CBI REGISTERS A CASE AGAINST THREE OFFICIALS OF UNITED INDIA INSURANCE COMPANY LTD. AND OTHERS FOR FRAUDULENTLY CAUSING LOSS TO GOVT. OF INDIA

Press Release
New Delhi , 07.03.2012

      The Central Bureau of Investigation has registered a case U/s 120-B, 409 IPC and Section 13(2) r/w 13(1)(c)(d) of PC Act 1988 against the then General Manager, Head Office, Chennai; Sr. Divisional Manager,  Divisional Office-4, Narhi, Lucknow; Development Officer, Divisional Office-4, Narhi,  Lucknow and  an Agent, Divisional Office-4, Narhi,  Lucknow, all of United India Insurance Company Ltd. on the allegation that the accused persons entered into criminal conspiracy with each other and in furtherance of the same, released an amount of Rs.14.97/-lakh(approx.) as agency commission to the agent on a business which was earned by United India Insurance Company Ltd (UIICL) through tender process.

 

      The subject tender was published by the Commercial Tax Deptt., Govt. of UP, dated 21.08.2008, vide a letter of Addl. Commissioner (Accounts), Commercial Tax, Uttar Pradesh, Lucknow inviting bids from insurance companies for extending accident risk cover to 5,28,995 traders of Uttar Pradesh registered with the Department for the period from 06.11.2008 to 05.11.2009, the sum assured for each trader being Rs. 4 lakhs.

 

      United India Insurance Company, Divisional Office-4, Lucknow was allotted the work in the tender process and was paid a single premium of Rs. 1,90,22,840/- vide cheque dated 12.11.2008 drawn on State Bank of India, Jawahar Bhawan Branch, Lucknow. Since this business was obtained through tender/competition, so no commission should have been paid on it. Initially the business was written by the company in the Direct Agent Code.

 

Subsequently, the accused officials of United India Insurance Company Ltd got a letter from agent mentioning therein that the business was obtained through efforts of the agent. The Development Officer and the then Sr. Divisional Manager, both of Divisional Office-4; the then Chief Regional Manager, RO, Lucknow gave a positive opinion and in consultation with the then General Manager, Head Office, Chennai advised Divisional Office-4 to release the said commission to Agent. Thus wrongful loss was caused to the Government of India, as a result of the alleged criminal conspiracy.

 

Further investigation is continuing.

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