Efforts to implement a zero per cent commission structure for individual agents in the non-life insurance sector have been further intensified, alongside strengthened monitoring and more transparent complaint resolution mechanisms. Authorities have placed renewed emphasis on ensuring that the ongoing transition is implemented effectively, fairly, and in full compliance with regulatory directives.
As part of this initiative, the third meeting of the Vigilance Team’s Complaint Verification and Hearing Committee was held on Saturday in a conference room of the Bangladesh Insurance Association. The meeting was chaired by the committee’s convener, Belal Ahmed. Discussions focused on assessing progress in the enforcement of the zero-commission policy and reinforcing the effectiveness of the supervisory framework.
According to relevant sources, a structured and multi-layered oversight system has been introduced to ensure continuous monitoring at field level. This system aims to eliminate irregularities in agent commission practices within non-life insurance companies and to uphold strict adherence to regulatory standards issued by the Insurance Development and Regulatory Authority.
In line with these directives, the Bangladesh Insurance Association has formed an 11-member vigilance team, while the regulatory authority has separately constituted a seven-member team. Both teams are working in coordination to monitor field operations, identify irregularities, and take prompt action against any deviations from the prescribed commission policy.
During the meeting, it was explained that any complaint related to commission matters is initially processed through the insurance information management system. A preliminary assessment is then conducted to determine the validity of the complaint. If sufficient grounds are found, the matter is forwarded to the hearing committee for further review.
The hearing committee ensures that both the concerned insurance company and the complainant are given adequate opportunity to present their cases. All statements, documents, and supporting evidence are thoroughly examined before reaching a final decision. This structured process is designed to promote transparency, ensure accountability, and maintain strict compliance with the regulatory framework governing commission practices.
Complaint Resolution Process
| Step | Activity |
|---|---|
| First Step | Receipt of commission-related complaint |
| Second Step | Verification through information management system |
| Third Step | Preliminary assessment of validity |
| Fourth Step | Submission to vigilance team |
| Fifth Step | Hearing of both parties |
| Sixth Step | Final decision and resolution |
The committee further observed that the initiative is expected to significantly reduce long-standing irregularities and conflicts of interest within the non-life insurance sector. It is also anticipated that the reform will restore discipline in commission structures and strengthen institutional governance across insurance companies.
Participants at the meeting emphasised that the initiative will enhance customer confidence and play a crucial role in improving overall governance in the insurance industry. Plans were also discussed to expand the scope of monitoring activities in the future, ensuring greater compliance at every level of operation.
Authorities reiterated that consistent supervision, strict enforcement, and an effective complaint resolution system remain central to the successful implementation of the zero per cent commission policy, which is being pursued as part of broader regulatory reforms in the sector.