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Bank & Finance - Corporate - June 21, 2022

78pc insurance claims unpaid

Amount of claim money Tk 1413.57 cr

Mahfuz Emran: According to a report, between July and September 2021, the amount of outstanding insurance claim is Tk 1413.57 crore. The general insurance companies paid 8,134 insurance claims. In contrast, 12,609 insurance claims are outstanding. At this time the amount of insurance claims paid by the general insurance companies is Tk 417.50 crore. On the other hand, the amount of outstanding insurance claim is Tk 1413.57 crore.
In other words, 78% of the claims raised have not been paid or are in arrears with the general insurance companies.
Comilla-6 MP Nasimul Alam Chowdhury alleged harassment against two general insurance companies last year for not receiving insurance claims. He complained that due to non-receipt of insurance claim money, he could not repay the loan and about 150 people including the officers and workers of the organization became unemployed.
In a complaint to the chairman of the Insurance Development and Regulatory Authority (IDRA), the regulator, Nasimul Alam Chowdhury mentioned that for three long years, the insurance companies have been evading payment of two insurance claims. The two insurance companies did not pay the remaining Tk 8 crore 14 lakh 80 thousand 189 even though they paid Tk 2 crore in two installments after paying many times.
Such allegations against insurance companies doing business in the country are frequent. As a result, ordinary people cannot trust insurance. The insurance market is not growing in this way. Again, those who are covered by insurance are also turning away from insurance due to harassment.
The report of the regulatory body IDRA also revealed that large claims were pending in the insurance companies.
A recent report from the IDRA to the Ministry of Finance found that more policy insurance claims were outstanding than the amount paid by general insurance companies doing business in the country.
The general insurance companies have stated that the reason for most of the insurance claims being arrears is that the customers are not filing the documents properly for the insurance claims. Again, some customers are following the wrong path. They are seeking insurance with fake documents even if they are not harmed. Due to these reasons, large insurance claims are pending in general insurance companies.
According to the IDRA report sent to the Ministry of Finance, Union Insurance has the best rate of claim payment among general insurance companies. However, the company also has about half of the insurance claims outstanding. However, the amount of arrears is higher than the sum insured.
Out of the 91 claims raised in the company, 52 claims have been settled and 39 insurance claims are pending. In this case the claim payment rate is 56 percent. The insurance claim has been paid in the amount of Tk 2 crore 8 lakh 70 thousand 696.
On the other hand, there is an arrear of Tk 7 crore 90 lakh. In other words, 71 percent of the insurance claims are outstanding.
Next in line is Green Delta Insurance. Of the 9,344 insurance claims raised by the company, 5,263 have been paid. On the other hand, there are 4,081 arrears. In this case the claim payment rate is 56 percent. The company has paid Tk 7 crore 94 lakh 6 thousand 545. On the other hand, there is Tk 423 crore 22 lakh 91 thousand 8 arrears. In other words, 84 percent of the insurance claims have not been paid.
The state-owned company General Insurance Corporation has the highest number of insurance claims in terms of money. The company has arrears of Tk 298.65 crore against 197 claims. On the other hand, against 33 demands, the company has paid Tk 106 crore 6 lakh 42 thousand 926. In other words, 8 percent of the insurance claims raised by the company are outstanding.
Among the private general insurance companies, Reliance Insurance has 8 outstanding claims. In contrast, 469 have been paid. As a result, 72 percent of the claims are outstanding. The company has arrears of Tk 197 crore 70 lakh 54 thousand 20 in terms of insurance claims. The claim has been paid 56 crore 95 lakh 63 thousand 743 taka. In other words, there is an arrear of 7 percent in the amount of money.
How many claims outstanding?
Tk 4 crore 32 lakh 8 thousand 242 against 111 demands of Agrani, Tk 7 crore 80 lakh 63 thousand 521 against 57 demands of Asia, Tk 7 crore 95 lakh 33 thousand 112 against 131 demands of Asia Pacific General, Tk 1 crore against 11 demands of Bangladesh Co-operative. Tk 69 lakh 71 thousand 7,Tk 12 crore 82 lakh 22 thousand 694 against 541 demands of Bangladesh General, Tk 15 crore 84 lakh 71 thousand 405 against 200 demands of Bangladesh National, Tk 2 crore 13 lakh 35 thousand 526 against 8 demands of Central, Tk 1 crore 60 lakh against 104 demands of City General Tk 69 thousand 972, Tk 50 crore 4 lakh 17 thousand 845 are due against 122 claims of Continental.
Besides, Tk 10 crore 16 lakh 8 thousand 928 against 106 demands of Crystal, Tk 3 crore 58 lakh 59 thousand 733 against 8 demands of Desh General, Tk 2 crore 29 lakh 36 thousand 399 against 69 demands of Dhaka, Tk 24 crore 60 lakh 48 against 274 demands of Eastern. 141 thousand, Tk 7 crore 31 lakh 62 thousand 220 against 204 demands of Eastland, Tk 8 crore 30 lakh 8 thousand 261 against 127 demands of Express, Tk 5 crore 6 lakh 19 thousand 643 against 175 demands of Federal.
Similarly, Tk 7 crore 30 lakh 73 thousand 395 against 165 claims of Global, Tk 4 crore 22 lakh 11 thousand 736 against 151 demands of Islamic Commercial, Tk 26 crore 57 lakh 85 thousand 443 against 96 demands of Islamic, Tk 14 lakh against 14 demands of the people. Tk 6 thousand 71 lakh 4 thousand 84 against 6 demands of Karnafuli,Tk 9 crore 46 lakh 57 thousand 591 against 455 claims of Meghna, Tk 8 crore 34 lakh against 311 claims of Mercantile, Tk 3 crore 41 lakh 60 thousand 26 against 57 claims of Nital, Tk 5 crore 54 lakh 71 thousand 36 against 174 claims of Northern Islami.
Tk 1 crore 79 lakh 19 thousand 215 against 112 demands of Paramount, Tk 48 crore 25 lakh 26 thousand 704 against 272 demands of People, Tk 36 crore 6 lakh 8 thousand 994 against 274 demands of Phoenix, Tk 40 crore 14 lakh against 530 demands of Pioneer. Tk 48 crore 15 lakh 56 thousand 63 against 123 demands of Prime, Tk 13 crore 6 lakh 35 thousand 72 against 139 demands of Prabhati,
Tk 5 crore 94 thousand 565 against 116 demands of Eastern General, Tk 8 crore 40 lakh 84 thousand 230 against 155 demands of Republic, Tk 5 crore 13 lakh 26 thousand 190 against 316 demands of Rupali, Tk 4 crore 48 lakh 3 thousand 499 against 60 demands of army welfare. Tk 9 crore 82 lakh 8 thousand 628 against 25 demands of Sikder, Tk 1 crore 26 lakh 84 thousand 269 against 163 demands of South Asia.
Tk 16 crore 75 lakh 52 thousand 750 taka against 105 claims of Standard, Tk 3 crore 57 lakh 63 thousand 216 against 8 claims of Takaful Islami and Tk 6 crore 79 lakh 75 thousand 417 against 516 claims of United Insurance.
Ahmed Saifuddin, Chief Executive Officer (CEO) of Bangladesh General Insurance, told that in the process of paying the claim, the customer often does not submit the documents properly. That is why the survey report is not final and the claim is not paid. Due to this, there is more demand for arrears.
SM Mizanur Rahman, who is currently the CEO of Pioneer Insurance, told that due to the accumulated accounts, the outstanding insurance claims are showing a lot. Most of the time the customer does not submit the documents properly, as a result the customer’s claim is not paid. If the document is correct, we pay the customer’s claim within one month of receiving the survey report.
SMRA Executive Director and spokesperson of IDRA, SM Shakil Akhtar, told that claims are pending in general insurance companies because customers are also here. He set himself on fire. It takes time to settle. Again, it is seen that the bad ships are hired and the ships are sunk without lifting the goods. Consumers resort to such dishonest ways to get compensation. These are just some of the goal setting sharewares that you can use.
However, customers say they are being harassed even after submitting the paperwork properly.
The head of Messrs Sujan Enterprise Md. Sujan said, “I have submitted all kinds of documents as per the demand of the insurance company,” he told. Even then the insurance claim is not being paid. I am being harassed in many ways. It’s been more than a year since I received my insurance claim. I lodged a written complaint with the IDRA last March. But the insurance company has not paid the claim yet.

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