National Insurance Company indulges in mis-management of employees' pension money

Varanasi: Employees of National Insurance Company have allegedly stated that the state-owned general insurance company is indulging in mis-management as far as their pension money is concerned. "Despite the government circular, the pension money collected from the employees of National Insurance Company is not routed to National Pension System run by PFRDA," National Insurance Company Officers Association (NICOA) general secretary Rajib Banerjee claimed.

"Where the money is being invested and how much return is being generated is not known to the employee. It is matter of concern since crores of rupees are lying in the fund," he said here during the annual general meeting of the association. However, the company could not be reached for immediate comments.

As per the government notification, in banks, LIC, the NPS is effective for recruits joining from 1st April 2010 and it has been implemented," he said. However, this should also be the case for general insurance companies, which also come under the same ministry and it has not been implemented as yet, he alleged.

The company is deducting 10 per cent of basic salary and DA towards pension contribution from salary of employee, he added.