The Insurance Development and Regulatory Authority (IDRA) is facilitating the settlement of Tk23.03 crore in long-pending insurance claims for 5,868 policyholders under the second phase of its claim settlement programme.
The payments, scheduled for 14 September, involve five life insurance companies, with the total claims amounting to Tk23,03,56,971, according to the regulator.
The initiative is aimed at addressing legitimate claims that have remained unpaid for a prolonged period. IDRA is arranging the necessary funds from various sources, including the assets and security bonds of the insurers concerned, to facilitate the payments.
Under the second phase, Padma Islami Life Insurance Company will account for the largest share of the disbursement. The company will pay around Tk12 crore to 3,600 policyholders. The number of beneficiaries from the company is also significantly higher than that of the other insurers covered by the programme.
Homeland Life Insurance Company will settle Tk4.98 crore in claims for 1,145 policyholders. Fareast Islami Life Insurance Company will pay Tk5 crore to 580 policyholders.
The remaining payments will be made by Sunflower Life Insurance Company and Sunlife Insurance Company. Sunflower Life will settle Tk55.30 lakh for 300 policyholders, while Sunlife Insurance will pay Tk50.18 lakh to 243 policyholders.
Together, the five companies account for 5,868 beneficiaries and more than Tk23 crore in claims. The payments cover valid insurance claims that have remained outstanding for an extended period, with IDRA taking a direct role in facilitating the mobilisation of funds.
For policyholders, the settlement of long-pending claims is significant because insurance payments are often linked to financial protection promised under their policies. Prolonged delays can create uncertainty for customers and weaken confidence in insurance providers. By facilitating the release of funds, the regulator is seeking to accelerate the process for claims that have already been recognised as legitimate.
IDRA said the programme is intended not only to speed up the settlement of valid outstanding claims but also to help restore customer confidence in the insurance sector. Timely claim settlement is a key part of the relationship between insurers and policyholders, particularly when customers have been waiting for their contractual benefits for a considerable period.
The latest initiative follows the first phase of the claim settlement programme, carried out on 3 September. During that phase, IDRA facilitated the payment of Tk14,51,03,146.58 to 2,549 policyholders of seven life insurance companies.
The second phase therefore reaches a substantially larger number of policyholders, although it involves fewer companies than the first phase. While seven insurers were covered in the initial round, the latest round involves five life insurance companies and 5,868 beneficiaries.
The regulator’s decision to draw funds from different sources, including insurers’ assets and security bonds, is intended to help address outstanding legitimate claims without leaving policyholders waiting indefinitely. The approach also reflects the regulator’s focus on resolving accumulated claim liabilities within the life insurance sector.
With the second phase, IDRA is continuing its effort to tackle long-pending claims and ensure that eligible policyholders receive the money due to them. The settlement programme is expected to remain relevant to efforts to improve claim resolution and strengthen confidence among customers in the country’s insurance industry.
