Imphal, May 29: Forced to shut shop in the face of extortion by a militant group, life insurance agents in Manipur have finally mustered the courage to go to the police and ask for help.

The head-office of the Life Insurance Corporation in Manipur has been closed since May 21, but a formal complaint has not been filed yet. The first move to seek police protection was made by two LIC agents only yesterday. Emboldened by their show of grit, a larger group today informally met senior police officials to say that militants had demanded Rs 20 lakh from the country’s largest insurance provider.

Police sources said this evening that they were trying to ascertain the identity of the group responsible for the closure of the LIC office at Khuyathong in Imphal West.

“We hope to get credible information as soon as we are able to speak to senior LIC officials,” one of them said.

The police will try and contact the company’s regional head office in Guwahati to verify the informal complaints about extortion.

The closure of the Imphal office has affected about 2.5 lakh policyholders and nearly 1,000 agents. “We do not know when the office will reopen. If the office shuts down permanently, both agents and policy holders will be the biggest losers,” an insurance adviser said.

No LIC agent was willing to talk to the media, leave alone be quoted.

A police official said agents were pressuring their bosses to negotiate with the militant group that has demanded money.

An Imphal-based policy holder said he was worried about losing his investments in insurance policies. “I do not know what to say. I hold three policies and the money I have deposited with LIC constitutes my life’s savings. If the company shuts its office permanently, I will be ruined,” T. Geeta Devi said.

Insurance is not the only sector bearing the brunt of extortion. Over 100 shops in Imphal’s Paona Bazaar downed shutters yesterday in protest against extortion and intimidation by militants. A shopkeeper said the militant group wants shopowners to together contribute Rs 15 lakh to its coffers.

Most of the shops in Paona Bazaar sell foreign goods and do good business.

Unofficial sources said the shops reopened today after the owners reached an agreement with the militant group. It could not be immediately confirmed whether money had already exchanged hands.

Manipur has several militant groups, some of which call themselves vigilantes.