CBI raids LIC, bank officials in Rs.5 mn insurance fraud

Mumbai, Aug 14 : The Central Bureau of Investigation (CBI) Thursday swooped on offices and officials of the Life Insurance Corp of India (LIC) and the Bank of Karad Ltd in Pune, in connection with an alleged Rs.5 million insurance fraud.

A well-placed CBI source told IANS here Thursday afternoon that the raids were in connection with the Janashree Scheme, an LIC tailor-made policy for the people living below poverty line (BPL).

A Pune-based NGO, identified as PCCD, was actively engaged in identifying and getting the eligible BPL candidates who could be covered under the Janashree policy scheme.

However, after the death of a policy holder, the money did not go to the nominees or beneficiaries, but was pocketed by the NGO, in connivance with other unidentified people, said the source.

The CBI's Mumbai division received a complaint to this effect here last week after which it initiated inquiries.

The CBI is also investigating the role of an employee of the Pune Municipal Corporation and certain officials of the Bank of Karad along with LIC officials in the fraud.

--IANS