Foreign bank threatens to close New India Assurance account

India Infoline News Service / 15:07 , Dec 03, 2012 However, the threat was not executed by the foreign bank Minister of State for Finance Namo Narain Meena said a foreign bank had threatened to close down the account of New India Assurance Ltd if it did not stop providing insurance cover to ships ferrying oil from Iran. However, the threat was not executed by the foreign bank, Mr Meena said in a written reply in the Rajya Sabha. "The public sector general insurance companies have not received any such threat except the New India Assurance Co Ltd to whom one foreign bank had threatened to close their account on this issue. However, this bank has now agreed to continue the account," Meena said. According to Mr Meena, there was no deactivation of account of state-run insurers by foreign banks. He was replying to a query whether several foreign banks had threatened to close the accounts of state-run general insurers if they continue to provide insurance cover to Indian ships ferrying oil from Iran.