CEOs of insurance companies can’t be given any additional salary, allowances, bonuses, and benefits beyond the limit stipulated in the laws, said the regulator on Monday.
In a notification, the Insurance Development & Regulatory Authority (Idra) said some insurance companies are giving additional benefits in the form of salaries and allowances to their CEOs than the limit set in the regulations.
Some companies are also proposing extra salaries and allowances that are contrary to the regulations and Idra guidelines.
So, the regulator asked the insurers to strictly follow the notification aimed at establishing discipline and transparency in the insurance sector and protecting the interests of insurance customers.
It also warned that it would take strict actions if the order is not complied with.
SM Shakil Akhter, executive director and spokesperson of the IDRA, said, “It has come to our notice that some insurance companies are giving more salary, allowances and bonuses to their CEOs. The notice has been issued in the interest of the insurance sector.”
Abdullah Al Mahmud, a member of the executive committee of the Bangladesh Insurance Association and chairman of Crystal Insurance Company Ltd, welcomed the Idra move.
He said: “It will be unethical if any company gives salaries and benefits that are higher than the regulations permit. Such practices are not good for the industry.”
The CEO of a life insurance company, on the condition of anonymity, echoed Mahmud, calling the Idra order appropriate.
“Policies like these are put in place to protect the interest of policy-holders,” he said.
