Syntax Error in Case Statement in SQL Server

instead of case , u can use if statement

if @policy_type = 'Car'
BEGIN
     Query1
END 
ELSE IF (@policy_type = 'life')
BEGIN
    Query2
END

and thus ur #table will be accessasble every where

I can use the if-else statement but I really wanto use case statement.

Whenever I see this, I think twice about whether it's a real question being asked. Why?

If you must combine it as one statement, you can put the conditions into the SELECT statements and join them using UNION ALL, only one of which would actually produce results.

--declare @policy_type varchar(10), @employee_id int
Select policy_id,customer_id,policy_duration,requested_policy_amount,Car_Age
          ,Car_Amount
          ,Number_of_Accidents,estimated_car_premium
INTO #PendingRequest
          FROM [dbo].[Policy] p join [dbo].[Car_Insurance] c on
          p.policy_type_id=c.policy_type_id and p.approved_policy_amount is Null 
          --And employee_id=@employee_id
          join
          [dbo].[Car_Insurance_Estimate] c_est on car_age >= c_est.min_car_age and car_age <= c_est.max_car_age
          and Car_Amount>=c_est.min_car_amount and Car_Amount<=c_est.max_car_amount and Number_of_Accidents>=c_est.min_accidents 
            and Number_of_Accidents<=c_est.max_accidents
AND @policy_type = 'car'
UNION ALL
Select policy_id,customer_id,policy_duration,requested_policy_amount,Age
          ,l.Illness
          ,l.Income
          ,premium_insurance_percentage,amount_insurance_percentage
          from [dbo].[Policy] p join [dbo].[life_Insurance] l on
          p.policy_type_id=l.policy_type_id and p.approved_policy_amount is Null 
          And employee_id=@employee_id
          join
          [dbo].[life_Insurance_Estimate] l_est on age >= l_est.min_age and age <= l_est.max_age
          and income>=l_est.min_income and income<=l_est.max_income and l.illness=l_est.illness
AND @policy_type = 'life'
UNION ALL
Select policy_id,customer_id,policy_duration,requested_policy_amount,home_Age
          ,home_Amount
          ,h.Area,home_premium_percentage 
          from [dbo].[Policy] p join [dbo].[home_Insurance] h on
          p.policy_type_id=h.policy_type_id and p.approved_policy_amount is Null 
          And employee_id=@employee_id
          join
          [dbo].[home_Insurance_Estimate] h_est on home_age >= h_est.min_home_age and home_age <= h_est.max_home_age
          and home_Amount>=h_est.min_home_amount and home_Amount<=h_est.max_home_amount and h.Area=h_est.area
AND @policy_type = 'home';

If it's some silly assignment requirement, then you can make a benign change to the last row, say

AND CASE @policy_type WHEN 'home' then 1 else 0 END = 1;

Using IF...ELSE would be a lot easier in this case. However, if you insist on using CASE, then this might be one option:

DECLARE @SQL varchar(max);
SELECT @SQL=
CASE @policy_type

        WHEN 'car' THEN 
        'Select policy_id,customer_id,policy_duration,requested_policy_amount,Car_Age
          ,Car_Amount
          ,Number_of_Accidents,estimated_car_premium INTO
           #PendingRequest FROM [dbo].[Policy] p join [dbo].[Car_Insurance] c on
          p.policy_type_id=c.policy_type_id and p.approved_policy_amount is Null 
          --And employee_id=@employee_id
          join
          [dbo].[Car_Insurance_Estimate] c_est on car_age >= c_est.min_car_age and car_age <= c_est.max_car_age
          and Car_Amount>=c_est.min_car_amount and Car_Amount<=c_est.max_car_amount and Number_of_Accidents>=c_est.min_accidents 
            and Number_of_Accidents<=c_est.max_accidents'

        WHEN 'life' THEN 

        'Select policy_id,customer_id,policy_duration,requested_policy_amount,Age
          ,l.Illness
          ,l.Income
          ,premium_insurance_percentage,amount_insurance_percentage
           INTO
           #PendingRequest from [dbo].[Policy] p join [dbo].[life_Insurance] l on
          p.policy_type_id=l.policy_type_id and p.approved_policy_amount is Null 
          And employee_id=@employee_id
          join
          [dbo].[life_Insurance_Estimate] l_est on age >= l_est.min_age and age <= l_est.max_age
          and income>=l_est.min_income and income<=l_est.max_income and l.illness=l_est.illness'

        WHEN 'home' THEN 

        'Select policy_id,customer_id,policy_duration,requested_policy_amount,home_Age
          ,home_Amount
          ,h.Area,home_premium_percentage  INTO
           #PendingRequest 
          from [dbo].[Policy] p join [dbo].[home_Insurance] h on
          p.policy_type_id=h.policy_type_id and p.approved_policy_amount is Null 
          And employee_id=@employee_id
          join
          [dbo].[home_Insurance_Estimate] h_est on home_age >= h_est.min_home_age and home_age <= h_est.max_home_age
          and home_Amount>=h_est.min_home_amount and home_Amount<=h_est.max_home_amount and h.Area=h_est.area'

END

EXEC(@SQL);

Raj