The Insurance Development and Regulatory Authority (IDRA) has instructed Fareast Islami Life Insurance Company not to utilize premium income, investment returns, or life fund if it fails to settle policyholder claims by the end of the month. Fareast’s dismal performance saw only 4% of claims settled by the third quarter of 2023, amounting to Tk 96.58 crore against Tk 2,351 crore claims. The IDRA deemed this settlement ratio “very unsatisfactory” and “very disappointing.” Fareast is now restricted to paying agents no more than 20% of first-year premiums as commission, with the remaining 15% to be deferred and adjusted in the second year. The company attributes its claim settlement challenges to a liquidity crisis and a tarnished reputation, hindering new policy enrollments. The IDRA had previously conducted a special audit revealing embezzlements and accounting irregularities, resulting in a management overhau
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