IDRA\\\'s highest ever fine imposed on Progati Ins

The insurance regulator imposed a fine of Tk 30 million on Monday on a non-life insurance company. This is the ever highest penalty in the insurance sector of the country.
This amount of fine is almost equivalent to 70 per cent of its all previous fines imposed on 35 non-life firms since 2011.
The regulator is on a crusade against business on credits since 2011. It had issued a circular on it in November 2011.
It had fined Pioneer Insurance Tk 3.9 million in December 2014. And that was till then the highest in record.
But Monday's fine has superseded all previous records.
The Insurance Development and Regulatory Authority (IDRA) has fined Progati Insurance Company for its doing business on credits.
The regulator has found that eight of its branches in the city were involved in the business on credits.
In instant reactions, representatives of the Progati expressed their deep dismay and some of them said the regulator could have hanged them till death instead of imposing such a big amount of fine.
The regulator has found that its eight branches have been doing business on credit since 2011. It said the insurance company even did not get premiums for years.
On Monday the IDRA imposed Tk 6.0 million in fine for Progati's business on credit at its Sadarghat branch, Tk 5.4 million at Motijheel branch, Tk 3.6 million at Elephant Road branch, Tk 4.2 million at Karwan Bazar branch, Tk 1.2 million at Biman Bhavan branch, Tk 3.3 million at Dilkhusha branch, Tk 3.9 million at Bangabandhu Avenue branch and Tk 2.4 million at Malibagh branch.
The fines have been imposed on the company, chief executive officer and branch managers.
The fines usually have to be paid within seven days after formal issuance of letter.
The regulator has imposed the fines under the section of 18(3) of the Insurance Act of 2010 and the corresponding sections from 44-51 of the Rules of 1958.
IDRA Chairman M Shefaque Ahmed presided over Monday's hearing while its two members --- Murshid Alam and Zubair Ahmed Khan -- were also present.
Progoti Insurance managing director Md Monirul Islam and managers of all eight branches were present during the hearing.
    jasimharoon@yahoo.com