Timely settlement of claims key to restoring confidence

The regulatory body is working by coordinating with the government to identify the existing problems and challenges in the insurance sector and resolve them. IDRA Chairman Mohammad Jainul Bari came up with the observation during an exclusive interview with The Business Post’s Shahin Howlader

What are your thoughts about National Insurance Day?

Observing the National Insurance Day will raise awareness regarding insurance. On this year’s insurance day, our theme is “My life is my wealth, insurance will be safe”. If someone is insured against death or property loss due to an accident, the financial compensation that they will get may be much needed to them or their families at that time of the emergency.

Insurance companies also collect and re-insure our premiums. In this way, the expansion of insurance will spread through financial management while most of the people of the country will come under the insurance coverage.

Claim settlement delay is a key problem for the sector. What role is the regulatory body playing in this regard?

As a regulatory body, we (IDRA) want to ensure timely insurance claims of customers. We have taken various measures as a regulatory body. We have formed a cell and a task force to deal with claims related complaints against companies through hearings. We have launched a hotline number -16120- to receive such complaints. The number of customers who have the required documents but are not getting the money is very low. Some particular companies are under watch. At the end of the year, we also calculate the rate of claim settlement complaint resolution.

Many companies are misusing insurance funds. What is your comment about this?

There was a time when insurance companies did not have close monitoring and it took a long time to identify the irregularities of a company. Currently, we look at the company’s quarterly reports to see its fund status. If a company invests its premiums properly, it will be able to pay the insurance money on time when the premiums mature.

Currently, we are strictly monitoring where and how the companies are investing the money which went unmonitored previously. There is no point in detecting the irregularities of a company after a long time. We are also regularly monitoring the use of insurance funds.

What is your recommendation to increase insurance coverage?

We recently met with CEOs of insurance companies and instructed them to give priority to the sectors which have the potential to be covered by insurance and introduce a time-befitting insurance scheme. For example, health insurance is in high demand these days. Everyone is recommending the introduction of health insurance in the country.

There are many criticisms regarding our health system. Similarly, crop insurance, and life stock insurance is running on a piloting basis. IDRA is mulling launching new products to bring more people under insurance coverage.

What do you plan to do about vulnerable insurance companies?

We have brought vulnerable companies under close monitoring so that they do not commit further irregularities. We are regularly monitoring the companies whose condition has worsened so that they cannot fraud the clients.

Our responsibility is to protect the interests of the insured and safety of their assets.

Recently, we have completed investigations of 13 insurance companies. Necessary actions will be taken against them after the insurance day as per our findings of the investigation.