Written by The Banking Post
Though the banking sector gets attention, the government has no sharp focus on the insurance sector. Like other sectors, during the past Awami League government, massive grabbing and looting took place in this sector too.
As a result, despite insurance policies maturing, over 13 lakh customers are now wandering door to door. Only one question remains: Will customers get back their due 4,000 crore taka? How long might it take?
Due to irregularities, mismanagement, and corruption in life insurance companies in the past, the entire insurance industry is drowning in distrust. The total unsettled insurance claims of 36 life insurance companies in the country stand at 4 thousand 6 crore 149 lakh taka.
This information was learned from sources at the Insurance Development and Regulatory Authority (IDRA). As of March 31 this year, the total insurance claims of 36 life insurance companies were 6 thousand 375 crore 60 lakh taka.
Of this, 2 thousand 368 crore 75 lakh taka in insurance claims were paid. During this period, 4 thousand 6 crore 94 lakh taka in insurance claims remain unpaid. Even after the maturity of insurance policies, 13 lakh 5 thousand 451 customers have not received their money back.
Analysts say that insurance claims not being settled on time is unfortunate. If this continues, the already trust-deficient insurance sector will face even more acute distrust. As a result, this vital sector of the economy will not be able to stand tall.
According to experts, due to political and legal limitations, the insurance sector’s regulatory body IDRA cannot take strong measures to recover customers’ money.
Affected customers and analysts say that the permanent assets of companies that are not returning customers’ money should be sold to settle their claims. Only then will people’s trust in this sector return.
According to IDRA data, FarEast Islami Life Insurance Company Limited has sunk the insurance sector. As of March 31, the total insurance claims of FarEast Islami Life Insurance Company Limited were 2 thousand 976 crore taka.
During the mentioned period, it paid only 58 crore taka in claims, which is less than 2 percent of the total claims. 2 thousand 917 crore taka remains unpaid.
The company was under the control of controversial businessmen S Alam and Salman F Rahman, backed by the Awami League government. After the government’s fall on August 5, it remains without authority.
Additionally, Sunflower Life, Bayra Life, Padma Islami, Golden Life, Homeland Insurance, and Progressive Insurance. These seven institutions owe nearly 12 lakh customers.
IDRA member Md. Apel Mahmud has stated that companies have been instructed to pay insurance claims in the quickest possible time. Otherwise, legal action will be taken.
However, IDRA authorities did not clarify whether initiatives would be taken to return customers’ dues by selling assets.
