Chairman of the Insurance Development and Regulatory Authority (IDRA). M Aslam Alam said that the Insurance Act is very flawed. This act has been made in favor of insurers by weakening IDRA. If IDRA suspends someone, they go to court and come back with stay order. Therefore, there is a need to strengthen IDRA in a large way.
He said these things while speaking as the chief guest at a seminar titled ‘Insurance Sector Reforms and What We Can Do’ held at the IDRA office on Wednesday (March 12). The seminar was jointly organized by the Insurance Development and Regulatory Authority (IDRA) and the Insurance Reporters Forum (IRF).
Two papers were presented at the event, chaired by IRF President Gazi Anwar. Pragati Life Chief Executive Officer Md. Jalalul Azim presented an article on the life insurance sector and Sena Insurance Chief Executive Brigadier General Shafiq Shamim presented an article on the non-life sector.
Members of the Insurance Development and Regulatory Authority, CEOs of life and non-life insurance companies and journalists working on the insurance sector in the media participated in the seminar.
Commenting on the need to increase the capacity of IDRA in the reform of the insurance sector, the chairman of the organization, Dr. M Aslam Alam, said, IDRA exists in name, but does not work. Because, IDRA cannot exercise its powers. But if we want to develop this sector, IDRA must be given the opportunity to perform its duties. We must create a supportive environment for exercising power.
The IDRA chairman said, to take any decision, information is needed. But insurance companies do not want to provide accurate information. It is also not certain whether the information they provide is fabricated (fake or fraudulent). He said, 85 percent of irregularities and corruption will be stopped if digitalization is implemented. We are taking steps but we are not getting cooperation.
The IDRA chairman also said, IMS, which was known as UMP, is providing 10 services. This information plays a very important role in monitoring insurance companies. IDRA will be able to work if full information is provided in the IMS. But the new committee of BIA has announced that they will not cooperate in its implementation.
Dr. M Aslam Alam said, apart from digitalization, it would have been possible if there were enough manpower. But IDRA has to work with a small number of manpower and low technology. However, work is being done with everything necessary for the development of the insurance sector. This will take time, it cannot be done overnight.
Regarding the outstanding insurance claims of customers, he said, IDRA does not have the power to pay the claims by selling the assets of significant shareholders. For this, it has to go to court. In the meantime, several cases are pending with the authority. He also said that if outstanding insurance claims are not paid, people’s confidence in insurance will not increase. Confidence will increase if good governance is established.
