CBI today registered a Preliminary Enquiry (PE) against ICICI Lombard for allegedly colluding with officials of Rajasthan government and Union Agriculture and Textiles ministries and pocketing claims of non-existing farmers and artisans.

In the first case, CBI registered a PE against unknown officials of ICICI Lombard, Rajasthan and Union Agriculture ministries for allegedly entering into a financial crime  conspiracy and forging documents to seek insurance cover under the “weather-based crop insurance scheme” by the government, official sources said.

According to the scheme, ICICI Lombard used to insure crops in which the farmer had to pay 20 per cent of the sum of the premium where as remaining 80 per cent of money was shared by Rajasthan Agriculture department and Union Agriculture Ministry.

CBI Investigation

Since, the CBI alleged that officials of the insurance company made “bogus enrolment” of nearly 2,100 farmers to secure 80 per cent share of government thereby causing loss to the exchequer, the sources said.

The CBI officials said this was a data of only Ganganagar district for a period of 2009-10.  The agency would be carrying out similar probes in other districts and states. Where the insurance company was undertaking this scheme.

Though, when contacted, the company said that it has diligently hounured claims in the schemes despite suffering huge financial losses.

“The company, during or after enrollment of beneficiaries, had initiated investigation on its own, through its in-house investigation function as part of its continuous monitoring process

They gave  necessary advise and promptly acted upon the advise so received.

11,000 artisans regstered in RajivGandhi Shilpi Swathys Yojana.  It was a non-existent scheme.

Additionally, giving details of the cases, the sources said the weather insurance policy was  sold by the company to Rajasthan government. Rs 13 crore claim processed.

Out of the 3158 farmers 2093 farmers were non-existent.By issuing cheques claims settled.  In the name of non-existent addresses thereby keeping the door of cheque discounting open.

Final Words

According to the complaint, the company has made the payments of Rs 14.37 crore. Against premium of Rs 6.42 crore received.  ICICI Lombard distributed the cheque in the name of individual farmers. The claimant encashed all the cheque payment.  Hence, a single cheque was’nt undelivered.

In another case related to health insurance. The CBI alleged that people registered under it did not even meet the eligibility criteria.

According to the PE, the insurance company had allegedly misappropriated at least Rs 8 crore from the Government.