Home ›› 18 Oct 2021 ›› Stock
Insurance Development and Regulatory Authority (IDRA) has appointed a new administrator in the Delta Life Insurance Company Limited hit by irregularities.
Former Secretary Md Quddus Khan is the new administrator of the life insurer, said the company in a filing with the Dhaka Stock Exchange (DSE) on Sunday.
His appointment came following the resignation of Md Rafiqul Islam, a retired joint secretary.
The IDRA hired Islam in June by removing Sultan-ul-Abedine Molla for his failure to complete the task as per terms of references set during his appointment in February.
The Delta Life Insurance Company was locked in a bitter feud with the IDRA over the issue for a long time.
More than a year back, the insurance administrator had assigned two firms to audit Delta Life whether policyholders’ interests were being maintained or not in the company. The audit report found that the company failed to protect policyholders' interests.
In December 2020, the company alleged that IDRA chairman had demanded kickbacks from the company.
In response, the IDRA served a show-cause notice to the company to explain why its board would not be suspended and an administrator would not be appointed.
Based on the reports, the IDRA asked Delta Life last month to explain in seven working days why its board of directors will not be suspended for four months. Later, the insurer took time twice that expired on February 10. Yet, Delta did not do so and filed a writ petition, which has been made ‘out of list’ by the High Court.
According to the findings of the reports, Delta Life violated insurance laws by opening new branches without the permission of the regulator, made transactions in cash, and failed to comply with the reinsurance policy and recruitment of agents.
Also, Delta Life did not follow the standard accounting system in preparing financial statements, found the report.
