Customers’ suffering in the insurance sector appears to be an unending ordeal as most policyholders fail to receive their rightful claims despite waiting for long periods.

As of June 2025, unresolved claims worth around Tk3,500 crore remain pending with various insurance companies.

Shockingly, at the same time, the Insurance Development and Regulatory Authority (IDRA)—the body responsible for safeguarding policyholders’ rights—managed to settle only 22 complaints regarding unsettled claims.

The lack of effective supervision forces policyholders to repeatedly visit insurance company offices, exposing them to additional layers of harassment.

According to the latest IDRA data, there are currently 82 insurance companies in the country, including 36 life insurance and 46 general insurance companies. Among them, life insurance companies settled only 35% of claims by June 2025, while general insurance companies settled merely 8.32%—leaving nearly 92% of claims unresolved.

As of June 2025, life insurance companies received claims worth Tk5,574.90 crore, of which they have only paid Tk1,946.66 crore. The remaining Tk3,628.32 crore is still pending—mostly with 29 companies.

To address policyholder grievances, IDRA accepts complaints through three channels—its website, formal written applications, and its own initiative. IDRA data shows that from January to March, it received 13 complaints, and another 13 from April to June, totaling 26 complaints. Of these, 22 were resolved.

Former Chief Executive Officer of Chartered Life Insurance, SM Ziaul Haque, told the Daily Sun that claim settlement is primarily the responsibility of the companies, not IDRA. “What IDRA can do is ensure good governance within the companies,” he said.

“When customers fail to get cooperation from the company, they approach IDRA, which then coordinates with the respective firm to facilitate payment. But given that millions of customers are still waiting for their dues, the number of complaints IDRA has settled is far from satisfactory. IDRA needs to become much more customer-friendly,” he added.

IDRA’s data further shows that many of the country’s 75 life and non-life insurers have kept claims pending for years. Under the Insurance Act, companies are legally required to settle claims within 90 days of maturity—but in practice, this rule remains largely unenforced.

SM Nuruzzaman, Joint Secretary of the Bangladesh Insurance Forum (BIF), said: “Due to poor investments and corruption among owners, insurance firms are failing to pay customers on time. Many have made significant investments in financially unstable banks and leasing companies, leaving them unable to recover their funds. Some also put money into real estate, but even selling the land now cannot cover their liabilities.”

He added that because of such financial mismanagement, customers have no choice but to lodge complaints with IDRA. “However, the number of complaints received and resolved by IDRA is negligible. Not all companies are bad, but for those that are, IDRA must become far more proactive and customer-oriented.”

Among the companies with unpaid claims, the state-owned Sadharan Bima Corporation (SBC) owes customers Tk2,076 crore as of June 2025. It is followed by Green Delta Insurance (Tk270 crore), Progati Insurance (Tk164 crore), Reliance Insurance (Tk101 crore), and Peoples Insurance (Tk81 crore).

Out of a total Tk3,605 crore owed by 46 non-life companies, only Tk300 crore has been paid—meaning 92% of claims remain unsettled.

No resolution to the crisis

Industry insiders attribute the crisis to several factors: owners’ tendency to withhold funds, incomplete customer documentation, delays in survey reports, non-receipt of reinsurance funds from SBC, and poor investment decisions.

They note that when customers fail to recover their claims directly from companies, they turn to IDRA for assistance. But as IDRA’s procedures remain complex and unclear, many policyholders are still reluctant to seek help.

The list of life insurers with unpaid claims includes Fareast Life Insurance (Tk2,742.91 crore), Padma Islami Life Insurance (Tk246.49 crore), Progressive Life Insurance (Tk155 crore), MetLife Bangladesh (Tk48 crore), and Baira Life Insurance (Tk79 crore).

IDRA spokesperson Saifun Nahar Sumi said that the authority itself cannot directly recover money from insurance companies. “When a customer files a complaint with IDRA, the concerned company is requested to settle the claim. If the amount is large or the claim remains unpaid for a long time, IDRA seeks an explanation from the company. Failure to provide a satisfactory response results in a show-cause notice,” she explained.

“In addition, IDRA takes initiatives through its official website and written complaints to help customers recover their claims. We resolve the cases that are formally lodged with us,” she added.

The reporter can be reached at: [email protected]