IDRA eases claim settlement in response to Covid-19

Dhaka (Dec 26, 2020): The insurance regulator has taken a number of initiatives to help customers deal with the Covid-19 pandemic that has affected almost every business.

The measures include ease of claim settlement, relaxation in motor insurance and a cut in premium rates etc.

Dr. M Mosharraf Hossain, chairman of Insurance Development and Regulatory Authority (IDRA), told this at a webinar on the transformation of insurance industry amid the coronavirus pandemic.

“We have almost halved the premium rate, which has reduced cost of doing business significantly,” Hossain said. “It is right that a cut in premium rate has squeezed insurers’ income, but it has far more impact on a company’s expenditure.”

Usually, claims are settled in 90 days, but due to the pandemic IDRA has brought it down to 30 days for the benefits of the clients, he said.

IDRA chairman also pointed out on the rationalisation of commission to only 15 percent from earlier up to 70 percent in the name of agents.

He also stressed on the automation of the insurance industry as it will help insurers grow further and ensure transparency as well.

Replying to a query, Hossain said exports, imports and all properties should be covered by insurance.