Reliance Insurance deposits Rs 8.69cr after Haryana CM Khattar intervenes | chandigarh | Hindustan Times
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Reliance Insurance deposits Rs 8.69cr after Haryana CM Khattar intervenes

After intervention of chief minister Manohar Lal Khattar for action and fearing blacklisting, Reliance General Insurance Company of Reliance Group has deposited Rs 8.69 crore under Rajiv Gandhi Parivar Bima Yojna (RGPBY) after eight years.

chandigarh Updated: Mar 29, 2017 15:14 IST
Bhartesh Singh Thakur
Haryana CM Manohar Lal Khattar intervened and passed orders on February 27 for blacklisting the company and approaching Insurance Regulatory and Development Authority against it if it did not clear the dues.
Haryana CM Manohar Lal Khattar intervened and passed orders on February 27 for blacklisting the company and approaching Insurance Regulatory and Development Authority against it if it did not clear the dues.(HT File Photo)

After intervention of chief minister Manohar Lal Khattar for action and fearing blacklisting, Reliance General Insurance Company of Reliance Group has deposited Rs 8.69 crore under Rajiv Gandhi Parivar Bima Yojna (RGPBY) after eight years.

The Memorandum of Understanding (MoU) with the company was signed on March 28, 2008, for one year and Rs 17.85 crore was paid to the company in two instalments (Rs 12.53 crore and Rs 5.32 crore) for this coverage.

A letter was issued by Haryana Social Justice and Empowerment director Sanjiv Verma on December 20, 2016, threatening the company with blacklisting if it did not clear dues till December 31, 2016.

The company had rejected over 1,423 claims on its own in violation of the MoU. The clause 8 of MoU said “the insurer shall not reject any claim at its own level. In case of any doubt, the claim shall be referred to the nodal department i.e. director of Social Justice and Empowerment, Haryana, who shall consider the whole matter and pass a speaking order and his order shall be final.”

Haryana CM Manohar Lal Khattar intervened and passed orders on February 27 for blacklisting the company and approaching Insurance Regulatory and Development Authority against it if it did not clear the dues.

On March 6, another notice was issued to the firm, which granted 10 days time, failing which the department again threatened with “blacklisting for all government business/transactions in Haryana”.

Next day, the company deposited 212 cheques amounting to Rs 2.05 crore for payment and further sought another 90 days time to settle claims vide their letters dated March 9 and March 14 respectively. But the department gave just seven days on March 16 as there was “inordinate delay” in settlement of claims.

Finally, the company submitted claims for 674 people, which were found eligible by the department and in that regard the firm paid Rs 6.64 crore more. In total, Rs 8.69 crore have been paid against 886 claims.

Purpose of scheme

RGPBY’s purpose was to provide immediate relief to poor and helpless families whose members were killed in accidents. It was an insurance policy in which in case of death and 100% permanent total disability, Rs 1 lakh, in case of loss of two limbs, Rs 50,000, and loss of one limb, Rs 25,000, as compensation was to be granted. Although in such cases benefits are provided by Motor Accident Claims Tribunals but it takes a long time to settle the claims and involved a lot of paper work and court proceedings. Keeping in view of the above difficulties, the scheme was introduced for immediate relief and to save families from court proceedings and other formalities.