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Dhaka: A recent directive concerning the renewal fees for insurance companies has sparked widespread controversy within Bangladesh’s insurance sector. The Insurance Development and Regulatory Authority (IDRA) has mandated that companies pay additional fees under the revised Insurance Business Registration Fee Rules–2012. However, industry insiders are criticising the move as both unreasonable and legally questionable, since most firms have already settled their fees at the previously established rates.
Insurance experts argue that, under the Insurance Act, 2010 and the IDRA Act, the authority does not possess explicit powers to demand such supplementary fees. Consequently, the legal validity of IDRA’s recent directive has come under scrutiny.
According to sources, the controversy traces back to July 2024, when the disputed company Duar Service Limited objected to a bill payment. IDRA then justified its decision to increase the renewal fee up to fivefold by citing the provision of free SMS services. Industry reports allege that companies refusing to pay the revised fee faced threats of having their registrations withheld—a significant concern, as insurance firms cannot legally operate without a valid registration.
Under the law, renewal applications must be submitted annually by 30 November, based on the previous year’s gross premiums. The fee is calculated per 1,000 taka of total gross premium collected, making precise accounting essential.
The government gazette issued on 4 February 2026 formally amended the Insurance Business Registration Fee Rules–2012, and by 19 February 2026, IDRA instructed companies to pay fees at the newly increased rates.
Revised Insurance Renewal Fees (per 1,000 Taka Gross Premium)
| Year | New Rate (Taka) | Previous Rate (Taka) |
|---|---|---|
| 2026–2028 | 2.50 | 1.00 |
| 2029–2031 | 4.00 | 1.00 |
| 2032 onwards | 5.00 | 1.00 |
Experts point out that the fee already paid in November 2025 was determined based on 2024 gross premiums. Imposing additional fees in February 2026 could complicate accounting and auditing processes.
Brigadier General (Retd.) Md. Shafik Shamim PSC, Secretary General of the Bangladesh Insurance Forum (BIF), stated:
“The decision to charge the increased fee for 2026 should be reconsidered. Implementing the new rates from 2027 would allow companies sufficient time to prepare.”
Similarly, S M Nuruzzaman, President of the Bangladesh Insurance Association (BIA), emphasised:
“Raising fees for 2026 despite payments made in November 2025 is unjustified. At minimum, the current renewal should reflect the previous rate.”
As a result, criticism of IDRA’s directive continues to grow, with companies and industry bodies urging a review of the decision to mitigate operational disruptions and financial complications.