New Delhi: The CBI is probing the role of five officials of a national insurance company in allegedly causing a loss of over Rs 273 crore by issuing two insurance policies to a private telecom firm to cover its defaults in payment.

Official sources said the probe agency has written to the National Insurance Company Limited (NICL) seeking sanction for prosecution against the five officials serving at middle management level.

"We have written to NICL seeking sanction for prosecution against five of its serving officials for their involvement in the case. The necessary action will be taken against them once we have received the permission," a source said.

As per the guidelines, decision for grant or non-grant of sanction of prosecution against serving officials has to be taken within three-month period.

In March, 2005, the Central Vigilance Commission had forwarded a complaint alleging irregularities in issuance of insurance policies by NICL to a private telecom provider for coverage of default payments, to CBI for discreet inquiry and report.

The allegations were that during the period 2002-2004, the NICL officials in connivance with the officials of the private telecom firm signed two MoUs.

"The terms and conditions in the MoUs signed between NICL and the firm were in deviation from the standard policy and favourable to the party," the source said.

On the basis of the said agreements, NICL issued two Special Contingency Policies (SCPs) from the Kalyan division office of NICL in Mumbai.

"During the enquiry it was found that the officials of Mumbai Regional office of NICL and Kalyan division office of NICL committed serious illegalities in connivance with officials of telecom provider which resulted into wrongful loss of Rs 273.12 crore," he said.