Reacting to media reports on the alleged fraud of Jammu & Kashmir Bank in collusion with the IFFCO-TOKIO, the latter says that there is nothing wrong in being the bancassurance partner of Jammu & Kashmir Bank and that no fraud was ever committed.
It bears recall that the Anti-Corruption Bureau (ACB) has filed a case against a former chairman Parvez Ahmed Nengroo of the Bank. The ACB sleuths also raided the J &K office of IFFCO-Tokio in Srinagar.
Through a formal communication, IFFCO-Tokio has rebutted all the charges levelled against it. The ACB allegations are– IFFCO-Tokio secured undue benefits after employing a close relative of former chairman J&K Bank Parvez Ahmed Nengroo. That the salary given to him was 2.5 times more than the prevailing market rate.
Other charges are that the J&K Bank had already tied-up with PNB Metflife Insurance and Bajaj Allianz. Also, the commission received from IFFCO TOKIO is much less compared to other partners, thereby hinting at collusion between the MD of Iffco-Tokio and the former Chairman of the Bank.
IFFCO Tokio release issued Tuesday evening denies all the charges. “The regulation of additional Bancassurance partner under the IRDAI (Registration of Corporate Agent) Regulations, 2015, allows banks to choose 3 general insurance partners so that their customers get competitive pricing and products.
IFFCO TOKIO General Insurance Company Limited was appointed by Jammu & Kashmir Bank as the second bancassurance partner after being selected through an exhaustive and stringent bidding process.”
“IFFCO TOKIO started business since 1st April 2019 with Jammu and Kashmir Bank. It is only in the interest of the customers of Jammu and Kashmir Bank that IFFCO TOKIO has offered competitive pricing and regulatory approved commissions have been also paid to the bank based on the business procured by the bank”, the release noted.
“The company has been servicing the customers promptly and with fairness. It is pertinent to note by all, the customers of Jammu and Kashmir Bank have been benefitted with the second partner. Had Jammu and Kashmir Bank not taken a second partner – customers of Jammu and Kashmir Bank would have missed out on options available”, it says.
The release also replies on the issue of appointment of Chairman’s relative. “The hiring of Asif Manzoor Beigh in Srinagar has been done as per the practice of the industry and on merits. His salary is commensurate with his 13 years of experience in the industry and domain knowledge”, it claimed.
“Customer Service will remain at the centre of all our services in IFFCO TOKIO”, the release claimed.