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Dhaka: The recent directive issued by the Insurance Development and Regulatory Authority (IDRA) concerning the renewal fees for insurance company registrations in 2026 has ignited significant debate within the sector. According to IDRA, under the revised Insurance Business Registration Fee Rules–2012, companies are now required to pay substantially higher fees. However, industry stakeholders have criticised the move as both unreasonable and legally questionable, pointing out that most firms have already submitted fees based on previous rates.
Industry experts argue that, under the Insurance Act, 2010, and the IDRA Act, the authority lacks explicit powers to impose such additional fees. This has raised serious questions about the legal validity of IDRA’s recent directive.
Sources indicate that the controversy has roots in July 2024, when objections arose regarding payments from the contentious firm Duar Service Limited. Following this, IDRA justified increasing the registration renewal fee by up to five times, citing the provision of free SMS services. Reports suggest that companies refusing to pay the revised fees could face delays in registration renewals.
Legally, no insurance company can operate without valid registration. Applications for renewal must be submitted annually by 30 November for the preceding year, and fees are determined based on the total gross premium collected in the last accounting year.
On 4 February 2026, the government gazette officially amended the Insurance Business Registration Fee Rules–2012. Subsequently, on 19 February, IDRA instructed companies to pay fees according to the new rates.
The revised fee structure is as follows:
| Year | Fee per BDT 1,000 Gross Premium | Previous Rate per BDT 1,000 |
|---|---|---|
| 2026–2028 | 2.50 BDT | 1.00 BDT |
| 2029–2031 | 4.00 BDT | 1.00 BDT |
| 2032 onwards | 5.00 BDT | 1.00 BDT |
Industry representatives argue that the fees paid in November 2025 were based on 2024 gross premiums and accounted for 2025 expenses. Imposing additional fees in February 2026, they contend, could create accounting and audit complexities.
Brigadier General (Retd.) Md. Shafiq Shamim, Secretary General of the Bangladesh Insurance Forum (BIF), urged a reconsideration, stating: “The decision to impose higher fees for 2026 should be reviewed. Implementing the new rates from 2027 would give companies sufficient time to prepare.”
Similarly, S. M. Nuruzzaman of the Bangladesh Insurance Association (BIA) remarked: “It is unjustifiable to increase the fee for 2026 after it was paid in November 2025. At the very least, the current renewal should consider the previous rate.”
The directive has thus provoked widespread criticism within the sector, highlighting concerns over the impact on company operations and preparedness. Stakeholders are now calling for IDRA to reassess its decision to ensure smoother compliance and regulatory clarity.