Tk 4.4b insurance claims remain unsettled in 6 years
Sunday, 15 July 2007
FE Report
Insurance claims worth Tk4.44 billion have remained unsettled since 2001 mainly due to unethical practices by some general insurance companies and their clients.
The claims include Tk2.10 billion against fire insurance.
Unethical practices including excessive commission payment and providing false information to lower the amount of premium during underwriting of fire policy, are mainly responsible for creating obstacles in settling the insurance claim, said Feroz Ahmed, secretary of the ministry of commerce.
He was speaking as the chief guest at a seminar on 'Role of General Insurance Companies in Creating Awareness and Minimise Losses Due to Fire', organised by Global Insurance Company Limited (GICL) at Hotel Sheraton in the city Saturday.
Of the total Tk 4.44 billion insurance claim, an amount of Tk2.10 billion on reinsurance claim of general insurance companies remained unsettled with the Sadharan Bima Corporation (SBC), said Chief Controller of Insurance Mahfuzul Hoque.
Speaking as the special guest, he said: "We are working hard to bring transparency and ease the existing rules in order to help both the companies and their clientele to settle insurance claims soon after any incident takes place".
The commerce secretary said about 76 per cent of fire incidents take place in the country for faulty electric wiring, buts of burning cigarettes, cooking places and lack of awareness.
He called upon the general insurance companies to come forward to create awareness among the general people, specially their clients, as it falls within the domain of their interest.
Besides conducting of campaigns to create awareness, the commerce secretary stressed the need for fire drills on a regular basis.
Abdul Matlub Ahmed, chairman of the Nitol group, stressed the need for incorporating some lessons on fire fighting at school and college levels.
He also underlined the need for insurance coverage of all property and taking care of them as per government rules and guidelines of insurance companies.
Earlier, ABM Nurul Hoque, managing director of the GICL, and M Abdus Salam, principal of Fire Service and Civil Defense Training College, presented two papers mentioning the role of insurance companies and the importance of preventive measures.
The chairman of the GICL Mahbub Morshed Talukder presided over the seminar. Mobassher Hossain, President of Institute of Architecture, A K M Sahid Reza, director of Mercantile Bank Ltd and Md Selim, director of GICL, among others, took part in the discussion.
Speakers stressed the need for using the latest technology including good quality circuit breakers, cables, and fire detecting machines, installation of sprinklers and fire extinguishers as part of preventive measures.
They said there must be a minimum quantity of water in reserve tank, dry powder, sand, bucket, and chemical extinguishers in every high-rise building and factories for emergency use during any fire incident.
Insurance claims worth Tk4.44 billion have remained unsettled since 2001 mainly due to unethical practices by some general insurance companies and their clients.
The claims include Tk2.10 billion against fire insurance.
Unethical practices including excessive commission payment and providing false information to lower the amount of premium during underwriting of fire policy, are mainly responsible for creating obstacles in settling the insurance claim, said Feroz Ahmed, secretary of the ministry of commerce.
He was speaking as the chief guest at a seminar on 'Role of General Insurance Companies in Creating Awareness and Minimise Losses Due to Fire', organised by Global Insurance Company Limited (GICL) at Hotel Sheraton in the city Saturday.
Of the total Tk 4.44 billion insurance claim, an amount of Tk2.10 billion on reinsurance claim of general insurance companies remained unsettled with the Sadharan Bima Corporation (SBC), said Chief Controller of Insurance Mahfuzul Hoque.
Speaking as the special guest, he said: "We are working hard to bring transparency and ease the existing rules in order to help both the companies and their clientele to settle insurance claims soon after any incident takes place".
The commerce secretary said about 76 per cent of fire incidents take place in the country for faulty electric wiring, buts of burning cigarettes, cooking places and lack of awareness.
He called upon the general insurance companies to come forward to create awareness among the general people, specially their clients, as it falls within the domain of their interest.
Besides conducting of campaigns to create awareness, the commerce secretary stressed the need for fire drills on a regular basis.
Abdul Matlub Ahmed, chairman of the Nitol group, stressed the need for incorporating some lessons on fire fighting at school and college levels.
He also underlined the need for insurance coverage of all property and taking care of them as per government rules and guidelines of insurance companies.
Earlier, ABM Nurul Hoque, managing director of the GICL, and M Abdus Salam, principal of Fire Service and Civil Defense Training College, presented two papers mentioning the role of insurance companies and the importance of preventive measures.
The chairman of the GICL Mahbub Morshed Talukder presided over the seminar. Mobassher Hossain, President of Institute of Architecture, A K M Sahid Reza, director of Mercantile Bank Ltd and Md Selim, director of GICL, among others, took part in the discussion.
Speakers stressed the need for using the latest technology including good quality circuit breakers, cables, and fire detecting machines, installation of sprinklers and fire extinguishers as part of preventive measures.
They said there must be a minimum quantity of water in reserve tank, dry powder, sand, bucket, and chemical extinguishers in every high-rise building and factories for emergency use during any fire incident.