CBI starts probing ICICI Lombard for irregularities in govt insurance scheme

The Central Bureau of Investigation (CBI) has started inquiry against insurance company ICICI Lombard for allegedly issuing government financed insurance policies to non-eligible people in Rajasthan.

Last week the CBI branch of Jaipur held inquiries at the ICICI Lombard headquarters in Mumbai for four days.

A person who witnessed the CBI operation said, "The CBI team from Jaipur camped at ICICI Lombard headquarters for four days at Prabhadevi. The CBI scrutinised all the documents and questioned the senior management at the Prabhadevi office".

The investigation pertains to Rajiv Gandhi Shilpy Swasthya Bima Yojna (RGSSBY) and Weather Based Crop Insurance (WBCI) scheme issued by ICICI Lombard in Rajasthan.

An email sent to ICICI Lombard regarding the CBI investigations and updates on RGSSBY and WBCI remained unanswered, but the company verbally confirmed that "CBI has visited the headquarters and is doing preliminary inquiry".

In 2009-10, Union textile ministry chose ICICI Lombard to issue RGSSBY in Rajasthan for artisans. Lombard was asked to issue policies to 30,000 artisans in the state. But Lombard issued 11,500 policies to khadi kamgars who were allegedly ineligible for RGSSBY.

Also, ICICI Lombard renamed the policy from RGSSBY to Khadi & Gramodyog Karigar Swasthya Bima Yojana. For WBCI scheme, offered by agriculture department of Rajasthan government. The allegation is that Lombard issued policies to more than 2,000 ineligible people in the state. Whether RGSSBY or WBCI, Lombard collected the premium from the government but the benefit never reached to the concerned people, according to sources.

ICICI Lombard said, "We had issued policies to the people whose list was given to us by the NGOs accredited by the government. Also, we paid more amount to the claims than the premium collected."

An email to the chairman of the Insurance Regulatory Development Authority remained unanswered.