The inventory market regulator has shaped a three-member committee to look into the monetary particulars of Progressive Life Insurance Company Ltd. Customer complaints have been piling up concerning the non-settlement of insurance claims by it.
According to its officers, the Bangladesh Securities and Exchange Commission (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 insurance policies.
The regulator suspects there might need been some monetary irregularities inside the life insurer, mentioned a senior BSEC official, including that inventory buyers had a nasty expertise with Fareast Life Insurance as its earlier administrators embezzled a lot of the firm funds.
Mohammad Rezaul Karim, govt director and spokesman for the BSEC, informed The Business Standard, “The inquiry team will review the company’s last ten years’ financials.”
The Insurance Development and Regulatory Authority (Idra) officers mentioned hundreds of insurance insurance policies have matured however the shoppers didn’t get any cash towards their claims.
In latest weeks, the insurance regulator has obtained over a thousand complaints from Progressive Life clients on this regard.
Md Johir Uddin, firm secretary of Progressive Life, is conscious of the committee formation. He, nevertheless, declined to touch upon what has gone mistaken inside the agency whereas speaking to The Business Standard.
In its 2019 annual report, a statutory auditor knowledgeable the customers of the corporate about some non-transparency within the agency’s premium revenue, shopping for disputed properties, damaging money movement, and large unpaid claims.
Idra sources, citing the corporate’s newest unaudited report, mentioned that on the finish of 2021, over 40% of insurance claims with Progressive Life remained unsettled whereas the dying claims settlement price was solely 30% on the finish of final yr.
Headed by BSEC Additional Director Mohammad Delowar Hossain, the inquiry panel arrange final week may even look into Progressive Life’s stability sheets and different components 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 could be reviewed.
The committee, which incorporates BSEC deputy administrators Md Sirajul Islam and Mawdud Momen as members, may even look at all time period deposits, investments in land and land growth, property plant, and gear of the corporate.
In addition, the panel will look at the interior 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.
Incorporated in 2000, Progressive Life Insurance Company Limited was listed on the capital market in 2006.
It has been engaged in every kind of life insurance companies whether or not particular person or group, together with pension and well being.
The life insurer additionally operates a micro life insurance business underneath the identify 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 normal conferences of its shareholders, and over time, its financials have been on a declining pattern.
According to the unaudited monetary report from January to September 2020, its life income account decreased by practically Tk5 crore and the life insurance fund stood at Tk272 crore.
The life fund dipped under Tk250 crore on the finish of 2021, mentioned Idra sources.
Sponsors and administrators collectively held 38.82%, establishments 10.75%, and normal buyers 50.43% shares of the corporate, based on the August knowledge of the Dhaka Stock Exchange (DSE).
Progressive Life shares with a face worth of Tk10 every closed at Tk77.40 on the DSE on Thursday.
