EOW Busts Massive Insurance Scam Using Fake Death Certificates In Bhopal

Bhopal (Madhya Pradesh): The Economic Offences Wing (EOW) has exposed a large-scale scam in the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), in which gangs used fake death certificates to claim insurance payouts worth crores.

The scam was spread across the Gwalior and Chambal divisions and involved forging documents for both deceased and living individuals to extract ₹ 2 lakh per fraudulent claim.

After complaints, the EOW Gwalior unit launched an investigation and discovered that several gangs were systematically misusing the government scheme by making fake death certificates of living persons and manipulating documents of deceased individuals to re-register them as alive and then deceased again.

The EOW officials said that insurance companies operating in the region were asked to furnish records of claims settled between January 2020 and December 2024. It came to light that Max Life Insurance submitted 325 suspicious claims while SBI Life Insurance submitted 679 claims, totalling 1,004 cases involving nearly ₹ 20 crore.

In Gwalior district, out of 325 claims by Max Life, five cases were confirmed as fraudulent. Living individuals Nadeem, Irshad, Naseema, Simran and Krishna Shankhwar were falsely declared dead using forged death certificates from the Gwalior Municipal Corporation and insurance claims of ₹ 2 lakh each were settled fraudulently.

The accused, including Jignesh Prajapati, Deepmala Mishra and Vivek Dubey (all employees of Max Life Insurance) along with others, have been booked for fraud and under other sections of the IPC.

In Morena district, Arun Kushwah, Rajabeti, Seema Bai, Kalyan Mahor and Sunita Bai, who had died earlier were shown as alive, enrolled in PMJJBY, and then declared dead again using fake certificates to claim insurance.

The accused Man Singh Kushwah, Ballesh Kirar (insurance agent), Pradeep Kushwah, Rinku Singh Kushwah, Saguni Kushwah and Surajram Kushwah (Panchayat Secretary) were booked under Prevention of Corruption Act .

In Bhind district, deceased Balveer Singh Rathore, Shashi Vimal, Manjubai and Arvind were shown alive and then dead and a living person Laxman Srivas was shown dead. The scamsters fraudulently claimed Rs 10 lakh from SBI Life Insurance.

A case was registered against Balendra Singh Kushwah, Satish Parihar, Nikhil Vimal, Bholu Singh and Surataram Kushwah (panchayat secretary)

What is PMJJBY ?

It is worth mentioning that PMJJBY is a government social security initiative providing ₹ 2 lakh life insurance coverage to individuals aged 18 to 55 years at a minimal annual premium of ₹ 436. In case of the policyholder’s death, the insured amount is transferred to the nominee’s bank account. The scheme is facilitated through banks and eight private and public insurance companies.

Modus operandi of Gwalior gang

Investigations revealed that Deepmala Mishra, linked to an NGO called Anti-Corruption Foundation of World, allegedly misled poor and semi-literate individuals by promising loans and benefits, collected their documents and got fake death certificates issued. Bank accounts were opened in their names and after claims were settled, the accused withdrew the money using passbooks, cheque books, and ATM cards in their possession.

Investigation underway

The EOW is continuously obtaining more data from other insurance companies and banks. The scam reveals a dangerous misuse of a vital welfare scheme and involvement of insurance employees, agents, local officials and panchayat secretaries in the fraud network. Further arrests and charges may follow, EOW officials said.