Latur Finance Firm Head Arrested for Allegedly Burning Man Alive in Insurance Fraud Scheme

In a shocking incident out of Latur, Maharashtra, Ganesh Chavan, a 35-year-old district head of a private finance firm, has been arrested for allegedly murdering a man to fake his own death in an attempt to claim a ₹1 crore (approximately $120,000 USD) life insurance payout. The incident has raised concerns about the increasing trend of insurance fraud in India and the desperate measures individuals are willing to take for financial gain.

On a Saturday, police were alerted to a burning car in the Ausa tehsil. Upon arriving at the scene, they discovered a charred body inside the vehicle. Initially, the body was presumed to be that of Ganesh Chavan. However, investigations later revealed that Chavan was alive and had allegedly orchestrated the entire event.

Driven by debt amounting to ₹57 lakhs, Chavan allegedly murdered a man, believed to be intoxicated at the time, and placed his body in the car before setting it ablaze. The plan was to misidentify the body as his own and have his family collect the insurance money.

The police investigation is ongoing, and authorities are yet to release details about how they discovered that Chavan was alive. It is also unclear how the victim was identified. Chavan is currently in police custody, and faces charges of murder and insurance fraud.

This incident is not an isolated case. There have been other instances of individuals attempting to fake their deaths for insurance money. In March 2025, a Delhi man faked his son's death in a staged accident to claim a ₹2 crore insurance payout. In another case in Uttar Pradesh, a son was accused of arranging his father's death to claim benefits from 60 accident insurance policies valued at approximately ₹39 crore. In Punjab, a group was accused of attempting to claim ₹1 crore in insurance benefits by falsely declaring a 20-year-old man deceased.

These incidents highlight the increasing instances of insurance fraud in India. Some cases raise questions about the effectiveness of current insurance verification processes and the potential risks for insurers operating in the region. The lengths to which people are willing to go for financial gain are alarming.

Insurance fraud is not a victimless crime. It leads to increased premiums for everyone. Law enforcement agencies are working to combat insurance fraud.