With the fast evolution of digital data exchange, security of information becomes much important in data storage and transmission. Due to the increasing use of images in industrial processes, it is essential to protect confidential images from unauthorized access. We have proposed a new image encryption algorithm using random pixel permutation based on chaos logistic maps and prime modulo multiplicative linear congruential generators. The random-like nature of chaos is effectively spread into the encrypted image through permutation and transformation of pixels in the plain image. The pixel transformation results in the encryption scheme being resistive to cryptanalytic attacks. Simulation results show high sensitivity to key, plaintext and cipher text changes. From a cryptanalytic point of view, the scheme is highly resistive to known/chosen plaintext and cipher text attacks. The proposed technique gives good parametric and sensitivity results proving itself an eligible candidate for image encryption. Moreover it is a lossless encryption technique and hence apt for securing medical and military image.