Non-bailable warrants against MD, CEO of insurance company

Ishrat S Banwait
Tribune News Service
Chandigarh, October 23

The consumer forum here has issued non-bailable warrants (NBWs) against the CEO and the managing director (MD) of Shriram General Insurance Company for non-compliance of its orders.

Neeraj Prakash, CEO, and Anil Kumar Aggarwal, MD, were directed to reconsider a consumer’s claim plea, but they did not. The consumer thus moved an execution petition following which these orders were issued.

In December 2016, the forum had disposed of the matter with directions to the firm to reconsider the complainant’s plea. The original complaint stated that of the total amount claimed, the firm had given Rs 56,000 less. The original petition had demanded a claim after an insured truck had met with an accident in Phillaur, Punjab, in 2015. However, the insurance company had stated that they had paid the amount assessed by a surveyor.

The forum had thus asked the firm to reconsider the same and decide it within 30 days. However, the same was not done until 2018, when the execution petition was filed. On August 20, when the hearings on the execution petition were on, the firm responded with ‘no claim’. The firm’s counsel said the compliance had been made and thus the execution must be dismissed.

However, the counsel for the complainant vehemently argued imposing heavy penalty on the opposite parties for their defiance by way of non-compliance of orders within stipulated time. The forum found merit in this contention and said the firm ‘intentionally delayed’ the matter.

The MD and the CEO were thus convicted and told to pay Rs 10,000 penalty. In case they fail to do so, they would be sentenced to one month of civil imprisonment. The police were also directed to issue non-bailable warrants against the duo and release them only after they pay Rs 10,000.