New Delhi, Oct 6 : Taking seriously the recent irregularities in premium adjustments by Life Insurance Corporation officials in a branch, Insurance Regulatory and Development Authority (IRDA), Chairman C S Rao asked LIC to take necessary measure to prevent such irregularity in future.

“We will take it up with LIC. It is a case of fraud... Sufficient safeguard should be put in place to prevent such incident in the future,” said Rao while talking to mediaperson on the sidelines of an insurance conference here on Thursday.

When asked specifically whether the insurance regulator will resort to regulatory intervention after the CBI probe into the alleged irregularities in premium adjustment, Rao said that it was an organisational problem, therefore dealt with within the organisation.

LIC at one of its branch in New Delhi had detected certain discrepancies in the adjustment of premiums of salary savings scheme pertaining to the employees of Municipality Corporation of Delhi (MCD).

The company has referred the matter to Central Bureau of Investigation (CBI) for probe. LIC has also referred the matter to Vigilance Department so that those responsible for the irregularities are brought to book, LIC said in a statement.

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