Over half of the life insurance companies in Bangladesh exceeded their allowable management expense in 2021, putting a negative impact on life funds and eroding their capacity to settle claims.
Embezzlement of funds, corruption, revenue evasion, and mismanagement by the suspended board and management have cost Delta Life Insurance Company Ltd Tk 3,687 crore in financial losses, according to a new audit.
DELTA LIFE INS CRISIS Star Business Report Star Business Report
The Bangladesh Securities and Exchange Commission (BSEC) has appointed a special auditor for Delta Life Insurance Company to assess the firm s health.
The move comes following allegations of regulatory breaches by the listed insurer.
The Insurance Development and Regulatory Authority (IDRA) appointed Sultan-ul-abedin Mollah as an administrator of Delta Life Insurance on February 11.
The IDRA said they took this initiative to protect the policyholders interests and submit a report on the company s situation within four months.
Earlier, Delta Life Insurance accused IDRA Chairman M Mosharraf Hossain of seeking Tk 50 lakh in bribes to approve the reappointment of the company s CEO and renewing the actuarial valuation basis.
Delta Life to appoint US actuary firm to assess health Star Business Report Star Business Report
Delta Life Insurance is going to appoint a foreign actuary firm to get an independent assessment of the health of the insurer, which came into the spotlight for breaching rules and making bribery allegation against the head of the industry regulator.
After appointing an administrator in the company, the Insurance Development and Regulatory Authority (IDRA) ordered special audits into Delta Life Insurance to ascertain the authenticity of allegations from stakeholders.
The auditors earlier found that the company was in breach of several regulations and that further investigation was required.
Case filed over Tk 35.18cr VAT evasion
Administrator appointed to Delta Life Ins
The Insurance Development & Regulatory Authority (IDRA) yesterday appointed an administrator with immediate effect to one of the sector s leading entities, Delta Life Insurance Company, explaining that it was to protect policyholders interests.
Meanwhile, the VAT Audit, Intelligence and Investigation Directorate filed a case against the Delta under the VAT act alleging that it had evaded paying Tk 35.18 crore in VAT.
The insurance regulator s logic behind appointing Sultan-ul-abedin Mollah, a former IDRA member, was the unearthing of many rule and regulation breaches, which came to light through special and investigative audits.