Allegations of Irregularities in Insurance Sector: Legal Action to Follow After Investigation, Says PM

Staff Correspondent: The government is investigating allegations of irregularities, financial misconduct and failure by insurance companies to return customers’ money. Prime Minister Tarique Rahman has assured that necessary legal action will be taken if any wrongdoing is proven after completion of the investigation.

The Prime Minister made the statement during the question-and-answer session of the ongoing Jatiya Sangsad session on Wednesday (8 July), responding to a question raised by Member of Parliament (MP) Abdul Hannan Masud, a leader of the National Citizen Party.

During the parliamentary session, Abdul Hannan Masud drew the Prime Minister’s attention to long-standing challenges in the country’s insurance industry, including allegations of irregularities, difficulties faced by policyholders, and delays in returning customers’ invested money.

The parliamentarian alleged that some insurance companies collected money from ordinary people by offering attractive schemes and making various promises. However, many customers later faced difficulties in receiving maturity benefits or recovering their deposited funds.

He further alleged that significant financial irregularities had taken place in some insurance companies during the previous government’s period. He sought information from the government regarding initiatives to recover customers’ money and take action against the companies involved in such activities.

In response, Prime Minister Tarique Rahman said that the country’s insurance industry regulator, the Insurance Development and Regulatory Authority (IDRA), is working on the complaints.

He said that after the appointment of the new IDRA chairman, the complaints are being reviewed and investigated properly.

“The complaints raised by the member are already being investigated by the chairman of IDRA. Necessary action will be taken according to the law after completion of the investigation,” the Prime Minister said.

According to insurance industry experts, ensuring transparency, strengthening regulatory supervision, and establishing an effective mechanism for resolving customer complaints are necessary to restore public confidence in the sector.

They said that robust monitoring, accountability of insurance companies, and protection of policyholders’ rights can help rebuild trust among customers and support sustainable growth of Bangladesh’s insurance sector.

The insurance sector has faced criticism in recent years due to complaints related to delayed claim settlements, financial management issues, and difficulties faced by policyholders in receiving their entitled benefits. Stakeholders believe that effective regulatory measures and strict enforcement of rules will be crucial for creating a more reliable and customer-focused insurance market.