The Insurance Development and Regulatory Authority (IDRA) has imposed a fine of total Tk20 lakh on the Padma Islami Life Insurance company board members for violating the Chief Executive Officer’s appointment rules.
The decision came at a hearing IDRA held at its headquarters on April 1 with the company’s board members.
IDRA Chairman M Shefaq Ahmed presided over the hearing while the insurance company Chairman ABM Zafar Ullah was present, among others, said a press release IDRA issued yesterday.
All the board members have been fined Tk1 lakh each for keeping the CEO post vacant for one year, according to the decision.
The company will have to pay fine of Tk5,000 per day if the measures of appointing CEO are not taken by May 1 next.
The CEO post in Padma Life Insurance remained vacant since March 19 last year.
On May 5 last year, the authority asked the company to appoint a CEO through a letter.
Later, the company sent a letter, seeking the approval of Mohammad Wasiuddin as CEO on January 5 this year.
The authority rejected the proposal as Wasiuddin was not qualified as CEO.
The directors who have been fined are – Chairman ABM Zafar Ullah, Vice- Chairman AFM Obaidur, Director Abu Taher, ATM Rafique, Nazim Uddin Ahmed, Nazmun Nahar, Zainal Abedin Zafar, ATM Anayet Ullah, Abdul Mujib Chowdhury, Nadera Saberin, AKM Anwaruzzaman, Fatema Begum, Independent Director Nurul Islam Chowdhury, Dewan Sultan Ahmed, Public Shareholder Director Nargis Wazed, Suriya Basar, Abul Kashem, Mohammad Muntasir Karim and Rasheda Jahan.
According to the insurance companies act, the post of CEO cannot remain vacant for more than three months. IDRA, however, has the authority to extend the period by three more months.
Earlier, IDRA fined Union Insurance Tk5 lakh for the same.
