Fareast Islami Life officials face protest in Rangpur over unpaid insurance claim

Staff Correspondent: Tension erupted in Rangpur as policyholders of Fareast Islami Life Insurance blocked roads and confined company officials, accusing the insurer of failing to return matured policy payment and secretly removing office furniture.

The incident began early Saturday (25 Oct) when locals noticed office furniture being loaded onto a truck from Fareast Islami Life’s zonal office. News of the move spread on social media, prompting dozens of frustrated policyholders to rush to the scene. Protesters intercepted the truck, detained Senior Vice President (SBP) Abdul Kader Bir, and demanded immediate payment of their dues. By Sunday morning, demonstrators gathered at the Grand Hotel intersection, halting traffic and calling for management intervention.

Many policyholders said they had been waiting years- even decades- for their matured claim. A woman said her four-year policy matured 16 years ago, yet she has not received a single payment. “I’m poor and helpless. They’ve been making excuses for years. I beg the management to ensure I get my hard-earned money back,” she said tearfully. Others alleged they were pressured to renew or extend policies instead of receiving maturity proceed, while some were told to open bank account for payment that never arrived.

Responding to the allegation, Abdul Kader Bir said the furniture was being moved as part of office relocation. “It was a misunderstanding. We will sell some asset and pay all policyholders by 2026,” he said.

Additional Deputy Commissioner Ramiz Alam said that the Rangpur zonal office serves nearly 70 lakh customers, with unpaid liabilities of around Tk 137 crore. “The company admitted to a capital shortage but assured us that assets will be liquidated to repay policyholders. We are also in contact with IDRA to ensure faster settlement,” he added.

The unrest comes amid high-profile corruption allegation against Fareast Islami Life. On October 23, the Anti-Corruption Commission (ACC) arrested former chairman Md Nazrul Islam over an alleged embezzlement linked to a fake land purchase scheme; the court granted five days’ remand. The ACC’s July 31 case names 24 individuals accused of diverting Tk 45 crore through falsified transaction. Investigation and related probes have implicated several former directors and executives.

A 2022 forensic audit by chartered accountants Shiraz Khan Basak & Co, submitted to IDRA, revealed large-scale misappropriation of approximately Tk 2,800 crore through inflated land purchases, unauthorised loan to connected parties and irregular investment.

In recent days, employees and affected policyholders staged demonstration and protest, submitting a memorandum to the ACC demanding seizure of domestic and foreign assets tied to the alleged embezzlers, arrest of accomplices and swift repayment to small savers relying on these funds for essential needs.