Control Chamber Reveals Shortcomings in the Insurance Programs

The Control Chamber revealed shortcomings in the insurance programs after conducting audit.

As the head of the Audit Department of Control Chamber Giorgi Alasania stated at today’s special briefing, considering the financial and program risks in the frameworks of preliminary audit, different kinds of violations were revealed as a result of the audit. According to him, in 2008-2010, in the frameworks of insurance for socially vulnerable people, out of 311.3 million GEL received by the insurance companies only 164.5 GEL was spent that amounts to 53% of the program budget.

According to the audit results, out of 808 thousand socially vulnerable citizens insured for these years, only 13.8% applied the insurance. The value of 45.1% of the reimbursed cases does not exceed 20 GEL. Accordingly, as the Control Chamber states for the virtue of insuring the real financial risks, only 10% of the insured applied the insurance. According to the results of the audit, the insurance agreement has not been registered with 75% of the insured. It is impossible to register 13.4 citizens in the base of insured. 91 employees of social service agency and their 420 family members are insured by the program. According to the Control Chamber, 109.9 thousand GEl has been paid for this.

17.7 thousand dead people and people without citizenship have been insured. 3.7 million GEL has been provided for them as a result. According to the results of the audit, the insurance documents of 3743 citizens have been doubled in the base of the insured. 145.2 thousand GEL has been paid additionally for their insurance. 3255 socially vulnerable have been insured. 3255 insured individuals also apply the insurance service of Georgian Defense Ministry. 3183 individuals are insured by the insurance program of the Ministry of Education and Science of Georgia. 1.13 million GEL has been paid for the double insurance of socially vulnerable.

According to the results, as a result of the work of law-enforcement bodies, 12 million GEL was returned to the state budget by the insurance companies.

“Control Chamber continues monitoring of the activities undertaken by the relevant bodies to eradicate the shortcomings in the public insurance and improve the managements of the program,” – stated Giorgi Alasania.

10 insurance companies were inspected: Arquimedes Global Georgia, Aldagi BCCI, GPI Holding, ICC Group, Imedi L, Irao, Vesti, Alfa, Saxalxo Dazghveva (Public Insuring) and insurance company Kartu. 

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