Photo : Messenger
The insurance companies in the country withheld Tk 5,463.52 crores of policyholders’ money in the year 2023 alone. This startling information has been revealed in a special report of the Insurance Development and Regulatory Authority (IDRA), the regulatory body of the country’s fast-expanding insurance sector.
According to available data as emerged in the IDRA report, the amount owed by customers to life insurance and general insurance companies in 2022 was Tk 16,892.04 crore. Tk 10,332.23 crores were paid out of insurance claims from there. That means the companies did not pay insurance claims of Tk 6,559.81 crore that year.
In the next year, i.e., 2023, the insurance claims of customers to the insurance companies were Tk 15,699.74 crore. Tk 10,236.22 crore has been paid out of this insurance claim. That is, they have not paid Tk 5,463.52 crore or 34.81 percent to the customers.
Those concerned said that the customers’ money is stuck due to the crookedness and lack of goodwill of the insurance companies. The number of policies is decreasing due to the non-payment of insurance claims. Companies should pay insurance claims on time to protect their existence. Otherwise, customers will turn away from the insurance sector. According to them, IDRA needs to be stricter to restore confidence in the insurance sector. But the problem is that IDRA is not being strict. Those who are getting paid for insurance claims are through lobbying.
Meanwhile, the president of Bangladesh Insurance Forum and CEO of Popular Life Insurance Company BM Yusuf Ali has admitted that insurance money is stuck. He told The Daily Messenger that the activities of some insurance companies are such that customers do not have to pay back money. Many company owners are involved behind this.
He said, “Bangladesh has allowed more third and fourth-generation insurance companies than required. Apart from these companies, corruption in some of the older companies has led to delayed payment of insurance claims.”
In this regard, National Life Insurance Company’s CEO Kazim Uddin told The Daily Messenger that it is the right of customers to get insurance claim money without any delay. Insurance companies should give more importance in this regard. Life insurance companies need to be more careful, especially when it comes to paying claims.
According to the IDRA report, 1,01,42,869 insurance policies were issued by all insurance companies in the country in 2022. From there, the premium income has been Tk 16,017.54 crore. Against that, in 2022, the insurance claims raised by customers were Tk 16,892.04 crore. Tk 10,332.23 crore of insurance claim has been paid from there. That is, the insurance claim has not paid Tk 6,559.81 crore.
Similarly, in 2023, the number of insured customers was 98,48,599. From there, the premium income was Tk 17,484.07 crore. The total insurance claim raised during the year ended was Tk 15,699.74 crore. Out of that, the insurance companies paid Tk 10,236.22 crore. That means Tk 5,463.52 crore remains unpaid.
Between the two types of insurance companies, customers will receive Tk 2,101.26 crore from non-life companies in 2023. Companies paid Tk 1,481.63 crore out of Tk 3,582.89 crore owed last year. That is, 41 percent of insurance money has not been paid by non-life companies.
On the other hand, Tk 3,362.42 crore is owed to life insurance companies. In 2023, customers owed Tk 12,117 crore to insurance companies. Tk 8,754.59 crore has been paid out of this. That is, 28 percent of the companies deliberately did not pay the insurance claims of the customers even after the expiry of the period.
Fareast Islami Life Insurance Company is at the top in terms of non-payment of insurance money to customers, followed by Sunlife, Baira Life, and Padma Islami Life companies, respectively.
IDRA Chairman Mohammad Zainul Bari told The Daily Messenger, “We are trying to improve the situation in the insurance sector. But the reality is that companies with a high number of customer claims are not even paying. Even if the assets of these companies are sold, the insurance claims are not in a position to be paid. Still, the company’s board has been summoned for payment of insurance claims. Their plan is taken. Action is being taken against those who violated the law.”
Messenger/Disha
