The Central Bureau of Investigation (CBI) has launched an investigation into a major insurance fraud case involving the Oriental Insurance Company Ltd. (OIC Ltd.). This case stems from a complaint filed by the Regional Manager of OIC Ltd. against 13 individuals, including senior managers from the company and various private agents. The allegations revolve around a scheme to fraudulently settle insurance claims, resulting in significant financial losses for the company.
Background of the Case
In 2022, a group of individuals, including the Senior Divisional Manager and Development Officer of OIC Ltd., along with 11 private persons—including an agent and a surveyor—reportedly formed a conspiracy. They allegedly collaborated with eight proprietors of private firms based in Satna, Madhya Pradesh, to claim approximately ₹4 crores from OIC Ltd. under false pretenses.
The Allegations
The complaint highlights that the proprietors of seven firms, which traded in Tendu leaves (also known as Bidi leaves), had taken out insurance policies from OIC Ltd. in May 2022. These firms claimed that their stock of Tendu leaves was destroyed in a fire at a godown (warehouse) located in Village Ahirgaon, Satna District. However, it was alleged that this godown did not have an electricity connection, raising suspicions that the fire was deliberately set.
Moreover, the local police’s First Information Report (FIR) and the Panchnama, which document the incident, were reportedly disregarded by the surveyor and investigator involved, as well as by OIC Ltd. officials. The firms produced inflated trading accounts to show higher stock levels, aided by Chartered Accountants, and these accounts were not properly verified. Additionally, it was pointed out that the firms had not filed any GST returns.
Key Findings
Investigators found that Tendu leaves were sold by the Madhya Pradesh Forest Department to a different company, M/s P.C Trading Company, not to the accused firms. Furthermore, the Development Officer allegedly split the insurance claims across 14 policies, allowing the claims to fall within the Senior Divisional Manager’s financial authority. This maneuver helped them bypass the proper channels for claim approval.
The investigation revealed that the Senior Divisional Manager secured inflated survey and investigation reports that exaggerated the losses from the fire. These inflated reports formed the basis for the fraudulent settlement of the claims.
Ongoing Investigations
On September 11, 2024, CBI conducted searches at three locations, including residential and official premises of the accused in Indore, Satna, and Jabalpur. This operation led to the recovery of various incriminating documents, and the investigation is still ongoing.
The CBI’s actions underline the seriousness of the allegations and their commitment to uncovering the truth behind this fraudulent scheme. As the investigation continues, more details are expected to emerge about the extent of the fraud and the individuals involved.
