National Insurance Co to be blacklisted

Mumbai: The Maharashtra Government has decided to blacklist National Insurance Company (NIC) for failing to provide insurance cover to students from August 2010, the Legislative Council was informed today.

The Central Government-run firm was providing accidental insurance cover to the school students in the state. However, it failed to properly execute the policy.

Therefore, the state has decided to engage a new company, School Education Minister Rajendra Darda said.

"The National Insurance Company could not give any records on how many students have benefited from the policy in the past year. The company had expressed its willingness to renew the policy, but failed to do so, he said.

"We have decided to blacklist the company and will approach the Centre in this regard," Darda said in the Upper House in reply to a question by Bhagwan Salunkhe. Salunkhe said the insurance cover had lapsed in August 2010 and since then the State-funded policy has not been renewed.

"We have called a meeting under the Chairmanship of the Chief Secretary and a decision on issuing tenders to select a new company will be taken soon," the Minister said.

"Since the state has not paid this year's premium to the company (NIC), we will evolve some formula to compensate the students," Darda said.

Source: Financial Express