bsec appears into progressive life insurance coverage as claims stay unsettled


The inventory market regulator has fashioned a three-member committee to look into the monetary particulars of Progressive Life Insurance coverage Firm Ltd. Buyer complaints have been piling up relating to the non-settlement of insurance coverage claims by it.

In keeping with its officers, the Bangladesh Securities and Change Fee (BSEC) has come to learn about numerous buyer complaints that the corporate has not been settling the claims regardless of the maturity of their insurance coverage insurance policies.

The regulator suspects there might need been some monetary irregularities throughout the life insurer, stated a senior BSEC official, including that inventory traders had a foul expertise with Fareast Life Insurance coverage as its earlier administrators embezzled many of the firm funds.

Mohammad Rezaul Karim, govt director and spokesman for the BSEC, instructed The Enterprise Normal, “The inquiry staff will overview the corporate’s final ten years’ financials.”

The Insurance coverage Improvement and Regulatory Authority (Idra) officers stated 1000’s of insurance coverage insurance policies have matured however the shoppers didn’t get any cash towards their claims.

In latest weeks, the insurance coverage regulator has acquired over a thousand complaints from Progressive Life prospects on this regard.

Md Johir Uddin, firm secretary of Progressive Life, is conscious of the committee formation. He, nonetheless, declined to touch upon what has gone mistaken throughout the agency whereas speaking to The Enterprise Normal.

In its 2019 annual report, a statutory auditor knowledgeable the customers of the corporate about some non-transparency within the agency’s premium earnings, shopping for disputed properties, unfavorable money circulate, and large unpaid claims.

Idra sources, citing the corporate’s newest unaudited report, stated that on the finish of 2021, over 40% of insurance coverage claims with Progressive Life remained unsettled whereas the loss of life claims settlement fee was solely 30% on the finish of final yr.

Headed by BSEC Extra Director Mohammad Delowar Hossain, the inquiry panel arrange final week can even look into Progressive Life’s stability sheets and different parts of its monetary statements, administration and different bills, investments, and in addition if any associated social gathering transactions are there earlier than it submits its findings inside 30 working days.

Life income accounts, petty money balances, valuation of life fund, contingencies and provisions, and unpaid claims of the corporate can be reviewed.

The committee, which incorporates BSEC deputy administrators Md Sirajul Islam and Mawdud Momen as members, can even look at all time period deposits, investments in land and land growth, property plant, and gear of the corporate.

As well as, the panel will look at the inner management system of the corporate and its effectiveness in making certain operational effectivity, dependable monetary reporting, and compliance with legal guidelines, laws and insurance policies.

Included in 2000, Progressive Life Insurance coverage Firm Restricted was listed on the capital market in 2006.

It has been engaged in every kind of life insurance coverage companies whether or not particular person or group, together with pension and well being.

The life insurer additionally operates a micro life insurance coverage enterprise beneath the title of Sujan Bima, Surid Bima, Darussalam Bima, Progressive Deposit Pension Scheme (DPS) and Progressive Islami Bima Prakalpa.

Since 2019, the corporate has not been calling any common conferences of its shareholders, and over time, its financials have been on a declining pattern.

In keeping with the unaudited monetary report from January to September 2020, its life income account decreased by practically Tk5 crore and the life insurance coverage fund stood at Tk272 crore.

The life fund dipped beneath Tk250 crore on the finish of 2021, stated Idra sources.

Sponsors and administrators collectively held 38.82%, establishments 10.75%, and common traders 50.43% shares of the corporate, in keeping with the August knowledge of the Dhaka Inventory Change (DSE).

Progressive Life shares with a face worth of Tk10 every closed at Tk77.40 on the DSE on Thursday. 





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