NIACL scam: CBI books broker, firms, officials

The CBI has registered an FIR against an insurance broker, two insurance brokerage firms and three senior officials of New India Assurance for criminal conspiracy, cheating and criminal misconduct.

According to CBI's First Information Report (FIR), a copy of which has been accesed by The Pioneer, New India Assurance Company Limited (NIACL) was cheated by the accused by paying a commission to the brokers without producing a written mandate as per IRDA guidelines. " A total brokerage of Rs 45,16,572 was paid fraudulently to Salaskar BS Insurance Brokers Pvt Ltd and Prudent Broker Pvt Ltd in this manner," the FIR said. New India Assurance, a public sector concern, had issued policies to Etisalat DB Telecom Pvt. Ltd, which was being probed for its alleged role in the 2G scam.

CBI FIR said NIACL deputy manager Pallavi Sinha,   Suresh Prafulkar and Gyam Ranjan (both branch manager), Dharam  Sharma private person and broker, Salaskar Insurance Brokers Private Limited and Prudent Brokers Private Limited have entered into criminal conspiracy by abusing their officials position and cheat the insurance company without producing the written mandate of the insured. .

"The NIACL issued policies to M/s  Etisalat DB Telecom Pvt. Ltd. covering the fire, public liability and Burglary and the premiums were booked under the broker's codes. Further it revealed that no insurance broker was appointed for Cellular Network Package Policy (Package with BTS, Office Burgalry, Office Fire & Public Liability) for insured sum of Rs. 1967.59 Crores (Premium Rs.24,26,041/-) during the period from April 1, 2013 to September 30, 2016. Total brokerage of Rs. 45,16,572  was paid fraudulently to two broker firms by NIACL, Powai Branch through its disbursement account No. 910020011082950," CBI FIR said.

CBI officials said that Dharma Sharma, Manager of M/s Salaskar Brokers Pvt. Ltd. had made correspondence by private mail ID only with Pallavi Sinha, Branch Manager, NIACL, Powai Branch for placing the above said business but not submitted the written Mandate of client.

Further, in 2013, he left the company and joined M/s Prudent Broker Pvt. Ltd and transferred the whole policy business to the new broker company from July 2013 to September 2016 without written mandate of changing the broker from client. According to CBI,  Pallavi Sinha, had herself issued, accepted and approved these policies six times during her tenure without obtaining written Mandate from insured M/s Etisalat DB Telecom Pvt. Ltd. and without approval of the policies from Head Office, NIACL.

Further, on next renewal of the said policy, she had sent these policies to Regional Office, NIACL for the period October 01, 2014 to December 30, 2014 for further proceeding of approval.

Subsequently, after transfer of  Pallavi Sinha ,   Suresh Probhaulkar took over the as Branch Manager, NIACL.

He also recommended and sent the policies for the period January 2015 to March 2015 to Brundawan Mallik, Senior  DM for approval.  Mallik had recommended for issuance of the policy and again did not sent them to Regional Office NIACL for approval.

Furthermore, he issued the said policies four times during the period from January , 2015 to March, 2016 based on which brokerage was released.

According to CBI, Gyan Ranjan who was appointed as an officiating branch incharge after Prafulkar's retirement, issued an accepted the policy renewal from the period from April 2016 to September 2016 which was not within his delegated powers. Further, he had also sent these policies for approval to  Mallik, Sr. DM. Divisional Office, NIACL.

Further Mallik recommended those policy and sent to Regional Office, Mumbai for approval. Further, Dilip Sonawane, had approved these policies on March 2016.