NIC probing Reliance claim

IN PARLIAMENT

The National Insurance Company's vigilance department is investigating Reliance Infocomm's insurance claim of about Rs 278 crore for losses it incurred on its handsets and default liabilities during 2003-05, the government said today.

In a written reply in the Rajya Sabha, Minister of State for Finance SS Palanimanickam said, "NIC had granted insurance cover for handsets and default liability to Reliance Infocomm."

He said Reliance made a total claim of Rs 125.64 crore for handsets -- Rs 89.35 crore during 2003-04 and Rs 36.29 crore in 2004-05.

The telecom major also made a claim for default liabilities (when consumers defaulted in payment of dues) totalling Rs 152.34 crore in 2003-04.

It has been found that National Insurance offices have exceeded the underwriting limits and reinsurance cover was inadequate.