₹100-Crore Insurance Scam Busted in UP
• Fake Policies, Real Murders: ED Steps In
• Multi-State Fraud: 12 States Under Scanner
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
- ₹100-Crore Insurance Scam Busted in UP
- • Fake Policies, Real Murders: ED Steps In
- • Multi-State Fraud: 12 States Under Scanner
- Fake Policies and Murder for Payouts: Anatomy of the Insurance Fraud
- Multi-State Links and Deep-Rooted Nexus with Public Health Staff
- Also Read: Goa Land Scam: ED Arrests MGP Leader Rohan Harmalkar in ₹1,000-Crore Fraud Case.
- Enforcement Directorate’s Involvement Signals Broader Legal Action
- Implications for Insurance Sector and Policy Enforcement
- A Wake-Up Call for Public Institutions
The Enforcement Directorate is investigating a ₹100-crore insurance scam in Uttar Pradesh involving fake policies, forged documents, and murders for claim money. Linked to 12 states, the racket includes health workers and insurance agents. Sprouts News SIT reveals deep-rooted corruption and ongoing arrests as the multi-agency probe intensifies.
The Enforcement Directorate (ED) has launched a sweeping probe into a multi-state insurance scam centered in Uttar Pradesh’s Sambhal district. This organized fraud, valued at over ₹100 crore, involves the creation of fake insurance policies, use of forged documents, and even orchestrated murders to illegally claim insurance payouts.
According to officials, the ED has formally requested First Information Reports (FIRs) and all related documentation from the Uttar Pradesh Police as part of its expanding investigation. The scam, which has shocked both law enforcement and regulatory bodies, is believed to span across at least 12 states in India.
Additional Superintendent of Police (South), Anukriti Sharma, confirmed that the gang involved has been under active surveillance since January this year. So far, police have arrested 52 individuals connected to the case, while approximately 50 remain absconding. Three accused have surrendered in court.
Fake Policies and Murder for Payouts: Anatomy of the Insurance Fraud
The modus operandi, as revealed by the Sprouts News Special Investigation Team (SIT), is both brutal and methodical. The fraudsters often targeted vulnerable individuals, including terminally ill patients and even the deceased. In more sinister cases, the gang took out insurance policies on unsuspecting young men—some of whom were later murdered to enable fraudulent insurance claims.
In several instances, these murders were made to look like road accidents involving unidentified vehicles. Initial FIRs for these deaths were quietly closed but later reopened when irregularities came to light. Upon further investigation, law enforcement discovered that 29 of the death certificates used in these cases were completely fabricated. In others, real certificates were doctored with false dates to match the policy timelines.
The SIT learned that the scam was enabled by the use of tampered documents and manipulated medical records, allowing the accused to trick both health and life insurance companies across multiple jurisdictions.
Multi-State Links and Deep-Rooted Nexus with Public Health Staff
The scam’s reach is not confined to Sambhal alone. Authorities have traced fraudulent activity in surrounding districts such as Amroha, Badaun, and Moradabad. Police suspect that the total scam value may significantly exceed ₹100 crore as more details emerge.
The UP police, in coordination with the SIT, is now cross-referencing data from multiple insurance companies to identify additional suspicious claims. This data is being shared with insurers for further internal audits and recovery processes.
Crucially, initial findings suggest collusion from within the public healthcare system. Sources told Sprouts News that ASHA workers, government health staff, and even some private insurance company employees may have facilitated the scam. Their roles ranged from fabricating medical histories to helping obtain fake documentation and fast-tracking fraudulent claims.
Also Read: Goa Land Scam: ED Arrests MGP Leader Rohan Harmalkar in ₹1,000-Crore Fraud Case.
Enforcement Directorate’s Involvement Signals Broader Legal Action
With the ED now involved, the case is expected to take a more serious legal turn. The central agency has begun collecting documents, digital records, and financial trails to build a comprehensive money laundering case against the accused.
According to ASP Anukriti Sharma, the police have already shared requested FIRs and other critical evidence with the ED. Investigators are hopeful that the central agency’s involvement will expose higher-level links and possibly lead to the seizure of illegal assets and funds.
The Sprouts News Special Investigation Team (SIT) has also discovered indications that insurance money obtained fraudulently may have been funneled into real estate and other illicit investments. These findings will likely be a focal point for the ED in the next phase of their probe.
Implications for Insurance Sector and Policy Enforcement
This scam has far-reaching implications for India’s insurance and public health sectors. The brazen misuse of systems designed to protect citizens has exposed major vulnerabilities in document verification, policy issuance, and claim settlement processes.
Insurers are now under pressure to overhaul their due diligence protocols. Meanwhile, government agencies are likely to issue advisories and new compliance guidelines to prevent such large-scale fraud in the future.
Sprouts News Special Investigation Team (SIT) will continue tracking the developments of this case, which has already set off alarms across both regulatory and enforcement circles.
A Wake-Up Call for Public Institutions
The ₹100-crore insurance scam in UP is not just a criminal case—it is a systemic failure. From health workers to insurance intermediaries, the involvement of multiple actors points to an organized nexus that exploited loopholes for profit. As the ED expands its investigation, more arrests and revelations are anticipated.
