Insurance Board asks NB Insurance to get its act together

ShareSansar, Aug 22:

Insurance Board has given NB Insurance a last chance to put its act together within a month. The board has warned the director of NB Insurance that it will be forced to close down the company if it fails to improve the situation within a month.

The Insurance Board has time and again written to the company asking it to increase its paid up, bring efficiency in releasing claims, and bolster its mechanism of finance controls.

As per the Insurance Board directive, life insurance companies must have a paid up of Rs 25 crore. But NB currently has a paid up of Rs 10 crore and is reeling under an operating loss of Rs 15 crore.

Earlier, the Insurance Board had shut operations of NB Insurance for about one and half years after the company’s board of directors were found committing irregularities.

As the company is facing action it has not been able to present its balance sheet yet and its operating license has not been renewed for failing to present the balance sheet.