THE protection of insurance customers depends on the collective responsibility of all individuals and institutions involved in the application, sale and administration of insurance policies. This includes insurance agents, brokers, surveyors and any person or organisation providing services to insurance customers or companies, as well as service providers appointed by the Insurance Development and Regulatory Authority.
According to the 鈥楥orporate Governance Guidelines for Insurers, 2023鈥�, the members of the 鈥楥ustomer Protection and Grievance Redressal Committee鈥� formed by the board of directors are tasked with ensuring the timely resolution of claim-related complaints. They must also establish proper mechanisms and effective measures to safeguard customer interests. In addition, the committee must take necessary steps to protect customers as stipulated in the Insurance Act and other applicable laws of Bangladesh, and formulate key policies for the prompt disposal of customer grievances.
To enable efficient resolution of complaints under the said committee, the management authority should constitute a three-member body dedicated to complaint resolution. Clear and effective procedures should be maintained for receiving, recording and addressing complaints, preferably through information technology-based systems operated from the insurer鈥檚 head office. Every insurer should publicise its complaint-handling process and activities in a printed booklet or other easily accessible medium, for the awareness of both customers and the general public. These processes should also be prominently displayed on the insurer鈥檚 website. Complaints received through phone calls, emails or other channels should be sincerely attended to and resolved within a maximum of thirty days.
A complaint shall be considered settled or closed only when the insurer has fully addressed all concerns raised by the complainant, or when no response is received within eight weeks of sending a written reply. Should an insurer fail to resolve a customer鈥檚 complaint, the aggrieved customer may seek redress by applying to the Insurance Development and Regulatory Authority or to a dispute resolution committee constituted under the law. Under no circumstances may a customer be prevented from approaching the authority or the relevant committee.
Insurers, agents, brokers, surveyors and related service providers are obligated to maintain appropriate security measures to protect customer information. Disclosure may only occur under a lawful court order or upon a legitimate request from a competent authority.
If an insured person deviates from any of the terms stated in the insurance contract, protection will still be available in respect of the remaining portion of the agreement, excluding the deviation. However, minor clerical errors that do not materially alter the basic terms of the contract will not deprive the insured of protection. Should any information change or require disclosure after the signing of the insurance contract, the insured must inform the insurer in writing. Policyholders must also preserve all receipts and relevant documents relating to their insurance plans or policies.
Every insurance plan or policy must be approved by the Insurance Development and Regulatory Authority and no deviation from the approved version may be made during sale. The actual benefits, terms and conditions must be communicated to customers in clear and simple language. A policy cannot be sold under any name other than that approved by the authority. Policy documents must clearly state the insurer鈥檚 name, registration number, contact details and address, along with the policy鈥檚 class, description and the agency鈥檚 address. No verbal or written assurances may be given to customers that are inconsistent with the approved plan.
Insurance policies must be recommended in line with the customer鈥檚 specific needs or demands, and not through persuasion or undue influence. No false or forged documents may be presented, nor may any contractual change be made without the customer鈥檚 written consent. Customers must be informed beforehand of any restrictions, penalties or risks associated with policy maturity, withdrawal or investment-related aspects. Procedures for filing complaints, both with the insurer and the Insurance Development and Regulatory Authority, should be detailed in all policy documents. Moreover, if a policy involves investment, no guarantee of return may be offered.
Insurers, agents, brokers, and surveyors must conduct all dealings with honesty, fairness, professionalism and diligence. Prospective customers should be provided with clear and legible printed materials, including marketing proposals and prospectuses, that accurately outline the policy鈥檚 benefits, coverage, limitations, disclaimers and other relevant information. Such transparency is essential to allow customers to make informed decisions regarding proposed or existing policies. Each insurer must also maintain a proper database of customer information and provide relevant details upon written request by the insured.
Communications and transactions with insured customers should use plain language and follow a standard format. All written documents 鈥� marketing agreements, forms, statements and testimonials 鈥� should be available in Bangla or both Bangla and English. All financial benefits, charges, fees, and conditions should be explicitly described. The insured must be fully informed of all obligations under the policy. A receipt for any policy sold should be generated and stored electronically or digitally within fifteen days of the sale; it must also be sent to the insured. No entity other than the insurer is authorised to issue electronic or digital receipts.
Customers should never be asked to sign blank or partially filled forms during policy applications or transactions. No insurer, agent or broker may attempt to induce a customer to alter, cancel or replace an existing policy, nor engage in fraud or deception in dealings with potential customers. In any complaint, misconduct or legal investigation, all parties, including the customer, must be given an opportunity to defend themselves. Customers should not face harassment or undue delay in the settlement of valid claims.
Insurers should distribute booklets, brochures and other materials to raise public awareness about insurance, and make use of electronic media to reach a wider audience. They should also organise seminars, conferences and workshops to foster the development of the insurance industry nationwide. Updated lists of policies and schemes should be displayed on insurers鈥� websites and disseminated through social media to enhance accessibility and transparency.
To ensure the protection of insurance customers and to promote and expand the country鈥檚 insurance sector, these guidelines have been compiled in accordance with the directives issued by the Insurance Development and Regulatory Authority.
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Sarfaraz Hossain is a company secretary of Peoples Insurance Company Limited.
