The Insurance Development and Regulatory Authority (IDRA) on Monday disbursed Tk 23,03,56,971 in long-pending insurance claims to 5,868 policyholders in its second phase of payments, part of a drive to clear backlogged claims and rebuild public trust in the insurance sector.
The funds were arranged from the assets, security bonds and other sources of the life insurance companies concerned under IDRA's initiative to settle valid claims that had remained unpaid for a long time.
The second-phase payments cover policyholders of five life insurance companies. Padma Islami Life accounts for the largest share, with 3,600 policyholders receiving Tk 12 crore, followed by Homeland Life (1,145 policyholders, Tk 4,98,08,514), Fareast Islami Life (580 policyholders, Tk 5 crore), Sunflower Life (300 policyholders, Tk 55.30 lakh) and Sunlife (243 policyholders, Tk 50,18,457).
In the first phase on September 3, IDRA settled claims worth Tk 14,51,03,146.58 for 2,549 policyholders across seven life insurance companies.
Combining both phases, it has so far disbursed a total of Tk 37,54,60,117.58 to 8,417 policyholders.
IDRA Chairman Mir Nadia Nivin said the significance of the initiative goes beyond the amount disbursed, describing it as a step to send a positive message to policyholders and their families who had grown frustrated and distrustful after years of unpaid claims.
She termed the exercise largely symbolic, a visible step to restore public confidence in the insurance sector, aimed at demonstrating the regulator's commitment to ensuring valid claims are settled and policyholders' rights are protected.
The initiative is being carried out to ensure fair settlement of policyholders' claims, establish discipline and accountability in the insurance sector, and rebuild customer trust, the IDRA chairman added.
"Trust in the insurance sector is not built in a day; it has to be rebuilt through continuous efforts. This initiative to settle long-pending valid insurance claims is part of an ongoing process," she said.
The regulator said the remaining valid and unpaid insurance claims will be settled in phases following verification and the necessary procedures, adding that IDRA's efforts to ensure policyholders' rightful claims and restore customer confidence in the insurance sector would continue.