Insurance Development and Regulatory Authority (IDRA) has now turned into a guardian-less entity as four key positions, out of its top-five, have fallen vacant since Wednesday.
As a result, the regulator of the insurance companies has already started facing a setback not only in performing its routine jobs, but also failing to make any policy decisions, according to sources.
Meanwhile, the government, issued a circular on Wednesday with an order for bestowing the charges of the chairman to Md. Fazlul Karim, the lone existing member of IDRA. But, the regulator requires at least three members, including chairman, to hold a commission meeting, according to IDRA Act.
The post of IDRA chairman remained vacant since January 26, the day when a three-year contractual appointment of M Shefaque Ahmed expired. Contractual appointment of Naba Gopal Banik, a member of the IDRA, also expired on Wednesday last.
Nurul Islam Molla, another member, went on retirement on health grounds in December last and contractual appointment of Syed Ahmed, another member, expired on April 2013.
Consequently, all the vital policy-related work initiated by the regulator in 2011 to bring the disorganised and unregulated insurance sector into a regulated one, is also poised to be hampered largely.
The government had earlier established the IDRA in January 2011, replacing the department of insurance to develop the insurance industry through enacting an act in the parliament. Since then, a good numbers of rules and regulations were amended and framed to protect the rights of policyholders.
IDRA now provides registration certificates to insurance companies and offers policyholders the right to voice their complaints against insurers or insurance companies.
It specifies the requisite qualifications for managing directors and sets code of conduct for insurance firms, agents and others concerned. It fines, levies fees and other charges to carry out the purposes of the insurance Act of 2010.
“Policy-related jobs as well as daily activities have badly suffered as it is difficult for us to make any policy decisions without holding a meeting of the commission, which is now also facing quorum crisis,’’ Fazlul Karim, acting chairman of IDRA, told the Dhaka Tribune yesterday.