HC grants stay order

The High Court on Monday granted a six-month stay order on the insurance regulator's decision of suspending the operating licence of Standard Insurance for three months.
The insurance regulator IDRA suspended the operating license of the non-life insurance company for not complying with the mandatory reinsurance.
The court gave the decision following Standard Insurance's petition challenging the Insurance Develop­ment and Regulatory Authority's (IDRA) order to suspend the operating licence of the insurer effective from June 21.
IDRA suspended the licence after it found that Standard failed to reinsure its policies worth Tk 463.3 billion, which the private insurer claimed was 'good risk', not mandatory reinsurance.
While talking to the FE managing director of the Standard Insurance Amar Krishna Saha said: "Now there is no bar in running our business".
Now over 400 employees of the company can breathe a sigh of relief as they will get salaries and bonuses ahead of the Eid-ul-Fitr, he said.
IDRA suspended Standard's licence for three months, but the High Court granted a six-month stay.
Mr Saha said: "We wanted six months to avert IDRA's hassle after three months".
IDRA instructed the private insurer not to issue cover notes or insurance certificates. The company would also be banned from new business activities during the suspension period effective on June 21.
The regulator asked the company to explain within 30 days why its licence should not be revoked. Standard Insurance can seek an appearance before the IDRA if it wishes, the regulator said
jasimharoon@yahoo.com