* Allegations of financial fraud against the chairman himself
* The authority does not see irregularities of insurance companies
* Multiple insurance companies are being run by dynastic rule
* IDRA has no action to recover the lost money
# IDRA is thinking more fruitful to restore people's confidence to establish the insurance sector
- Jahangir Alam, Spokesperson, IDRA
# It is not possible to save the insurance sector if the insurance claim is not paid on time
- Dr Hasina Sheikh, Professor, DU
Insurance Development and Regulatory Authority (IDRA) was formed for the development, control of activities and overall supervision of insurance companies. But it is not able to take effective steps to protect the insurance sector of IDRA. As a result, the insurance sector is gradually reaching the brink of destruction.
Those involved in the country's financial sector are suffering from extreme lack of confidence in the questionable role of the organization. IDRA's overall activities are questionable in a number of ineffective steps.
There are many allegations of financial irregularities against the chairman of the company itself. He is also accused of covering up irregularities of different companies in exchange for money and appointing ineligible people as the chief executive of the company through huge money transactions. Some of the victims have complained to the finance ministry against the chairman of the organization. The finance minister has already ordered to look into the allegations against the IDRA chairman.
According to the news, the company is always silent to protect the interests of the customer. Established to play the role of a protector, this institution is gradually taking the form of a predator. The company is not taking effective action against insurance companies playing with customers' money.
A review of the data shows that most of the insurance customers are marginal. They have deposited the money earned in the hope of security. Some have made insurance policies by saving cooking rice, selling cows, some selling poultry and chicken. They did this in the hope of financial security. Some people's dream will give the insurance money to the daughter's marriage. And most people have insurance thinking about the future safety of the child.
But due to the unbridled corruption and arbitrariness of the insurance companies, there is now no hope. Even after years of maturity of the policy, customers are not getting insurance money even after going from door to door. Many people have applied to IDRA after losing confidence in the concerned company, but there is no solution.
Due to the arbitrariness of the regulatory body, this sector of Bangabandhu's dream is turning into a distrust of the common people. Bangabandhu Sheikh Mujibur Rahman also worked in insurance. In a rally, Prime Minister Sheikh Hasina herself said, I belong to the insurance family. Loving insurance, the Prime Minister also declared March 1 as National Insurance Day.
It was known that more than two dozen companies are not paying customers' insurance claims. More than a dozen companies are suffering from liquidity crisis. There is no activity of IDRA to recover the lost money of these companies. The agency's activities are limited to investigations. Fareast Islami Life Insurance Company, Sunflower, Baira Life Insurance, Padma, and Golden Life Insurance Company are among the most troubled companies.
According to the Insurance Act 2010, insurance claims have to be settled within 90 days of submitting all the documents to the organization after the expiry of the policy. But no company is ignoring the insurance law. Most companies are not paying insurance claims even after two to three years of expiry. Customers will get Tk 1,270 crore from Fareast alone.
Analyzing the IDRA report sent to the Finance Ministry, it was found that from July 2022 to June 2023, the total claim of customers except Fareast Islami Life and Baira Life stood at Tk 11,629 crore 70 lakh 1 thousand 5. Of this, government and private insurance companies have paid insurance claims and maturity money of Tk 6,757 crore 61 lakh 97 thousand 166 in the outgoing year. But 80 companies did not pay Tk 4,872 crore 8 lakh 3 thousand 839 during this period. Of the unpaid amount, one percent is a death insurance claim and 99 percent is maturity.
Jamal Hossain, a victim of Cumilla, said he made a five-year insurance policy with Fareast Islami Life Insurance Company six years ago. Then about a year and a half ago, his policy matured. Now he regularly goes to the company's local office to get back Tk 3.20 lakh of the deposit. But the authorities are not returning the money. Jamal Hossain was repeatedly given the date to give money. Do not get the money on the due date. A new date is given again. After not getting the money for the fourth time, he went directly to IDRA to complain. Six months have passed since I complained to the Insurance Development and Regulatory Authority, but there was no benefit.
Azad Hossain, another insurance claimant of Fareast, said he had a 10-year insurance policy about 15 years ago. Although his policy expired about four years ago, he is not getting the money even after repeatedly contacting the concerned branch. The company's Chief Executive Officer (CEO) Apel Mahmud is taking a salary of Tk 6 lakh without any facilities including car and mobile bills. That's five times more than the president's salary. The company is also giving higher benefits to other officers and employees without paying the insurance claims of Tk 100 crore of the customer. Other companies are also increasing their own privileges by not paying insurance claims. Meanwhile, many customers are now turning to the media after losing confidence in many companies.
On the other hand, some companies pay expiry money to customers after various debts. But the condition is that the policy will have to be made in the company again. In the name of this policy, the companies deduct up to 50 percent of the money again and keep it with themselves, which is completely against the insurance law. Meanwhile, after many wanderings, customers get checks, but when they go to the bank, they see that there is no equivalent amount of money in the account. That is, the check is dishonored. Even after knowing these issues, IDRA is not taking any action. Despite instructions to sell the company's assets to pay the customer's insurance claims, many companies are not paying the insurance claims of the customer by retaining the assets. In this case, the regulatory body IDRA plays the role of a toothless tiger.
Meanwhile, ordinary people are losing confidence in insurance. The main driving force of insurance is the customer, but the financial sector of the country has become the distrust of the common people.
Nasrin Sultana, a housewife, told The Daily Post that I can no longer trust insurance, there is no news of giving money with good words. Monir Hossain, who works in a private financial institution, said he was earlier deceived by insurance in a company. That's why he can't trust insurance.
Not only them, The Daily Post Reporter spoken to more than 50 customers who have lost confidence in insurance after being deceived. These affected customers and insurance concerned said that IDRA is directly and indirectly responsible for such a crisis of confidence in the insurance sector. The victims said IDRA is not taking any effective role; the common people are losing confidence as no action is being taken against the real culprits.
There is no end to the allegations against the regulatory body IDRA. Many people are working as the company's chief executive officer with fake experience certificates and education certificates. After scrutinizing the documents, IDRA approved it despite knowing this. According to the Insurance Act, no more than two people from one family can be directors of an insurance company; there are more than half a dozen companies running dynasticism. Despite knowing this, IDRA is not taking any action against the invisible business.
IDRA Chairman Jainul Bari did not receive repeated calls on his mobile phone to know about these issues.
IDRA spokesman Jahangir Alam told The Daily Post that the regulatory body can play its regulatory role in paying insurance claims, but it cannot play the role of making a check for someone's money. We process the complaints that come to IDRA and send them to the company two days ago. Many companies are in financial crisis, among which life insurance is more. IDRA is constantly applying various pressures to the companies.
He also said that IDRA has been working on various issues in the last two years. The company is thinking more fruitful to restore the confidence of the people to establish the insurance sector.
Hasina Sheikh, chairman of the Insurance and Banking Department of Dhaka University, told The Daily Post that it is not possible to save the insurance sector if the insurance claim is not paid on time. The insurance sector is riddled with many problems; it is not possible to solve all the problems in a day or two.
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