Insurance scam: 5 NICL officials under CBI scanner

The CBI is probing the role of five officials of a national insurance company in allegedly causing a loss of over Rs 273 crore.

Updated: Feb 03, 2012, 16:56 PM IST

New Delhi: The CBI is probing the role of
five officials of a national insurance company in allegedly
causing a loss of over Rs 273 crore by issuing two insurance
policies to a private telecom firm to cover its defaults in
payment.

Official sources said the probe agency has written to the
National Insurance Company Limited (NICL) seeking sanction for
prosecution against the five officials serving at middle
management level.

"We have written to NICL seeking sanction for prosecution
against five of its serving officials for their involvement in
the case. The necessary action will be taken against them once
we have received the permission," a source said.

As per the guidelines, decision for grant or non-grant of
sanction of prosecution against a serving officials has to be
taken within three-month period.

In March, 2005, the Central Vigilance Commission had
forwarded a complaint alleging irregularities in issuance of
insurance policies by NICL to a private telecom provider for
coverage of default payments, to CBI for discreet inquiry and
report.

The allegations were that during the period 2002-2004,
the NICL officials in connivance with the officials of the
private telecom firm signed two MoUs.

"The terms and conditions in the MoUs signed between NICL
and the firm were in deviation from the standard policy and
favourable to the party," the source said.

On the basis of the said agreements, NICL issued two
Special Contingency Policies (SCPs) from the Kalyan division
office of NICL in Mumbai.

"During the enquiry it was found that the officials of
Mumbai Regional office of NICL and Kalyan division office of
NICL committed serious illegalities in connivance with
officials of telecom provider which resulted into wrongful
loss of Rs 273.12 crore," he said.

PTI