NICL Dismisses 25 Corrupt Employees In Six Months: CEO

ISLAMABAD, Jan 3 (UrduPoint / Pakistan Point News - 03rd Jan, 2017 ) : Chief Executive Officer (CEO) of National Insurance Company Limited (NICL) Capt. Muhammad Jamil Akhtar Khan Tuesday said the organization dismissed 25 employees in a period of six months, who were found involved in corrupt practices causing loss to national exchequer.

"A number of corrupt employees, including senior level persons have been either dismissed or retired due to their corrupt practices. The total number of such corrupt dismissed employees is around 25," he said in an interview with APP.

He said the company, which is in its transformation phase, was in the process of filling the posts falling vacant by ouster of the corrupt elements, adding that professionals were being hired on merit under a transparent procedure in their place.

Answering a question, Khan said, after being selected as NICL CEO last year, he also identified around 100 illegal appointments made in the past and a detailed inquiry report had already been submitted to the Ministry of Commerce accordingly.

"We are awaiting confirmation/go-ahead to proceed against them," he said. Commenting on future business strategy of NICL, the CEO said a significant and successful deal had been concluded with the Karachi Nuclear Power Plan (KANUPP) in respect of installation (construction and erection) of their two additional reactors (K-2 and K-3), which would fetch additional insurance premium (net) to the tune of Rs 95 million over the next five years.

The gross premium from this business is projected to Rs 1.3 billion, he added. Besides, he said, letters had been written to top management of Pakistan Railways soliciting their insurance business purely on merit, which would be actively pursued.

NICL is anticipating Rs 1.

5 billion business with Railways. The company had also approached several other public sector organizations that were not insured currently, he said, adding that NICL procured insurance business of Quaid-e-Azam Thermal Power amounting to Rs 65.9 million.

The company, he said, successfully negotiated with the management of Hub Power for business procurement from the JV Power Company for installation of their coal-fired power plant worth $ 2.2 billion.

"As well as from their existing and future ventures, anticipated insurance premium volume is around Rs 400 million." Similarly, Khan said, a letter had been written to Commissioner (Insurance) at Security and Exchange Commission of Pakistan (SECP) for inclusion of NICL and participation in surplus market reinsurance business to save precious foreign exchange of the country.

He said the company successfully negotiated the current year's reinsurance arrangements for fire and engineering portfolios, enhancing the loss limit from Rs 600 million to Rs one billion. While, it at the same time achieved reduction in reinsurance premium (outgo) from Rs 222.6 million (paid last year) to Rs 181.4 million.

The NICL CEO said the company invested Rs 11.5 billion during the last six months in TDRs, a term of fixed deposits, of National Bank of Pakistan giving an annual return ranging from 6 percent to 6.1 percent.

He said the company was now actively preparing a comprehensive and authentic assets' registerer encompassing all fixed as well as moveable assets, which was not in place earlier. Answering a question about allegation levelled against him by the ousted employees, Khan said he was planning to initiate appropriate legal action against the elements maligning him.