Policy Opening On Credit
IDRA fines five insurers Tk 1.35cr
The Insurance Development and Regulatory Authority has fined five insurance companies Tk 1.35 crore for opening policies on credit for clients and providing margin to unlicensed agents, violating insurance laws, said an IDRA news release issued on Sunday.
The penalised companies are Standard Insurance Company, Meghna Insurance Company, Bangladesh National Insurance Company, Republic Insurance Company and Eastland Insurance Company.
The insurance regulator made the decisions last week after holding hearings for the companies, it said.
The IDRA team headed by chairman M Shefaque Ahmed conducted the hearings where three members of the regulatory body Md Quddus Khan, Sultan-Ul-Abedine Molla and Zuber Ahmed Khan were present.
The IDRA release said that the IDRA inspection team had visited Standard Insurance’s four branches at Matijheel in Dhaka and two branches in Faridpur and found evidences of opening of insurance policies on credit, violating insurance act.
During a hearing on November 24, Standard Insurance admitted to the allegations against the company.
After the hearing the insurance regulator fined Standard Insurance Tk 30 lakh, its managing director Amar Krishna Saha Tk 6 lakh and branch managers Tk 3 lakh.
The IDRA on November 25 fined Meghna Insurance Company Tk 35 lakh, its managing director Talukder Md Zakaria Hossain Tk 7 lakh and branch managers Tk 3.50 lakh based on inspection report of the regulatory body that found evidences of opening insurance policies on credit by the company through its seven branches.
The insurance regulator on November 26, after holding a hearing, fined Bangladesh National Insurance Tk 20 lakh and its managing director Md Sanaullah Tk 4 lakh based on inspection reports.
The IDRA inspection team during its visits to four branches of Bangladesh National Insurance at Karwan Bazar in Dhaka found evidences of opening insurance policies on credit and opening branches without taking permission from the regulatory body,
violating insurance law.
The IDRA release said that the inspection teams of the insurance regulatory body visited two branches of Republic Insurance at Hatkhola in Dhaka and found evidences of opening insurance policies on credit.
Following the findings, the insurance regulator, after holding a hearing, fined Republic Insurance Company Tk 10 lakh, its managing director AMM Mohiuddin Chowdhury Tk 2 lakh and branch managers Tk 2 lakh.
The insurance regulatory authority on November 27 fined Eastland Insurance Company Tk 10 lakh, its managing director Orun Kuma Shah Tk 2 lakh and branch managers Tk 1 lakh as the company had opened insurance policies on credit, violating insurance law.
-With New Age input
