CID Unearthed ₹2.5 Crore Fraud in PM Jeevan Jyoti Bima Yojana

Organized racket used forged death certificates and mule accounts to siphon insurance payouts across Gwalior, Morena, and Ratlam.

 The state’s Crime Investigation Department (CID) has registered two cases involving a sophisticated ₹2.5 crore fraud linked to the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Officials confirmed on Thursday that the investigation into the organized racket, which spanned across districts including Gwalior, Morena, and Ratlam, reveals a deeply systematic approach to insurance siphoning.

Systemic Exploitation of Policies

Preliminary findings indicate that the gang functioned by procuring a massive volume of insurance policies through a network of dubious bank accounts. In many instances, policies were issued in the names of individuals completely unaware that their identity had been compromised. The scheme often involved securing multiple policies for the same person or family members from different insurance providers to maximize the illicit gains.

Forged Documents and Payouts

The core of the operation relied on obtaining forged death certificates from local municipal bodies. Within a window as short as one month to a year after purchasing the policies, the suspects would falsely declare the insured individuals as deceased. Based on these fabricated records, the gang successfully processed and received insurance claims. Investigators have noted that in several cases, people were marked dead while they were very much alive.timesofindia.

Tracing the Financial Trail

Authorities found that the money was routed through a complex web of "mule accounts" to avoid immediate detection. Once the insurance payouts hit these accounts, the funds were quickly withdrawn from ATMs located in various cities, including Ratlam and even outside the state in Rajasthan, such as Sawai Madhopur and Ganganagar. The CID has now moved to identify these beneficiaries and freeze the suspicious bank accounts associated with the scam.

Expanding Scope of Investigation

Special Director General (CID) Pankaj Srivastava stated that the criminal operation was conducted with a high level of coordination across multiple districts. While the current investigation centers on the confirmed ₹2.5 crore discrepancy, officials are now working to determine if the network extends further. Teams are currently scanning banking and insurance networks to identify other potential victims and participants in the organized fraud.

Policy Security Under Scrutiny

The PMJJBY is a vital social security initiative designed to provide a ₹2 lakh life insurance cover to economically weaker sections at an annual premium of ₹436. The abuse of this scheme by organized gangs has raised serious concerns regarding verification processes at both the municipal and banking levels. As the investigation progresses, state authorities are expected to push for tighter oversight to prevent similar misuse of government social security nets.