CBI books LIC officials, agents for major life insurance fraud

A majority of the policy holders in these cases were alive, even as the suspects claimed the money showing them as dead.

By Author  |  Published: 4th Jun 2019  9:51 pm
LIC
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Hyderabad: Two LIC officials and nine agents are in the dock for allegedly misappropriating death claim proceeds of 190 policies, amounting to a sum of Rs.3.13 crore. A majority of the policy holders in these cases were alive, even as the suspects claimed the money showing them as dead.

The Central Bureau of Investigation, which has now registered a case, said (LIC) Kodad branch Assistant Administrative Officer Banoth Beeku Naik had in fact claimed the death claim proceeds of the LIC policy of his own father, that too when the latter was alive. The amount was credited to the account of Naik’s wife. Naik along with Higher Grade Assistant G. Harya and nine agents allegedly misappropriated Rs.3.13 crore by submitting fake death certificates related to over 190 policy holders, the CBI said.

Based on a complaint lodged by LIC Chief Manager Yedla Venkateswara Rao, CBI registered the case under Section 120B (Criminal conspiracy) read with Sections 409 (Criminal breach of trust by public servant, or by banker, merchant or agent), 465 (Punishment for forgery), 467 (Forgery of valuable security, will, etc.), 468 (Forgery for purpose of cheating), 471 (Using as genuine a forged 1[document or electronic record]) and 477A (Falsification of accounts) of IPC.

The provisions of the Prevention of Corruption (PC) Act were also invoked against them. In the complaint, Rao said during the course of internal audit, it came to light that Naik, Harya and nine agents submitted bank account particulars of their’s and close relatives to be incorporated in LIC’s records under around 190 policies over six years.

They submitted fake death certificates and other documents to LIC for processing of death claim payments. Investigation further revealed that in a large number of cases the policy holders were very much alive.

Rao said the total loss to the LIC, at present, was in the range of Rs.3.13 crore in respect of 190 policies. “Our branch is having evidence that the claim amount under these 190 policies have credited to the bank accounts of the 11 people and their close relatives. It’s only an approximate amount and the same may be increased subject to further enquiry,” he said.

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