Insurance company faces music

Express (September 09, 2011)

Insurance Development and Regulatory Authority (IDRA) has started taking strict measures to bring healthy competition among the insurers to regulate the sector.

The Central Rating Committee in its 143rd meeting held on July 12 and an emergency meeting on August 10 took a number of wide ranging decisions effective from September 04 to regulate the insurance industry.

As part of its move, IDRA has imposed a penalty of Tk 0.45 million (Tk 4,50,000) to Agrani Insurance Company Ltd for violating tariff rates.

Agrani faced a hearing Thursday in the city where IDRA has announced the penalty.

IDRA Chairman Shefaque Ahmed with its two members, Agrani Insurance Company's Managing Director (MD) and Branch Manager and Member Secretary of Central Rating Committee, among others, were present in the hearing.

It imposed a fine of Tk 0.3 million to the company, Tk 0.1 million to Company's MD Anwar Hossain and Tk 50, 000 to its Executive Vice President and Incharge of Dilkusha Branch Munshi Anwar Hossain.

IDRA officials said violation of tariff rates has a huge negative impact on the industry. Due to this malpractice, the company as well as share holders deprive from income and benefits.

The government also losses its revenue, they added.

"Such type of step helps create a healthy competition among the insurance industry players to create a level playing field for all," an IDRA official said.

Had there been no such practice the premium income would have been doubled, he added.

When contacted Agrani Insurance Company Ltd MD Mr Anwar Hossain declined to make any comment on this issue.