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A woman posing as the mother of one of the arrested men had taken out the policy in his name in April 2015, said an official of Shivaji Park police station.
In March 2017, she filed an application claiming the insured sum of Rs 2 crore, stating that her son died in a road accident in Pune in December 2016.
But LIC officials got suspicious and found out that her `son’ was in fact alive and the death certificate was fake, said Deputy Commissioner of Police (Zone V) Manoj Patil.
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Probe revealed that the woman and her supposed son (now one of the arrested accused) had inflated the income and sought a policy cover of Rs 8 crore in 2015, but the LIC’s Dadar branch issued them a policy of Rs 2 crore.
“We have arrested three men for cheating, forgery and other relevant offences under the Indian Penal Code sections. We are trying to get information about the woman and more arrests are likely,” DCP Patil added.