Progressive Life Insurance comes under scrutiny for alleged misconducts

Mohammad Mufazzal | Published: July 02, 2023 22:15:34

The securities regulator has formed an inquiry committee to dig out illegal activities, if any, conducted by the chairman of Progressive Life Insurance Company.
A three-member committee formed on June 22 by the Bangladesh Securities and Exchange Commission (BSEC) will submit a report within 60 days from the date of the issuance of the order.
The move came after some ex-sponsor directors and shareholders of the Progressive Life Insurance Company submitted a complaint letter.
The role of independent directors will come under scrutiny during the investigation.
The committee has also been asked to collect relevant documents and find out people behind unlawful activities, if there is any, committed in the company.
According to the letter sent to the commission, the company spent Tk 550 million, including Tk 450 million to pay policy holders, but there is no proper record keeping of that. The letter does not mention any time frame.
Three former chairmen and sponsor directors, and one former vice chairman and sponsor director of the company lodged the complaint with the securities regulator.
The complaint letter says the company has not published financial statements for the years 2020-22.
The company's annual general meetings (AGMs) were also not held during the period.
The meetings of the company's board of directors, sub-committee, audit committee, executive committee and NRC (Nomination and Remuneration Committee) are also pending.
Meanwhile, five top level executives were promoted.
The company secretary of Progressive Life, Md. Johir Uddin said the securities regulator had previously probed the company.
"But we are yet to be aware of the newly-formed inquiry committee."
Meanwhile, the Insurance Development and Regulatory Authority (IDRA) in June appointed Md. Abdul Mozid, director, IDRA, as observer to the company's board of directors.
The purpose is to protect the interest of policy holders and to ensure good governance of the company.
The IDRA stated that policyholders had constantly been filing complaints with IDRA for non-payment of insurance claims on time.
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