CAG raps 4 state-run insurers for loss of over Rs 15 crore
The Comptroller and Auditor General (CAG) of India has pulled up four state-run general insurance companies for faults that resulted in loss of over Rs 15 crore to the firms.
The Comptroller and Auditor General of India pulled up United India Insurance for losing premium, including service tax, of Rs 4.92 crore due to charging incorrect rate for insurance of compressors of Gas Authority of India (Gail).
“Incorrect application of rate resulted in short collection of premium and a loss of Rs 4.92 crore (including service tax) to the company,” the Auditor said in its report that was tabled in Parliament today.
The insurer was also pulled up for adopting incorrect basis for assessing under insurance resulting in excess settlement of claim by Rs 1.64 crore by its Chennai office in a case related to Chennai Petroleum Corp Ltd.
In an another case, CAG said the insurer incurred irregular expenditure of Rs 76.6 lakh on administrative and infrastructure charges during August 2004 to March 2008 in violation of Insurance Regulatory and development Authority (Irda) guidelines on licensing of corporate agents.
The New India Assurance Co was reprimanded for delay in shifting a divisional office to its own building in Mumbai incurring an avoidable expenditure of Rs 4.11 crore on rent and taxes during February 2003 to April 2008.