Green Delta Insurance and Bangladesh General Insurance Company (BGIC) have been barred from conducting marine cargo insurance business for three months after charging premiums below the Bangladesh Marine Tariff, fixed by a regulatory committee.
The Insurance Development and Regulatory Authority (IDRA) issued separate orders to the two insurers on 5 November, following inspections of their head offices on 2 November.
The insurance regulator also gave both companies 30 days to explain why their registrations for the marine cargo sub-class should not be suspended.
In the notices, IDRA said its inspection team found that the companies had issued policies in 2026 at premiums significantly lower than the prescribed marine cargo tariff rates.
The authority said the practice violated Section 60 of the Insurance Act 2010 and a 2021 circular.
The regulator ordered a three-month suspension.
Separately, it sought written explanations on why the companies’ registrations for the marine cargo sub-class should not also be suspended.
The orders target only the marine cargo insurance business of the two companies.
The question of suspending their registrations for the sub-class remains subject to the regulators’ review of their replies, according to the IDRA letters.
