IDRA to settle Tk23cr in overdue insurance claims for 5,868 policyholders tomorrow

The Insurance Development and Regulatory Authority (IDRA) will facilitate the disbursement of Tk23.03 crore in long-pending insurance claims to 5,868 policyholders tomorrow (14 September) under the second phase of its special claim settlement programme.

According to the regulator, the claims totalling Tk23,03,56,971 pertain to policyholders of five life insurance companies.

IDRA is arranging funds from various sources, including assets and security bonds of the concerned insurers, to settle legitimate claims that have remained unpaid for an extended period.

Under the second phase, Padma Islami Life Insurance Company will pay around Tk12 crore to 3,600 policyholders.

Homeland Life Insurance Company will settle Tk4.98 crore for 1,145 policyholders, while Fareast Islami Life Insurance Company will pay Tk5 crore to 580 policyholders.

Sunflower Life Insurance Company will pay Tk55.30 lakh to 300 policyholders, and Sunlife Insurance Company will settle Tk50.18 lakh for 243 policyholders.

The latest initiative is part of IDRA's broader effort to address the longstanding claim settlement crisis in the insurance sector, where thousands of policyholders have been waiting for years to receive legitimate dues.

According to IDRA data, insurers had received claims worth Tk10,611 crore across the life and non-life segments by March 2026. Of this, Tk7,779 crore, or 73.31%, remained unsettled. The situation is particularly severe in the non-life segment, where 88.7% of claims remained unpaid.

In the life insurance sector alone, claims worth Tk6,812.67 crore were outstanding as of March 2026, with Tk4,410.12 crore, or 64.73%, remaining unsettled, according to data cited by IDRA.

Against this backdrop, IDRA has prioritised the settlement of long-pending legitimate claims, particularly those involving financially distressed insurers. The regulator has been working with several troubled life insurance companies to arrange funds by liquidating assets and using other available financial resources. IDRA Chairman Mir Nadia Nivin earlier said clearing nearly Tk7,000 crore in outstanding claims is among the authority's top priorities.

The second phase follows the first round of payments made on 3 September, when IDRA facilitated the settlement of Tk14,51,03,146.58 in claims for 2,549 policyholders of seven life insurance companies.

Including the latest phase, IDRA's special initiative will have facilitated the settlement of about Tk37.55 crore in claims for 8,417 policyholders.

The first phase covered Baira Life Insurance, Fareast Islami Life Insurance, Golden Life Insurance, Homeland Life Insurance, Padma Islami Life Insurance, Progressive Life Insurance and Sunflower Life Insurance.

IDRA said the initiative is aimed at expediting the settlement of valid long pending claims and restoring policyholders' confidence in the insurance industry.

The authority has indicated that the claim settlement drive will continue in phases, with the remaining legitimate claims to be considered after verification and scrutiny.

The initiative comes at a time when the insurance industry is facing a serious confidence problem stemming from delayed claim payments, financial weaknesses among some insurers and regulatory concerns. Ensuring timely payment of legitimate claims is therefore seen as critical to rebuilding trust in the sector and encouraging greater participation in insurance.

IDRA has also been pursuing broader reforms, including stronger supervision of insurers and measures to improve financial discipline, as part of efforts to strengthen the overall insurance sector.