India, March 2 -- Months after losing a loved one in an accident, a family in Maharashtra was still navigating paperwork, policy documents and bureaucratic procedures, hoping the insurance payout would offer some financial stability after their loss. Instead, what they allegedly encountered was a demand for a cut.

The Central Bureau of Investigation (CBI) has booked two officials of the Life Insurance Corporation of India (LIC) for allegedly demanding Rs.4 lakh to settle death claims worth Rs.40 lakh.

The accused, C Kadam and M Patil, posted as Field Officers/Development Officers at LIC's Chhatrapati Sambhajinagar (Aurangabad) unit in Maharashtra, have been charged under provisions relating to criminal conspiracy and demand of undue adv...