Kathmandu. The Bangladesh Insurance Association (BIA) has directed all non-life companies to strictly implement the ‘zero commission’ policy in the non-life insurance sector. The directive came after a circular issued by the insurance regulator IDR.
The circular, signed by its secretary Mohammad Umar Farooq, was sent to CEOs of all non-life insurance companies on February 23. As per the directive, the license of all insurance agents under non-life insurance companies has been suspended with effect from January 1.
As a result, any accredited agent license will not be valid from that date and there will be no opportunity to pay any commission.
In this regard, the association has directed the companies concerned to obtain commitments from all their branch managers as part of implementing the ‘zero commission’ policy announced by IDRA for non-life insurance companies. It has also been asked to inform the association after receiving the commitment. –Agency
