GIPSA chief in trouble with CBI

Ramadoss has built an impressive Resume. Post CBI inquiry, if exonerated by courts of law ,he would require it for his future ventures.

One is not a thief untill caught.

Professors have been caught in corruption...and other cases. Hence it can not be said that a professor delivering lectures or sermons can not be corrupt. Their deliberations can be SFP (Self Fulfilling Professies).

Having amassed fortunes individuals tend to build image by involving in Charitable causes, sermons.....one of the reason could be to build a larger than life image.

One of the strategies is scratching, scratch and find what is down below. Time alone shall prove what more is below the calm surface. When one is caught he is told" You have the right to remain silent." Like Raju and Raja, Ramadoss is tight lipped. It also helps to buy time, formulate a strategy to dodge the law.

From the news it seems he had a chequered past.

The CBI investigation may reveal another scam like 3G.

There should be law to distribute the Ghotala money equally amongst all citizens of our republic, young or old or small, rich or poor. No more effort shall be required to remove the poverty. We shall be richest in the universe.

Mr. Ramadoss may come out clean and drive his present company to take it to new height, build a transparent structure, ensure benefit for all employees than a few individuals, and remove corruption in his company which otherwise seems to be in roots. 

The countrymen shall be very happy if he removes at least those who were caught red handed, to start with.

If he does so the nation shall have some use of  his impressive resume or  an Angootha Chaap but with few traits of developed common sense, basic wisdom, honesty  and may well be in the top chair.

Others whose premises have been raided are those who are in line up system, and shall have many things to reveal.

Corruption percolates both ways: top to bottom and bottom to top.

Dear ShriGopal,

Basic thing is one should ask, before jumping to act:

Is it fair?

Is it for benefit of all?

Will it harm anyone?

Sometimes a person is ill advised, but should have a common sense, to diagnose, what is beneficial, and what is detrimental.

Even after you supplied the evidences, and although he assured, these offenders are still in the system, and the chief is out.

You are right that had the whistle blower policy been in place.........................but the most imp. Question is why it was not implemented, although the answer is obvious.

Probably by now you have realized that a popular word of advice in a corrupt system is "Bhrasht ko hatane wala khud hat jata hai.". Hence many decide to flow with the stream than to swim against the tide.

You are gaining moment by moment. Your case is moving in right direction. Your case shall be model case for many.

Years of torment seem to be over. New doors shall continue to open. Doors shall remain open.

A few men can show the resolve. A few men can have the nerves of steel.

A few men can say I am a lion. I am not a sheep. I refuse to walk with the sheep, sleep with the sheep.

Wise man said: They can hide the skeletons not the smell. Der hai andher nahin. What appears to be the end may really be a new beginning.

Find some time and watch these movies; these are a must see.

Sea Biscuit--------Lame horse and lame jockey defeat the champion and win all races. The owner of the champion said" My horse is big and fast and a noble and superior breed and can not be defeated by a small and slow horse of inferior breed. The small and frail jockey of the small horse said “my horse is small but fierce. It lies in the heart, not in the feet"

K-19 The Widow maker: Able commanders and crew realize that they have been dropped in sea with faulty nuclear submarine to die, because administrators and bureaucrats in the boardroom wanted to prove that they are the first to have the best sub in world and a nuclear deterrent.

The last Samurai: They wanted to annihilate a complete race; Samurai who had otherwise sworn to defend the throne. The samurai accepted the sworn enemy, a white. They fought together, shoulder by shoulder.

The crimson Tide.

Dear Mr. Soni,

You are absoloutely right.

May be in this specific case CMD was innocent. However it is painful when one has to prove innocence. It is equally painful for high and mighty and an ordinary citizen. The difference may be that ordinary one may have to adopt cuts and high and mighty may still be affording his regular biryani.

We pray that the new CMD may apply sense and sense shall prevail.

Krishna has stated"CDA rules etc which may not allow some of the activities"

It shall be prudent to ask " What are the limitations of CDA rules which prevent,deter,discurage,prohibit, to initiate and conclude, bribe takers who were caught red handed, and against whom suspension and termination order should have been issued way back."

Since he is in the personnel dept., which processes, and oversees, such orders, he is the right man to reply.

No action loudly states that whatever yuou may do we shall not take an action, we are ap parallel power and  law of the land does not apply to us.

or he can honestly and frankly state "Main majboor hoon"

The details posted by you are preturbing.

In violation of established norms, without reinsurance support, Ramadoss, the then chairman-cum-managing director (CMD) of the state owned OICL, and Niraj Kumar, the general manager, issued credit insurance policies to five banks on behalf of Paramount Airways Private Limited (PAPL) to cover the risk of default, in 2009-2010.

The allegations are that  Chairman Ramadoss also allowed the net retention per policy to be increased from Rs. 5 cr to Rs. 10 cr for the period 2009-2010 without reinsurance support. There are  several unexplained decisions, including why the retention per policy was increased from Rs. 5 cr to Rs. 10 cr in the middle of the financial year. General  (Re)Insurance Corporation (GIC Re) had decided in 2008 to withdraw reinsurance support to Paramount citing its poor financial condition. Ramadoss allegedly  ignored the GIC decision and without any reinsurance cover  allegedly  issued 112 policies between August 2009 and January 2010. Thus the entire loss  in consequence of policies issued to Paramount  landed on the  account of Oriental Insurance. Ramadoss  allegedly advised the banks that they could accept the business ignoring that Paramount had not submitted its financial statement. Though policies with a net retention of Rs. 10 cr were issued, he allegedly did not bring it to the notice of the Oriental Insurance board. The banks are said to have not been roped in while processing the proposal to understand the risk. It was allegedly accepted without any financial credit rating and proposal forms.

Without proposal form and underwriting can any policy be issued? This is a million dollar question Ramadoss and Niraj Kumar both of whom, have an impressive resume and highest of the insurance qualification, and rich experience and on the top of that who have been the officials I/C of committees and loss assessors. Reena Bhatnagar who has been suspended can also reply on this.

Krishna who has delivered a sermon can also post a reply. Him being in personnel dept. can also post what is the first action his chair shall take if a policy is issued without proposal form and underwriting?

The question may be asked from an agent of any of Life/Non Life insurance company, and the answer may be posted……………..to Ramadoss and others and also the investigation agencies, ministry, minister, PMO, President of the republic.

If a candidate, who is appearing in exam, for getting insurance agency, writes “Yes” he shall not qualify.

In simple words these offenders who are highly qualified and have been teaching and professing that a policy can not be issued without proposal form and underwriting, have arranged to issue the policy without proposal form and underwriting. They should be permanently barred from undertaking employment or doing any business in insurance sector.

“Angrez hote to kala paani me daal dete” Let us see what is done by our government.

Bank of India's Rs. 200 cr has been classified as non-performing assets. What is the legal recourse taken by the bank in case of their NPA. Is the process of the bank different for high and mighty and a general borrower? While in case of a general borrowe by now the bank might have auctioned the assets of the borrower what is done in case of Ramadoss and his company? The indivisual assests of the Ramadoss and other are confiscated or not?

The notes and advices by Ramadoss and others in the file pertaining to sanction and statements of those who have been/or shall be (ever) caught  may reveal the facts.

“Due to political pressure as relative of a union minister appears to be involved in the airline, no one seems to have been put under suspension.”

The magic of politics and politician seems to be working in another case.

Anna Hazare is waging war against corruption for this reason only. The government is obviously perturbed and doing everything openly to snub a 74 years old man and the movement.

India and Indian shall be richest in the universe if the companies and assets of the corrupt are sold and proceeds are equally paid to every Indian, young or old, rich or poor………….

 -Any one who has read about or who has been in, or who wants to know about “insurance business” can state even under oath that solvency margins can not be compromised, and if solvency margins are left to fall it is the general public at large who shall suffer.

“The solvency of an insurance company corresponds to its ability to pay claims. An

Insurer is insolvent if its assets are not adequate [over indebtedness] or cannot be     disposed of in time {illiquidity} to pay the claims arising. The solvency of insurance company or its financial strength depends chiefly on whether sufficient technical reserves have been set up for the obligations entered into and whether the company has adequate capital as security.”

Anyone whose corrupt practices lets solvency margin go down should be treated as a enemy of the state and punished instantly.

If such individuals are studied closely; it shall reveal that they shall tolerate a personal loss of a rupee while they shall not blink for a second before causing huge loss to state and nation for their personal gains.

-You should find a way out and apply for memorial again, by a sincere and honest official, even if he/she is less qualified than Ramadoss, since the man in chair who decided your memorial, Ramadoss, is suspended for corrupt practices, and also rules have been flouted in case of your memorial. It is felt that the Minister/ministry should take up your memorial or President in place of Chairman since your memorial is declared as mercy petition.

You have pointed out in person to him, and in writing, the corruption and corrupt in company headed and driven by him. He did not pay heed to the facts posted to him by you, and it can be construed that he was shielding the corrupt.

-Ramadoss, a technocrat, with impressive qualifications drove the company to huge losses. Interestingly company posted losses for the first ever time since its inception.

Do we need qualification to generate profit? “Angootha Chaap” village heads (read leaders) have turned their villages into model villages and brought prosperity to their fellow villagers (read countrymen).

Any one who has read about or who has been in, or who wants to know about “insurance business” can state even under oath that, once break even stage has been achieved, the insurance company can accrue huge profits. NIACL achieved break even decades back. Insurance business is so profitable. Our country is a market in the world which is classified as “Insurance Deficit market.” A meager % of the population and commodities are insured. The MNC insurance companies lining up in India are not fools, and all of these companies who launched in 2002 are into huge profits.

Ramadoss turned a profitable company into a loss making company in India. The findings should be included as a classical case study in the text books, like “Angootha Chaap” dabbawallas or Kashmiri carpet seller is included in Management schools and corporates.

-It has been acknowledged that the vigilance and probity has to be improved to tackle the menace of “Corruption.” While the vigilance and probity is found almost defunct, as per your posts.

-The NIACL may be trying to find a scapegoat in natural calamities, or they may be right.

Can the CAG assess the govt. company NIACL? They may be able to reveal the truth.

-They stand volt faced as they have stated "We are hopeful that this will be resolved quickly. In any case we have senior government officials on our board." Who has made this statement?

Due to their volt face the matter should be audited by CAG. The Govt. officials should not be allowed to interfere and influence the truthful findings.

-It is a part of lawyers training: If you are strong on facts, bang the facts. If you are strong on laws, bang the laws. If you are weak on both, bang the desk, as you shall appear confident.

 In your case company is weak on facts and laws, but they are putting up a volt face.

-Simply said reinsurance is “wise advice by a wise man qualified enough to advice that this should be done or not”. In case of Paramount insurance Ramadoss (while in OICL) went ahead without reinsurance support. Important point is Ramadoss has been heading Reinsurance vertical and also teaching arm of the Govt. body III .In case of NIACL, the losses are being attributed to reinsurance. Ramadoss’s qualification and impressive resume has been of no use and benefit to the companies he headed.

-What is insurance without underwriting, nothing but pure loss.

Bad underwriting is even worse than no underwriting, because underwriter’s decision is final. Ramadoss who has been head of III (Insurance Institute of India) and who has been teaching underwriting shall allow bad underwriting……………..

Handling Ustra and scalpel are two different things. A barber can not be allowed to be surgeon.

-It is mentioned in post that:

 “Ramadoss was the CMD of Oriental Insurance when the credit insurance cover to Paramount Airways was approved. Oriental Insurance had confirmed that the company did not make any losses on Paramount's Account.”

And

“Suspension orders of about ten officials of OICL, that is, Oriental Insurance Co Ltd are expected shortly in the wake of huge losses to public money of the Public Sector banks of India.”

The question arises have the banks proceeded against OICL and Ramadoss in person since it is alleged that  Ramadoss also allowed the net retention per policy to be increased from Rs. 5 cr to Rs. 10 cr for the period 2009-2010 without reinsurance support. There are  several unexplained decisions, including why the retention per policy was increased from Rs. 5 cr to Rs. 10 cr in the middle of the financial year. General  (Re)Insurance Corporation (GIC Re) had decided in 2008 to withdraw reinsurance support to Paramount citing its poor financial condition. Ramadoss allegedly ignored the GIC decision and without any reinsurance cover allegedly issued 112 policies between August 2009 and January 2010.

Hence Ramadoss influenced the decision and owes explanation and justification. Like in case of any general public borrower Banks should invoke law and confiscate assets of OICL and individual assets of Ramadoss, to make up for loss (principle+ interest+ damages).

“Oriental Insurance had apprehensions on the underwriting judgment and risk factors and hence decided to cancel the policy, when it came up renewal in April 2010.” This wise decision was taken by OICL when Ramadoss moved out of OICL. However OICL and Ramadoss can not escape from their liability of causing loss.

Social groups like those of Anna Hazare, Medha Patekar have a big role to play. Such groups have the mettle and zeal to unravel the truth. Public should dissect the matter and reveal the facts to govt and seek answer.

India and Indian shall be richest in the universe if the companies and assets of the corrupt are sold and proceeds are equally paid to every Indian, young or old, rich or poor………….

You Should also make a point that dealer s are minting money under cash less claim under vehicles policy since these are sold on the tariff and in the name of infrastructure expenses payout not less than 20 to 30% plus
commission is given to dealer and exploiting the Insured by charging more premium which is not permissible as per IRDA guide lines. A general ordinary person like me can see but the chairman IRDA  is mute blind and deaf.

IRDA and its deeds have been highlighted in many posts.

Look at another example;

Actuarial Funded Products (read policies) were banned. Many of the companies were left with almost no product in their portfolio.

Meetings and deliberations happenned, between companies and IRDA. Companies took a stand that these products were approved by IRDA and hence can not be bad. All along Insurers and IRDA have been singing Actuarial Funded Products are good.

IRDA declared that all Actuarial Funded Products sold so far shall continue and interest of policyholder shall be protected, and companies shall no more sell Actuarial Funded Products. Who lost, obviously Policyholder and who gained obviously IRDA and Insurer? Those who wanted to surrender their policies after 3 or 5years can comment on their fund values.

Let us see what action is taken on the recommendations: a tangible and prudent one or again the matter is assigned to 'Thanda Basta".

A crusade has been initiated by Anna, and it may be difficult to keep the matters in 'Thanda Basta".

Mr Doab,

I am MD of a company who encountered difficulties at the hands of Ramados/Niraj Kumar,I am sorry to say that although you are factually informed my experience differs. Mr Ramados in my opinion was a victim of his own publicity, which he thought he was riding to the top and far to trusting of a rather shallow and somewhat duplicitous General Manager, who took it upon himself to flout IRDA rules and orders of the National Consumer forum which of course as a committee member of IRDA and the Insurance Institute of India he could, When Ramados was confronted with evidence which took the good offices of Lalit Kumar, Then Director of the MOF (Financial Services) Insurance II he was surprised and I felt embarrassed how he had been decieved and made genuine efforts to put things right only to be thwarted by the Bank who Niraj knew full well would pull the plug.  As MD of a foriegn investor I am surprised that any serious business would invest here, Where proper insurance is worthless, loss adjusters at IRDA category A do not understand replacement reinstatement conditions that no net profit does not debar a claim made for gross profit and that said gross profit should be based not on history but on current improved performance per TAC wordings surveyors pick at policy conditions on the basis of if it reduces a claim use it if it does not ignore it. Your comments on solvency are inadvertantly true so watch this space I minuted every meeting and none have to date been refuted, My evidence is strong yet I have little faith that whilst the national consumer forum will apply policy conditions, they are yet to show their teeth properly to punish insurers to the true extent that the law allows in that they can compensate to the full extent of losses caused by the mal fide acts of insurers, or their appointed allegedly independant surveyors who are undeniably biased as my file clearly shows as i am sure they only get work if they kill claims which are justly payable. The Government has increased FDI's Foriegn investors please be warned the Banks have a fast track court, and it is very much in their favour and if you wish to appeal you have to pay a minimum of 50% due, the insurers have a much slower court and no matter how wrong they will appeal at low cost to the supreme court which can take years. I hope Mr Ramados is exonerated, I wish him well, He is one of  the few who acted with integrity in my case for a chairman to give authority it would normally be based on huge baulk of recommendations, including that of the general Manager so he shouldnt be checking proposal forms, how so many came before him, some 27 policies which in themselves should be based on proposal forms which should be checked at branch level and Policy department and every level up to the chairman, and how the reports of the general Manager who was responsible for re insurance did not note the accumulations is Grossly negligent to say the least???? I do wonder how much else remains undiscovered on other policies that the chairman cum MD signed in between his frequent press releases. When considering the profitability of non Life insurers consider this;- how can premium rates be cut by some 60 to 70% in the five years following deregulation of the tariff yet profits drop by some 20% only, could it be a program of risk management? unfortunately not the case, risk management reports are rare indeed. could it be that expenses such as staff etc are cut? reports to IRDA show they have increased. could it be clever purchase of excess loss reinsurance? It would seem not. No, failure to pay valid claims, ruining viable business denying jobs to poor people who need these jobs so much and disencouraging investors who prefer to invest in gold, property and the like rather than give jobs and the knock on economic growth that this hard working and proud Indian Nation deserves. Let IRDA properly enforce these principals laid down in their excellent codes of practice, let surveyors be trained according to international standards of loss adjusting Let the Consumer courts reccomend CBI enquiries and officers be trained how to detect insurance fraud from both sides. Let the Banks not be required to move an account to NPA if insurance payments are awaited on discretion maybe only granted by RBI Let India show the World that they are truly and sincereley open for Business. Mr Doab, your articles have opened my eyes, I do hope likewise you may consider the above, and in my opinion the likes of MR M. Ramados is needed back in the insurance industry but more control is independantly required. maybe a centrally controlled Policy signing department, accounts department and claims department where qualified adjusters/surveyors are appointed centrally by rotation and not favored by individule claims managers. In the London Insurance Market on a risk such as a financial guarantee Bond a proposal form would attach to and form part of such Bond, for a Bank to lend 10 crores without a D and B report and said financial weakness would clearly show on the data annually reviewed to withold the same would be a failure to declare material information rendering the policy subject to ab initio cancellation. There is more to this than meets the eye, and Mr Ramados would seem to me to be an easy target and scapegoat for policies not necessarily Valid. I would be much interested in your further respected comment, and look forward to the same in due course

Indeed what you say has substance.

I recall two years ago when I e-mailed Mr.Ramados about my son securing 133rd position in IIT_JEE ,he immediately responded,as he was genuinely happy.

On 25th June 2011 I met him personally and found him a positive minded pleasant person.

                   In the present set up prevailing in public sector insurance companies any innocent one who keeps blind faith in his subordinates or superiors may be made a scpegoat while the actual corrupt ,enjoying systematic protection continue to make money..

It has already been posted in this thread:

“Mr. Ramadoss may come out clean and drive his present company to take it to new height, build a transparent structure, ensure benefit for all employees than a few individuals, and remove corruption in his company which otherwise seems to be in roots. 

The countrymen shall be very happy if he removes at least those who were caught red handed, to start with…………………………………………………………………………………..”

Mr. Soni/revribhav who was in the system, has faced the system and has seen the things with his own eyes would know better than any one else.

You have posted that:

“In the London Insurance Market on a risk such as a financial guarantee Bond a proposal form would attach to and form part of such Bond,”

In life insurance cases the proposal form has already been made a part of policy document/bond/schedule.

It does make sense as the policyholder and all stake holders in the company get a copy on record.

The insurance companies scan the documents of applicant/customer, at the first place of receipt and are downloaded into the centralized system and the docs are kept in computerized archives.

Anyone in the company that has to comment on the policy and/or has to take a decision, gets image thru computerized access software e.g;  “DOT SPHERE”……………………………………..Thus the stakeholders can relate to the proposal form/all docs……………………………….while taking a call on matters related to policy.

The regulator is ‘IRDA’ and IRDA should take a call and set in full proof/airtight/watertight system.

IRDA has levied huge penalties to many insures and such cases are maintained on its website…………………

 There is no second opinion to the feelng that tolerance ot corrupt and corruption should be "Level Zero'................

Dear Mr Soni,

Your reply was interesting, I agree a decent man, however he has endured a career in Indian Insurance, to become CMD he knows too well the system and the elements that make up that system. As CMD he has acceptet certain responsibilities, they come with the big home, big car and big salery, as such he cannot hide entirely behind the guilt of others, like us all I cannot see the reports put before him, I dont know how sophisticated the level of deceipt was. I fear that Mr Ramados took the job knowing where the Buck Stops in the haze of his own publicity lost track of this, and I am sure that with the volume of business passing over his desk, took no time to investigate individule cases. He trusted the newly appointed GM who served the profession so well on committees!!! and signed his own death warrant. This saddens me greatly, however I know colleagues who served under Mr Ramados in the New India Underwriting Office in UK, they knew that he had no illusions as to the morals of his subbordinates.