MP: How Multi-Crore Organized Fraud Was Exposed in Pradhan Mantri Jeevan Jyoti Bima Yojana; CID Registers Two FIRs
Bhopal: Under the direction of Director General of Police (DGP) Kailash Makwana, the Madhya Pradesh Police has uncovered a major organized insurance fraud racket. In connection with this case, two separate cases have been registered by the Crime Investigation Department (CID) at the Police Headquarters in Bhopal, and a comprehensive investigation has been initiated.
Forged death certificates were used
Special Director General of Police, Crime Investigation Department (CID), Pankaj Srivastava, stated that a case has come to light involving an organized criminal gang that defrauded insurance companies of approximately Rs 2.5 crore under the "Pradhan Mantri Jeevan Jyoti Bima Yojana" (PMJJBY) by using forged death certificates. This organized criminal activity was being executed in a highly systematic manner across various districts of the state, including Gwalior, Morena, and Ratlam.
Hundreds of suspicious bank accounts were opened
Preliminary investigations have revealed that members of the gang opened hundreds of suspicious bank accounts under fictitious names across various banks. Subsequently, a large number of insurance policies were procured through these very accounts. Insurance coverage was obtained in the names of multiple members within the same family; furthermore, individuals sharing identical names and addresses were found to have insurance policies with different insurance companies.
In numerous instances, the same mobile number and email ID were utilized across various bank accounts and insurance policies, thereby deepening the suspicion surrounding these activities.
Policies were issued in the names of many persons without their knowledge
Notably, it also came to light that insurance policies were issued in the names of many individuals without their knowledge or consent; the concerned beneficiaries remained completely unaware of the existence of these policies. Within a period ranging from one month to one year after the insurance policies were procured, these individuals were falsely declared deceased.
Subsequently, allegedly forged death certificates were procured from urban local bodies, and insurance claims were successfully obtained on the basis of these fraudulent documents. In several cases, the individuals listed as deceased were found to be alive, yet the fraud was perpetrated by falsely portraying them as dead.
Money was immediately withdrawn or transferred into mule accounts
The gang employed a meticulously planned network to launder and conceal the funds obtained through these fraudulent activities. As soon as funds were deposited into accounts opened in Gwalior and Morena, they were immediately withdrawn via ATMs in Ratlam, Sawai Madhopur (Rajasthan), Ganganagar, and other locations, or were transferred into "mule accounts." Similarly, funds deposited into accounts opened in Ratlam were withdrawn using ATMs located in the Gwalior-Morena region. Suspicious accounts have been identified, and measures have been taken to freeze them.
During the investigation, it also came to light that in numerous instances, an insured individual's place of residence was recorded in one location, while their death was falsely reported as having occurred in a different, distant location—from where fraudulent death certificates were subsequently procured. Claim amounts were received by various nominees utilizing shared mobile numbers and email IDs.
It is noteworthy that the "Pradhan Mantri Jeevan Jyoti Bima Yojana" is a central social security scheme aimed at providing life insurance coverage to the economically weaker sections of society. Beneficiaries within the 18 to 50 age group are provided with an insurance cover of Rs 2 lakh against an annual premium of Rs 436; this sum is disbursed to the designated nominee in the event of the insured individual's death.
Claims were obtained by falsely reporting deaths of 2 or 3 members of same family
In the context of this case, several instances have surfaced where insurance claims were successfully obtained by falsely reporting the deaths of two or three members of the same family within the span of a single week or month—despite the fact that, in almost all such cases, the cause of death was cited as "natural."
The Madhya Pradesh Police are currently conducting a thorough investigation into every facet of this organized crime. Efforts are underway to identify and apprehend the accused individuals involved in this syndicate, conduct a detailed examination of the banking and insurance networks utilized, and trace the network's reach across other states. Further significant revelations regarding this case are anticipated in the near future.