Police in U.P.’s Sambhal unearth nationwide insurance policy racket, arrest six
A large number of fake documents, counterfeit bank seals, death certificates, PAN cards, laptops and other items have been seized from the arrested accused
Police in Uttar Pradesh’s Sambhal district claim to have unearthed an interstate insurance fraud gang allegedly involved in issuing fake insurance policies and nabbed six of its members. As per the police, the gang members used to fraudulently claim life insurance as well as benefits under the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
“The scam, spanning eight states and operating for the past seven years, revealed fraud amounting to crores of rupees. The scam mainly involved securing insurance policies in the names of individuals with serious illnesses. Upon their deaths, perpetrators would claim the benefits, posing as family members or dependents,” Sambhal SP Krishan Kumar Bishnoi said.
Police identified the accused arrested on Saturday as Sharukh Khan, Hirendra Kumar, Sanju alias Roop Kishore, Prem Pal, Prem Singh Yadav and Neelam—all local residents.
Prem Pal and Prem Singh, who work for a mobile company, supplied SIM cards issued in others’ names to racket members. Meanwhile, Neelam, an ASHA worker, provided information of those suffering from cancer and other serious illnesses.
A large number of fake documents, counterfeit bank seals, death certificates, PAN cards, laptops and other items have been seized from them. The fraudulently issued SIM cards were misused by the gang members to open bank accounts, the police said. The scam was exposed after a thorough probe under SP Krishna Kumar Bishnoi and ASP Anukriti Sharma.
The police have seized 81 bank passbooks, 16 checkbooks, 35 debit cards, 25 Aadhaar cards, 18 PAN cards, 51 insurance policy forms, 31 death certificates, 17 closed life insurance policies, two laptops, five mobile phones and seven SIM cards.
Besides, 18 official seals, including those of nationalised banks, have also been recovered, police say. The police furthered their investigation based on documents and interrogations linked to the gang’s mastermind Omkareshwar Mishra from Varanasi.
“The accused targeted seriously ill individuals, including cancer patients and the elderly. These agents, often posing as financial advisors, would approach families and persuade them to purchase insurance policies. Upon the policyholder’s death, these fraudsters would claim the insurance amount, frequently disbursing only a small portion to the nominee,” ASP Anukriti Sharma said.
The recovered records pertain to individuals from Rajasthan, Gujarat, Delhi, Haryana, Uttarakhand, Uttar Pradesh, Jharkhand, Bihar, and West Bengal. These individuals were either life insurance policyholders or nominees of deceased policyholders. The gang fraudulently claimed life insurance and PMJJBY benefits.
Under the PMJJBY scheme, a death benefit of ₹2 lakh is provided for individuals aged 18 to 50 years. The police uncovered two cases wherein insurance was fraudulently obtained after death.
In one case, a person who died of cancer was insured six months after death. Policies were taken from two companies, and the deceased was falsely shown as alive, admitted to another hospital, and later declared dead due to cardiac arrest. A death certificate was issued on this basis, allowing the gang to claim the insurance payout.
In another case from Ghaziabad, a death certificate was issued nearly three months after the person’s actual death, falsely stating that the cause was accidental. Insurance policies were taken in the deceased’s name from two different companies.
Under the PMJJBY scheme, there is a mandatory waiting period of 45 days before filing a claim. To bypass this, the gang members would take out an insurance policy after a person’s death and then obtain a death certificate dated 45 days later to make a fraudulent claim.
Investigations have also revealed that the mastermind, Omkareshwar Mishra, worked as an investigating officer for two insurance companies. He would verify fraudulent death certificates and other documents submitted for claims. Even if a fake death certificate was provided, he ensured it was verified as legitimate, allowing the gang to obtain payouts from insurance companies.
Prempal and Prem Singh issued fraudulent SIM cards using various fake IDs provided by gang members. These SIM cards were used to open bank accounts in the names of insurance nominees, where claim payouts were deposited.
Bank and insurance company officials would send phone calls and messages to these numbers, preventing the actual nominees from receiving any information. The gang controlled these SIM cards, ensuring that details about the account activity were not accessible to the rightful nominees.
“We believe the actual extent of fraud could be significantly greater, potentially reaching hundreds of crores of rupees,” ASP Anukriti Sharma said.