A special task force from the police force in the Indian province of Uttar Pradesh is conducting raids to nab the gang, who have been fabricating documents and buying insurance online, and later cashing in policies by creating fake user profiles, medical records, and death certificates.
“Scamsters first take life insurance policy online by scanning and attaching fake documents. They create a fake profile of a non-existing person and upload forged documents like birth certificate, income tax return and other required documents,” said Additional Superintendent of Police, STF, Triveni Singh, who is investigating the case to the Daily Mail.
These policies were taken out in Delhi and states like Uttarakhand, Gujarat and Bihar, according to police.
The police investigation has revealed that the criminals have worked in the insurance industry and are well aware of the loopholes. In order to create fake profiles and medical details they’re also suspected of working closely with low-level employees of municipal corporations and private hospitals.
Despite the task force already finding eight cases, which have caused a loss of over $2 million CAD to the insurance companies, but the magnitude of the scam is still unknown.
The police claim they are very close to arresting the entire group but since the process of physical verification is very weak the gang hasn’t been apprehended. Only after they’re caught will the full extent of the financial damage be known.
After taking out the policy, gangs wait for few months and create a medical history for a fake user with the help of doctors and hospital staff.
“We have found that the gang has even created fake medical history of non-existing persons. Through documents they show the insurance holder was a heart patient or was having some serious medical problem. They have even submitted admission certificate, operation and medical documents along with discharge letter,” Singh said to the Daily Mail.
As soon as strong medical documents are procured, the gang declares the insurance holder dead and - with the help of municipal corporation employees - they get a death certificate for a man who never existed, a senior officer said.
“We are close to bust the gang and raids are being conducted to arrest them. Role of insurance companies, doctors and government employees is dubious in this case and even they will be arrested,” Singh said to the Daily Mail.
A sophisticated insurance fraud ring led by three individuals and involving insurance companies’ employees, doctors and municipal employees is causing huge losses for insurers in India.