Embezzlement of insurance customers' money will not be tolerated: Idra Chairman

Chairman of the Insurance Development and Regulatory Authority (Idra) Mohammad Zainul Bari said on Wednesday that no one will be allowed to embezzle the money of the customers of insurance companies. 

At a programme of the Capital Market Journalist Forum (CMJF) in the capital's Paltan area, he said, "The companies against whom complaints have been filed regarding insurance claims payment to customers have already been instructed to make the payments."

"They must settle the insurance claims even if it requires them to sell their assets," said the Idra chairman.

He added that the board of the company that would not follow the instruction will be dissolved, if necessary.

Zainul Bari said, "Due to a lack of compliance for a long time, irregularities and corruption have taken root in many companies. There have been cases of embezzlement. We have taken a strict stance to resolve these issues."

"Some life insurance companies are in such a poor condition that they should be closed down. But customers will suffer if they are shut down without paying customers money. Hence priority is being given to bring companies out of the crisis with strict monitoring and other support," he stated.

"However, if that doesn't work, we may have to take stricter decisions," Zainul Bari added.

He also said that it is not possible to solve the existing problems of the insurance sector overnight.

The Idra chairman went on to say that the drafting of the amendment of the insurance act has started as there are inconsistencies and ambiguities in the act.

Emphasising digitisation of the insurance sector, he said, the new generation is used to buying various products including food and clothes online. If insurance products can also be bought online, then interest among them will increase.

President of the CMJF Ziaur Rahman presided over the programme which was conducted by the organisation's general secretary Abu Ali.