The nation’s life insurance providers are not paying their clients’ claims in full. Consequently, the number of unresolved insurance claims keeps rising. Sixty-five percent of the claims filed in the first nine months of this year were not paid by life insurance firms. Nearly 99 percent of insurance claims at the troubled Fareast Islami Life Insurance go unpaid, making it the poorest performer in claim settlement.
According to a recent report prepared by the Insurance Development and Regulatory Authority (IDRA), from January to September of the current year, insurance claims worth BDT 5,986 crore 48 lakh were submitted to 36 life insurance companies operating in the country. In contrast, the companies paid only BDT 2,105 crore 90 lakh, leaving BDT 3,880 crore 58 lakh unpaid. This means only 35 percent of claims were settled.
Seven companies are mainly responsible for 65 percent of unpaid claims across the life insurance sector. These include Fareast Islami Life Insurance, Padma Islami Life Insurance, Progressive Life, Sunflower Life Insurance, Golden Life, Homeland Life, Bayra Life, and Sun Life Insurance. Almost all claims at these companies remain unpaid. The total outstanding claims at these companies amount to BDT 3,571 crore 90 lakh more than 90 percent of all unpaid claims in the life insurance sector.
Data analysis shows that Fareast Islami Life Insurance has the highest amount of unpaid claims. Claims worth BDT 2,815 crore were submitted to the company, of which only BDT 34 crore 95 lakh were paid. As a result, unpaid claims stand at BDT 2,780 crore 05 lakh, with a non-payment rate of 98.96 percent.
A handful of companies are damaging the overall insurance sector. Their failure to properly settle customer claims has created a crisis of trust across the industry. Until these companies can pay customers’ claim amounts, they should not be allowed to issue new policies. Md. Jalalul Azim, CEO of Pragati Life
At Bayra Life, claims worth BDT 79 crore 68 lakh were submitted, but only BDT 40 lakh were paid, leaving BDT 79 crore 28 lakh unpaid. At Padma Islami Life Insurance, claims totaled BDT 257 crore 42 lakh, of which only BDT 2 crore 14 lakh were paid, leaving BDT 255 crore 29 lakh unpaid. Homeland Life paid BDT 63 lakh against claims of BDT 34 crore 84 lakh, leaving BDT 34 crore 21 lakh unpaid.
Golden Life paid BDT 1 crore 67 lakh against claims of BDT 43 crore 27 lakh, leaving BDT 41 crore 59 lakh unpaid. Progressive Life paid BDT 9 crore 48 lakh out of claims worth BDT 162 crore 86 lakh, leaving BDT 153 crore 38 lakh unpaid. Sunflower Life paid BDT 3 crore 94 lakh against claims of BDT 194 crore 52 lakh, leaving BDT 190 crore 58 lakh unpaid.
On the other hand, Alpha Life, LIC Bangladesh, Mercantile Life, and Sonali Life have the highest claim settlement rates, having paid 100 percent of submitted claims. Alpha Life paid BDT 11 crore 29 lakh, LIC Bangladesh BDT 1 crore 24 lakh, Mercantile Life BDT 4 crore 5 lakh, and Sonali Life BDT 98 crore 17 lakh in full.
Popular Life ranks next, having paid BDT 102 crore 57 lakh out of BDT 104 crore 76 lakh in claims, leaving BDT 2 crore 18 lakh unpaid a settlement rate of 97.91 percent.
“They will not be able to pay anymore. Their money has gone abroad. IDRA has drafted the Insurance Regulation Act–2025. If it is passed, customer payments can be arranged accordingly.” Saifunnahar Sumi, Spokesperson, IDRA
In terms of total amount paid, MetLife Bangladesh settled the highest claims. During the first nine months of the year, claims worth BDT 839 crore 78 lakh were submitted, of which BDT 769 crore were paid, leaving BDT 70 crore 78 lakh unpaid. The settlement rate stands at 91.57 percent.
Akij Takaful Life paid BDT 1 crore 22 lakh out of BDT 1 crore 24 lakh; Aastha Life paid BDT 4 crore 8 lakh out of BDT 4 crore 9 lakh; Bengal Life paid BDT 3 crore 78 lakh out of BDT 4 crore 5 lakh; Best Life paid BDT 1 crore 15 lakh out of BDT 1 crore 27 lakh; Chartered Life paid BDT 3 crore 69 lakh out of BDT 4 crore 30 lakh; Diamond Life paid BDT 81 lakh out of BDT 1 crore 9 lakh; Guardian Life paid BDT 135 crore 95 lakh out of BDT 146 crore 4 lakh; Jamuna Life paid BDT 2 crore 30 lakh out of BDT 2 crore 56 lakh; NRB Islami Life paid BDT 58 lakh out of BDT 66 lakh; Protective Islami Life paid BDT 2 crore 88 lakh out of BDT 4 crore 24 lakh; Shanta Life paid BDT 99 lakh out of BDT 1 crore 4 lakh; Swadesh Life paid BDT 48 lakh out of BDT 52 lakh; Trust Islami Life paid BDT 3 crore 29 lakh out of BDT 3 crore 37 lakh; and Zenith Islami Life paid BDT 2 crore 77 lakh out of BDT 2 crore 88 lakh.
Among older companies, Delta Life paid BDT 195 crore out of BDT 241 crore 68 lakh; Jiban Bima Corporation paid BDT 139 crore 95 lakh out of BDT 234 crore 31 lakh; Meghna Life paid BDT 59 crore 80 lakh out of BDT 62 crore 86 lakh; National Life paid BDT 291 crore 88 lakh out of BDT 304 crore 53 lakh; Pragati Life paid BDT 76 crore 69 lakh out of BDT 82 crore 37 lakh; Prime Islami Life paid BDT 67 crore out of BDT 123 crore 96 lakh; Rupali Life paid BDT 27 crore 87 lakh out of BDT 28 crore 42 lakh; and Sandhani Life paid BDT 41 crore 87 lakh out of BDT 44 crore 23 lakh.
Among newer companies, outstanding claims include BDT 2 lakh at Akij Takaful Life, BDT 1 lakh at Aastha Life, BDT 27 lakh at Bengal Life, BDT 12 lakh at Best Life, BDT 61 lakh at Chartered Life, BDT 28 lakh at Diamond Life, BDT 10 crore 9 lakh at Guardian Life, BDT 25 lakh at Jamuna Life, BDT 7 lakh at NRB Islami Life, BDT 1 crore 36 lakh at Protective Islami Life, BDT 5 lakh at Shanta Life, BDT 4 lakh at Swadesh Life, BDT 8 lakh at Trust Islami Life, and BDT 11 lakh at Zenith Islami Life.
Among older companies, outstanding claims include BDT 46 crore 68 lakh at Delta Life, BDT 94 crore 36 lakh at Jiban Bima Corporation, BDT 3 crore 6 lakh at Meghna Life, BDT 12 crore 65 lakh at National Life, BDT 5 crore 68 lakh at Pragati Life, BDT 56 crore 95 lakh at Prime Islami Life, BDT 55 lakh at Rupali Life, and BDT 2 crore 36 lakh at Sandhani Life.
Speaking to Media, Pragati Life CEO Md. Jalalul Azim said that having 65 percent of life insurance claims unpaid is not a good sign. A few companies are responsible for this situation, and regulators should take action against them.
IDRA spokesperson Saifunnahar Sumi told Media that more than BDT 2,500 crore of unpaid claims belong to Fareast Life, which has no funds. Several other companies are also contributing to the high volume of unpaid claims.
When asked about plans regarding these companies, she said, “They will not be able to pay. Their money has gone abroad. IDRA has drafted the Insurance Regulation Act–2025, and if it is passed, arrangements can be made to pay customers accordingly.”
