Insurance Development and Regulatory Authority (IDRA) has imposed penalties of Tk1.36 crore on three insurance companies and responsible officers of respective companies for violating rules in insurance business.
The decision came at separate hearings the authority held with each of the companies and their chief executive officers (CEO) including respective branch managers on June 14 at IDRA head office.
The insurance companies facing penalty are Eastland Insurance, City General and Phonix Insurance company.
The authority conducted investigation in different branches of the insurance companies recently and got evidence of business on credit which is a violation of insurance Act 2010, according to the press release IDRA issued yesterday.
According to the statement, IDRA imposed a fine of Tk58.50 lakh on the Eastland Insurance, its branch managers of Karwan bazar, Gulshan, Motizheel, principal branch, Mohakhali branch including Managing Director Arun Kumar Saha of the company.
IDRA got proof of business on credit in Elephant road branch and local office branch of City General Insurance.
It fined a total of Tk24 lakh to the company including respective branch managers and CEO of the company.
The Phonix Insurance including its branch managers of Newmarket branch, Karwan bazar branch and CEO Jamirul Islam have been fined a total of Tk54 lakh for the same offence.