Udupi: Three micro insurance agents have defrauded a large number of policy holders and 58 sub-agents of Jeevan Madhur micro insurance scheme of LIC of India in Kadur, Tarikere, Chikkamgaluru, Mudigere, N.R. Pura in Chikkamagaluru district, alleged the Human Rights Protection Foundation (HRPF) on Monday, October 24.
President of HRPF, Ravindranath Shanbhag, speaking at a press meet said, LIC had issued micro insurance policies under the Jeevan Madhur scheme for people below poverty line through three NGOs (also called micro insurance agents) namely Mukkanneshwari Yuvati Mandali, Samanvaya and Shubhodaya, based at Arsikere, Chikkamagaluru and Tiptur from 2009-10 to 2014. “Three micro insurance agents appointed a number of sub-agents also called specified persons, who were mostly anganwadi teachers, to collect policies in rural areas. These sub-agents worked hard to get a large number of policies issued to economically vulnerable sections, regularly collected premium and remitted it by cash or demand drafts in the name of LIC with the micro insurance agents,” he said.
Shanbhag further said that the micro insurance agents issued receipts with the logo of LIC to the policy holders through the sub-agents. The truth came out when a few people lodged claims with LIC for some risk covered by the policy. But LIC rejected these claims on the ground that the policies had lapsed for non-payment of premium.
Shanbhag alleged that the cash paid by the sub-agents for transmission to LIC was pocketed by the micro insurance agents and the demand drafts were misused by them, thus misappropriating premium money, defrauding the LIC, the policy holders and sub-agents. Due to the defrauding by the three micro insurance agents, 57,873 policies out of 58,086 had lapsed for non-receipt of premium by LIC, as per the information furnished by LIC to the foundation, informed Shanbhag.
