IDRA tells Prime Insurance to hire auditor

The Prime Insurance Company, accused of concealing losses amounting to Tk 21.5 crore, has been ordered to hire an auditor.

The Insurance Development and Regulatory Authority (IDRA) issued a letter to the company’s chief executive officer (CEO) on Sunday.

Prime Insurance allegedly hid information about the loss in their financial reports from 2016 to 2018. Instead, the company showed a profit of Tk 19.79 crore.

IDRA gave the company 45 days to appoint an auditor and complete the audit. The general insurance company will have to pay Tk 2 lakh as fees for investigation and audit works.

Prime Insurance’s CEO Sujit Kumar Bhowmik told The Business Post that they were yet to receive any letter from IDRA.

Prime Insurance was listed on the stock market in 2001 and is currently trading in ‘A’ category. The company’s paid-up capital is Tk 41 crore.