IDRA instructs 7 life insurance companies
The Insurance Development and Regulatory Authority (IDRA) has given eight instructions to seven life insurance companies. The instructions include increasing insurance claim settlement and reducing policy lapse.
IDRA has also instructed to raise the policy renewal rate to 70 per cent in the second year; reduce vehicle related expenses; reduce management expenses by 30 per cent excluding commissions; increase the life fund reducing management costs; increase gross premium income; and align investment return rates with market interest rates.
The instructions were given after a recent hearing after carrying out investigation against those life insurance companies, said Md Jahangir Alam, director and spokesperson of IDRA.
The hearing was attended by IDRA Chairman Mohammad Zainul Bari, IDRA members and senior officials of the related life insurance companies.
The seven life insurance companies are Protective Islami Life Insurance, Jamuna Life Insurance, Zenith Islami Life Insurance, Alfa Islami Life Insurance, Diamond Life Insurance, Chartered Life Insurance and Mercantile Islami Life Insurance.
Alam said on July 24, 2022, the Financial Institutions Division of the Ministry of Finance instructed IDRA to investigate into the excessive commission payments, excessive administrative expenses and other irregularities of 13 life insurance companies. It was alleged that the companies had already spent the majority of the premium money taken from the customer.
Apart from this, investigation has also been completed into the activities of remaining six life insurance companies.
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