Written by The Banking Post
Confidence in Bangladesh’s insurance sector remains fragile, as non-life insurers continue to delay claim settlements. According to the latest unaudited data from the Insurance Development and Regulatory Authority (IDRA), 46 non-life insurance companies have collectively held back Tk3,150 crore in claims as of March 2025, up from Tk2,635 crore in December 2024. This means unresolved claims have grown by Tk515 crore in just three months.
The figures reveal a worrying trend. Of the total general insurance claims of Tk3,445.9 crore, only Tk295.29 crore have been paid, leaving nearly 91% of claims unsettled. Policyholders face prolonged paperwork, repeated surveys, and bureaucratic hurdles, often resulting in frustration and fatigue without resolution.
Worst performers
At the top of the list for unpaid claims is Sikdar Insurance, which has paid only Tk3.13 lakh out of Tk27.13 crore – a mere 0.12% of claims. Sena Kalyan Insurance follows, paying 0.65% of Tk45.98 crore, and Northern Islami Insurance has settled just 1.06% of Tk64.52 crore. Standard Insurance and Dhaka Insurance have paid 1.44% and 1.59% respectively, leaving nearly 99% of claims pending.
Most other insurers also show very low settlement rates: People Insurance (1.82%), Eastern Insurance (3.16%), Desh General (3.44%), SBC (3.79%), Bangladesh Co-operative (4.01%), and Asia Pacific (4.29%). Only a few companies show relatively better payment performance: Purabi General (7.07%), South Asia (7.80%), Paramount (8.82%), Phoenix (8.46%), Green Delta (9.47%), and Mercantile Islami (9.89%).
Sector leadership acknowledges the issue
IDRA Chairman M Aslam Alam said, “Delayed claim settlements are the primary problem of this sector. The issue has been identified and measures are being taken.” Yet, policyholders expect prompt, tangible results to restore confidence.
While some companies perform better, such as Janata Insurance, Union Insurance, and Prime Insurance, the sector still suffers from structural weaknesses. Delayed payments are often attributed to failures in governance, risk management, and accountability, not just a lack of funds.
Insurers’ defense
Sikdar Insurance’s managing director Abdur Rafiq said, “Some claims from the August 5 incidents are with the General Insurance Corporation. Payments will be made once we receive funds from GIC.” Experts argue that such explanations highlight structural weaknesses, questioning why primary customers remain unpaid when reinsurance or internal adjustments fail.
Call for action
S M Nuruzzaman, joint secretary of the Bangladesh Insurance Forum, urged IDRA and the Ministry of Finance’s Financial Institutions Division to take a more active role. “Strict legal action may be needed. Policyholders must also follow disciplined steps: submit accurate documents, maintain records of communications, file complaints with IDRA if unresolved within 90 days, approach the dispute resolution committee if necessary, and seek court intervention promptly.”
The sector’s trust deficit underscores the urgent need for stronger oversight and faster, more transparent claims settlement to rebuild customer confidence.
