ICICI Lombard comes under insurance regulator scanner

Private insurer ICICI Lombard has come under the scanner of insurance regulator for alleged irregularities involving crores in implementation of government sponsored insurance schemes meant for poor people.

The vigilance department of the Insurance Regulatory and Development Authority (Irda) is looking into such complaints in Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY), Weather Insurance Scheme, Shetkari Apghati Durghatana Bima Yojana and Panjikrut Kishan Durghatana Bima Yojana, according to a letter written by IRDA to Finance Ministry on its ongoing probe.

In a related development, CBI had on Wednesday registered a Preliminary Enquiry (PE) against ICICI Lombard for allegedly colluding with officials of Rajasthan government and Union Agriculture and Textiles ministries and pocketing claims of non-existing farmers and artisans.

When contacted, the company had said that it had diligently honoured claims in the schemes despite suffering huge financial losses.

“The company, during or after enrolment of beneficiaries, had initiated investigation on its own, through its in-house investigation function as part of its continuous monitoring process.

“Wherever any discrepancy was observed, the company on its own approached the concerned government body, sought necessary advise and promptly acted upon the advise so received,” the company had said in a statement.