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Progressive Life Insurance Company Ltd has yet to pay insurance claims of Tk 82 crore to their clients in the past few years as persistent violation of laws pushed it into a den of indiscretions and irregularities.
On one hand, the company failed to pay insurance claims, on the other, its 75 branches are running without license. Insurance Development and Regulatory Authority (IDRA) have recommended legal action against the company in a recent probe report.
“We have requested the higher authorities to take necessary actions against the company over the irregularities that were mentioned in the probe report”, an IDRA official told The Business Post on condition of anonymity.
According to the probe report, there is an obligation to pay the insurance claims of clients within 90 days in accordance with the Insurance Act. However, Progressive Life Insurance is yet to pay Tk 81.50 crore of 23,154 insurance claims since 2021.
Breaching laws
The company is operating without following IDRA regulations properly, delaying payments of VAT and insurance claims and without renewing the licence, breaking the Insurance Act.
At least 1,406 agents among the total 2,031 agents of Progressive Life Insurance Company do not have any license and are getting commissions from the company avoiding any legal obligations.
Progressive Life Insurance is yet to submit a financial report for 2020 and 2021, although every life insurance company must submit the annual financial reports to the authorities within six months after the conclusion of a fiscal year.
The company also failed to submit the liability assessment report for 2020 and 2021, which should be submitted annually.
The insurance company informed the investigation team that it failed to submit the reports due to a case that has been underway against it. But the Progressive Life Insurance failed to provide any satisfactory explanation of the measures taken to prepare the financial reports after disposing of the case.
Moreover, it also didn’t submit the information regarding the reinsurance agreement to the authorities which should be submitted within 30 days.
Similarly, data regarding insurance claims, investments, stamp duty, the record of any meeting proceedings and income tax returns are yet to be submitted by the company depriving investors of getting the necessary information.
Use of transportation breaking IDRA rules
Progressive Life Insurance also did not present a quarterly report on the costs of use and maintenance of transports in 2021 during the Annual General Meeting (AGM) and Board Meeting.
Meanwhile, the company’s Chief Executive Officer (CEO) Ajit Chandra Aich was unreachable to make any comments in this regard despite several attempts.
At the end of 2019, the insurance company had net assets worth Tk 333 crore while it provided 10 per cent stock profit to the investors but didn’t distribute any profit in 2020.
Some expatriates, insurance experts, professionals and businessmen founded the company aiming to serve the rural people across the country on January 6, 2000.
The company received a registration certificate for insurance business in February, 2000 and was listed with Dhaka Stock Exchange and Chittagong Stock Exchanges in 2006. It obtained a membership certificate from the Bangladesh Association of Publicly Listed Companies in 2010.
