Delhi: The National Insurance Company and Oriental
Insurance Company have suffered a loss of Rs142.63 crore
as they extended their tailor-made insurance polices to
the mobile handsets of Reliance Infocomm without risk
analysis and reinsurance protection.
and OIC have so far suffered a loss of Rs142.63 crore
(NIC Rs126.58 crore and OIC Rs16.05 crore) while General
Insurance suffered a loss amounting to Rs41.37 crore,
on the basis of paid and outstanding claims and expenses.
underwriting the unconventional policies, which had serious
financial implications, the operating officers did not
exercise due diligence and caution and did not ensure
the compliance of guidelines issued by IRDA, General Insurance
Public Sector Association and the Head Offices of NIC
and GIC, which resulted in the loss.
responsibility has been fixed for the regional or divisional
offices having exceeded their powers and exposing the
companies to such heavy risk and loss.