IRDA ordered CBI probe for ICICI Lombard for alleged fraud in Government Schemes

Mar 13, 2014 18:50 IST

The Insurance Regulatory and Development Authority (IRDA) on 12 March 2014 ordered a CBI probe into alleged fraud in four government-sponsored insurance schemes. The schemes were sponsored by ICICI Lombard Insurance which was meant for the poor.

The schemes involved are Rajiv Gandhi Shilpi Swasthya Bima Yojana, Weather Insurance Scheme, Shetkari Apghati Durghatana Bima Yojana, Panjikrut Kishan Durghatana Bima Yojana and Rashtriya Swasthya Bima Yojana.

 The Rajiv Gandhi Shilpi Swasthya Bima Yojana was meant for artisans in the period between 2009 and 2011. The allegations made are that 11445 khadi weavers were fraudulently enrolled. 11445 workers were not eligible for receiving the benefits under the scheme. It was further alleged that the company had misappropriated 88 lakh rupees.

imageSimilarly, in the case of Weather Insurance Policy that was sold by the company to the Rajasthan government in the Ganganagar district during the period between January and March 2010, it was discovered that two-third of the 3155 farmers covered under the policy were non-existent. It was alleged that the company settled claims by cheques even in the name of non-existent addresses and therefore kept the door of cheque discounting open.

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 3900 claims.

Is this article important for exams ? Yes50 People Agreed

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK