United News of Bangladesh

The Insurance Development and Regulatory Authority (IDRA) on Monday disbursed Tk 23,03,56,971 in long-pending insurance claims to 5,868 policyholders in its second phase of payments, part of a drive to clear backlogged claims and rebuild public trust in the insurance sector. The funds were arranged from the assets, security bonds and other sources of the life insurance companies concerned under IDRA's initiative to settle valid claims that had remained unpaid for a long time. The second-phase payments cover policyholders of five life insurance companies. Padma Islami Life accounts for the largest share, with 3,600 policyholders receiving Tk 12 crore, followed by Homeland Life (1,145 policyholders, Tk 4,98,08,514), Fareast Islami Life (580 policyholders, Tk 5 crore), Sunflower Life (300 policyholders, Tk 55.30 lakh) and Sunlife (243 policyholders, Tk 50,18,457). In the first phase on September 3, IDRA settled claims worth Tk 14,51,03,146.58 for 2,549 policyholders across seven life insurance companies. Combining both phases, it has so far disbursed a total of Tk 37,54,60,117.58 to 8,417 policyholders. IDRA Chairman Mir Nadia Nivin said the significance of the initiative goes beyond the amount disbursed, describing it as a step to send a positive message to policyholders and their families who had grown frustrated and distrustful after years of unpaid claims. She termed the exercise largely symbolic, a visible step to restore public confidence in the insurance sector, aimed at demonstrating the regulator's commitment to ensuring valid claims are settled and policyholders' rights are protected. The initiative is being carried out to ensure fair settlement of policyholders' claims, establish discipline and accountability in the insurance sector, and rebuild customer trust, the IDRA chairman added. "Trust in the insurance sector is not built in a day; it has to be rebuilt through continuous efforts. This initiative to settle long-pending valid insurance claims is part of an ongoing process," she said. The regulator said the remaining valid and unpaid insurance claims will be settled in phases following verification and the necessary procedures, adding that IDRA's efforts to ensure policyholders' rightful claims and restore customer confidence in the insurance sector would continue.

Chairman of the Insurance Development and Regulatory Authority (IDRA) Dr M Aslam Alam on Wednesday called for urgent amendments to the existing IDRA Act, saying that the current legislation favours insurers and weakens the regulatory body’s authority. "The IDRA exists in name only; it lacks the ability to exercise its full powers. If we are serious about reforming and developing the insurance sector, IDRA must be empowered with the necessary authority to perform its regulatory duties effectively. A supportive environment must be established to enable the proper execution of its responsibilities," Dr Alam said. IU Alumni Association holds iftar mahfil in Dhaka He made the remarks while speaking as the chief guest at a seminar titled 'Insurance Sector Reforms and the Way Forward', held at the IDRA office. The IDRA and the Insurance Reporters Forum (IRF) jointly arranged the event. Md Jalalul Azim, Chief Executive Officer of Pragati Life Insurance, presented a keynote paper on the challenges and opportunities in the life insurance sector, while Brigadier General Shafiq Shamim, Chief Executive Officer of Sena Kalyan Insurance, discussed key issues in the non-life insurance industry at the event.