Mumbai Trader Gets Four Years In Jail For Faking Fire To Claim Insurance

A Mumbai court has sentenced a 35-year-old garment trader, Sandeep Suresh Jaiswal, to four years in jail for trying to cheat an insurance company by staging a fake fire at his workshop, according to a recent report by The Indian Express. Jaiswal had claimed that a blaze had destroyed his garment unit and the stock inside it, and he later sought compensation from his insurer.

The Fraud That Fell Apart

The case goes back to 2016. One night, Jaiswal reported that his small workshop in suburban Mumbai had caught fire. He told the police and his insurer that he had lost machinery, stock, and most of his equipment. He even submitted a bundle of papers, purchase bills, supplier invoices, and a list of the supposed damage to support his claim. For a while, it looked like a regular case. But when investigators began checking the details, small things didn’t add up.

The insurer’s surveyors who visited the workshop noticed irregular burn marks. Some machines were untouched; others had been selectively damaged. The fire pattern didn’t resemble an accidental blaze. The company ordered a closer look and brought in forensic experts.

The forensic report confirmed the suspicion. The fire had been deliberately started, most likely using accelerants. When the insurer rechecked the documents, several of the bills turned out to be forged. Some of the suppliers didn’t exist; a few who were listed denied any link to Jaiswal.

The police soon took over the case. Officers went through stacks of papers, verified names, checked ledgers, and spoke to people who might have supplied materials. The more they dug, the weaker Jaiswal’s story became. The “accident,” they found, was anything but accidental.

Once enough proof was gathered, the police charged Jaiswal with cheating and forgery. The case went to trial.

During the hearing, prosecutors placed all the material before the court: the forged papers, the forensic findings, and statements from the people named in those fake records. Witness after witness contradicted Jaiswal’s version of events. The evidence left little room for doubt. The court finally found him guilty and sentenced him to four years in prison.

A Lesson For Policyholders

This case shows how greed can destroy what a person spends years building. Jaiswal believed he could make a quick profit and get away with it. Instead, he ended up behind bars.

Insurance fraud is not a harmless shortcut. Every false claim hurts the system and slows down genuine settlements. Insurers lose crores each year to fraudulent claims, fake fires, staged accidents, and inflated medical bills. The cost doesn’t stay with the companies; it spills over to honest customers who pay higher premiums as a result.

Insurers have become more alert in recent years. Many rely on forensic checks, data analytics, and on-ground inspections to spot inconsistencies before paying large claims. But loopholes remain, and smaller frauds often go unnoticed.

The Mumbai case is a reminder that the insurance system runs on trust. When that trust is broken, the damage cuts both ways. The same fire Jaiswal lit to fake his losses ended up burning down his own future.