The Insurance Development and Regulatory Authority (IDRA) has paid Tk63.91 crore in long-outstanding insurance claims to 16,058 policyholders through a phased settlement initiative aimed at addressing legitimate customer dues.
In the third phase of the initiative, 7,641 policyholders received a total of Tk26.36 crore. The latest payments bring the cumulative amount disbursed across three phases to Tk63.91 crore, providing financial relief to thousands of customers whose claims had remained unsettled for extended periods.
According to IDRA, the initiative is intended not only to clear customers’ long-pending dues but also to strengthen governance, transparency and accountability across the insurance sector. The third phase of the settlement was completed on 4 October, with payments made from the head offices of the respective insurance companies under the regulator’s supervision.
The Tk26.36 crore distributed in the third phase was raised through the encashment of assets and security bonds held by the relevant insurance companies. Such measures are particularly significant for customers of insurers facing prolonged financial difficulties, as delays in settling legitimate claims can undermine confidence in insurance providers.
The figures show a gradual expansion in the number of beneficiaries. In the first phase, 2,549 life insurance policyholders were paid Tk14.51 crore. The second phase covered another 5,868 policyholders, who received Tk23.03 crore. The third phase subsequently provided Tk26.36 crore to 7,641 policyholders.
Taken together, the three phases have benefited 16,058 policyholders, with total payments reaching Tk63.91 crore.
The settlement of accumulated claims remains one of the major challenges facing Bangladesh’s insurance industry. Recent information indicates that around Tk700 crore in insurance claims are still unpaid across the country. However, these outstanding claims may not all have the same status. Some may require verification of their validity, while others could remain unresolved because of legal or procedural complications.
Timely claim settlement is central to maintaining public confidence in insurance. Customers generally pay premiums over a prolonged period with the expectation that legitimate claims will be honoured when the need arises. When payments are delayed for years, it can create dissatisfaction among policyholders and contribute to a broader perception of weakness within the sector.
For this reason, clearing old claims alone may not be sufficient. Insurance companies also need stronger financial capacity and more efficient internal processes so that fresh claims do not accumulate into another large backlog. Effective regulatory oversight, transparent assessment procedures and stronger protection of policyholders’ interests are also essential to improving confidence in the industry.
IDRA has said that the verification and settlement of remaining legitimate claims will continue. Where necessary, the regulator may facilitate the use of insurers’ assets and other financial resources to meet outstanding obligations to customers.
The payment of Tk63.91 crore marks a significant step towards addressing long-standing customer grievances. The larger challenge, however, remains the substantial volume of unpaid claims still pending across the sector. How quickly and transparently those claims can be assessed and settled will be an important test for both the regulator and the insurance companies involved.
