The Insurance Development and Regulatory Authority (IDRA) has taken a groundbreaking step to settle long-standing unpaid claims of insurance customers. As part of this process, a total of BDT 5.42 crore has been paid to 523 customers of Far East Islami Life Insurance Company Limited. This claim settlement activity officially commenced on Sunday, August 30, 2026, and is considered a significant milestone in restoring customer confidence in the insurance sector. The partial settlement of these long-pending claims was made possible under the direct guidance and close supervision of IDRA Chairman Mir Nadia Nivin.
According to IDRA sources, the necessary funds for settling customer insurance claims were arranged by monetizing Far East Islami Life's security bonds. Subsequently, the funds were directly transferred to the customers' respective bank accounts using the Bangladesh Electronic Fund Transfer Network (BEFTN) system via banking channels. The regulatory body stated that maximum transparency and accountability were ensured throughout this entire process, which was crucial given many past complaints.
For a long time, the non-payment of insurance claims by various companies in Bangladesh's insurance sector had created a deep crisis of confidence. This situation has damaged the overall image of the insurance industry and posed a significant barrier to attracting new customers. Against this backdrop, IDRA is working with the highest priority on settling outstanding claims. The authority has clearly stated that ensuring the payment of legitimate claims to insurance customers is one of its primary goals and responsibilities.
With the settlement of these claims by Far East Islami Life, IDRA's commitment has begun to materialize. However, not all outstanding claims of Far East Islami Life have been fully settled yet. Activities are in full swing to gradually pay the remaining claims. According to IDRA sources, various necessary steps, including the sale of other company assets, are being taken for the swift settlement of these claims, which has instilled hope among customers.
In the same process, initiatives have been taken to settle long-standing unpaid claims of seven more insurance companies next month. IDRA has announced that the outstanding claims of customers of these companies will also be paid in phases. In this regard, necessary measures are being taken after thoroughly considering the financial capacity and available assets of the respective companies to ensure that each claim is settled on a fair basis.
The regulatory body further stated that its activities will continue uninterrupted to protect customer interests, establish good governance in the insurance sector, and restore public confidence by overcoming the long-standing crisis of trust. IDRA has also firmly declared that initiatives will be regularly taken to settle outstanding claims to reduce the dissatisfaction and frustration among customers caused by long-standing irregularities and delays in claim payments in the insurance sector.
These steps are not only reassuring for Far East Islami Life's customers but also convey a positive message for the entire insurance industry. It demonstrates that the regulatory body is committed to protecting customer rights and strives to build the insurance sector as a reliable and transparent industry. Experts in the sector believe that such measures will help rebuild public trust and confidence in the insurance industry in the future.
