UP: Insurance fraud amount in Sambhal crosses Rs 100 crore; ED seeks documents from police

A massive insurance scam involving fraudulent policies, fake documents and even killings carried out to claim insurance money has surfaced in Uttar Pradesh's Sambhal district, with the estimated fraud amount crossing Rs 100 crore, officials said on Thursday.

The Enforcement Directorate (ED) has also taken interest in the case and sought related documents and FIR copies from the local police, they added.

Additional Superintendent of Police (South) Anukriti Sharma told reporters that the gang involved in the scam has been under surveillance since January. So far, 52 people have been arrested in connection with the case, while around 50 accused are still absconding. Three of the accused have surrendered in court.

Explaining the modus operandi, Sharma said, "The gang members used to target young individuals and, in some cases, killed them to claim life-insurance money. In other instances, they took out insurance policies in the names of people suffering from terminal illnesses, such as cancer, as well as in the names of deceased individuals and then conspired to claim money from health and life insurance companies by forging documents and manipulating records."

The officer said the scam has links to at least 12 states and 17 FIRs have so far been registered, including four for murder.

"In the murder cases, the deaths were passed off as road accidents caused by unidentified vehicles to obtain insurance payouts. The FIRs in those cases were closed, but police managed to reopen those after finding irregularities. Investigations have so far revealed that 29 death certificates used by the gang were completely fake, while some others were genuine but had tampered dates to align with insurance claims," Sharma said.

The gang's operations were not limited to Sambhal district alone. Cases have also been identified in nearby districts, such as Amroha, Badaun and Moradabad, according to officials.

Police said they believe the total fraud amount has already exceeded Rs 100 crore and the figure may rise further as the investigation progresses.

Sharma said police have sought detailed data from various insurance companies and are scrutinising records currently to identify other suspicious claims.

The suspected data will be shared with the insurance companies for further verification and follow-up action, she said.

According to Sharma, initial findings point to the involvement of ASHA workers, individuals working in the health sector and employees of insurance firms.

She said the investigation is going on swiftly and more arrests are likely.

Responding to a question about the ED's involvement in the case, Sharma confirmed that the federal agency has sought specific information, including FIR copies, which have been provided by police.