Branch managers of Sonali Life Insurance demand payments, commission

Branch managers at Sonali Life Insurance Company Limited have raised complaints that both agents and branch managers are not receiving any payments, including commissions, plunging them into a state of uncertainty and financial distress.

Moreover, the company has not provided a timeline for when the commissions will be paid.

Today, more than 100 branch managers from across the country gathered at the Malibagh head office of the insurance company for a meeting. The Business Standard spoke to 10 branch managers regarding the issue. 

They said though they typically receive their commissions between the 3rd and 7th of each month, they have yet to receive any commission this month, even though it's already the 12th.

However, administrators of the company have confirmed that they are actively working to understand the situation thoroughly. They said they will regain complete control of the situation within a day or two and then the commissions will be disbursed as soon as possible.

The Insurance Development and Regulatory Authority (IDRA) appointed administrators to Sonali Life Insurance Company Limited after the company's board of directors was dissolved due to corruption and irregularities.

The IDRA took the decision on 18 April, appointing Brig Gen (retd) SM Ferdous as the administrator of the insurance company.

According to the company's website, there are 26,909 active agents associated with the company.

As per IDRA rules, the company owes agents, branch managers, and unit managers Tk6.5 crore collectively in monthly commissions and allowances, according to Sonali Life Insurance Company sources.

Talking to TBS, the company's Malibagh office Branch Manager Md Rabiul Hasan said he has been working in the company for almost four years and has about 700 agents under him. 

He said, "We receive commissions, marketing expenses, and branch running expenses. But, about 60% of the commission we get is spent on running the organisation.

"Last month, I received a commission of Tk3 lakh. However, as of today [12 May], I have yet to receive any commission. Similarly, my agents have not received any payments either."

While acknowledging that the government's appointment of administrators is for the good of the company, he said the commission used to be transferred to their bank accounts within 7 days.

He further expressed concerns with the delayed commissions as many rely on these commissions to sustain their families.

Similarly, Abdul Kuddus Liton, a branch manager in Chattogram, said, "We are not getting commissions and we are also not receiving money for insurance claim settlement of our customers. This way, we are losing trust of customers."

Another branch manager Saifullah said, "We make our living with the commission we get from selling insurance. We still haven't received the commission for the month of April after the administrator was appointed.

"The administrator is still figuring out the situation and he wants to take time for this but it is our livelihood at stake. Our family's daily expenses don't stop for anyone."

In response, Brig Gen (retd) SM Ferdous, administrator of the company, told TBS, "Due to special circumstances, an administrator has been appointed to this company very recently and it takes a while to understand the situation before taking any action. 

"Those who are talking about the agent's commission should understand this. There is no reason to worry about money, we will give it as per rules."

He further said, "Fear is being spread about the situation. There is nothing to worry about. We will get control of the situation in a day or two and after that all commissions will be disbursed."