Tk 8,000 cr paid out of Tk 12,000 cr insurance claims

Staff Correspondent : In the year 2023, the total insurance claim raised was Tk 12,117 crores. Against this, the insurance companies have paid claims of Tk8,754.59 crore. The claim payment rate is 72 percent. The claim payment rate has increased by 5 percent compared to 2022.
Mohammad Zainul Bari, chairman of the regulatory body, gave this information at a press conference organized by the Insurance Development and Regulatory Authority (IDRA) yesterday on the occasion of National Insurance Day-2024. The press conference was held in the meeting room of IDRA.
It was informed in the press conference that the initiative of the Financial Institutions Department of the Ministry of Finance and IDRA has been taken to celebrate the National Insurance Day at district and upazila level on March 1, including Dhaka. The theme of this year’s Insurance Day is ‘I will do insurance and build the country, Bangladesh will be smart’.
Prime Minister Sheikh Hasina has agreed to attend the opening ceremony of National Insurance Day at Bangabandhu International Conference Center as the chief guest. Finance Minister Abul Hasan Mahmud Ali will preside over the event. Secretary of Financial Institutions Department of Ministry of Finance, Chairman of IDRA and President of Bangladesh Insurance Association (BIA) will attend the event.
Press conference reporters were asked to know how many insurance claims have been raised and paid out in 2023. In response, IDRA Chairman said that the total insurance claim raised in 2023 is Tk12,117 crores. Against this, Tk8,754.59 crores have been paid. That means 72 percent insurance claims have been paid. Last year this rate was 67 percent.
IDRA Chairman said that Prime Minister Sheikh Hasina realized the importance of insurance and framed the new Insurance Act, 2010 by revising the old Insurance Act. Also enacted the Insurance Development and Regulatory Authority Act, 2010. Then in 2011, to restore order in the insurance sector, the directorate was abolished and the ‘Insurance Development and Control Authority’ was established. Since 2010, 10 rules, 20 regulations, 4 guidelines have been formulated, which are playing a leading role in the subsequent development of the insurance industry.
He said that now a total of 82 authorized companies are providing insurance services in the country. At present, 1 crore 71 lakh 10 thousand people of the country are covered by insurance. In order to brighten the image of the insurance sector, the authorities have been directing the insurance companies to give utmost importance to insurance claims settlement. As a result, insurance claims settled both life and non-life increased by 4 percent in 2023 as compared to 2022.
He also said that ‘Corporate Governance Guidelines 2023’ and ‘Regulatory Sandbox Guidelines’ have been issued to modernize the country’s insurance system. Bancassurance has been introduced to market insurance products through banks.
Bari said that Bangabandhu Shiksha Bima was opened as a memorial to pay tribute to Bangabandhu. 50,000 students were brought under this insurance at the pilot stage with the funding of Insurance Development and Regulatory Authority through Life Insurance Corporation. Apart from the government, private companies have now introduced Bangabandhu Shiksha Bima policy. Private companies have already brought 78,501 students under Bangabandhu Shiksha Bima.
He said Bangabandhu Suraksha Bima for people with special needs, Bangabandhu Suraksha Bima for public health protection and Bangabandhu Sportsman Comprehensive Insurance for the safety of sportsmen. Nivedita Bima, Denmohar Bima, Promila PDS, Nivedita Pass and Family Security Insurance are launched to encourage women empowerment.
He also said that crop insurance, migrant insurance, health insurance, Hajj insurance, small insurance and livestock insurance have been introduced under the social insurance system. New insurance is being offered against accidents and natural calamities. There are unit linked insurance plans for stock market investors. By 2023, a total of 5.50 lakh customers are managing policies using the ‘Bima Info’ mobile app. Apart from Android, this app can now be used on iOS handsets as well. IDRA’s website is available in Bengali and English.