Ins regulator mandates complaints resolution in 90 days

The Insurance Development and Regulatory Authority (IDRA) has formulated draft guidelines to protect policyholder interests, mandating the resolution of grievances and complaints within a maximum of 90 days.
The guidelines say that upon receiving complaints through IDRA's Integrated Grievance Management System, all insurers must take necessary steps to settle them.
These guidelines will come into immediate effect, according to the IDRA notification.
Bangladesh Insurance Association (BIA) Vice President AKM Monirul Hoque said they fully support the guidelines. BIA has submitted official feedback to IDRA on the draft.

"These guidelines will help improve the overall situation of the industry," he added.
As per the Insurer's Corporate Governance Guidelines, 2023, the draft outlines the establishment of a Customer Protection and Grievance Redressal Committee within the board of directors.
This committee will ensure proper procedures and effective measures for a timely settlement of insurance claim-related complaints and customer protection.
In protecting customers, the committee will take necessary actions as defined by existing laws, including the insurance law. The board of directors will provide round-the-clock supervision.
The guidelines require all insurers to have effective systems and processes for receiving, recording and resolving complaints, including IT-based systems, across all offices.
According to the guidelines, grievance redressal procedures  and actions taken should be widely publicised through printed materials, websites and other acceptable mediums.
Insurers must ensure a friendly and responsive approach to handling phone calls, emails and other complaints. The draft set some conditions to determine whether a grievance is settled or terminated.
The termination conditions include the insurer having addressed all of the complainant's requests and received no response within eight weeks.
If the insurer fails to resolve the issue, the complainant can approach IDRA for further resolution.
To promote customer protection, the guidelines advocate for shaping customer awareness. In this regard, its suggestions include publishing and disseminating educational materials like booklets and flyers to improve financial literacy about insurance.
For better insurance awareness, the guidelines call for organising seminars, conferences and workshops. Besides, ensuring up-to-date information about all offered products is readily available on websites and in electronic media has also been suggested.
In case of a breach of contract, as defined in the insurance policy, the policyholder is entitled to protection under these guidelines, except for minor clerical errors that do not affect the fundamental terms of the contract.
Any revisions or amendments to the contract require prior notification to the policyholder.
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