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IDRA fines three insurers for running business on credit
Tk 50,000 realised from 5 branches each
Insurance Development and Regulatory Authority (IDRA) Monday fined five branches of three insurance companies Tk 50,000 each on charge of running business on credit, breaching IDRA law.
Two branches of Federal Insurance Company at Jubilee road in Chittagong and Ramna in Dhaka, one of People’s Insurance Company at Jubilee road, and two of Northern General Insurance Co Ltd at Bangshal and Purana Paltan were fined.
IDRA sources said a vigilance team of insurance watchdog visited Ramna and Jubilee road branches of Federal Insurance on 18 and 23 April last and checked their money receipts and bank statements. The insurance watchdog found the company doing business on credit which is a flagrant breach of IDRA rules and regulations.
Similarly, a team of IDRA, on 23 April and 24 April respectively, found the Jubilee road branch of People’s Insurance Company, and Purana Paltan and Bangshal branches of Northern General Insurance doing business on credit.
Taking the allegations into consideration, a hearing was arranged at IDRA office Monday that fined the branches Tk 50,000 each.
Three members of IDRA and high-ups of accused insurance companies including the branch managers were present during the hearing.
[ Business ] 2012-06-19