EOW Uncovers Massive Insurance Fraud Network in Gwalior-Chambal Region
The Economic Offences Wing has exposed a sophisticated insurance fraud operation across the Gwalior-Chambal division. Investigators discovered that organized gangs used forged death certificates to illegally claim insurance payouts under the Pradhan Mantri Jeevan Jyoti Bima Yojana. This fraudulent activity caused losses amounting to crores of rupees to the government exchequer.
Key Accused and Their Alleged Roles
EOW officials registered a criminal case against four primary suspects: Deepmala Mishra, Jignesh Prajapati, Naveen Mittal, and Pooja Kumari. The case also implicates former officials from the Birth and Death Registration Branch of Gwalior Municipal Corporation and employees of Union Bank of India's Sheopur branch.
According to the complaint, these individuals worked together in an organized manner. They falsely declared living persons as deceased in official records. In some instances, they even showed dead persons as alive. This manipulation allowed them to fraudulently claim insurance amounts meant for legitimate beneficiaries.
How the Fraud Operated
Investigators revealed that the accused prepared forged death certificates and other fabricated documents. They worked in connivance with bank staff and civic body employees. Using these fake documents, the fraudsters impersonated legitimate nominees to withdraw insurance payouts.
The PMJJBY scheme provides life insurance coverage specifically for economically weaker sections. Individuals aged 18 to 50 years can obtain coverage of Rs 2 lakh by paying a small annual premium. The insured amount goes to the nominee upon the policyholder's death. The fraudsters exploited this social security scheme for personal gain.
Extensive Investigation Reveals Widespread Fraud
During their preliminary probe covering January 2020 to December 2024, EOW officials scrutinized claims processed by eight major insurance companies operating under PMJJBY in the Gwalior-Chambal division. These companies include:
- LIC of India
- SBI Life Insurance
- ICICI Prudential Life Insurance
- United India Insurance Company
- Axis Max Life Insurance
- Star Union Dai-ichi Life Insurance (SUD)
- Indian AXA Life Insurance
- New India Insurance Company
In Sheopur district alone, Star Union Dai-ichi Life Insurance received 50 claim cases. Investigation into six of these cases has been completed. Officials found one genuine claim and five fraudulent ones. Each fraudulent claim resulted in a payout of Rs 2 lakh, creating a confirmed loss of Rs 10 lakh to the government from just these five cases.
Legal Action and Previous Cases
Based on their findings, EOW registered a prima facie case under multiple sections of the Bharatiya Nyaya Sanhita. The specific sections include 318, 319, 336, 338, 340, and 61(2).
This investigation builds upon previous cases linked to the same alleged racket. Earlier, EOW had registered multiple FIRs across Gwalior, Morena, and Bhind districts while investigating 15 similar cases involving Axis Max Life Insurance and SBI Life Insurance.
The specific cases include:
- Crime No. 117/25 in Gwalior district against Deepmala Mishra, Jignesh Prajapati, and Vivek Dubey (former Utkarsh Small Finance Bank employee) involving five cases
- Crime No. 118/25 in Morena district against Mansingh Kushwah, Ballesus Kirar, Pradeep Kushwah, Rinku Singh Kushwah, Saguni Singh Kushwah, Suratram Kushwah (then secretary of Gram Panchayat Badpura, Ater, Bhind) and others linked to five fraudulent claims
- Crime No. 119/25 in Bhind district against Balendra Singh Kushwah, Satish Parihar, Nikhil Vimal, Bholu Singh, Suratram Kushwah and others involving five cases
Ongoing Investigation and Future Implications
EOW officials continue to receive information about suspicious claim cases from other insurance companies. They are examining this information continuously. Officials believe the scale of fraud could be significantly larger as more districts and insurers come under scrutiny.
The probe remains active and ongoing. Investigators anticipate further arrests and recoveries as they unravel the complete insurance fraud network operating across the Gwalior-Chambal division. This case highlights vulnerabilities in social security schemes that criminals exploit for financial gain.
