The Insurance Development and Regulatory Authority (IDRA) has finally issued the notice of cancelling the business licence of Standard Insurance for rule violations.
The authority sent a letter in this regard to the company on Sunday, and the cancellation order is effective from the same day.
Earlier on November 10, the IDRA board took the decision of voiding the insurance’s licence, first ever in the country’s history.
The insurance regulator’s Chairman M Shefaq Ahmed said the licence was cancelled on the grounds of rule violations.
The letter said the company was given a chance of being reformed, but it did not comply with that even five months after the licence was suspended on June 17 this year.
Moreover, the insurance kept violating the rules repeatedly and was involved in irregularities during the suspension period.
Investigation found that the company did not re-insure the policies of Tk127.56 crore during the year 2013-14.
Standard Insurance can appeal against the cancellation order to the government within 90 days.
The company cannot make any new insurance contract after the cancellation of its licence, but the contracts made before the licence cancellation will continue.
Amar Krishna Saha, chief executive officer of the company said they have got the letter of licence cancellation.
The company will appeal for reconsideration of the order, he added.
