LIC agent held for forging documents and cheating his client

An authorised agent of Life Insurance of India (LIC) has been arrested for allegedly cheating a Mumbai-based diamond firm and the state-owned insurance company to the tune of Rs 89 lakh by forging group insurance policy documents, the police said here today.
Chetan Desai (59) was arrested on Monday after he was found to have "duped" the LIC as well as the private firm by forging documents of the latter's 305 employees in the name of group insurance, Deputy Police Commissioner, Economic Offences Wing (EOW) Vasant Dhobale said.
According to the police, the diamond company which was Desai's client, wanted its 305 employees to be insured through a group insurance policy with LIC.

As the insurance contract worth Rs 5 crore was inked between the diamond firm and LIC, Desai was paid a 35 per cent commission of the total premium by the insurance company.
The diamond firm renewed its policy with LIC for the second year through Desai, for which he was paid a five per cent commission on the total premium amount.
For group insurance, the agent gets a 35 per cent commission for bringing a client and when the client renews the policy, a five per cent commission is paid to the agent.

"Wanting more commission, Desai took the documents of the diamond company and instead of renewing the policies for the third year, he forged the documents and submitted them before LIC showcasing it as a new client," another officer said.

While processing the documents of this fake "new client", LIC paid about Rs 89 lakh to Desai in phases but eventually realised that he had actually forged the documents of their old client.
At the same time, learning that its documents have been forged, the diamond firm's representative complained to the police.
After a preliminary probe, an FIR was registered early this year, EOW officials said, adding the accused was held on Monday.