A strengthened supervisory framework has been introduced in Bangladesh’s non-life insurance sector to monitor the implementation of a zero per cent commission policy for individual agents and to improve the complaint resolution mechanism.
The third meeting of the Vigilance Team’s Complaint Scrutiny and Hearing Committee was held on Saturday, 2 May, at the premises of the Bangladesh Insurance Association. The session was chaired by the committee’s convener, Belal Ahmed. According to officials concerned, a structured oversight mechanism has been developed to ensure strict compliance with the regulatory directive aimed at eliminating commission-based irregularities in non-life insurance operations.
In line with instructions from the Insurance Development and Regulatory Authority, the Bangladesh Insurance Association has constituted an 11-member vigilance team. In addition, the regulator itself has formed a separate seven-member vigilance team. These two bodies are jointly responsible for field-level monitoring, identifying irregular practices, and ensuring that commission-related violations are promptly addressed.
During the meeting, it was explained that any complaint relating to agent commissions is first entered into the insurance data management system for verification. The information is then subjected to preliminary analysis to assess its validity. Where sufficient grounds are identified, the matter is forwarded to the hearing committee for further examination.
The hearing committee provides equal opportunity for both the concerned insurance company and the complainant to present their respective positions. After reviewing all submissions, documentation, and supporting evidence, the committee reaches a final determination. This process is designed to ensure transparency, procedural fairness, and strict adherence to regulatory standards.
The complaint disposal procedure can be summarised as follows:
| Stage | Activity |
|---|---|
| First Stage | Receipt of commission-related complaint |
| Second Stage | Verification through insurance data management system |
| Third Stage | Preliminary assessment of authenticity |
| Fourth Stage | Submission to vigilance team |
| Fifth Stage | Hearing of both parties |
| Sixth Stage | Final decision and resolution |
Officials emphasised that this initiative is expected to restore discipline within the non-life insurance sector by reducing malpractice and conflicts of interest linked to commission structures. It is also anticipated to enhance customer confidence and reinforce good governance practices across the industry.
The committee further noted that the supervision mechanism will be expanded in due course to ensure greater transparency and accountability at every level. Regular monitoring and strict enforcement measures will continue in order to support the effective implementation of the zero per cent commission policy.