MUMBAI: Months after losing a loved one in an accident, a family in Maharashtra was still navigating paperwork, policy documents and bureaucratic procedures, hoping the insurance payout would offer some financial stability after their loss. Instead, what they allegedly encountered was a demand for a cut.
The Central Bureau of Investigation (CBI) has booked two officials of the Life Insurance Corporation of India (LIC) for allegedly demanding ₹4 lakh to settle death claims worth ₹40 lakh.
The accused, C Kadam and M Patil, posted as Field Officers/Development Officers at LIC’s Chhatrapati Sambhajinagar (Aurangabad) unit in Maharashtra, have been charged under provisions relating to criminal conspiracy and demand of undue advantage under the Bharatiya Nyaya Sanhita and the Prevention of Corruption Act.
Pestering demands for bribe
The case stems from the accidental death of a policyholder on August 6 last year. The deceased had purchased six LIC policies, naming his sister and mother as nominees. In October 2025, the deceased’s nephew- son of one of the nominees – submitted applications seeking settlement of the claims.
According to the complaint, the two officials visited the family’s residence on January 20 to verify documents required for the claim process.
More than a month later, on February 23, one of the accused, Kadam, allegedly demanded ₹4 lakh, roughly 10% of the total claim amount, through a WhatsApp message, allegedly stating that the sum would be shared between him and Patil.
‘ ₹1 lakh first’
The complainant then approached the CBI, which conducted a verification on February 24 in the presence of independent witnesses. During the exercise, the complainant allegedly met Kadam in Beed.
According to the recorded conversation cited in the FIR, ₹1 lakh was to be paid within two days, while the remaining ₹3 lakh was allegedly to be handed over after the insurance amount was credited.
Based on the complaint and the verification exercise, the CBI registered a formal case on Thursday. Investigators are examining electronic evidence, including the alleged WhatsApp exchanges and recorded conversation. The probe is ongoing.