Comments
United India Insurance chief, Mr G. Srinivasan, has taken up additional charge of Chairman and Managing Director of the country’s largest PSU general insurance company, New India Assurance.
The appointment follows the suspension order issued by the Government to New India Assurance Chairman and Managing Director, Mr M. Ramadoss, over alleged irregularities in the grant of credit insurance cover to a private airline company during his tenure as Oriental Insurance head.
Mr Srinivasan has taken over the additional charge of Mumbai-based New India Assurance from today, sources added.
Mr Ramadoss has been put on suspension pending investigation of the allegations against by the CBI, official sources said.
A case is also pending against Mr Ramadoss with anti-corruption watchdog Central Vigilance Commission.
Last month, the Central Bureau of Investigation (CBI) raided the residence of Mr Ramadoss in connection with alleged irregularities in the credit insurance cover given to Paramount Airways by Oriental Insurance.
The case pertains to alleged irregularities in the grant of credit insurance amounting to Rs 14-25 crore by Oriental Insurance to Chennai-based Paramount Airways in 2008-09 towards multiple bank guarantees for covering fuel purchases.
Credit insurance, now banned by the Insurance Regulatory and Development Authority, is taken by a company to cover its dues and in case it fails to repay them, banks recover it from the insurance companies.
Mr Ramadoss is the second chief of a state-owned insurer to face action this year. In May, the Government removed Life Insurance Corporation (LIC) Chairman, Mr T.S. Vijayan following alleged irregularities in investment decisions taken by the insurer during his tenure. The CBI is looking into the matter.
The CBI has alleged that Mr Ramadoss entered into a criminal conspiracy with Paramount officials for providing credit insurance cover to the airline, which was in violation of the existing rules and regulations.
Paramount Airways had taken a loan of about Rs 400 crore loan from five major banks to make payments for fuel to oil companies. However, it allegedly defaulted in repaying the amount.
These five banks had subsequently sent claims to Oriental Insurance, which had issued the credit insurance to the airline.
The planes of Paramount Airways were de-registered in 2010, following which they could not operate their flights.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.