Finance Minister Sets Deadlines for Unpaid Insurance Claims in Dhaka
The finance minister held a meeting with IDRA officials in Dhaka, warning that companies failing to pay claims will have assets sold. He also directed all insurance firms to adopt automation immediately.
On Monday, September 14, the finance minister held a crucial meeting with officials from the Insurance Development and Regulatory Authority (IDRA) in Dhaka. The high-level discussions focused extensively on widespread irregularities within the insurance sector and the pressing issue of long-standing unsettled claims affecting policyholders across the country.
During the meeting, stark statistics regarding the state of the industry were highlighted, revealing that a staggering 57 percent of insurance claims in the country still remain unpaid. This significant backlog of unsettled claims has raised serious concerns regarding consumer rights and financial accountability within the national insurance market.
Addressing the alarming rate of unpaid claims, the finance minister issued a stern warning and a strict directive to the authorities and company management. The minister explicitly stated that strict deadlines are being imposed on companies to clear all pending claims. In a strong message regarding enforcement, the minister warned that if these companies fail to make the required payments within the given timeframe, their properties will be sold off to ensure the public's money is fully refunded.
In addition to resolving existing claim backlogs, the finance minister emphasized the critical need for technological modernization within the sector. The minister ordered that all insurance companies must transition to automation without delay, streamlining their operations to enhance transparency and efficiency.
Concluding the directives at the IDRA meeting in Dhaka, the finance minister made it clear that regulatory compliance is non-negotiable. The minister warned that if any insurance company fails to follow the directives issued by the regulatory body, the government and IDRA will take strict, punitive action against the non-compliant organizations.
