Policyholders Left Waiting as Tk3,363 Crore Insurance Claims Remain Unsettled

Insurance is meant to serve as a financial shield during moments of crisis—be it accidents, fires, natural disasters, or business disruptions. However, for thousands of policyholders across Bangladesh, that promise remains unfulfilled as claim settlements continue to face prolonged delays, pushing individuals and businesses into financial distress and deep psychological uncertainty.

Recent statistics reveal a troubling picture. During the July–September 2025 quarter, general insurance companies managed to settle only 7.55 per cent of total claims. This marked a further decline from the 8.32 per cent settlement rate recorded in the April–June quarter, reflecting a quarter-on-quarter drop of nearly 9.25 per cent. The figures highlight persistent weaknesses in liquidity management, financial capacity, and operational efficiency within the general insurance sector.

According to unaudited data from the Insurance Development and Regulatory Authority (IDRA), total claims lodged with general insurance companies during the July–September quarter stood at approximately Tk3,637 crore. Of this amount, only Tk275 crore was settled, leaving a staggering Tk3,363 crore in unpaid claims by the end of the quarter. The scale of pending liabilities underscores the depth of the crisis confronting both insurers and policyholders.

The human and economic consequences of delayed settlements are severe. Many policyholders report waiting several years after their policies have expired to receive compensation. For businesses, the inability to access timely insurance payouts following accidents or disasters often results in disrupted operations, job losses, and mounting debt. For individuals, delays erode trust and fuel frustration, further undermining confidence in the insurance system.

The state-owned General Insurance Corporation (GIC) recorded the highest volume of pending claims during the quarter. It settled only 3.37 per cent of claims, leaving Tk2,142.37 crore unpaid. A senior GIC official, speaking anonymously, acknowledged the challenges and said that nearly 80 per cent of delays stem from the late submission of survey reports, which are essential to assess losses. The problem is particularly acute for reinsurance-related claims, where survey reports can take five to seven years to complete, delaying settlements with foreign reinsurers and, consequently, payments to policyholders.

Other insurers face similar difficulties. Green Delta Insurance settled just 8.26 per cent of claims, leaving Tk266.54 crore pending. Company officials cited incomplete or legally invalid documentation submitted by claimants as a major cause of delay. Missing police reports, fire service certificates, invoices, or ownership documents often prolong verification and settlement processes.

Disputes over claim amounts, arbitration, court cases, and claims for uninsured perils—such as political violence or excluded natural disasters—further compound the problem. Meanwhile, significant unpaid claims also persist at Pragati Insurance (Tk157.91 crore), Reliance Insurance (Tk98.91 crore), and Peoples Insurance Company (Tk80.80 crore).

Experts argue that weak regulatory enforcement has worsened the crisis. Although the law requires claims to be settled within 90 days, compliance remains rare. Insiders point to delays by Sadharan Bima Corporation (SBC), the state-owned reinsurer, which by law handles 50 per cent of non-life reinsurance. When SBC delays its portion, primary insurers struggle to pay policyholders on time.

Industry leaders stress that restoring confidence will require coordinated action among insurers, reinsurers, regulators, and policyholders, alongside stricter oversight and faster survey and documentation processes.

Snapshot of Pending Insurance Claims (July–September 2025)

As pending claims continue to rise, policyholders remain trapped in uncertainty—waiting not only for compensation, but also for meaningful reform in a sector meant to protect them when they need it most.