Chairman of Insurance Development and Regulatory Authority (IDRA) Mohammad Zainul Bari on Monday said around 30 percent of life insurance customers are not getting their claims.
He said this while speaking at a press conference on the occasion of National Insurance Day-2023 on March 1. Other members of the IDRA were also present at the press conference.
In a written speech Zainul Bari said that in 2022, the gross premiums of the insurance sector stood at Tk 16812 crores. Out of this, the gross premiums of life insurance is Tk 11399 crore and non-life is Tk 5413 crore.
During the crisis period, the insurance sector provided greater liquidity to the banking sector of the country.
Besides, Tk1305 crores of VAT and taxes have been deposited in the treasury of the government on premiums earned by life and non-life insurance companies during 2022.
He said that IDRA is moving forward with a specific plan to achieve the goal of a developed, prosperous, smart Bangladesh by 2041 through the development of the insurance industry.
For the development of the insurance sector, the work of the Bangladesh Insurance Development Project has been started with a total cost of Tk 632 crore, including government funding of Tk 118.50 crore and World Bank Tk 513.50 crore. The project has been extended till December 31, 2023.
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Referring to different problems in the insurance sector, he said, the main problem of insurance is a lack of awareness and lack of literacy.
“We failed to highlight the importance of insurance in front of people. Could not adopt product selection, and policy in keeping with the time. Besides, we have failed to pay insurance claims in time,” he added.
Around 30 percent of life insurance claims are not paid. Due to these reasons, people are disappointed and mistrusted with insurance. That leaves people wondering how else to get compensation without insurance.
“We have identified these issues, which will be resolved gradually through the development of the insurance sector,” he pointed out.
Through this project, the IDRA, Bangladesh Insurance Academy, General Insurance Corporation, and Life Insurance Corporation will be further enhanced in professionalism and technical capacity, IDRA Chairman said.