The new chief of Insurance Development and Regulatory Authority (IDRA) of Bangladesh has said that the settlement of unpaid claims totalling around BDT70bn ($568m) will be her top priority, according to a news report in the financial daily, The Financial Express.
Ms Mir Nadia Nivin was addressing her first press conference in Dhaka, after assuming charge as Chairperson of IDRA. She said this measure would restore customers’ confidence in the insurance sector. According to official data 82 insurance companies owe customers around BDT70bn.
The new chairperson said these settlements have been identified as long overdue and the commitment for settlement of these on a priority would restore policyholders’ confidence and trust in the sector.
Ms Nivin said the insurance sector needs to take immediate action on unpaid claims, tighter oversight and stronger action against irregularities to restore public confidence.
Of the total amount of BDT70bn, around BDT45bn is concentrated with just seven companies which have the largest unpaid liabilities.
The initial reform drive will focus on these companies. IDRA has identified four major sources for raising funds to settle claims: fixed deposits with financially sound banks, government treasury bonds, marketable land and other investments.