Idra to pay Tk84cr to 22,030 policyholders in four phases

Fareast Islami Life Insurance Company will disburse the largest amount in the fourth phase, paying Tk8.37 crore to 1,074 policyholders.

The Insurance Development and Regulatory Authority (Idra) is facilitating the payment of more than Tk84 crore in insurance claims to 22,030 policyholders in four phases as part of efforts to settle long-pending claims.

In the latest phase, scheduled for tomorrow (8 November), 5,972 policyholders of five life insurance companies will receive Tk20.15 crore, Idra announced in a press release yesterday.

According to the release, Fareast Islami Life Insurance Company will disburse the largest amount in the fourth phase, paying Tk8.37 crore to 1,074 policyholders.

Homeland Life Insurance Company will pay Tk5.04 crore to 3,163 policyholders, while Padma Islami Life Insurance Company will disburse Tk5 crore to 1,350 customers.

Progressive Life Insurance Company will pay Tk1.67 crore to 344 policyholders, while Bayra Life Insurance Company will provide Tk7 lakh to 41 customers.

Before the fourth phase, 16,058 policyholders had received Tk63.91 crore in three phases.

In the first phase, 2,549 policyholders received Tk14.51 crore, while the second phase covered 5,868 customers, who received Tk23.04 crore.

In the third phase, another 7,641 policyholders received Tk26.37 crore.

With the completion of the fourth phase, the total number of beneficiaries will reach 22,030, while cumulative claim payments will amount to Tk84.06 crore.

The initiative gained momentum after Mir Nadia Nivin took charge as Idra chairman in June 2026, making the settlement of long-pending legitimate insurance claims a top priority.

According to information disclosed by the chairman, around Tk7,000 crore in insurance claims remained unpaid across 82 insurance companies. Of the total, nearly Tk4,500 crore was owed by seven financially distressed life insurance companies.

To address the backlog, Idra has been working with insurers to mobilise funds through the sale of land and other assets, encashment of government securities and recovery of fixed deposits held with banks. The regulator has also prioritised older claims to ensure policyholders receive their legitimate dues.

Idra said the initiative aims to restore customer confidence in the insurance sector and settle legitimate claims that have remained unpaid for years. The regulator is also working to strengthen transparency, accountability and good governance in the industry.

The insurance sector has long faced allegations of delayed claim settlements, mounting unpaid liabilities and customer dissatisfaction. Financial weaknesses and management problems at several life insurers have further prolonged the settlement of policyholders’ claims.

Against this backdrop, the phased payment initiative is seen as an important step towards protecting policyholders’ interests and rebuilding confidence in the insurance industry.

However, clearing the existing backlog remains a major challenge. Ensuring timely claim settlements, strengthening insurers’ financial capacity and improving regulatory oversight will be crucial to restoring confidence and ensuring the sector’s long-term stability.

Source: The Business Standard