Insurers call for raising cash transaction limit

Country's 45 non-life insurers have urged the authorities concerned to raise the cash transaction limit ten times from existing Tk 10,000.

Insurance Development and Regulatory Authority (IDRA) in its circular issued sometime in July stated that cash transaction for the non-life firms would be limited to Tk 10,000 in order to ensure transparency in their transactions.

But the insurers in their monthly review meeting organised at Dhaka Club on Sunday argued that this is a very small amount of money creating problems for them while they transact.

"Suppose, we bought fuel for some vehicles from roadside filling stations, but petroleum owners may not accept cheques…" Imam Shaheen, secretary general of Insurance Forum, a group of incumbent CEOs of life and non-life companies, told the FE.

The chairmen and managing directors of 45 general insurance companies sat in the meeting to review the status of 15 per cent commission.

The meeting, however, decided that they will meet the Insurance Development and Regulatory Authority (IDRA) shortly.

In the meeting, they also expressed satisfaction with maintaining compliance regarding the 15 per cent commission on procurement of business.

The IDRA in its circular asked insurance companies to maintain 15 per cent commission.

Sheikh Kabir, president of Bangladesh Insurance Association, presided over the meeting.

Chairman of Eastland Insurance Company Mahbubur Rahman, chairman of Pioneer Insurance Company AKM Rahmat Ullah MP, chairman of Union Insurance Company Muzaffar Hossain Paltu, chairman of Bangladesh General Insurance Company Towhid Samad and chairman of Nitol Insurance Company AKM Monirul Hoque spoke, among others, at the review meeting.

PK Roy, managing director of Rupali Bank, Farzana Chowdhury, managing director and CEO of Green Delta Insurance Company, Md Abdul Khaleque, managing director of Sonar Bangla Insurance Company, and Imam Shaheen, managing director of Asia Insurance Company, also addressed the meeting.