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Eil. '= lnsurance Bevelopment & Regulatory Auttrorit!

No. IDRA1GAD/1003l2O11 -961\ )

Date: 24$ Novemlrer 201 1

Sadharan Bima Corporation and

AII Non-Life lnsurance Companies
Circ,ular No. cen - 2912011

lr the overall interesi of the industry, insuring cominunlqi end as a part qf long tern poiicy
strategy all concerned are advised to strictly abide by the following instructions with eflect from
01n December 2011 |

1) Any premium above Tk, 5,000/- must be received by dernand draftls or pay o.der/s or credit
advice/s or electronic fund transfei/s or acccunt payee cheque/s (insurance Coauritents to be
issued only after encashment of the €heqle) only. Full premiilm must be received by $e
company before lssuing any cover notet tolicies, endoasements or any cther insurance
instruments. Demand draft q
pay order or cheque number and date shall have to be
mentioned in the money receipt.
2) Any refund of premium, irrespective of amoLlnt, ..ust be pald by account payee cheque
payable only to the cllent.oncerred.

3) Any payment of claim, irrespective of amount, must be paid by account payee cheque bearing
the name of the concerned pafties onl,v.


CHAIRMAN \clvrr( z-1
C.c. tor (Not in order of seniority) {\g q lr.rL l,-1-
letrts<' I t,
1. Secretary, Bank and Finan.ial Instjtutions Divisio., t4inis!ry of Firance.
2. Governor, Banqladesh Bank
o{\ tmo /+f
3. l,laraging Direcior, S3dharan Bima Corporation. ?r* -n*-t \?l
4. Gereral l.lanager (Under,rrting), SBC, DhaLa. 1a
t -'-
5. General Manager (Re-irsurance), SBC, Dhaka.
6. l,1an?ging Director, Bangladesh GeneGllasL.rrance Co. Ltd.
7. Manaqinq Director, peoales lnsurance Co. Ltd. t\lV.
8. llanaging Diector, Green Delta Insu.ance Co. Ltd.
9. l.lanaEang Diredor/ Pragah lnsurance Ltd.
Sadharan Binra Blraban 1. (lnd & 3rd r:loorl I 19. \lout ..rl (', \. nr,,. ,-000. a.,g-t *n
Phone : E80 :-9567510 Fix : 8E0 956515{. \\;b : 11y\i, idra ors bd
388 lnsuftnce Rules, 1958 . lnsurance Rulel

FoRM XVllt FoRM X)

l.\cc tttrlc:6(t) and 27(t)l lsee llule 52 d the lnsllra
' Department oflnsurance
CER'UFrcATf, -r'o,.\cr As AN INSURANCE SuRvEyoR

Mrs/l\4iss/Mcsscrs ln considcmlion of 1he .. ... . lnso
callcd thc lnsurct haYing al thc rcquesl o
rs/arc hcrcb\ aulhor;cd lo acl aS an Insurancc Suncl.or for pcriod
a$ccd lo assumc risks in rcspccl of proPos
oforl made b\ this Minisl4/DepanmcnL/Omce. \
rc tro r .. ....
.. ro.
to conduct insurancc sun cl in respcct ol. ..... .. .. .-... . of thc insu?ncc premium in rcspcct Ircrco
..... -- do ltercbY agrec and undenakc lo Pa,\" the I
SigMture of pa'r'ablc within si\t] da]s.trom fte dale t
Chicf Conirollcr of Insuranc!
prcmium is rcceii-ed from ihe lnsuler
Authorrscd Ofliccr When rcfcrrinS lo tlus armngemenl plE
S;gnaLurc of Ccrdficarc Holdlr ;l

lsec llule -11 althe lntltrancc Rule tg'8l FORM X
In consrdcralior oflhe . . ........-... Insurancc CoNpanI Ltd.. hereinafiif VTRTUf, OF HOIDING POLICU'S I
crllcd Insl]rcr. lurirrg al thc rcquest of MessTk. (\ane o/ tht PROPRIETORS AI\D S
ln\wei.lynt) .
ltcrcl,$1t cail€d lhc tnsured./Agenr ageed 10 assumc ri;ks i;
rcspccts of proposals for insLrrancc madc bl, rhc Iisurcd Agenl lridroui S€rirl DI& of
irl\.\r, ! on pnor prft,rcnl o[ thc msu"ncc prcntr] r ca.h casc ar rcqutrcd by No, bctoming
Lrr $- ltrc /\,//,, .,/1,, /hat.,r.. do trcrcb\ agr.c and undcnale ro prl tli
rnsurcr snch suln or suns not cxcceding Tk... a5 mnt,be dcnBnded_b\ prictor or Full namc Addr
ln.Icr I, rlr c\cnt ot ttrc firturc of thc ]nsured Agent lo pi\ betoR ttr; htl shars.holder.
d.'\ of rl,c crlcndrr rnolttr nc\l fojtosrng tl,c calcndar rn;ndr rn $txch lho [! ddurcd in
ctlcllcd. tlc In\u,Tncc prcmrr rn rcspecl of llr
lnsurdnc! (2) (3)
clfcclcd b\ thc hsurcr on nsks undcnakcn o. *r,c.ea ty Urc t s*". on lt)
birsis lhrl ary dcrirnd so rnadc b\ lbe tnsurer is conclusilc elidencc of sudh
nonra\rncfll b\ 1l€ lnsurccyAgenl lo t]tc Insurer
TL.,r ari,r'cc $rll rcrnrrn rn lorcc to a pcfiod o. onc.crr lrJrn lllc dxte
1..1. i i r d o r' Lnbrht hcrcrurdcr r( hnJrcd in r-. Jrtrc!,r.c to ? .uIr of ft
\\'[cr] .cIc.nru lo llus irrmngcnrcrl ptmsc qnolc out C L No
For (N:rmc oflhc B.nkcrs,
(sd )
IDRA'S highest ever frre imposed on Progati Ins I STOCK & COR.. http://wi!w.thefi nancialexpress-bd.conr./20I 5/06/16/96789

A A- a+ ll!
IDRA'S highest ever fine imposed on Progati Ins

The lnsurance regu ator imposed a

nne of Tk 30 mllllon on l.4onday on
a non-life inslrance company- This
s the ever hlghest penElry in the
nsu.ance sector of the colntry.

This amount of fne ls almost

equivaent to 70 per cent of its all
previous tlnes lmposed on 35
no.-lfe lirms shce 2011.

Th€ reg! ator ls on a crusade

against business on cred ts snce 2011. It had issued a clrcular on it n November

It had flned Pioneer lnsLrance Tk 3,9 mlllo. ln December 2014. And that was til then

But Monday'sfine has supeeded allprevous r€cords.

The Ins!.ance Development and Resu atory authorty (IDM) has fined Prooatr
Inslrance company for its do ng bus ness on credits.

The reoulator has found that eight of ts branches ln the cty were invoved ln the

In instant reactions, represe.tatives of the Progatl €xpr€ssed thelr deep dsmay and
some ofthem said the €gulatorcoud have ha.ged theh t ldeath instead of imposlng
slch a big amountofRne,

The regu ator has folnd that ts eight branches have been doing busl.ess on credit
slnce 2011, ft said the insurance company even d d not oet premlums for years,

on llonday the jDRA inposed Tk 6.0 m on ln f ne for Prooau's blsiness on cred t at

its sadarghat branch, Tk 5.4 hllion at llotijhee branch, Tk 3.6 mlllion at Elephant
Road, Tk 4,2 million at KaMan Bazar branch, Tk 1.2 mi onatBimanBhava.
branch, Tk 3,3 ml on at Dllkhusha branch, Tk 3.9 millio. at aangabandhu Avenue
branch andTk 2,4 m llon at l.4alibagh branch.

The fnes have been mDosed on the comDany, cher erecutlve offcer and branch

The flnes lsua y have to be pald within seven days after formal lssuance of letter.

The requlator has imposed the fines lnderthe sectioi of 1a(3) ofthe Insurance Act of
2010 and the corresponding sedionsfrom 44-51olthe Rlles of 195a,

lDRA charm6n M shefaque Ahmed 9reslded over Mondays hearlng while lts two
fe_oes -- ! J's o ala_ aldlzLba-al-meo rhd-l- werealcop.e.e,r.

Progoti Insuran.e manaqin! director Md l,lonkul Islam and managers of aleiqht

branches were present durinq the hearing, 16106/201511 4'7 AM

Pragati lnsurance Limited
Head office
Pragati lnsurance Bhaban
z|-2l,Kawtan Bazat


Date-----2015 for Tk. ......

ln consideration of PRAGATI INSURANCE LIMITED lPlL),Pragati lnsurance Bhaban,20-21,Kawran

sazar (14th,15rh & 16th Floor),Dhaka-1215 , hereinafter called the lnsurer having at the request of

M/s. United Surgical Ltd. hereinafter called the lnsured agreed to assume risks in respect of
proposais for insurance made by the lnsured Agent without insisting on prior payment of the
insurance premium in each case as required by the Law, we, the (HsBc Bank Ltd.) do hereby agree

and undertake to pay the lnsurer such sum oT sums not exceeding TK. 200,000/- as may be
demanded by the lnsurer intheeventofthefailureofthelnsuredtopaybeforethelastdayofthe
calendar month next following the calendar month in which the Insurance was effected, the
lnsurance premium in respect of the insurance effected by the lnsurer on risks undertaken or
covered by the lnsurer on the basis that any demand so made by the lnsurer is conc lsive evidence

ofsuch non-payment by the Insured/Agent to the lnsurer.

This guarantee will remain in force for a period of one year from the date hereot i.e. the guarantee is

valid up to ..................and our liability hereunder is limited in the aggregate to a sum of Tk.......

When referring to this arrangement. Please quote our guarantee number.

For and on behalf of


Authorized siBnature Authorized signature

With seal& PA NO. with seal & PA NO.
(Bank) (Bank)