Clarification sought from Homeland Life Ins

The Insurance Development and Regulatory Authority (Idra) has asked Homeland Life Insurance Company Ltd why its chief executive officer (CEO) should not be removed for not providing information sought by a chartered accountancy firm for financial audits. 

The firm was appointed by the Idra in September last year to audit the insurer's financials for the 2018-2020 period, including outstanding insurance claims, management expenses and commission payments.

In a letter to the Idra in January this year, the firm said the insurer was not providing necessary information despite repeated requests.

The Idra issued a show cause notice to the company's CEO in May. A tripartite hearing was held at the Idra on August 10.

The matter over the CEO removal was raised in a letter sent to the company by the Idra on August 14 seeking clarification, an Idra official told The Daily Star.

The company has been asked to explain why it did not assist the firm in providing adequate information, Mohammad Zainul Bari, chairman of the Idra, told The Daily Star yesterday.

Faridul Alam, the insurer's head of marketing, and CEO Biswajit Kumar Mondal did not respond to calls and SMS from this newspaper yesterday.

Over 37,000 clients of the insurer are in uncertainty over settlement of claims owing to a lack of liquidity caused by alleged irregularities in the company, according to a report published by The Daily Star on July 16 this year.

The company has unsettled claims amounting to Tk 79 crore, according to the Idra.