The Insurance Development and Regulatory Authority (IDRA) has stepped up efforts to settle legitimate insurance claims that have remained unpaid for years, providing financial relief to thousands of policyholders.
In the third phase of the initiative, 7,641 policyholders received insurance claims worth Tk26.36 crore. With the latest disbursement, the total amount paid across three phases has reached Tk63.91 crore, benefiting 16,058 policyholders.
IDRA said the initiative is intended not only to clear long-standing dues but also to strengthen governance, transparency and accountability across the insurance sector. The third phase of claim settlements was completed on 4 October, with payments made from the head offices of the relevant insurance companies under the regulator’s supervision.
The Tk26.36 crore distributed in the latest phase was raised through the encashment of assets and security bonds held by the concerned insurance companies. The approach is particularly relevant for customers of insurers facing financial difficulties, where a lack of liquidity can make it difficult to honour legitimate claims within the expected timeframe.
Delays in settling valid claims can have wider consequences for the industry. Policyholders pay premiums with the expectation that the insurer will provide financial support when a covered event occurs or when the policy reaches its stipulated maturity. When payments are delayed for prolonged periods, customers may lose confidence not only in individual companies but also in insurance as a financial protection mechanism.
According to IDRA data, 2,549 life insurance policyholders received Tk14.51 crore in the first phase. The second phase covered 5,868 policyholders, who were paid Tk23.03 crore. In the third phase, another 7,641 policyholders received Tk26.36 crore.
The figures show that the number of beneficiaries increased substantially as the initiative progressed. The third phase accounted for the largest number of policyholders and also involved the highest payment amount among the three rounds. Overall, 16,058 customers have received Tk63.91 crore through the programme.
Despite the progress, the insurance sector continues to face a significant backlog of unpaid claims. Recent information suggests that around Tk700 crore in insurance claims remain outstanding in Bangladesh. These cases do not necessarily have the same status: some may require verification, while others may be held up by legal or other complications. Identifying legitimate claims and resolving them through appropriate procedures remains a major task for the regulator and the companies concerned.
The settlement of outstanding claims is closely linked to public confidence in the insurance industry. Customers who have paid premiums for years expect their legitimate dues to be honoured when they become payable. Failure to meet that expectation can create dissatisfaction and discourage potential customers from purchasing insurance products.
For the sector, clearing existing claims is therefore only part of the challenge. Insurance companies also need to strengthen their financial capacity and improve internal claim-processing systems so that new liabilities do not accumulate over long periods. Effective regulatory monitoring will also be necessary to ensure that eligible claims are assessed and settled without unnecessary delays.
IDRA has said that the verification and settlement of remaining legitimate claims will continue. Where necessary, the regulator will seek to facilitate payments by using the assets and other available financial resources of the relevant insurance companies.
The payment of Tk63.91 crore to more than 16,000 policyholders marks a significant step in addressing accumulated insurance liabilities. However, with around Tk700 crore still reportedly outstanding, the task is far from complete. The pace at which the remaining legitimate claims are verified and settled will remain a key measure of progress in restoring customer confidence and strengthening accountability within Bangladesh’s insurance sector.
