BIA hails IDRA circular

The Bangladesh Insurance Association (BIA) has welcomed the recent circular of the Insurance Development and Regulatory Authority (IDRA) relating to payment of premium and claim. The executive committee of BIA at its recent meeting discussed the circular and welcomed it, said a press release. The Committee welcomed the decision taken by the IDRA for the overall interest of the insurance industry and insuring community of the country. Meanwhile, the IDRA through a circular recently made mandatory demand drafts or pay orders or credit advices or electronic fund transfers or account payee cheques for any premium above Tk 5,000. The IDRA circular also stated insurance documents will be issued only after encashment of the cheque, full premium must be received by the company before issuing any cover notes, policies, endorsements or any other insurance instruments and demand draft or pay order or cheque number and date should have to be mentioned in the money receipt. In connection with refund of premium, the IDRA circular stated any refund of premium, irrespective of amount, must be paid by account payee cheque payable only to the client concerned.