Dear Sir,
My brother was an agent in the National Insurance Company (GIC), where he was authorized to register motor policies through the UB portal. However, in last year's financial year he did something wrong. That is during login, he has mis-declared some of the policies, i.e during registration of heavy vehicles, somehow his team has wrongly declared it as a light motor vehicle. Seems to be all those attempts were performed to help the customer to save the premiums. Now after one year during their audit the authority found that there is serious mismatching and sent a letter to my brother for issuing "wrong/fraud policies" and now GIC sent notice to pay back around 15 lakhs premium loss incurred to the authority, or else the company will take legal action against my brother. Till now my brother managed to pay back around 3 lakhs to GIC but they are continuously sending notices to pay back the full amount, or else they will impose police/court proceedings against my brother.
He is a small agent and it is impossible for him to pay back the amount. Now my brother is helpless and undergoing mentally imbalance to recover that huge penalty. All the clients now are not turning up to pay the difference amount for the previous year. Certainly there seems to be some mistake from my brother's side, but at the same time we seek some advice to respond to the GIC. Please assist in this regards,
1. During policy purchase, the login system (website) never shows any error message or to rectify that the details entered in the system are wrong. This is one type of misguide due to the improper login system and now we cannot become victims to repay the entire amount. We make GIC as equal responsible in this matter, by not maintaining a stringent system to correct during only registration.
2. We offer 50% payment to settle the matter. But GIC has denied and asked to repay the entire amount or else they will proceed for legal action.
3. By reading through the internet, this may be a criminal proceeding and can jail upto 7 years. How can we overcome this problem?
4. Is there any other way to get rid of this matter? If recovery is the only option, then he has to sell his small parental property to recover or else face consequences from the legal options.
Your advice will be very helpful for us. Thank you in advance.
