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Insurance MDs hold on despite govt age-bar PDF Print E-mail
Tuesday, 24 June 2008

Managing directors of four insurance companies are over 67 years-old but still in office, despite a regulatory decision that bars anyone over the age limit to hold the positions.

On June 18, 2007, the Office of the Chief Controller of Insurance issued a circular setting the age limit of 67 for managing directors of insurers.

The regulatory body issued a warning letter last December to the top officials of five companies—Pragati Insurance, Green Delta Insurance, Bangladesh General Insurance, Eastland Insurance and Karnaphuli Insurance—asking them to make necessary arrangements regarding the circular.

In response to the letter, Md Aliuzzaman of Karnaphuli Insurance resigned from his position.

But the rest—Rafiqul Islam of Pragati Insurance, Azizul Haque of Bangladesh General Insurance, Nasir A Chowdhury of Green Delta and Azmal Haque of Eastland Insurance—defied the decision, while a writ petition was filed with the High Court against the government's decision.

The petitioner, Nasir A Chowdhury, said the order lacked proper authentication from the government.

"The order has been proscribed without any vetting from the law ministry," said the MD of Green Delta.

Azmal Haque, MD of Eastland, echoed him saying the order was illegal.

"Since, there is no vetting by the law ministry it is illegitimate," he told

Meanwhile, a senior regulatory official said the High Court has ordered the letter issued to the four managing directors to be on hold.

"Until disposal of the case, the court said the letter would be seen as 'on hold'," Roy Debdash, controller of insurance, told

Both life and general insurance companies have mushroomed in recent years, contributing substantially to the economy. The premium growth of the industry was almost 23 percent from 2005 to 2006, according to statistics by the Bangladesh Insurance Association.

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