Insurers reluctant to claim settlement

3 lakh insurance claims unsettled in 2018

Sohel Hossain Patwary

21st July, 2019 02:57:06 printer

Insurers reluctant to claim settlement

A large number of claims remain unsettled with the country’s insurance companies, affecting the customers and their trust in the entire sector.

According to the Insurance Development Regulatory Authority (IDRA) data, 32 life insurance companies and 47 non-life insurance companies had not settled more than three lakh insurance claims of their customers in 2018.

A special report of IDRA mentioned that there had been more than 24 lakh insurance claims from customers to 79 insurance companies in 2018. Of the claims, the insurers had settled around 21 lakh claims.

Though the companies settled a large number of claims, the report said little attention has been given to more than 3 lakh unsettled claims, causing suffering for the customers.

Of the two genres of insurance, life insurance companies had not settled around 2.95 lakh claims while 13,238 claims remain pending with non-life insurance companies, IDRA sources said.

Top officials of IDRA said that insurance companies pay less focus on settling claims of customers. After the maturity of claims, the companies do not concentrate on paying claims of death, health and property insurance to the customers, they said.

As the last hope, customers seek the intervention of insurance regulatory authority to get their claims.

“The Insurance Development Regulatory Authority has been arranging awareness programmes, seminars, workshops and insurance fairs to highlight the positive image of the insurance sector,” said IDRA Director Abul Kashem.

“IDRA is especially focusing on claim settlement with the insurance companies as this is the biggest issue in this sector,” he added.

He also said that they have taken special measures against the companies which are apparently reluctant to pay claims to the customers.

Sources at IDRA said that most of the insurance companies had reported good profit from premium last year.

A total of 79 insurance companies collected Tk 12,416 crore in premium from their customers in 2018, up from Tk 11,179 crore in 2017.

Sector insiders said despite their good financial position the insurers are not fully sincere in claim settlement.

IDRA member Md Borhan Uddin said the insurance companies have to focus on claim settlement for gaining the confidence of customers.

“We immediately look into the complaints we get from the customers,” he said.

IDRA has a special cell for dealing with the claim settlement of customers and insurers.