Photo : Collected
Golden Life Insurance Company Limited has allegedly deceived customers by looting 60 percent of their premium payments under the guise of expenses. Despite this, the company has failed to honor its obligations to policyholders by refusing to pay out insurance claims. As a result, 15,067 policyholders have been left in limbo, struggling for years to receive their rightful insurance payouts. These revelations have surfaced in the company's unaudited financial report for the period spanning January to December 2023.
According to the report submitted to the Insurance Regulatory Authority (IDRA) by Golden Life Insurance Company Limited, customers holding 15,067 policies are entitled to receive a total of Tk 34,96,19,292 across four types of insurance claims from the company by the year 2023. However, the company has failed to fulfill its obligations, withholding Tk 3 crore 47 lakh for death insurance claims, Tk 25 crore 87 lakh for term life insurance, Tk 1 crore 58 lakh for surrender insurance, and Tk 5 crore 44 lakh for special insurance.
Amjad Hossain, the Chief Executive Officer (CEO) of Golden Life Insurance, has acknowledged the issue of customers' outstanding claims. He informed The Daily Messenger that the company currently owes insurance claims amounting to Tk 34 crore. However, due to a cash shortage, the company is unable to fulfill these obligations. Hossain further stated that he has proposed a 'booster package' for the payment of insurance claims to the Board of Directors. If approved, he aims to settle the customers' demands by the following June.
Referring to the current dire state of the insurance field, Amjad Hossain mentioned that if the field had been in a better condition, there would have been no necessity for a booster package. In such a scenario, he could have easily settled the claims using the premium funds. He emphasised that the company prioritised the payment of insurance claims, placing utmost importance on the interests of the customers. Consequently, the premium income, including the life fund, was not retained within the company; rather, almost all of it was utilised to fulfill the insurance claims of the customers.
According to reports, the company presently operates 124 branch offices across the country. In the year 2023, these branch offices collectively earned a total of Tk 36 crore 3 lakh in insurance premiums from customers. However, out of this amount, Tk 23 crores 9 lakhs have been embezzled for as expenses. Additionally, the company has only invested Tk 5 crore 5 lakh, including funds allocated for the Actionable Fault Report (AFR). Despite this, the company currently bears a liability of Tk 32 crore 57 lakh.
Manihar Sabuj, a customer from Gazipur, informed The Daily Messenger that his 10-year insurance policy, which expired in 2019, has yet to yield any insurance payout. Despite reaching out to the company repeatedly over the past five years following the policy's expiration, he has been unable to obtain the insurance money.
Similarly, Sohail Mahmud, a customer from Cumilla, voiced a similar grievance. He stated that despite purchasing four policies with his siblings in 2010, each with an eight-year insurance term expiring in 2020, he has not received any insurance payouts to date. Mahmud asserted that he had diligently deposited money earned from working at people's homes, intending it for savings and insurance purposes.
The ongoing harassment experienced by customers of Golden Life Insurance has led to a significant erosion of trust in the company. This distrust not only impacts Golden Life's reputation but also casts a shadow of doubt over the entire insurance sector. Many in the insurance industry believe that stringent measures should be enforced against companies that demonstrate financial instability. Additionally, they advocate for severe penalties against entities that accept deposits from customers without the means to fulfill their obligations. Without decisive action, confidence in the insurance sector will continue to dwindle, undermining the trust and integrity that are essential for its functioning.
In response to the challenges faced by the insurance sector, Mohammad Zainul Bari, the Chairman of the Insurance Development and Regulatory Authority (IDRA), has informed The Daily Messenger about various initiatives undertaken to restore public confidence. As part of these efforts, the board of directors, managing director, and chairman of the concerned company have been summoned for discussions. They have pledged to expedite the payment of insurance claims, and strict measures will be taken if these commitments are not honored.
Messenger/Fameema
