MP: CBI conducts searches in connection with LIC policy scam

CBI today conducted searches at 12 premises belonging to officials and agents of the Life Insurance Corporation of India in connection with the alleged Rs 1.5 crore scam involving misappropriation of premiums paid by policy-holders and seized several documents.
According to CBI sources, seven agents in collusion with five LIC officials, syphoned off the premiums paid by as many as 282 policy-holders within the jurisdiction of Sanver satellite branch of LIC during 2008 and 2012.
Sources said that these agents deposited the cheques given by the policy-holders towards the premium in their own bank accounts, and gave 'third-party' cheques to LIC, which bounced.

As the cheques bounced, the policies were cancelled, but the original policy-holders were kept in the dark about it.
Based on a complaint in this regard, the searches were carried out at residences of the agents and officials, suspected to have been involved in the fraud, in Indore and at one place in Gwalior, where one of the officials has been transferred.
The central agency is scrutinising the documents seized, sources added.