IDRA Orders Higher Insurance Registration Fees

Dhaka: The Insurance Development and Regulatory Authority (IDRA) has directed insurance companies to pay additional fees for renewing their 2026 registrations under the amended Insurance Business Registration Fee Rules, 2012. The decision has sparked controversy, as insurers argue that they have already paid the required fees based on the previous rates for 2026. Industry insiders have described the directive as arbitrary and potentially inconsistent with existing law.

Experts note that the Insurance Act, 2010, does not provide a legal basis for retrospective increases in registration fees. Similarly, the IDRA’s governing legislation does not grant the authority to impose additional payments beyond the previously fixed rates. This has raised questions about the legality of the recent order.

According to sources familiar with the matter, following the public upheaval in July 2024, insurers had objected to paying bills from the controversial company Duar Service Limited. In response, IDRA reportedly justified a fee increase of up to five times the previous amount, citing the provision of SMS services free of charge. Allegedly, companies refusing to pay the revised fees could face delays in registration renewal—a critical issue, as no insurance company is permitted to operate without valid registration.

Under current law, companies must apply for annual registration renewal by 30 November each year. The fee is calculated based on the gross premiums collected in the preceding accounting year.

The government gazetted the amended rules on 4 February 2026, and on 19 February, IDRA instructed companies to pay the higher fees.

Revised Insurance Registration Fee Structure

Industry representatives argue that fees already paid in November 2025, based on 2024’s gross premiums, were accounted for as expenses for that year. Imposing extra charges in February 2026 complicates accounting and auditing processes.

Brigadier General (Retd.) Md. Shafik Shamim PSC, Secretary General of the Bangladesh Insurance Forum (BIF), urged a reconsideration of the decision, suggesting that the new rates be implemented from 2027 to give companies adequate time to prepare. Similarly, S.M. Nuruzzaman of the Bangladesh Insurance Association (BIA) stated that retroactively increasing the 2025-paid fees in 2026 is unreasonable, and the previous rates should be applied for the current renewal cycle.

The directive has intensified debates over regulatory authority and industry fairness, signalling potential legal scrutiny if companies challenge the fee hike.