The Bangladesh Insurance Development and Regulatory Authority (IDRA) is set to acquire direct powers to inspect and seize documents and assets from insurance companies, under proposed amendments to the Insurance Act, 2010. The reforms aim to enhance governance, transparency, and accountability within the country’s insurance sector, which has long faced issues of irregularities and malpractice.
Table of Contents
Expanded Search and Seizure Powers
Under the proposed amendments, IDRA-authorised officers will be empowered to carry out on-site inspections and asset seizures if allegations of fraud, illegal commissions, under- or overpayment of claims, or other legal violations arise. Key features of these powers include:
Entering company premises
Opening lockers or cabinets
Seizing and copying critical documents
Requesting police support when necessary
Such operations will be authorised directly by IDRA’s chairman, who can compel law enforcement assistance to ensure compliance.
Document Handling and Investigation Protocols
The amendments also provide detailed procedures for investigations and document management:
Individuals refusing or concealing required documents may face action
Seized documents must be returned within 30 days of investigation, and generally cannot be held for more than 180 days
Statements taken under oath during inspections are admissible in court
Appeals against seizure actions can be lodged with the government
Supervision of Insurance-related Entities
The proposed reforms expand IDRA’s supervisory reach:
Institutions and foundations funded by insurance companies can be inspected
IDRA may report findings to relevant regulatory bodies
Financial records and transaction data may be collected for monitoring purposes
Expert Opinions
Insurance analysts largely welcome the move as a step toward greater discipline and accountability. However, they emphasise the importance of transparent and impartial oversight to prevent misuse of authority.
SM Ziaul Haque, an insurance expert, cautioned: “If IDRA is granted police-like powers, certain individuals may benefit, but the country’s broader interests may not be served.” A director from the Bangladesh Insurance Association noted, “We do not oppose reform, but powers such as asset seizure could instil fear among investors.”
Goals of the Amendment
Dr Aslam Alam, IDRA chairman, stated that the amendments are currently under ministerial review. The reforms aim to:
Establish governance and transparency in the insurance sector
Boost customer confidence
Support the sustainable expansion of the insurance industry
Key Features at a Glance
| Aspect | Details |
|---|---|
| Authority | Search, seize documents and assets |
| Oversight | Insurance companies, affiliated institutions and foundations |
| Document retention | Maximum 180 days, return within 30 days |
| Interrogation | Statements under oath, admissible in court |
| Police support | Mandatory if requested |
| Potential risks | Misuse of authority, investor apprehension |
If enacted, the amendment could mark a pivotal step in curbing fraud, illegal commissions, and malpractice, establishing stronger governance within Bangladesh’s insurance sector.