The Insurance Development and Regulatory Authority (IDRA) has introduced a stringent eight-point directive for non-life insurance companies seeking approval for fire package rates. In a formal circular issued on Wednesday, 24 December, the regulator noted that inconsistent application filings, missing documentation, and a general disregard for established protocols have significantly disrupted its administrative functions. To rectify this, the IDRA has mandated that all future submissions must strictly adhere to specific guidelines to avoid “unnecessary complexities” and processing delays.
The regulator observed that several insurers were failing to follow the frameworks established in Circular No. F-122/2010 and Circular No. 88/2022. This lapse in compliance has forced the IDRA to reassert its authority, ensuring that the verification process remains transparent and mathematically sound. Under the new mandates, applications that arrive without the requisite annexures or verified reinsurance slips will no longer be considered for evaluation.
Mandatory Compliance Checklist for Non-Life Insurers
| Requirement | Description of Necessary Documentation |
| Primary Framework | Strict adherence to Non-Life Circular F-122/2010. |
| Package Guidelines | Compliance with Item 23 of Circular 88/2022. |
| Sum Insured | A separate annexure providing a granular explanation of values. |
| Reinsurance Local | A formal letter of recognition from Sadharan Bima Corporation. |
| Reinsurance Global | A Facultative (Fac.) Acceptance Slip for overseas coverage. |
| Tariff Citation | Calculation sheets must cite specific tariff rate pages. |
| Technical Clauses | Inclusion of Electrical Clause-B with defined values. |
| Policy Schedule | Submission of the formal fire policy schedule is mandatory. |
The directive, signed by Monira Begum, Executive Director (Non-Life) of IDRA, emphasizes that transparency in rate calculation is paramount. Insurers are now required to explicitly link their “Sum Insured” data with corresponding tariff pages, ensuring that average rate calculations are verifiable by the regulator’s audit teams. This move is designed to prevent the arbitrary setting of premiums and to ensure that the risk assessment aligns with national insurance standards.
Effective immediately, these eight instructions serve as the new benchmark for regulatory evaluation. The IDRA has signaled that its transition towards a more disciplined insurance market involves zero tolerance for incomplete paperwork. By standardising the submission process, the regulator aims to protect policyholders and maintain the financial integrity of the non-life insurance sector in Bangladesh.