Twenty one years after a city share broker suffered losses of about ₹2.5 crore due to unauthorised fraudulent share transactions entered into by one of its employees, the firm will get back the entire amount by way of insurance claim. Last week, the national consumer disputes redressal commission (NCDRC) allowed consumer complaints filed by M/s. RR Chokhani Stock Brokers and directed The New India Assurance Company Ltd. to pay insurance claim of ₹1 crore to the firm, along with interest at the rate 9% per annum from 2003, when the firm filed the complaint -- totalling to ₹2.53 crore. The insurance company has been directed to make the payment in three months, failing which it will have to pay interest at the rate of 12% p.a. On March 31, the share broker lodged an insurance claim, but the insurance company repudiated the claim on the ground that the loss was caused by its employee by entering into speculative trading, which was outside the scope of the policy.

Source: Hindustan Times February 08, 2021 05:25 UTC