Non-life insurers can now collect premium thru MFS

Business Report :
Non-life insurance companies in Bangladesh will be able to collect premiums through mobile financial service (MFS) providers as the Insurance Development and Regulatory Authority (Idra) looks to facilitate the use of modern technologies in the industry.

In a circular yesterday, the regulator said a company can use a maximum of 10 corporate SIMs registered in its name to collect premiums. And those SIMs must be approved by the Idra.

Such premiums must be transferred to one of the three bank accounts designated by the company within two working days after the deposit of premiums.

If the fund is not transferred within the specified period, the liability will be borne by the insurer, the notice said.

The withdrawal of premiums collected through MFS should be done only through the bank account of the insurers.

Money can’t be withdrawn through MFS providers.

If premiums need to be refunded, it will have to be done through the bank account using bank drafts or pay orders.

Refunds can’t be made through MFS operators.

Before starting the process of accepting insurance premiums through MFS providers, information about the premium has to be sent to the unified messaging platform (UMP) of the Idra.

Premium collection can’t be initiated through MFS until an effective technical link is established with the UMP, the circular said.