Desk Report,
One family’s share does not exceed 10 percent.
The Insurance Development and Regulatory Authority (IDRA) has taken the initiative to change and amend the existing law to restore order in the insurance sector. Even the Insurance Development and Regulatory Authority Act has been taken to amend it. The opinions of the stakeholders, experts and the public are already being sought on the draft of the amended law.
One family’s share does not exceed 10 percent.
People related to IDRA say that the Insurance Act is being changed to develop the insurance sector, protect the interests of insurance customers and make the law up-to-date. And the changes to the IDRA Act are being brought to make it up-to-date and to remove the ambiguities and weaknesses of the insurance sector.
IDRA Chairman M Aslam Alam said that many years have passed since the two acts (2010). Therefore, it is time to update several issues. The power of IDRA also needs to be increased. Under the existing law, the board of directors of an insurance company cannot dissolve IDRA. This will be possible if the law is amended.
The proposal to amend the Insurance Act states that insurance companies cannot be centralized among any person, company or members of the same family. No family member can hold more than 10 percent of the shares, directly or indirectly, individually or jointly with others, or both. In addition, IDRA will from now on periodically check whether the subsidiaries of the insurance company are being operated as per the terms and conditions and guidelines.
According to IDRA, there are currently 82 insurance companies in the country. Out of these, 36 are life insurance and 46 are general insurance. More than 2.6 million insurance policies have been cancelled in the last 14 years. In 2024, the insurance claim settlement rate was 57 percent, that is, only 9,476 crore taka has been paid against the claims of 16,484 crore taka.
