The Insurance Development and Regulatory Authority (IDRA) has warned against a fake circular circulating on social media that uses the regulator’s name to claim that nine non-life insurers have been instructed to raise their paid-up capital to Tk300 crore.
In a statement on Tuesday, IDRA said no such application had been submitted by the concerned non-life insurance companies and the regulator had not issued any directive or circular on the matter.
The fake circular listed Nitol Insurance, Mercantile Insurance, Takaful Islami Insurance, Prime General Insurance, Bangladesh National Insurance, Sena Insurance PLC, Reliance Insurance, Desh General Insurance and City General Insurance as companies required to increase their paid-up capital to Tk300 crore.
The fake document claimed that the companies would face legal action for failing to comply and would have to complete the process within 30 working days.
IDRA said the information was false and urged media outlets to verify information with relevant authorities before publishing or circulating reports.
The regulator warned that misleading information could create confusion among the public and negatively affect the normal operations of the insurance sector.
IDRA also requested all stakeholders to remain cautious about such fake and misleading information and verify information through reliable sources before accepting or sharing it.
