National Bulk Handling Corporation helped producers to avail of loans against pledging of commodities. It had taken a Fidelity Guarantee Insurance Policy from Oriental Insurance.
Despite deploying hired security guards, as well as own field staff, a loss arose in respect of urad and mentha oil stocks. The insurer was intimated and a report lodged with the police after 11 days.
The employees who were involved were suspended from service, after an inquiry. Since settlement of the claim was delayed, the Corporation approached the National Consumer Commission. It contended the claim was payable, as its own employees had committed criminal breach of trust, covered under the fidelity clause of the policy.
7 best practices to keep your money safe from fraudsters
Read More