Kathmandu. The insurance regulator has directed the Bangladeshi life insurer, which is on the verge of bankruptcy due to lack of institutional governance and extreme corruption, to submit an action plan for paying insured claims.
The regulatory body IDRA has directed the directors of six life insurance companies to pay the outstanding insurance claims to the insured as soon as possible during a governance review meeting. In the meeting held on March 17 and 20, the chairman of the regulator, Dr. M. Aslam Alam had given such instructions.
The regulator has issued instructions to Far East Islamic Life Insurance, Baira Life Insurance, Golden Life Insurance, Sunlife Insurance, Sunflower Life Insurance and Padma Islamic Life Insurance Company.
Insurance News Bangla quoted Mohammad Soleiman, Deputy Director and Spokesperson of the Insurance Development and Regulatory Authority, as saying, “We are aware that these six companies in the life insurance sector have paid less than 5 percent of the insurance claims of customers.” The insured has been asked to submit a 3-month plan for the expedited payment of outstanding insurance claims.
The outstanding insurance claim amount is 2.29 billion taka in Padma Islamic Life, 1.44 billion taka in Sunflower Life, 649.8 million taka in Baira Life, 561.3 million taka in Sunlife and 369 million taka in Golden Life.
