Marine Cargo Business of Green Delta and BGIC Suspended for Three Months Over Below-Tariff Premiums
The Insurance Development and Regulatory Authority (IDRA) has suspended the marine cargo insurance business of two companies in the country for three months.
The two companies are Green Delta Insurance and Bangladesh General Insurance. IDRA issued a directive in this regard on Thursday (5 November).
Before the directive, an IDRA inspection team visited the head offices of Green Delta Insurance and Bangladesh General Insurance in person on 2 November.
The letter said the inspection found evidence that, in issuing insurance policies in 2026, premiums had been offered at various reduced rates, significantly below the prescribed marine tariff (cargo) rate.
According to IDRA, providing insurance benefits by accepting premiums at rates below the prescribed tariff is a clear violation of Section 60 of the Insurance Act, 2010 and of the authority's Circular No. 83/2021.
In this incident, under Section 10(1) of the Insurance Act, 2010, the two companies have been asked to reply in writing to the authority within 30 days as to why the registration of their marine cargo sub-class should not be suspended.
At the same time, under Section 60(2) of the Insurance Act, 2010, IDRA has ordered the suspension of the marine cargo sub-class insurance business of the two institutions for three months.
IDRA has also sought a reply on why the marine cargo insurance-related registration of the two institutions should not be cancelled, according to the directive.
