Fraud Ring Busted for Fake Insurance Claims

Kathmandu – Police have arrested a fraud ring that swindled nearly Rs. 60 million from Nepal Micro Insurance Company by submitting fake documents for motor accident claims. Six individuals were arrested on Monday by the Tinkune Police Office for presenting forged documents from B & B Hospital to claim third-party motor insurance.

Those arrested include Manoj Kumar Acharya of Bara (currently residing in Kageshwari Manohara, Kathmandu), Hari Prasad Gautam of Kavre, Sunil Sapkota of Sarlahi (now living in Kathmandu), Binod Dangol of Kathmandu, Sunil Maharjan of Godavari, and Bikesh Kunwar (33). Among them, one was an employee of the insurance company.

According to police, the group insured vehicles under various names and submitted fake accident documents. They filed more than 15 claims, out of which 13 had already been paid, while two remained unpaid, confirmed Nepal Micro Insurance spokesperson Sushant Thapa.

Police stated that an insider employee helped the fraudsters by providing false verification reports during field inspections, making the company initially trust the claims. When suspicions grew, the company sent its legal advisor for further investigation, who discovered the documents were fake. The company then filed a complaint with the police.

The fraudsters had not only forged B & B Hospital documents but also created fake stamps and letterheads of various government agencies for their scheme, police revealed.

Authorities say this is not the first case of fraudulent insurance claims in Nepal, as such scams are relatively common. However, most companies remain silent to protect their brand image. Police praised Nepal Micro Insurance for courageously cooperating and sharing confidential details, while the company stated that its move has helped strengthen public trust in the entire insurance industry.