CBI files FIR against insurance brokers and NIA officials

The FIR has said that these brokers conspired with the NIA officials to misappropriate commission without producing the written mandate of the insured before the insurer, which is mandatory as per Irdai norms.

By: ENS Economic Bureau | Mumbai | Published: July 1, 2018 2:03:22 am
The Securities Appellate Tribunal (SAT) has stayed an order of the Insurance Regulatory and Development Authority of India (Irdai) that suspended the registration of third-party administrator E-Meditek Insurance TPA. CBI has already searched the office of Prudent Brokers and seized documents from the broker’s Mumbai office. (Representational)

The Central Bureau of Investigation (CBI) has filed an FIR against two insurance brokers, Prudent Broker and Salaskar Insurance Brokers, and some officials of New India Assurance (NIA) for criminal conspiracy, cheating and fraudulently appropriating commission.

The FIR has said that these brokers conspired with the NIA officials to misappropriate commission without producing the written mandate of the insured before the insurer, which is mandatory as per Irdai norms.

According the FIR, the NIA issued policies — Rs 24 lakh of premium was paid to cover assets worth of Rs 1967 crore) to Etisalat DB Telecom Private Ltd, which is now defunct, covering fire, public liability and burglary and premiums were booked under the broker’s codes. The CBI has said these fraudulent transactions happened between March 2013 and March 2016.

CBI has already searched the office of Prudent Brokers and seized documents from the broker’s Mumbai office. Observers say this might be the first case where CBI has filed a criminal case against insurance brokers. Earlier, there were a couple of cases where insurance regulator Irdai has cancelled licenses of some insurance brokers on non-criminal charges.

It is to be seen how Irdai would view this case even as customers are concerned about this kind of fraudulent cases where their interests are getting affected, industry observers said.

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