The Hindu : New Delhi News : Only a localised irregularity: LIC

Online edition of India's National Newspaper
Friday, Sep 30, 2005

New Delhi

New Delhi

Only a localised irregularity: LIC

Staff Reporter

NEW DELHI: The Life Insurance Corporation of India on Thursday claimed that reports about the Central Bureau of Investigation unearthing a "scam" in diverting insurance premia of MCD employees, involving officers and agents of LIC, were about localised irregularities.

A spokesperson said the LIC itself had detected the irregularities and initiated a departmental inquiry against the accused. The corporation had found certain discrepancies in the Khan Market office in adjustment of premia under the salary saving scheme pertaining to MCD employees. Complaints about gaps in adjustment of premia were looked into and a detailed departmental inquiry was undertaken. Disciplinary action was also initiated against the erring agents, employees and officials and, in pursuance of the policy of transparency, the irregularities were also reported to the Vigilance Department, the spokesperson said.

"The CBI action was basically a consequence of the deterrent steps initiated by the LIC and, hence, the scam cannot be said to have been `unearthed' by any outside agency as has been reported," the spokesperson said. Only some individuals at one of LIC's 2,048 branches were involved.

On Wednesday, the CBI had registered a case against five LIC agents and four officers, all of them attached to the Khan Market office, for their alleged involvement in diverting the insurance premia of MCD employees, which were sent to LIC under the salary saving scheme, into the accounts of the fresh policy holders. In this connection, it had raided the Khan Market office and the residences of the accused.

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