life insurance policies by using the identities of terminally ill individuals and even those already deceased.

The group, now being referred to as the “insurance mafia,” orchestrated an elaborate scheme to extract claim settlements from leading private and public life insurers, including ICICI Prudential, SBI Life Insurance, PNB MetLife, and Bajaj Allianz. They were accused of exploiting gaps in the verification and claims process of these companies to siphon off large sums of money.
The breakthrough in the case came in January when Sambhal police intercepted an SUV carrying large amounts of unexplained cash, PAN cards, debit cards, and forged documents. This led to the unravelling of a 26-member interstate syndicate operating across 12 states.

The syndicate’s modus operandi involved identifying financially vulnerable individuals who were terminally ill. These individuals were falsely documented as healthy and were used to purchase new life insurance policies. The gang paid the premiums on their behalf, and soon after the death of the insured, they claimed and collected the insurance benefits. In some instances, police say the group created policies with backdated records for individuals who had already died, making it easier to process quick claims.

So far, 14 FIRs have been registered in Sambhal and neighbouring districts including Badaun, Moradabad, and Amroha. Authorities believe the racket extended its reach through fake identities, shell accounts, and forged documentation, using digital tools and social manipulation to bypass insurer safeguards.