Delhi Police have arrested four individuals for allegedly cheating a cancer patient of ₹1.30 lakh in a sophisticated insurance refund fraud. The accused posed as officials of the Insurance Ombudsman and the Insurance Regulatory and Development Authority of India (IRDAI), targeting vulnerable policyholders awaiting refunds or settlement approvals.
Fraudsters posed as regulatory officials to gain trust
According to the police, the complainant, KP Tomar, had purchased four health insurance policies in 2024 but was unable to continue paying premiums due to rising medical expenses. While refunds for three policies were processed, one remained unsettled.
Deputy Commissioner of Police (Southwest) Amit Goel said the fraudsters exploited this uncertainty.
Tomar received phone calls on July 5 from individuals claiming to represent the Insurance Ombudsman. They informed him that his pending refund required a “file preparation fee”, persuading him to deposit ₹83,000 and ₹47,000 into two separate accounts. Once the payments were made, the callers escalated their demands, including a fictitious ₹12 lakh RBI bond, prompting Tomar to suspect foul play.
Realising he had been cheated, he filed a complaint at a southwest Delhi police station.
Money trail leads to arrests across Delhi
Investigators tracked the movement of funds through multiple bank accounts. The money was first routed through two intermediary accounts before reaching the beneficiary account belonging to Devender Kumar.
Devender was arrested and allegedly confessed to using the bank accounts of his wife Simran and sister-in-law Manpreet Kaur to receive fraudulent deposits. He kept a commission before transferring the remainder to his associate Arun Kumar.
Police teams conducted raids in Seelampur, leading to Arun’s arrest. During interrogation, he admitted to posing as an IRDAI representative and making fraudulent calls using customer data accessed and misused by Devender, who had previously worked in an insurance-related firm.
The police recovered four mobile phones and a debit card used in the fraud.
A pattern of scams exploiting vulnerable policyholders
Investigators say the gang specifically targeted people dealing with unresolved insurance claims. Such individuals—especially those experiencing financial distress due to illness—are more likely to fall prey to impersonation scams.
Posing as officials from recognised regulatory bodies such as IRDAI creates a false sense of security, enabling fraudsters to demand “processing fees” or “verification charges”.
Similar cases have been reported across India, where cyber gangs have impersonated IRDAI officers, insurance brokers or bank representatives to exploit gaps in policyholder awareness.
(Related reading: Cybercrime cases rise amid increase in online fraud and Consumers urged to verify insurance communications)
Police urge citizens to verify calls from regulatory agencies
Police officials stressed that no insurance regulator seeks payments for refunds, and any such request is a red flag.
Refunds, claim settlements and policy closures never require customers to transfer fees to personal bank accounts.
Authorities have advised policyholders to:
- Verify caller identities through official IRDAI or Ombudsman websites
- Avoid sharing sensitive information such as policy numbers or bank details
- Report suspicious calls immediately to local cyber cells or helplines
The four arrested individuals — Devender Kumar, Arun Kumar, Simran, and Manpreet Kaur — have been booked under relevant sections of the Indian Penal Code related to cheating and impersonation. Further investigation is underway to identify additional victims and accomplices.
Cases of cyber fraud in India have been increasing rapidly. As per national data, fraudsters frequently impersonate government authorities to deceive citizens, making awareness and verification essential.