A major insurance fraud has surfaced in Madhya Pradesh, where agents from Gujarat and MP allegedly targeted poor labourers and farmers who were critically ill or nearing death.
Investigators say insurance policies worth lakhs of rupees were issued shortly before — and in some cases even after — a person’s death. Later, attempts were made to claim crores by showing the deaths as natural.
The Economic Offences Wing (EOW) in Ujjain has uncovered a scam worth nearly ₹8 crore so far. The probe found that policies of ICICI Prudential Life Insurance were issued using fake documents in the names of deceased people and terminally ill patients. An FIR has been registered against 39 people, including sarpanches, panchayat secretaries and insurance agents.
A Bhaskar investigation found 27 such cases in Ujjain alone. Apart from this, five cases each have surfaced in Hatod, Sanwer and Betma in Indore district, 22 in Gwalior, Bhind and Morena, and five in Chhindwara. Complaints have been submitted to police in these cases, though FIRs are yet to be registered.
Investigators estimate that fake insurance claims worth over ₹16 crore were being prepared across Madhya Pradesh.
EOW Ujjain SP Samar Verma confirmed that an FIR has been lodged in the Ujjain case. Investigating officer Reema Yadav said preliminary findings revealed major irregularities, and the names of agents from Vadodara have also surfaced.
27 such cases were found in Ujjain alone.
How the alleged fraud worked
Agents allegedly travelled village to village looking for poor, seriously ill people in the final stages of life.
Insurance agents contacted families directly or over phone, promising financial assistance and collecting documents.
Policies were issued without disclosing the person’s illness. In several cases, even the registered mobile number did not belong to family members.
After the insured person died, agents allegedly persuaded families to obtain death certificates carrying specific dates, often arranged through panchayats.
Claims were then filed using death certificates and supporting documents, portraying the deaths as natural. In nearly 70% of cases, heart attack was cited as the cause of death. Once claim amounts were credited, the money was quickly withdrawn.
₹25-lakh policy allegedly taken after death
Dharmendra Singh of Dhureri village in Ujjain’s Badnagar tehsil died in 2023. Investigators allege that a ₹25-lakh insurance policy was issued in his name the same year, carrying a six-month premium of nearly ₹80,000. Later, an attempt was made to claim the amount using a 2024 death certificate.
Dharmendra’s brother said an agent approached the family promising they would receive ₹4-5 lakh if the policy was issued. The agent collected all necessary documents. After Dharmendra’s death, the agent allegedly contacted the family again and asked them to arrange a death certificate.
The family says they were unaware of the massive premium amount. They own only two bighas of land and earn roughly ₹1-1.5 lakh annually.
Policy issued 21 days after death
In another case, Jaykuwar of Ujjaiyini village in Ghattiya tehsil had died in 2023, but an insurance policy was allegedly issued in her name in 2024. Her husband Vijay Singh works as a labourer, yet the policy premium was ₹44,500 — far beyond the family’s means.
Investigators found the death certificate submitted in the case was fake, though the sarpanch and secretary have denied the allegations.
Similarly, a policy was allegedly issued in the name of Dinesh Malviya of Panwasa 21 days after his death. Dinesh worked as a labourer, but the policy carried a six-month premium of ₹49,000.
Fake death certificate used for claim
Balu Singh of Alakheda village in Mahidpur tehsil had purchased an insurance policy in 2023 and died 64 days later. The premium was ₹36,576. Investigators allege that a fake death certificate was later submitted to process the claim. The village sarpanch and secretary are among those accused.
Panchayat officials under scanner
The scam has also raised serious questions over the role of local officials.
Under rules, panchayat secretaries must conduct spot verification before issuing death certificates. However, investigators allege that fake certificates were created using back-dated entries and deaths were routinely shown as normal heart attacks.
Among those named in the Ujjain FIR are Alakheda sarpanch Jaswant Singh, secretary Rajkumar Devda, assistant secretary Radheshyam Gurjar, Palkhanda panchayat secretary Member Chaudhary and Dhureri panchayat secretary Lakhan Chauhan.
FIR registered, more investigations underway
“Fraudulent insurance claims were being raised. We filed a complaint and an FIR has now been registered in Ujjain. Investigations are continuing in other places as well, and action will be taken against those involved,” said Ritik Soni, Risk Manager for MP-CG at ICICI Prudential Life Insurance.
