The government has suspended M Ramadoss chairman of New India Assurance of the country's largest general insurance firm. Central Bureau of Investigation is examining Ramadoss' role in the irregularities in distribution of credit insurance cover to Paramount Airways.

This is the second instance when head of a public sector insurance firm has been removed. Earlier, chairman of India's largest insurer Life Insurance Corporation, TS Vijayan was denied an extension after there were complaints against him.

"We have suspended Ramadoss till the time the investigation is on and further decision will be taken once the investigation is over. In the mean time, Srinivasan, chairman of United India Insurance will hold the interim charge," a senior government official confirmed to ET. (Economic Times)