Sambhal Police unearthed a multi-state insurance fraud network that had siphoned off over ₹100 crore through false claims, fake accident reports, and even murders disguised as accidental deaths. Operating across 12 states, this syndicate was systematically defrauding insurance companies by using counterfeit medical records, manipulated identities, and staged deaths.
So far, more than 17 FIRs have been filed, and over 50 arrests have been made. Due to the sheer scale and cross-border nature of the fraud, the Enforcement Directorate (ED) has stepped in to investigate potential money laundering links. Authorities are now examining whether funds obtained through these scams were funneled into real estate, shell companies, or foreign accounts.
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Sambhal Police Hosts Insurance Conclave with 58 Companies
Recognizing the need for systemic reform and industry-wide collaboration, the Sambhal Police, with the approval of the UP Police Headquarters, organized a high-level Insurance Conclave. Attended by officials from 58 insurance companies and joined virtually by Mandakini Balodhi, Director, Financial Services Department, Ministry of Finance, the conclave served as a platform for coordinated brainstorming on fraud mitigation.
ASP South Anukriti Sharma, IPS officer, kickstarted the session with a detailed presentation on the modus operandi of the fraud gang. She highlighted that victims were often coerced or misled, with some cases involving premeditated killings masked as road accidents to file large insurance claims.
The conclave revealed that this is not merely insurance fraud but organized crime exploiting loopholes in claim processing, identification, and documentation systems.
New SOP and Preventive Roadmap in the Works
Following detailed panel discussions between law enforcement and industry leaders, a consensus emerged: a standard operating procedure (SOP) must be jointly developed to prevent such widespread abuse of the insurance system. The SOP will aim to strengthen claim verification protocols, introduce real-time fraud detection tools, and ensure inter-state data sharing between insurance companies and cyber cells.
SP KK Bishnoi, who led the campaign against this insurance mafia, was lauded for his leadership. In his address, he stated,
“This is not just Sambhal; this represents the evolving face of the Uttar Pradesh Police. Under the Chief Minister’s vision of a crime-free state, such mafias will be dismantled wherever they operate.”
The SOP is expected to serve as a national model, setting the benchmark for how police and private companies can collaborate to counter financial crimes.