The Insurance Development and Regulatory Authority (IDRA) has moved into the third phase of its drive to settle long-pending, legitimate insurance claims, with 7,641 policyholders due to receive a combined Tk 26.36 crore.
The initiative is part of the regulator’s continuing effort to rebuild confidence among customers and ensure that valid claims are settled. Under the latest phase, the concerned insurance companies are paying policyholders directly from their respective offices, while IDRA is maintaining close oversight of the process.
IDRA disclosed the latest development on Sunday (4 October). In the first two phases, policyholders received their insurance payments directly at the regulator’s office. The arrangement was aimed at facilitating the settlement of legitimate claims while demonstrating the authority’s focus on protecting policyholders’ interests.
The payment mechanism has changed in the third phase, with the insurance companies handling disbursements from their own offices. However, IDRA said the process remains under its close supervision to ensure that the claims are properly settled.
The latest round follows two earlier phases launched as part of the same initiative. On 3 September, the first phase saw 2,549 policyholders of seven life insurance companies receive claims worth Tk 14.51 crore. The amount paid in that phase was Tk 14,51,03,146.58.
In the second phase, a further 5,868 policyholders received insurance claims totalling Tk 23.03 crore, or Tk 23,03,56,971.
With the third phase included, a total of 16,058 policyholders have now been brought under the three rounds of claim settlement. The combined value of the claims covered so far stands at Tk 63,91,39,647, equivalent to about Tk 63.91 crore.
The figures underline the scale of the regulator’s efforts to address outstanding legitimate claims in the insurance sector. For policyholders, timely settlement of valid claims is a central part of the service promised by an insurance company. Delays in receiving such payments can create financial pressure and, more broadly, weaken public confidence in insurance providers.
IDRA said the latest initiative is being carried out under the leadership of its chairman, Mir Nadia Nivin. The programme has three broad objectives: ensuring payment of legitimate claims, restoring discipline within the insurance sector and rebuilding customer confidence.
To finance the settlements, funds are being arranged from various sources linked to the concerned insurance companies, including their assets and security bonds. These resources are being used to address valid claims that have remained unpaid for a considerable period.
The decision to have insurance companies make payments from their own offices is also intended to streamline the process while retaining regulatory supervision. Although the companies are directly handling the disbursements in the latest phase, IDRA continues to monitor the overall process.
The regulator’s sustained focus on claim settlement comes at a time when the ability of insurers to honour legitimate financial obligations remains closely connected to public confidence in the sector. By bringing more long-standing claims within a formal settlement process, the authority is seeking to demonstrate that valid policyholder dues should be addressed rather than left unresolved.
For the 7,641 policyholders covered by the latest phase, the initiative means access to Tk 26.36 crore in claims. Taken together with the previous two rounds, the programme has now brought more than 16,000 policyholders and nearly Tk 64 crore in claims under settlement, marking a significant step in IDRA’s ongoing effort to address outstanding obligations and strengthen confidence in the insurance industry.
