Twist in Madurai LIC office fire: Female manager's death ruled murder

In a dramatic turn of events, what was initially reported as a tragic fire accident at a Life Insurance Corporation (LIC) branch office in Madurai has been reclassified as a murder. Police have arrested an injured assistant manager, alleging he killed his female superior after she uncovered irregularities in insurance claims, then staged the blaze to cover his tracks.

The fire broke out on the night of December 17, 2025 at the LIC branch located on the second floor of a commercial building along Melamadai Road, near Madurai Railway Station. Kalyani Nambi, 55, a senior manager from the Madurai Bypass area, was charred to death in the blaze.

Her colleague, Ramakrishnan from Andalpuram, who served as assistant manager, sustained injuries and was undergoing treatment at a local hospital.

Family's suspicion

Kalyani's family members raised suspicions about the circumstances of her death, prompting an investigation by the Thilagar Thidal police station. Based on their complaint, authorities uncovered evidence that transformed the case from an accidental fire to premeditated murder.

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Ramakrishnan confessed during interrogation that he attacked Kalyani after she began probing financial irregularities in accident compensation payouts at the branch. He allegedly poured petrol on her, set her ablaze, and then orchestrated events to make it appear like an accident. "The motive stems from Kalyani's discovery of malpractices in claim processing, which threatened to expose the accused," a senior police official stated.

Madurai's Commissioner of Police (COP) J Loganathan confirmed the arrest, saying the evidence was irrefutable. "We have re-registered the case under murder charges. The accused is in custody, and further investigations are underway," he said.

Postmortem, call records

Police pieced together the puzzle through several key findings. The postmortem report on Kalyani revealed pre-existing injuries inconsistent with a typical fire accident, suggesting she was assaulted before the blaze. Call records from her mobile phone showed her last conversation was with her son, during which she urgently said, "There's a problem here, call the police," without mentioning any fire. This raised red flags about the sequence of events.

Additionally, Ramakrishnan's injuries were relatively minor compared to the severity of the fire, fueling suspicions that he had orchestrated the scene. "He escaped with barely any burns, which didn't align with someone caught in an intense office fire," explained a police investigator.

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Kalyani's family corroborated these details, insisting from the outset that foul play was involved. Forensic experts' analysis also confirmed the use of petrol in the blaze, as revealed by Madurai police.

Fraud concerns

The police said the probe has now expanded to examine whether Ramakrishnan collaborated with others in using forged documents for fraudulent insurance claims. "We're investigating links to fake accident compensation filings, potentially involving accomplices," police added.

This angle points to broader concerns about corruption in LIC's claim processing, a common issue in India's insurance industry where bogus documents and insider collusion can lead to significant financial losses.

LIC, established in 1956, is the country's largest life insurer, managing assets worth trillions and serving millions of policyholders. However, it has long grappled with fraud, including staged accidents and manipulated claims, costing insurers billions annually. According to a 2024 report by the Insurance Regulatory and Development Authority of India (IRDAI), fraud cases in the life insurance sector rose by 15 per cent in the previous year, often involving internal employees exploiting system loopholes.