CBI registers case against Oriental Insurance Officials and private persons

According to an official press release by the Central Bureau of Investigation (CBI), a case has been registered against 13 accused, including a Senior Divisional Manager and Development Officer of Oriental Insurance Company Ltd., Satna (Madhya Pradesh), for their alleged involvement in fraudulent insurance claims amounting to Rs 4 crore approximately.

Allegations of fraudulent insurance claims

The case was registered following a complaint by the Regional Manager of Oriental Insurance Company Ltd. (OIC Ltd.). The accused include the Senior Divisional Manager and Development Officer of OIC Ltd.’s Satna division, along with 11 private individuals, including an agent, a surveyor, an investigator, and eight proprietors of various private firms. According to the complaint, the accused conspired to defraud the company by filing bogus insurance claims related to tendu leaves in 2022.

The insurance fraud conspiracy

The complaint alleges that proprietors of seven private firms, all tendu leaf traders, obtained 14 insurance policies from OIC Ltd. for tendu leaf stock stored in a godown in Ahirgaon village, Satna district. In May 2022, these firms claimed that the stock was destroyed in a fire. However, investigations revealed that the godown had no electricity connection, and the fire was likely man-made. Furthermore, the local police’s FIR and Panchnama were ignored by the surveyor, investigator, and OIC officials involved in the claim settlement.

Bogus trading accounts and GST evasion

The firms allegedly submitted false trading accounts with inflated closing stock figures, prepared with the assistance of chartered accountants. The surveyor, investigator, and OIC officials failed to verify these accounts, and they also overlooked the fact that the firms had not filed GST returns. The Forest Department of Madhya Pradesh had sold tendu leaves to P.C. Trading Company, not to the seven firms in question, raising further suspicions.

Misuse of authority by insurance officials

The Development Officer allegedly manipulated the financial authority limits by splitting seven insurance policies into 14, which allowed the claims to be processed without needing approval from higher authorities. This move facilitated the fraudulent settlement of 14 claims filed by the firms. The Senior Divisional Manager allegedly ensured that the survey and investigation reports, which inflated the losses from the fire, were submitted by the accused surveyor and investigator, furthering the conspiracy.

CBI searches and ongoing investigation

On Wednesday, the CBI conducted searches at three locations, including the residential and official premises of the accused in Indore, Satna, and Jabalpur, Madhya Pradesh. During these searches, various incriminating documents were recovered. The investigation into the case is ongoing.