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Indian gangs are 'fake-killing' people to claim life insurance payouts, report says

Business Insider US
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  • Indian gangs have made fraudulent insurance claims by "fake-killing" people.
  • One scammer made up an imaginary brother to take out life insurance, Bloomberg reported.
  • He paid around R3,000 for a R530,000 policy – nearly 12 times more than a typical worker earns in two years.
  • For more stories, go to www.BusinessInisder.co.za.

Indian scammers are "fake-killing" people to claim life insurance payouts, Bloomberg reported.

Husbands and wives have told insurers their living spouses were dead, and siblings made up imaginary siblings. According to the report, scammers were rarely related to the supposedly dead person. 

India is home to countless scams, but Amina Parbin told Bloomberg she never imagined that someone would come to her house to tell her she was dead despite being very much alive.

Parbin, who lives in a small town in the state of Assam, recalled the time a life insurance investigator visited her and produced documents including her "death certificate".

After her family persuaded him that the certificate was a fraud, they learned that a claim had been filed by her estranged husband for a life insurance policy she had no knowledge of. 

Ismail Hussain, who was advised by a friend to make up an imaginary brother, forged birth records and bribed the local high school headmaster to issue a fake graduation diploma. 

Hussain paid around R3,000 for a R530,000 policy that he claimed in 2017. He "killed" his non-existent brother five years after creating him.

His friend, Manik Ali, told Bloomberg that he'd gotten the idea of insurance fraud while working as a claims investigator. 

When Hussain claimed the life insurance policy, he collected more than 12 times the typical worker is paid in two years. In India, the national minimum wage is about R1,000 a month.  

Parbin divorced her husband after she found out he was trying to use her fake death to claim on a life insurance policy. The village elders where she lives ordered him to apologise and pay her some R40,000.

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