Green Delta barred from selling marine cargo insurance for three months

Staff Correspondent: Bangladesh's insurance regulator has suspended Green Delta Insurance's marine cargo insurance business for three months after finding that the company breached prescribed tariff rates.

The Insurance Development and Regulatory Authority (IDRA) has also given the insurer 30 days to explain why its registration for marine cargo insurance should not be suspended.

The order was issued in a letter on Thursday (5 November), signed by IDRA Director (Rating, Audit and Survey) Md Mizanur Rahman and addressed to the company's chief executive officer.

According to the letter, an IDRA inspection team found that Green Delta had issued marine cargo insurance policies at rates significantly below the prescribed tariff.

The regulator said the practice violated Section 60 of the Insurance Act 2010 and its Non-Life Circular No. 83/2021.

Under Section 10(2) of the Act, IDRA ordered the immediate suspension of all marine cargo insurance business for three months.

The insurer was also directed under Section 10(1) to submit a written explanation within 30 days as to why its registration for the category should not be suspended.

Copies of the letter were sent to the Financial Institutions Division, Sadharan Bima Corporation and other relevant authorities.