5 years ago

BB to help insurance companies implement regulatory decisions

Picture used for illustrative purpose only — Collected
Picture used for illustrative purpose only — Collected

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The central bank assured on Thursday non-life insurance companies of providing all sorts of assistance in regard to a recent circular issued by Insurance Development and Regulatory Authority (IDRA).

The assurance came at a tripartite meeting held at Bangladesh Bank where representatives from IDRA and Bangladesh Insurance Association (BIA) were present.

BIA chairman Sheikh Kabir Hossain told the FE that the governor of Bangladesh Bank assured non-life insurance companies that the central bank will help the industry implement recent regulatory decisions.

IDRA issued a notification to non-life insurance companies last week, asking them to make all kinds of payment or expenditure through the banking channel.

The insurance regulator also asked the non-life insurance firms to stipulate three bank accounts they maintain to procure business and disburse commission as part of monitoring the implementation of the order.

Besides, the non-life firms will have to submit monthly statements of their transactions to the IDRA.

Therefore, insurance companies can have an account at any of three different scheduled banks. If a company has already deposited money in more than three bank accounts, additional accounts will have to be closed by July 31.

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