The Gorakhpur Police have unearthed a massive insurance scam worth over ₹1.20 crore linked to Descent Hospital in the Ramgarhtal area. Investigations revealed that forged signatures of Dr. A.K. Singh were used to file fake medical claims and siphon off funds from insurance companies.
Fake Patients and Bogus Claims
Officials said the fraud occurred between March 2024 and March 2025, during which claims for nearly 30 fake patients were made using fabricated medical reports and forged approvals.
Further scrutiny revealed a list of over 500 fictitious patients, many of whom never even existed. The hospital administration allegedly presented inflated bills for 150 patients, but the deeper probe exposed the scale of the racket.
A police officer disclosed that agents received up to 50% commission on each fraudulent claim, indicating an organized nexus.
Cyber Cell Tracks the Money Trail
SP City Abhinandan Tyagi confirmed that the Cyber Cell is now examining bank accounts and money trails to determine where the insurance payouts were diverted. “Once we complete the account matching, strict legal action will follow against all responsible parties,” he said.
Expert View: A Growing Menace
Former IPS officer and cybercrime expert Prof. Triveni Singh warned that health insurance frauds are becoming a new challenge in India.
“Fraudsters are no longer limited to online scams. Hospitals, labs, and agents often collude to commit organized fraud. Patients’ data and doctors’ digital signatures are being misused, which not only makes it an economic crime but also erodes public trust in the healthcare system.”
He recommended Digital verification of all insurance claims, blockchain-based security for doctors’ signatures and medical records and legal accountability for hospital administrations involved in such scams.
Dr. A.K. Singh, whose forged signatures were used, told police: “My name has been misused. This is not just about money but also an attack on my professional reputation.”
The Gorakhpur case highlights how organized fraud can exploit loopholes in the healthcare and insurance system, raising urgent questions about the safety and credibility of health insurance policies in India.