‘IDRA initiatives helped curb indiscipline in insurance industry’

The Insurance Development and Regulatory Authority (IDRA) launched a number of initiatives to strengthen professionalism in the industry, especially by fixing the rate of commission in life and non-life insurance firms.

IDRA Chairman M Mosharraf Hossain made the comment on Tuesday at a discussion held to mark the National Insurance Day, adding, “The insurance sector used to suffer from indiscipline resulting from different organisational structure in the industry.

“To resolve this issue, we have implemented a singular organisational structure. We also took steps to curb evasion of taxes, including stamp duty, decreased tariff rate to make this industry more business-friendly, and introduced measures to curb the number of lapsed policies.

Addressing the event as the special guest, held in the capital’s Bangabandhu Conference Centre, he added, “These steps have helped return discipline in the insurance sector.

“For further development of this sector, I am urging the prime minister to make permanent the jobs of IDRA staff and employees.”

Prime Minister Sheikh Hasina attended the discussion – organised by the Financial Institutions Division – virtually as the chief guest.

The division’s Secretary Sheikh Mohammad Salim Ullah, Bangladesh Insurance Association (BIA) President Sheikh Kabir Hossain, IDRA members, chairmen and executives of insurance firms, and senior officials of insurance surveying companies also participated in the programme.

Mosharraf further said, “We have developed a product to make motor insurance mandatory. We have also prepared a corporate governance guidance to ensure good governance. Bangladesh Suraksha Bima – which offers small premiums – will be launched for the handicapped.

“To resolve claims faster, we have launched complaint cells and hot lines to authorities’ offices. We have also introduced a number of social security insurance policies to commemorate the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.”

Giving the welcome speech, Financial Institutions Division Secretary Sheikh Mohammad Salim Ullah said, “The insurance sector is moving forward with the government’s firm leadership.

“To boost this industry further, we need legal infrastructure, organisational development, easier services, faster claim settlement, disciplined management and an increase in public trust so that the service can be delivered to the people’s doorstep.”

The insurance penetration in Bangladesh is still low compared to the neighbouring countries, so we must continue to move forward, he added.

BIA President Sheikh Kabir Hossain said, “Bangladesh has established itself as a development role model. Before the incumbent government took charge, Bangladesh’s insurance sector operated under laws formulated during the British period.

“This government introduced new laws in 2010 and established the IDRA. This sector will continue to reach new heights under this governments’ leadership.”