Fareast Insurance former chairman Nazrul booked for Tk 2.07 billion embezzlement

The Anti-Corruption Commission (ACC) had arrested Md Nazrul Islam, former Chairman of Faireast Islami Life Insurance Company Ltd, from the city's Banshal area on Thursday.

The arrest relates to a case of embezzlement totalling Tk 2.07 billion.

According to the ACC, while serving as chairman, Nazrul Islam, in collusion with other accused, misused his authority to buy and sell 33.56 per cent of land and buildings at 36 Topkhana Road in the company’s name, amounting to Tk 207.6 billion.

From the proceeds, he transferred Tk 450 million through various banks to conceal the illegal origin of the funds.

Out of this amount, Nazrul Islam and his wife, Mrs Taslima Islam, allegedly embezzled BDT 195 million in collusion with the sellers.

The ACC has requested a 7-day remand from the Senior Special Judge Court in Dhaka to interrogate him and uncover further details about the case, including the involvement of other individuals.

The court will decide on the remand request in due course.

Insurance claim settlements in the country took a nosedive, exposing the fragile state of insurers marred by cash shortages, irregularities and corruption.

According to data released by the Insurance Development and Regulatory Authority (IDRA), only 27.12 per cent of insurance claims were settled by the end of in January-March period in 2025 in the country.

In monetary terms, insurers paid out Tk 26.63 billion against total claims amounting to Tk 98.20 billion.

Fareast Islami Life Insurance, which had the highest total claims of Tk 29.76 billion, settled only Tk 583 million, reflecting a settlement ratio of just 1.96 per cent.

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