Monday, 6th April 2026
Khabor Wala Desk
Published: 20th February 2026, 12:33 PM
The Insurance Development and Regulatory Authority (IDRA) is set to acquire powers akin to those held by the Bangladesh Police and the National Board of Revenue (NBR), enabling it to search, investigate, and seize documents and assets from insurance companies. This move comes through a proposed amendment to the Insurance Act, 2010, currently under review.
Under the draft amendment, IDRA will be empowered to take direct action if an insurance company is suspected of irregularities, fraud, unlawful commissions, or improper claims settlement—whether overpayment or underpayment. The authority will also extend to any violation of insurance regulations.
If the IDRA Chairman finds reasonable grounds for suspicion, they may authorise designated officials to conduct inspections, enter premises, break into lockers or cabinets if necessary, seize key documents, and create copies. Police assistance may be requested and will be mandatory to provide.
Insurance analysts suggest that if implemented effectively, this reform could significantly enhance accountability and discipline within the sector. Long-standing issues such as fraudulent insurance claims and commission irregularities may come under stricter control. Experts caution, however, that transparency and impartial oversight are essential to prevent misuse of the expanded powers.
Key Provisions of the Proposed Amendment:
| Provision | Details |
|---|---|
| Investigative Authority | IDRA officials can enter premises, inspect, and seize documents with Chairperson approval |
| Police Assistance | Mandatory when requested by IDRA |
| Evidence Collection | Individuals can be questioned under oath; statements admissible in court |
| Document Retention | Seized documents can be held for a maximum of 180 days; must be returned within 30 days after investigation |
| Compliance Measures | Non-cooperation or concealment of documents may lead to sanctions; prohibition on transfer or use of documents if seizure is not possible |
| Extended Scope | Foundations or institutions funded or managed by insurance companies fall under IDRA oversight |
| Financial Data Access | IDRA can collect financial statements of persons or entities dealing with insurance companies, even via other government agencies |
While IDRA and officials from the Ministry of Finance emphasise the necessity of these powers to curb persistent irregularities, some insurance experts express caution. SM Ziaul Haque, an insurance specialist, warned that police-style authority may lead to misuse, benefiting a few individuals while failing to improve the sector overall.
Meanwhile, the Bangladesh Insurance Association (BIA) has voiced concerns that the additional powers may create uncertainty within the business environment. An anonymous BIA director noted that while they support reform, granting seizure powers could instil fear among investors and potentially hinder sector growth.
IDRA Chairman Dr Aslam Alam stated that stakeholder consultations on the draft have concluded and that the proposal is now under Ministry review. He added that the ultimate goal of the reforms is to establish good governance in the insurance sector, emphasising that trust is essential for the expansion of insurance coverage.
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