The insurance regulator asked Tuesday all the insurance firms to abide by the rules in appointing the chief executive officer (CEO) in their respective companies.
The Insurance Development and Regulatory Authority (IDRA) noted many insurance companies flouting the set rules in this matter.
It issued a circular on February 17 in this regard with IDRA chairman M Shefaque Ahmed (Actuary) as the undersigned.
The Authority also found many insurance firms paying salaries and other fringe benefits to the CEOs whose age-limit is already expired.
There are many deputies working as in-charge of the CEO seats but enjoying all benefits a CEO is entitled to.
The government issued the rules for appointing CEOs in the insurance companies in light with the Insurance Act 2010.
According to the rules, the educational qualifications for the post of chief executive officer or managing director for both life and non-life insurers is three-year bachelor's degree (Honours) along with one-year post-graduation.
The CEOs having four-year bachelor's degrees will not require Master's or postgraduate degrees.
Apart from this high educational qualification, the maximum age for the position has been set at 67 and the minimum at 40.
"The would-be CEOs must have 15 years of insurance-job experience, including at least three-year experience in a post just below the managing director," the gazette notification says.
The 15-year job experience will be relaxed to 10 years if they have degrees of actuarial science and are fellows or associates of the Institute and Faculty of Actuaries, the UK, or the Society of Actuaries, the USA.
The 15-year experience of CEOs will be relaxed to 12 years, if they become fellows or associates of Chartered Insurance Institute of the UK, Chartered Life Underwriter, Fellows or Associates of Life Management Institute, Institute of Chartered Accountants of Bangladesh, Institute of Chartered Accountants of England and Wales, Association of Chartered Certified Accountants, Institute of Cost and Management Accountants, Chartered Financial Analysts and Chartered Public Accountants.
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