Insurance Development and Regulatory Authority (IDRA) yesterday fined Karnarfuli Insurance and its top brass Tk9 lakh for violating the insurance act.
The decision came at a hearing on November 11 at IDRA headquarters, said a press release issued.
The insurance regulator carried out an investigation in the local branch of the company in September. The investigation found the evidence of doing business on credit, which goes against the rule.
The authority held a hearing on the issue in presence of the Chief Executive Officer of the insurance company, Hafizullah, with IDRA Chairman M Shefqu Ahmed in the chair.
The management of Karnaphuli Insurance admitted its offence at the hearing.
In this perspective, the authority fined the company Tk2 lakh for each month of June, November and December, totaling Tk6 lakh.
Moreover, Hafizullah and local branch Manager AHM Anwar Naoaz Khan of the company were fined Tk1.50 lakh each, according to the release.
