The Ministry of Finance has issued a formal directive to the Insurance Development and Regulatory Authority (IDRA), seeking a precise and elucidated proposal regarding the registration renewal fees for private insurance companies for the 2026 fiscal year. This request aims to standardise and simplify the renewal process, ensuring that the financial obligations of insurers are clearly defined and legally robust.
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Regulatory Clarification Required
On Tuesday, 12 May 2026, the Insurance-1 branch of the Financial Institutions Division (FID) dispatched an official letter to the Chairman of the IDRA. The correspondence, signed by FID Deputy Secretary Mohammad Abraul Hasan Mazumder, specifically requests a detailed interpretation and a formal proposal concerning Rule 3(2) of the ‘Insurance Business Registration Fee Rules, 2012’ (as amended in 2026).
The Ministry’s intervention follows a prior inquiry from the IDRA, dated 26 April 2026, which sought administrative guidance. The government has now placed the onus on the regulator to provide a definitive framework that facilitates the fee determination for both life and non-life insurance providers, ensuring compliance with the latest statutory amendments.
Insurance Compliance and Fee Statistics (2026)
| Regulatory Detail | Parameter and Values |
| Primary Legislation | Insurance Act, 2010 |
| Applicable Rule | Insurance Business Registration Fee Rules, 2012 |
| Statutory Fee Rate | Tk 1.00 per Tk 1,000 of Gross Premium |
| Non-Compliant Firms | 67 Companies (Registration Pending) |
| Issuing Authority | Financial Institutions Division (FID) |
| Submission Deadline | Immediate (Post-12 May 2026 Directive) |
Context of Financial Non-Compliance
The necessity for this clarification stems from a significant backlog in registration renewals. While the Insurance Act of 2010 mandates that all operational insurance firms must pay a renewal fee—currently set at Tk 1.00 for every Tk 1,000 of gross premium collected—compliance has faltered.
Despite the implementation of the 2026 amendment notification, 67 insurance entities failed to remit the requisite fees. Under existing laws, the IDRA cannot proceed with the renewal of a company’s registration if the statutory fees remain unpaid. This widespread failure prompted the regulator to seek a legal opinion from the Ministry of Finance regarding the subsequent steps for fee assessment and enforcement actions against the defaulting firms.
Administrative Objectives
The Ministry’s demand for a “clear and specific proposal” reflects a commitment to enhancing the transparency of the insurance sector’s regulatory environment. By addressing the ambiguities in Rule 3(2), the government intends to prevent further administrative delays and ensure that all private insurers contribute to the state exchequer as prescribed.
The forthcoming proposal from the IDRA is expected to outline the technicalities of fee calculation and provide a roadmap for resolving the status of the 67 non-compliant institutions. This administrative alignment is crucial for maintaining the integrity of the Bangladeshi insurance market and ensuring that policyholders are served by legally registered and financially compliant entities. Once the Ministry reviews the submitted proposal, it will provide final executive clearance for the 2026 renewal cycle.
