The Haryana government has black listed the SBI Life Insurance Company Limited and debarred it for three years from doing any business with the state or any of its departments, public sector undertakings or autonomous bodies.
The ban was imposed as the company intentionally delayed the process of distribution of annuity to land owners under the Resettlement and Rehabilitation (R&R) Policy of the state government, a spokesperson of the finance department said on Tuesday.
The spokesperson said that the insurance firm failed to pay the beneficiaries of annuity scheme within the stipulated time as required by the government in July-August 2011.
"The government had decided to make payment of annuity under R&R policy by allocation of work among the selected insurance companies and a Letter of Intent (LOI) was issued to noticee on September 6, 2011," the spokesperson said.
The SBI Life Insurance was assigned for disbursement of annuity after it submitted documents in response to an expression of interest issued in February, 2011.
The document were submitted by SBI Life Insurance on March 31, 2011 and after several rounds of negotiations and discussions, the company was empanelled as the service provider with respect to collection and validation of data of the beneficiaries.