The Insurance Development and Regulatory Authority (IDRA) has suspended the marine cargo insurance operations of Green Delta Insurance PLC for three months following allegations of issuing policies at premium rates lower than the official tariff. Concurrently, the regulatory body served a show-cause notice demanding an explanation as to why the registration for this specific sub-class of insurance should not be suspended permanently.
A formal directive issued by the Non-Life Division of IDRA’s Rating Branch was dispatched to the management of Green Delta Insurance on Thursday, 5 November. Signed by IDRA Director for Rating, Audit and Survey, Md Mizanur Rahman, the letter confirmed the temporary halt of business operations and specified legal compliance requirements. Copies of the notice were forwarded to senior government and industry officials, including the Secretary of the Financial Institutions Division under the Ministry of Finance, the Managing Director of Sadharan Bima Corporation, and the Staff Officer to the IDRA Chairman.
According to sources within the regulatory body, an inspection team from IDRA conducted a physical audit at the head office of Green Delta Insurance on 2 November. During the visit, inspectors reviewed various insurance policies issued throughout 2026. The examination revealed that the company systematically charged clients significantly discounted premium rates for marine cargo insurance, breaching prescribed tariff schedules to offer unapproved financial advantages to policyholders.
Regulators highlighted that undercutting prescribed tariff rates constitutes a direct violation of Section 60 of the Insurance Act 2010, as well as Circular No. Non-Life 83/2021 issued by IDRA. Such practices undermine regulatory compliance and create unfair market competition within Bangladesh’s non-life insurance sector.
Invoking legal provisions, the regulatory authority enforced the three-month suspension of Green Delta’s marine cargo business under Section 10(2) of the Insurance Act 2010. Additionally, under Section 10(1) of the same act, the insurer has been directed to submit a written explanation within 30 days detailing why its registration for the marine cargo sub-class should not be suspended. Failure to provide a satisfactory response within the stipulated timeframe may prompt further regulatory sanctions.
