Down the memory lane

I had spent the first 11 years of my career in the Public Sector and the next 24 years in the private sector.

It was sometimes in 2002 or 2003, there was a massive fire at the Ahmedabad warehouse of one of our clients -a MNC White Goods manufacturer. I had gone along with the loss adjustor – while his purpose was loss adjustment, my purpose was post-loss risk survey.

This risk was insured with my company with 80% share and one of the public sector insurers had a 20% share. Loss was around INR 200 million. Quite large -especially for those times.

In less than 2 months- claim was all set to be paid by the claims department. I was part of the Underwriting and Risk Management department. In our company, there was a clear separation between Underwriting & Claims department.

At that time, the claims department received a letter from the co-insurer stating that there was an anonymous complaint to the Central Bureau of Investigation (CBI) stating that the insured had burnt their own goods. The co-insurer requested us not to release the claim till the CBI investigation is complete.

My Technical Director, then called me. He asked me since I had been at the site of claim immediately after the loss, did I find anything suspicious? I replied that we spent one full day, met everyone from security guy to the warehouse head, they were very open, showed us all their records and never felt anything suspicious. My Technical Director then said-ok-we are going ahead and paying the claim and the claim was released.

Having shifted from public sector, I was amazed. My Director went by my oral word, he didnot ask me for a written statement or report.

If I had done the same when I was in the Public Sector, what would have happened?

a) Many people would have said that the client bribed me and hence my clean chit to the client.
b) Claim settling authority would have expected a claim note signed by me clearly stating my observations.
c) This claim note would have few other signatures (AAO, AM, Manager) and gone to the GM in head office.
d) The GM would have thought-why should I risk my retiral benefits-let me keep it pending till CBI investigation completes.

In this process, I would not be surprised, if I was unlucky like a few of my other Public Sector colleagues, if CBI filed a case against me as a suspect. I know many honest officials who got investigated for their signature on a claim file. After many years of investigation, they were declared innocent. But in those years-their life ruined.

Blog by Atmaram Cheruvu