Reliance insurance firm may be blacklisted

Sushil Manav

Tribune News Service

Chandigarh, December 22

Reliance General Insurance Company Limited owned by Anil Dhirubhai Ambani Group may be blacklisted for failing to pay claims in over 1,400 cases running into several crores for the past eight years.

The Social Justice and Empowerment Department, Haryana, has threatened legal action against the company. In a communication to the company, it said the latter had willfully delayed the matter since 2009, paying not heed to the difficulties being faced by the poor by not settling their claims under Rajiv Gandhi Parivaar Bima Yojana.

The state government had signed an MoU with Reliance General Insurance Company Limited on March 28, 2008, for a period of one year. Under the scheme, a family losing a member or suffering permanent disability was to be paid Rs 1 lakh as claim while Rs 50,000 or Rs 25,000 were to be given as compensation for loss of limb.

The state government had paid Rs 17.85 crore as premium to the company in two installments of Rs 12.53 crore and Rs 5.32 crore.

“From the reports received from the field offices and also admitted in your letter dated December 16, 2016, a total 1,423 claims were rejected by your company and 35 are pending before courts because your company rejected their claims in gross violation of the MoU,” reads the communication to the company dated December 20.

The company has been granted contracts in several schemes, including the Prime Minister Fasal Bima Yojana.