The regulator has summoned all 32 life insurers to appear and account for their business performances in the year closed in December, so that any misdirected financial function of theirs could be averted in the new year.
Officials said a series of meetings of the life-insurance firms with the Insurance Development and Regulatory Authority (IDRA) is meant for taking a close view of their financial health.
Usually, the life firms show their financial transactions under several heads like collection in hand and cash in transit, and collection-control accounts which are deemed against set rules and regulations. All payments must be made through banks.
The life firms also invest in risky markets in defiance of relevant rules and guidelines, which many times lower their yields, the sources said.
However, the stocktaking meetings will continue for five days to January 19. The Authority believes such meetings with insurers' high-ups will help ensure their abilities to settle clients' claims in future.
On average, six life-insurance companies will meet with the IDRA high-ups at its office in the city on a single day.
People familiar with the matter told the FE that meetings will see through all financial activities, including premium incomes, deferred incomes, management expenses, investment and status of their life funds.
"We've asked all CEOs and their CFOS to attend the meetings," an official at the IDRA told the FE Sunday.
"We'll scrutinise every aspect of the insurers during meetings with them, as to whether they are compliant with the act and rules," he said.
They have been invited to the meetings as per section 49 of the Insurance Act 2010.
He said the IDRA will penalise the insurers to be found involved in any type of violation of the rules and regulations.
The officials also will advise them on how to improve their business by complying with the rules and regulations.
Alpha Islami Life, BAIRA Life, Best Life, Chartered Life, Diamond Life, Delta Life and Fareast Islami Life are scheduled to attend the meeting on the first day on January 15.
Golden Life, Guardian Life, Homeland Life, Jamuna Life, state-owned Jiban Bima Corporation, LIC of India and Meghna Life will appear on January 16.
Mercantile Lie, MetLife, National Life, NRB Global, Padma Life and Popular will sit on January 17.
Prime Islami, Progati Life, Progressive Life, Protective Life, Rupali and Sandhani Life will sit on January 18.
The parley with Swadesh Life, Sonali Life, Sunflower Life, Sun Life, Trust Life and Zenith Life is set for January 19.
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