Insurer delays refunds to jobseekers as Idra distances itself despite complaints
Eleven people have lodged complaints with the insurance regulator and the police against Swadesh Islami Life Insurance Company Limited, alleging that officials extracted about Tk 31 lakh from them by making policies a condition of employment.
The complainants said they applied for Swadesh Life jobs after the insurer published a recruitment circular. They were contacted by company officials, interviewed and later handed appointment letters.
They were then told that joining the company required opening life insurance policies with Swadesh Life. Acting on that instruction, they opened policies and paid instalments totalling Tk 30.99 lakh.
But none of them was eventually allowed to join, and none has received a refund.
Now, upon receiving the complaint alleging financial fraud, the chief executive officer of Swadesh Life said the company would look into the matter.
Despite its legal power, the Insurance Development and Regulatory Authority (Idra) responded by saying the issue lay entirely with the insurer.
Meanwhile, sector analysts say such hands-off responses do little to rebuild confidence in an already-fragile insurance sector. According to them, without firm regulatory action, scams linked to insurers will continue to erode trust.
HOW THINGS UNFOLDED
In a complaint submitted to Idra on October 19, the group said Swadesh Life published the job advertisement on Bdjobs.com, prompting them to apply. They were later interviewed and given appointment letters.
Company officials told them new recruits had to open policies before joining, the complaint said. Although they were scheduled to join in phases between May 25 and August 25 this year, none have been able to start work. The money paid for the policies has also not been refunded.
Most of the complainants said they took loans to buy the policies, expecting to repay the money once they received their first salary.
"Now, unable to repay, we are under pressure from the lenders," they said.
After realising they had fallen victim to fraud, the group sent copies of their complaint not only to Idra but also to the Ministry of Finance, the Dhaka Metropolitan Police Superintendent, the Anti-Corruption Commission, the Detective Branch and the Police Bureau of Investigation in Dhaka.
One complainant, Abdul Mannan, also filed a general diary with Paltan Model Police Station in October.
As police action has yet to follow, Mannan told The Daily Star that they are preparing to file a case with the Chief Metropolitan Magistrate Court in Dhaka.
Abdul Jabbar Kawser, acting chief executive officer of Swadesh Islami Life Insurance, said the way the accused officials sold policies to the complainants did not follow proper procedure.
"However, they are now respected customers of the company," he said.
Under the law, a policy must remain active for at least 24 months to qualify for any surrender value, Kawser said. Since only one instalment was deposited, the company cannot legally refund the money at this stage, he added.
Kawser said it is difficult for the company to take responsibility for money that did not go through banking channels.
He added that the insurer would take legal action against the offences committed.
Contacted, Idra Spokesperson Saifunnahar Sumi said the Insurance Act does not allow the regulator to take legal action against anyone other than an insurer's adviser or chief executive officer.
However, sections 10 and 50 of the Insurance Act refer to regulatory powers to act against such offences linked to insurance firms.
Supreme Court lawyer Ishrat Hasan said the allegations against Swadesh Islami Life Insurance are extremely serious and constitute violations of several laws. Taking money from job applicants on the promise of employment is fraud and deception, a punishable offence under the law, she said.
As the matter involves criminal fraud, victims can file a case under the Code of Criminal Procedure, 1898 and seek legal remedy from the courts, she added.
Md Main Uddin, a professor at Dhaka University, said some insurance companies operate on the assumption that Idra will not act against misuse of policyholders' money. That belief encourages further abuses, including job scams where applicants are forced to buy policies as a condition for employment.
Swadesh Islami Life Insurance has more than 30 branches nationwide, around 10,000 policyholders and about 100 permanent employees.
In January 2024, the insurance regulator removed 12 of the company directors, including the chairman, over allegations of embezzling fixed deposits and violating the Insurance Act.
