The High Court has stayed a suspension order on the licence of Standard Insurance Limited and asked the insurance regulator to explain why the suspension order should not be declared illegal.
As a result, the company will now be able to resume regular operations.
On June 17, the Insurance Development and Regulatory Authority (IRDA), suspended the operating licence of Standard Insurance Limited for three months, accusing the company of failing to re-insure its policies worth Tk46.33 crore.
The IRDA also instructed the private insurer not to issue cover notes or insurance certificates.
Soon after, the company moved the High Court with a writ petition against the regulator’s order.
After hearing on that petition, the High Court has recently stayed the order. It further asked the regulator to explain within the next six months why the cancellation of the licence should not be declared illegal.
