Need tougher steps against firms not paying insurance claims

The regulator should take tougher steps against companies that are not paying insurance claims on time, because timely payment of claims is crucial for improving the image of this sector, National Life Insurance CEO Md Kazim Uddin told The Business Post’s Shakhawat Hossain Sumon in an interview

What do you recommend for returning discipline to Bangladesh’s insurance sector?

To bring back discipline in the country’s insurance sector, the regulator should boost monitoring regarding the enforcement of Insurance Act 2010, and ensure implementation of the National Insurance Policy 2014 following modernisation.

Furthermore, the regulator’s effective measures to ensure timely payment of insurance claims would play a key role in returning discipline to this sector. The insurance companies should be more vigilant in paying insurance claims on time and in matters of customer support.

National Life is regarded as one of the top firms in the insurance industry. What do you consider most important for protecting customer interest?

National Life – founded on 23 April 1985 – is Bangladesh’s first private life insurance company, and we have managed to uphold our continued success throughout the years. We prioritise paying insurance claims on time to safeguard customer interest.

In 2020 alone, we paid Tk 799 crore in insurance claims to 1,88,000 customers, and collected Tk 1,201 crore in premiums. Besides, in 2021, we paid Tk 872 crore in claims to two lakh customers and collected Tk 1,382 crore in premiums.

We currently have around 57 lakh customers, earn Tk 12,362 crore in premiums, life fund stands at Tk 4,358 crore, investment Tk 4,708 crore and total assets Tk 5,280 crore.

What steps are you planning to grow the company further?

A skilled workforce is the key requirement for a company’s prosperity. To move the company forward, we are turning our staff/employees into skilled workers through training, so that they can protect the firm’s interest with a show of professionalism.

Customers are the main driving force of the insurance industry, and a company cannot offer top notch customer service without skilled and trained workers.

What’s your plan for National Insurance Day?

The National Insurance Day will be observed across the country under a government initiative on March 1, and we too will mark the day jointly with the government, following directions from the Insurance Development and Regulatory Authority of Bangladesh.

Besides, we are making efforts to organise a “Sheba Pokkho” in March, provide the highest level of customer service, and popularise insurance services as the direction of authorities concerned.

What makes National Life a leading firm, and how does it operate?

Our primary goal is to run operations while protecting the interest of the company’s director, shareholders, customers, and staff/employees. We are always vigilant in matters of customer care, and paying insurance claims on time.

These are the reasons why National Life is a trusted name in the country’s insurance industry.

National Life always conducts operations maintaining compliance with government rules, and for this, our company received the Institute of Chartered Secretaries of Bangladesh’s (ICSB) Corporate Governance Award-2020 last year.

How beneficial are the IDRA initiatives for this sector? What is your opinion on the matter?

The IDRA has taken a number of initiatives to develop the insurance sector, such as “Bangabandhu Ashar Alo – Bima Dabi Porishodher Proyash,” implementation of various rules and regulations, moving the “Insurance Day” from “Kaw” to “Kha” category.

These moves will be beneficial to the country’s insurance sector.

Besides, the regulator should take tougher steps against companies that are not paying insurance claims on time, because timely payment of claims is crucial for improving the image of this sector.

Why did you get involved in the insurance industry? What are your plans for this sector?

Insurance companies are service-oriented, and it is the only industry where a person can go all the way to the top through hard work. I started out in an entry level position at National Life, and now I am serving as the chief executive officer.

My plan for the insurance sector is to boost employment opportunities, increase the industry’s contribution in the GDP, and bring the Bangladeshi people under insurance coverage to facilitate their financial security.