Govt Seeks IDRA Proposal on Insurance Renewal Fees

Staff Correspondent: The Ministry of Finance has asked IDRA for a clear and detailed proposal to revise the registration renewal fees for private insurance companies in Bangladesh, aiming to make the 2026 renewal process simpler and more effective.

In a letter issued on Tuesday (May 12), the Financial Institutions Division (FID) of the ministry requested the Insurance Development and Regulatory Authority (IDRA) to provide a specific proposal regarding Rule 3(2) of the Insurance Business Registration Fee Regulations, 2012 (last amended in 2026). The letter was signed by FID Deputy Secretary Mohammad Abraoul Hasan Majumder.

According to the ministry, a clear framework is needed to determine renewal fees for both life and non-life insurers for 2026. The move follows an earlier communication from IDRA dated April 26, 2026, which highlighted challenges related to fee collection and regulatory compliance.

Under existing laws, including the Insurance Act 2010 and the 2012 regulations, insurance companies are required to pay renewal fees based on their gross premium income. Specifically, insurers have been paying a fee of Tk 1.00 for every Tk 1,000 of gross premium to renew their licences for 2026.

However, despite the issuance of a revised notification on renewal fees, 67 insurance companies have failed to pay the required fees, resulting in delays or inability to renew their registrations.

In response, IDRA sought legal guidance from the Ministry of Finance on how to proceed with determining and enforcing the 2026 renewal fees. The ministry has now asked the regulator to submit a well-defined proposal to address the issue and ensure a smoother renewal process.