The Insurance Development and Regulatory Authority (IDRA) has begun the third phase of its initiative to settle long-pending legitimate insurance claims, with 7,641 policyholders set to receive Tk 26.36 crore.
The latest round is part of a continuing effort to restore customer confidence in the insurance sector by ensuring that valid claims are settled. The concerned insurance companies are making the payments from their respective offices, while IDRA is closely monitoring the process.
IDRA disclosed the development on Sunday (4 October). In the first two phases, policyholders received their insurance claims directly at the regulator’s office. The arrangement was aimed at facilitating the settlement of legitimate claims and protecting the interests of customers.
The payment process has been shifted to the offices of the respective insurance companies in the third phase. Although the companies are now handling the disbursement themselves, IDRA said it continues to supervise the process closely.
The initiative follows two earlier rounds of payments. In the first phase, launched on 3 September, 2,549 policyholders of seven life insurance companies received claims worth Tk 14.51 crore. The exact amount paid was Tk 14,51,03,146.58.
The second phase covered another 5,868 policyholders, who received a total of Tk 23,03,56,971 in insurance claims.
With the third phase included, 16,058 policyholders have so far been brought under the three rounds of claim settlement. The combined value of the claims stands at Tk 63,91,39,647, or nearly Tk 64 crore.
For the insurance sector, timely settlement of legitimate claims is closely linked to customer confidence. Policyholders generally rely on insurance coverage to provide financial support when specified events covered by their policies occur. Prolonged delays in settling valid claims can therefore create financial difficulties for customers and weaken confidence in insurance providers.
IDRA said the initiative is being carried out under the leadership of its chairman, Mir Nadia Nivin. The main objectives are to ensure payment of policyholders’ legitimate dues, establish greater discipline in the insurance sector and rebuild customer confidence.
The regulator said funds are being arranged from various sources to settle outstanding claims, including the assets and security bonds of the concerned insurance companies. The approach is focused on resolving valid claims that have remained unpaid for an extended period.
The third phase also marks a change in the way payments are being delivered. Rather than requiring policyholders to collect their money from the regulator’s premises, the respective insurance companies are now paying customers directly from their own offices. IDRA’s continued oversight is intended to ensure that the process remains focused on legitimate claims and the interests of policyholders.
Across the three phases, the number of policyholders covered has now exceeded 16,000, while the total claims brought under settlement have approached Tk 64 crore. The latest initiative therefore represents another step in the regulator’s wider effort to address outstanding legitimate claims and strengthen confidence in the insurance industry.