The insurance regulator on Thursday appointed an administrator at the Delta Life Insurance Company Limited after suspending the company's board of directors for four months amid allegations of financial irregularities.
Sultan-ul-Abedin Mollah, a former member of the IDRA, joined the office of the company on the same day after getting appointment as the administrator in the company "to protect the policyholders' interest".
The Insurance Development and Regulatory Authority (IDRA) has appointed him for the betterment of the leading life insurance company, Mr. Mollah told the FE after taking charge of the company.
"I will work on protecting the policyholders' interests as per the IDRA order," he said, adding that he would play the role of an administrator as per clauses 95 and 96 of the Insurance Act 2010.
He said he would facilitate conducting an investigation into the alleged irregularities in the company. "I'll submit a report after four months."
According to the regulator, the businesses, including issuance of new policies, of the company will continue as usual.
Earlier, the IDRA had appointed external auditors to examine two reports of the company and found a number of irregularities in Delta Life.
The regulator, however, came up with the steps after the VAT Intelligence Department filed a case against the company for evading VAT of about Tk 351.7 million.
In a press release on Thursday, The VAT Intelligence Department said the company evaded VAT amounting to Tk 98.0 million as it paid only Tk 4.05 million against a payable amount of Tk 102.13 million under the health insurance.
Scrutinising the annual report of the firm, the investigation also identified evasion of Tk 46.9 million in VAT at source.
The company also evaded Tk 17.4 million against a payable amount of Tk 32 million for space and establishment rent.
The FE tried to get comment from the company officials, but repeated calls were not entertained. The cell number of the managing director was switched off.
The newly appointed administrator also refused to comment on the issue.
The Delta Life Insurance Company started its journey on December 17, 1986. The company provides different types of insurance services through its array of products catering to the need of people belonging to different strata of the society.
The company provides traditional insurance coverage along with savings such as Ordinary Life, Gono-Grameen Bima, Group and Health Insurance.
According to the company's website, it is conducting operations through over 1,000 offices across the country while around 20,000 field forces are taking the service at the door step of the mass people.
Delta Life, presently an 'A' category company, was listed with the stock exchanges in 1995.
The company's sponsor-directors hold 36.64 per cent shares, institutes 24.25 per cent and general shareholders 38.51 per cent as on January 31, 2021.
The company's share price was Tk 72.20 each on Thursday on the Dhaka Stock Exchange (DSE).
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