Irda probes ICICI Lombard Insurance for alleged fraud in govt schemes

Mar 13 2014, 11:28 IST
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ICICI Lombard Insurance is under scanner for alleged fraud in four government-sponsored insurance schemes meant for the poor. ICICI Lombard Insurance is under scanner for alleged fraud in four government-sponsored insurance schemes meant for the poor.
SummaryIrda has initiated 'focussed inspection' into alleged fraud in 4 govt-sponsored insurance schemes.

stakeholders and subsequently directed the company to pay the claims under Weather Insurance Policy in Ganganagar,” said the Irda letter. In this case, the insurer made payments of Rs 14.37 crore as against premium of Rs 6.42 crore that it received.

There were also allegations of bogus enrollments in Rashtriya Swasthya Bima Yojana in the Uttar Pradesh where the scheme was introduced in 2009. The Uttar Pradesh government later approached the Irda after they were dissatisfied with ICICI Lombard Insurance on settlement of complaints relating to biometric cards.

In another personal insurance scheme (Shetkari Apghati Durghatana Bima Yojana) of the Maharashtra government, it was alleged that the company settled only 638 claims out of 3,900 claims.

CBI registers preliminary enquiry

New Delhi: The Central Bureau of Investigation (CBI) on Wednesday registered a preliminary enquiry (PE) against ICICI Lombard for allegedly colluding with officials of Rajasthan government and Union Agriculture and Textiles ministry and pocketing claims of non-existing farmers and artisans, official sources said.

Commenting on the development, a ICICI Lombard spokesperson, in a statement, said, “In the referred cases pertaining to 2009-10, the company has settled claims far exceeding the premiums received in the said schemes resulting in financial losses. As part of its continuous monitoring approach, the company during or after enrolment of beneficiaries, had initiated investigation on its own, through its in-house investigation function.”

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