RIL, Tata caused Rs. 184 crores loss: CAG

RIL, Tata caused Rs. 184 crores loss: CAG

In what is seen as a damning indictment by Comptroller and Auditor General India (CAG), there have been reports about causing losses to the insurance companies. The total losses amount to Rs. 184 crores. In the fine print, the losses were on the outstanding dues and claims. Further, the report says:

Pulling up the insurance companies, CAG said divisional offices of NIC and OIC failed to comply with regulatory norms while offering ‘tailor-made’ risk covers to Reliance and Tata that led to the losses to the general insurers.

This is troubling accusation:

“Insurance policies were devised primarily to suit the requirement of the insured (Tata and Reliance), without safeguarding the insurer’s interest owing to non-adoption of prudent guidelines.”

Therefore, the norms have been bypassed and favors granted. That is what is called as “managing the environment” in Reliance speak.

This post was submitted by Dr. Abhishek Puri on the Broadband Blog on Techwhack.