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Search date: 09-11-2020 Return to current date: Click here

IDRA fines life insurer

Regulator delays okaying valuation report, says co CFO

FE REPORT | November 09, 2020 00:00:00

The insurance regulator has fined one of the largest life insurers as it said the company has violated a section of the insurance law of 2010.

The Insurance Development and Regulatory Authority (IDRA) has imposed a fine of over Tk 1.8 million on Delta Life.

On November 05, the IDRA sent a letter to the life insurer signed by Shah Alam, a deputy secretary who serves at the regulatory agency.

The IDRA letter said that the life insurer failed to submit its audited reports within six months after the end of its financial year. The financial year of insurers is between January and December.

The letter said the insurer should have submitted its financial report by June 30, 2020.

Besides, the life insurance company did not submit its actuarial valuation report to the IDRA within September 2019.

It has fined Tk 1.13 million to the company and Tk 730,000 to the CEO.

When contacted, its chief financial officer (CFO) Miltan Bepari said that they had failed to submit the audited report as they did not get a required approval called actuarial valuation report from the IDRA.

"We applied for the approval on February 27, but the IDRA did not approve it in time," he said.

IDRA, however, approved the valuation report on November 05, Mr. Bepari said.

Mr Bepari said they had planned to finalise the financial report within June 30.

He said they also had a plan to hold its annual general meeting within June 30.

He said Delta Life is a listed company and as per the listing regulation of 2015 (19), the actuarial valuation report is mandatory for finalising its audit.

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