‘Premium collected from people not paid to LIC’

Councillors representing the United Democratic Front (UDF) in the city Corporation, on Friday, sought an inquiry into the alleged irregularities by the Corporation in implementing the micro-insurance scheme of the Life Insurance Corporation through Akshaya centres.

At a press meet here, UDF councillor K. Maheswaran Nair said a temporary employee appointed by Mayor K. Chandrika at an Akshaya centre had collected more than Rs.1 crore as premium for the insurance scheme from people belonging to the marginalised sections of society.

The councillor alleged that the temporary employee, “without any mandate from the civic body” to collect the premium, had entrusted the job to Kudumbasree members. The members collected varying sums from people and remitted the amount to the beneficiaries’ account through Akshaya centres, he said.

The premium, he said, was never paid to LIC after 2012, and was transferred to the personal account of the employee and his wife. The UDF members had, during a council meeting, asked the Mayor not to entrust the employee with any responsibility because of his “shady past.”

A few days ago, after some beneficiaries complained about non-payment of the premium to LIC, the employee remitted the amount collected from 40 people to the insurance company, Mr. Nair said.