Bhadrachalam LIC Scam Exposes ₹1.52 Crore Fake Death Claims
Bhadrachalam LIC Scam Exposes Fake Death Claims Worth ₹1.52 Crore
BHADRACHALAM: The Bhadrachalam LIC Scam has surfaced after officials discovered that insurance agents allegedly withdrew ₹1.52 crore using forged death certificates while policyholders were still alive.
The incident occurred at the Life Insurance Corporation branch in Bhadrachalam. Authorities say two agents from Seetharampuram village in Ashwapuram mandal allegedly exploited loopholes in LIC procedures to submit fraudulent death claims.
The Bhadrachalam LIC Scam came to light during an internal review conducted by LIC officials. According to the complaint, the agents created fake documentation, including fabricated death certificates, and filed insurance claims for multiple policies.
How the Bhadrachalam LIC Scam Was Carried Out
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Investigators say the accused targeted vulnerable policyholders and took policies in their names. Later, the agents allegedly produced forged documents claiming the policyholders had died.
Using these documents, the accused submitted claims and withdrew funds from the LIC branch. Officials said the fraud involved policies belonging to 39 customers, and the total amount siphoned off reached ₹1.52 crore.
In several cases, the individuals listed as deceased were actually alive. The fraud was exposed when LIC officials personally contacted policyholders during verification checks.
Similar irregularities have been reported in several LIC insurance fraud cases, raising concerns over how fake death certificates insurance claims can bypass verification systems.
Police Investigation Begins
Following the discovery of the Bhadrachalam LIC Scam, branch manager Chakravarthi filed a complaint with Bhadrachalam police.
Police registered a case against the two agents and launched a detailed investigation. Officials are now examining documents, policy records, and claim approvals to determine the full extent of the fraud.
Authorities are also investigating whether any internal staff assistance enabled the scam.
Public Concerns Over Insurance Verification
The revelation has raised serious concerns among policyholders. Many residents questioned how such a large amount could be withdrawn without stronger verification.
Insurance customers often face long delays when submitting genuine claims. However, in this case, fraudulent claims allegedly passed through the system unnoticed.
The Bhadrachalam LIC Scam has therefore triggered debate over monitoring mechanisms and the need for stronger verification procedures within insurance institutions.
Officials said further action will depend on the outcome of the ongoing police investigation.
