Star (July 28, 2011)
The regulator yesterday fined National Life Insurance Company for declaring dividends for 2007 and 2009 without valuation of the company's assets and liabilities in a breach of the insurance law.
The regulator imposed a Tk 50,000 fine for each year's violation totalling Tk 1 lakh, said Shefaque Ahmed, chairman of the Insurance Development and Regulatory Authority, after a hearing in Dhaka.
Tofazzal Hossain, chairman, and Jamal Mohammed Abu Naser, managing director (in-charge) of National Life Insurance, were present at the hearing.
IDRA has found that National Life gave dividends in 2007 and 2009 without actuarial valuation.
The life insurer could not declare dividends for 2010 due to a bar imposed by the IDRA. In a statement posted on the Dhaka Stock Exchange's website yesterday, the company said a meeting of the company's board of directors will be held on August 01 to consider audited financial statements for the year to December 31, 2010.
Dhaka-based National Life Insurance Company started operations in 1985 as the first private sector life insurer.
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