Customers buy life insurance policies expecting financial security, with the assurance of receiving the promised benefits upon policy maturity or the death of the insured. However, thousands of policyholders are struggling to receive their money, as 36 life insurance companies in Bangladesh have left claims worth nearly Tk 4,894.48 crore unsettled.

Far East Islami Life Insurance is in the worst position, having failed to settle nearly 99% of its total claims.

According to data from the Insurance Development and Regulatory Authority (IDRA), the total outstanding claims of 36 life insurance companies stood at Tk 7,141.21 crore at the end of the third quarter (July-September) of the current year. Of this amount, the companies paid Tk 2,246.73 crore, leaving Tk 4,894.48 crore unsettled.

An analysis of the data reveals significant disparities among insurers in settling claims. While some companies have paid 100% of their claims, the settlement rates of several others remain below 1%.

Far East Islami Life has the largest volume of unsettled claims among the 36 companies. Against total claims of Tk 3,772.71 crore, the company has paid only Tk 42.91 crore, leaving Tk 3,729.79 crore unpaid.

Padma Islami Life ranks second in terms of outstanding claims. Of its total claims of Tk 281.44 crore, only Tk 5.61 crore has been settled.

Sunflower Life has paid Tk 3.80 crore against claims of Tk 216.78 crore, while Progressive Life has settled Tk 13.34 crore out of Tk 161.59 crore.

Bayra Life has total claims of Tk 80.83 crore but has paid only Tk 25 lakh, recording a settlement rate of just 0.3%.

Homeland Life has settled Tk 1.76 crore against claims of Tk 68.53 crore. Golden Life has paid Tk 3.21 crore out of Tk 56.39 crore, while Sunlife has settled Tk 1.84 crore against claims of Tk 33.25 crore.

Despite having a substantial volume of claims, several major insurers have demonstrated comparatively better settlement performance.

MetLife Bangladesh has total claims of Tk 757.10 crore, of which it has settled Tk 690.72 crore, leaving Tk 66.38 crore outstanding.

Among domestic insurers, National Life Insurance has performed relatively well. The company has settled Tk 337.63 crore out of its total claims of Tk 344.38 crore.

The state-owned Jiban Bima Corporation has paid Tk 193.67 crore against claims of Tk 238.11 crore, while Guardian Life has settled Tk 189.32 crore out of Tk 208.69 crore.

Delta Life has paid Tk 111.13 crore against claims of Tk 178.25 crore. Popular Life has settled Tk 151.68 crore out of Tk 155.71 crore, while Prime Islami Life has paid Tk 69.11 crore against claims of Tk 141.18 crore.

Among other insurers, Meghna Life has paid Tk 57.34 crore against claims of Tk 62.39 crore, Sandhani Life has settled Tk 42.59 crore out of Tk 44.72 crore, and Rupali Life has paid Tk 34.13 crore against claims of Tk 34.97 crore.

Smaller insurers show mixed performance

Among other companies, Chartered Life has settled Tk 8.57 crore out of Tk 8.79 crore in claims. Bengal Islami Life has paid Tk 5.62 crore against claims of Tk 6.25 crore, while Shanta Life has settled Tk 5.73 crore out of Tk 6.04 crore.

Zenith Islami Life has settled Tk 3.67 crore out of Tk 3.76 crore, Protective Islami Life has paid Tk 2.93 crore against claims of Tk 3.74 crore, and Jamuna Life has settled Tk 2.22 crore out of Tk 3.39 crore.

Best Life has settled Tk 1.66 crore out of Tk 1.78 crore, while Akij Takaful Life has paid Tk 1.72 crore against claims of Tk 1.74 crore. Diamond Life has settled Tk 1.03 crore against an equal amount of total claims.

Life Insurance Corporation of Bangladesh has paid Tk 1.55 crore out of Tk 1.56 crore, Swadesh Life has settled Tk 90 lakh against claims of Tk 91 lakh, and NRB Islami Life has paid Tk 81 lakh out of Tk 87 lakh.

In contrast, Alpha Islami Life, Mercantile Islami Life and Sonali Life have settled 100% of their respective claims. Their total claims stood at Tk 11.24 crore, Tk 4.96 crore and Tk 124.27 crore, respectively.

The figures highlight a significant gap in the claim-settlement capacity of life insurance companies in Bangladesh. The accumulation of substantial unpaid claims at several insurers has raised concerns over policyholders’ financial protection.

The situation underscores the need for stronger regulatory oversight by IDRA, particularly in assessing insurers’ financial strength and ensuring timely settlement of policyholders’ claims.